International Container Terminal Services Inc. (ICTSI)—controlled by Philippine billionaire Enrique Razon, Jr.—is expanding its global footprint in Indonesia with the proposed acquisition of a controlling interest in a port in Southeast Asia’s largest economy.
ICTSI is buying a 66.7% stake in a multipurpose port in East Java’s Lamongan Regency, about 790 kilometers east of Jakarta, for $46.5 million, the Philippine-listed company said Wednesday in a regulatory filing. “The purchase will increase ICTSI’s footprint in the growing Asia Pacific region and provide further service offerings to its global and local customer,” it said.
The acquisition will be ICTSI’s third investment in Indonesia. It also operates PT Makassar Terminal Service—a container terminal in southern Sulawesi that provides domestic and international shipping connections—and the Port of Tanjong Priok in northern Jakarta, according to its website.
ICTSI has been expanding its cargo handling capacity at its terminals around the world as global trade recovered to pre-pandemic levels last year. Its flagship port in Manila is undertaking a 15 billion peso ($268 million) expansion that will enable the terminal to handle mega ships that carry up to 18,000 twenty-foot equivalent units of containers.
Razon, 62, has been expanding the port business—which was started by his grandfather—globally. ICTSI, which has subsidiaries across the Asia Pacific, the Middle East, Eastern Europe and the Americas, posted a 58% jump in net profit to $142.3 million in the first quarter after quadrupling to an all-time high of $428.6 million in 2021, bolstered by higher shipping volumes and rates. With a net worth of $5.8 billion, Razon also has interests in casinos, water utilities and renewable energy.