Global ports operator International Container Terminal Services Inc. (ICTSI) sees room for growth this year as it monitors any potential fallout from US President Donald Trump’s trade policies.

While the full impact on its operations remains uncertain, ICTSI chairperson and president Enrique K. Razon Jr. on Thursday cautioned that the company’s terminal in Mexico could be vulnerable if sweeping import tariffs persist.

“It’s too early to tell the impact since Trump is flip-flopping every day,” Razon said at ICTSI’s annual shareholders’ meeting. “It is also early to tell how these tariffs will settle.”

Still, he acknowledged that of ICTSI’s global terminal portfolio, its Manzanillo terminal in Mexico is the most exposed. 

“The only major impact that could be possible would be at the Manzanillo terminal in Mexico, but so far it is still a wait-and-see,” he said.

‘It’s too early to tell the impact since Trump is flip-flopping every day.’

For ICTSI, a significant trade disruption involving the US could have ripple effects, but Razon pointed to the company’s relatively limited exposure to US trade.

“Out of our portfolio, trade with the US is only three percent,” he said. That narrow exposure, he added, could even open up strategic advantages should China seek to redirect its exports amid US tariff pressures. 

“There could be benefits,” Razon said. “I suspect with China’s massive industrial installed capacity, they will be looking for another market. So it may be offset — one offsets the other.”

Profit up 66%

In 2024, ICTSI reported a record net income of $849.8 million, up 66 percent from the previous year. Strong revenues and cash flow, higher container volumes, an improved cargo mix, adjusted tariffs, and expanded services drove this performance.

Revenues rose 15 percent to $2.74 billion, while free cash flow increased 12 percent to $1.08 billion. EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 18 percent to $1.78 billion, with margins improving to 65 percent from 63 percent in 2023.

Port operations earnings also climbed 15 percent to $2.74 billion.

Due to volume growth and salary increases, operating expenses rose 10 percent.

The company handled 13.07 million twenty-foot equivalent units (TEUs) last year, up two percent, boosted by new services and trade activity. Stripping out the effect of new and discontinued operations, volume grew 5 percent.

Capital spending reached $517.1 million in 2024, with investments in Mexico, Brazil, Indonesia and the Philippines. 

ICTSI plans to raise $580 million this year to support its global expansion.