In the brief window for questions during International Container Terminal Services Inc.’s (ICTSI) annual meeting on Thursday, investors zeroed in on one issue that was top of mind: the potential fallout from Trump-era tariffs and how it could affect ICTSI’s sprawling network of over 30 global ports.
Razon admitted it’s hard to plan or predict anything given the inconsistent signals from Washington.
“It is too early to tell the effect of the Trump tariffs since President Trump seems to be flip flopping everyday on this and creating chaos throughout the global economy,” said Razon, the chair and president of the P700 billion ports giant.
“It’s also too early to tell how these tariffs will finally settle when all the dust is settled,” he added.
Major impact seen on Mexico port
With Trump’s tariff assault targeting both foes and allies—including neighbors Canada and Mexico—Razon anticipates that “the only major impact that could be possible or potential would be our Manzanillo terminal in Mexico.”
But he noted their diverse operations could shield the firm from the worst effects of the tariff war.
“Depending on how this settles down, there could be or there may not be, but out of our total portfolio, trade with the United States is only 3 percent,” he explained.
Upside potential from China?
There’s also a chance that China will shift to other markets to offset the impact of disrupted trade with the US.
“[I] suspect that with the massive industrial installed capacity of China, they will be looking for other markets, and if they’re unable to access the US market. So maybe, one offsets the other but still too early to tell,” he said.
ICTSI share price resilient
Shares of ICTSI, trading under the stock symbol ICT, have lost nearly 13 percent since the start of the year but remain higher by 2.41 percent over the past 12 months.
This compares with the Philippine benchmark index’s nearly 6 percent decline over the past year.
Razon continues to invest despite risks
ICTSI is setting aside $580 million in 2025 for terminal expansions, equipment upgrades, and maintenance across key sites including Contecon Manzanillo S.A. de C.V., Manila International Container Terminal and Rio Brasil Terminal.
The company also ended the past year with cash holdings of $1.1 billion.
“This significant cash balance, together with the signing in December 2024 of a $500 million eight-year loan facility from one of the country’s biggest banks, provides ICTSI with ample liquidity to undertake the planned capital expenditure program plus fund strategic mergers and acquisitions to further grow the company, refinance maturing loan obligations as they come due, and provide a return to equity holders,” Razon said during the meeting on Tuesday.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
