ICTSI showing signs of better risk management


Drewry Maritime Equity Research (DMER) believes that International Container Terminal Services Inc. (ICTSI), considered one of the biggest risk takers amongst global container terminal operators, is now showing signs of better risk management that will assist in its long term sustainability.

The differential in expected container volume growth rates between the developed and emerging markets has led operators to focus attention on emerging market opportunities and seek to rebalance their portfolios.

One of the key perceived negatives for ICTSI in the past has been the geopolitical risks associated in some of its investments in economies such as Pakistan, Syria and more recently in Iraq that can provide robust returns. Additionally risks associated with many startups present another big challenge.

However, DMER believes the company is now following a better risk management strategy, where it is taking many steps to reduce or diversify risks, such as investing in less-risky markets, partnering with experienced global players in its terminal start-ups, and selling partial stakes in existing assets – measures that DMER expect to pay-off for the Manila-based operator in the near future.

Despite these recent moves, DMER still expects ICTSI to retain its expansionist philosophy, for the next few years at least, and, when given its high ROI targets, remain as one of the most aggressive amongst global container terminal operators. Yet DMER feel that it is heartening to see the company’s ‘practical approach’ towards reducing/diversifying some of these risks.

Daily Email Newsletter

Sign up to our daily email newsletter to receive the latest news from Port Technology International.

Supplier Directory

Find out how to get listed

Webinar Series

Find out how to attend

Latest Stories

Cookie Policy. This website uses cookies to ensure you get the best experience on our website.