Port operator International Container Terminal Services Inc. formed a new company for its business process outsourcing operations in the Asia-Pacific.
The company owned by billionaire Enrique Razon Jr. told the stock exchange subsidiary Cordilla Properties Holdings Inc. established a premier shared services company called ICTSI Asia Pacific Business Services Inc.
The new company aims to deliver business process outsourcing and other related services to subsidiaries and affiliates of ICTSI in the Asia-Pacific region and other clients globally.
SSC will operate as a separate support organization to provide cost-efficient services to ICTSI’s business units.
“More importantly, the SSC will streamline business processes, enable best practices, create operational efficiencies and deliver a superior customer experience,” ICTSI said.
ICTSI said net income in the first nine months improved to $143.7 million from $142.3 million a year ago as gross revenues from port operations rose 2 percent to $792 million from $779.2 million.
ICTSI attributed the revenue increase to volume growth at most of the company’s terminals and favorable volume mix and higher ancillary services at Subic Bay International Terminal Corp. in Zambales province.
The port operator handled consolidated volume of 5.77 million twenty-foot equivalent units in the first nine months of the year, or 7 percent more than 5.41 million TEUs it handled in the same period in 2014.
The increase in volume was mainly due to the increased container traffic at Contecon Manzanillo S.A. in Manzanillo, Mexico; Operadora Portuaria Centroamericana S.A. de C.V. in Puerto Cortez, Honduras; Pakistan International Container Terminal in Karachi, Pakistan; Yantai International Container Terminal in Yantai, China; and the company’s new terminal, ICTSI Iraq in Basra, Iraq.
The company’s eight key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras, which accounted for 77 percent of the group’s consolidated volume in the first nine months of 2015, grew 5 percent year-on-year.
ICTSI’s capital expenditures amounted to $254.6 million in the nine-month period, or about 48 percent of the $530-million capital expenditure budget for the whole 2015.
“The established budget is mainly allocated for the completion of development at the company’s new container terminals in Mexico, Honduras and Iraq, capacity expansion in its terminal operation in Manila, and to start the development of the new terminals in Democratic Republic of Congo and Australia,” ICTSI said.
ICTSI invested $79.1 million in the development of Sociedad Puerto Industrial Aguadulce S.A., its joint venture container terminal development project with PSA International Pte Ltd. in Buenaventura, Colombia.