The need for speed
OUR MOVEMENT in the world is measured by time, and in a world that moves faster, perhaps it’s a good idea to wear a watch that looks like it can move as quickly as the world that surrounds us.
ICTSI expects strong growth to continue this year
By Imee Charlee C. Delavin,
Senior Reporter
INTERNATIONAL Container Terminal Services, Inc. (ICTSI) is looking at a better performance this year, as its diverse investments around the world are expected to bring in profits amid headwinds that continue to affect global trade.
“[It’s] always positive. Our outlook has been very strong, we have a very diversified portfolio. The good thing about having a very diversified portfolio is when you kind of feel stressed in one region of the world, it’s mitigated by benefits and success in other regions of the world,” ICTSI Senior Vice-President and Regional Head of Asia Pacific Christian R. Gonzalez said in a recent interview.
“When a lot of these economic noise that’s out there now kinda dies down, we see a very, very positive outlook for global trade and better growth certainly than we saw last year and this year,” he added.
ICTSI saw its attributable net income went up 207% to $180 million in 2016 from the $58.5 million recorded in 2015 driven by strong volume growth and revenues from its port operations.
In the first quarter of 2017, the Enrique K. Razon-led port operator saw its net income attributable to equity holders jump 23% to $51.7 million from the $42.2 million it earned during the same period last year.
Mr. Gonzalez said as long as its ports are able to handle the requirements of big ships, then the operator could expect “better growth” trajectory from last year.
“As long as we can handle big ships and our infrastructure continues to meet the requirements of these bigger ships, I think the outlook is going to be very, very strong. The places where we just recently developed — Iraq, Colombia, we’re now pushing forward already in Honduras — obviously are gearing up for bigger ships. Melbourne also being in a position to handle much bigger ships than the competition, I think again the outlook is very, very strong,” Mr. Gonzalez explained.
ICTSI earlier moved to bid for new projects this year to sustain its growth momentum amid headwinds that continue to affect global trade, including the protectionist policy of the Trump administration.
The port operator made a bid for Greece’s second-largest port last May, but lost out to German private equity firm Deutsche Invest Equity Partners.
Recently, Mr. Gonzalez disclosed that ICTSI is currently monitoring three port projects in Africa, one in Asia, and another in an undisclosed location.
Adding more terminals around the world will help the company minimize the impact of risks in some of the ports it operate.
ICTSI, which operates 30 terminals in 20 countries, has set its capital expenditure this year at $240 million. Last year, the company spent only $391.9 million of the programmed $420-million capex as most of its expansion projects were completed.
For this year, the capex is mostly “for the completion of the initial stage development of the company’s greenfield projects in Democratic Republic of Congo and Iraq; the second stage development of the company’s project in Australia; continuing development of the company’s container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila.”
In 2016, ICTSI completed the initial stage of its new container terminals in Australia, Democratic Republic of Congo and Iraq.
As of end March, the Razon-led port operator already spent $33 million, approximately 14% of the planned capital expenditure budget for the full year 2017.
Rockwell, Mitsui Fudosan team up for QC project
ROCKWELL LAND Corp. is partnering with Japanese real estate firm Mitsui Fudosan Co., Ltd. to develop the residential component of its P9-billion development in Quezon City.
In a statement released over the weekend, the Lopez-led property developer said it signed a joint venture agreement with Mitsui Fudosan for residential portion of The Arton by Rockwell.
The deal would give the Japanese company a 20% equity stake in the three-tower high-end residential development that will rise along Katipunan Avenue in Quezon City.
“We are honored that Mitsui Fudosan chose to partner with us in their first foray in the Philippines and we hope that this will be the beginning of a long and fruitful partnership with them,” Rockwell Land President Nestor J. Padilla was quoted as saying in a statement.
Mitsui Fudosan is engaged in developing, leasing, selling, and managing a portfolio that spans retail, office, residence, hotel, and logistics. The Tokyo-based firm is currently expanding overseas with residential projects present in the United States, the United Kingdom, Taiwan, China, Malaysia, Singapore, Thailand, and Indonesia, with expansion still eyed across Asia.
With the partnership, Rockwell Land joins the roster of firms that have tapped Japanese real estate developers for their projects.
Last week, GT Capital Holdings, Inc.’s property arm Federal Land, Inc. signed a P20-billion agreement with Nomura Real Estate Development Co., Ltd and retail service firm Isetan Mitsukoshi Holdings Ltd. to develop the Sunshine Fort in Taguig City.
Meanwhile, P.A. Alvarez Properties and Development Corp. also signed an agreement with Hankyu Hanshin Holdings, Inc. for a P656-million affordable housing project in Dasmariñas, Cavite in June of this year.
The first tower of The Arton, called Arton West, will officially be launched on July 29. The entire project will stand on a 1.9-hectare property with the three towers set to have 24, 28, and 34 towers, respectively.
The Arton will feature 1,700 units ranging from 27 square meters (sq.m.) for studio units up to 103 sq.m. for three-bedroom units. The listed property firm earlier noted the absence of a high-end development in the Katipunan area, with the construction of The Arton intended to fill that gap.
The transaction will still be subjected to regulatory approval, particularly from the Philippine Competition Commission for acquisitions valued at more than a billion pesos.
Rockwell Land is rolling out P14 billion in capital expenditures for new project launches this year, which includes its first venture into resort developments in Mactan, Cebu.
Earnings of Rockwell Land surged by 51% in the first quarter of 2017 to P516 million, following a 52% rise in revenues to P3.07 billion. The company is targeting a double-digit growth for the full-year 2017.
Shares in Rockwell Land were down by a centavo or 0.56% to close at P1.78 each at the stock exchange on Friday. — Arra B. Francia
Clark is preferred airport project because of shorter timeline
AMID unsolicited proposals to establish new and modern airports in Bulacan and Sangley Point in Cavite, the government’s chief economic planner still views Clark International Airport as the “superior” option to decongest Ninoy Aquino International Airport (NAIA).
“I think the Clark seems to be superior in terms of location, and also it’s much more advanced in terms of development,” Socioeconomic Planning Secretary Ernesto M. Pernia told reporters last week when asked whether the unsolicited proposals will be the best alternative entry point of international flights.
He said that the government is prioritizing those projects that can be completed within the Duterte administration’s term.
“We want to focus on things that are finishable within three years or at least within the term of the President,” said Mr. Pernia.
The government is currently implementing the Clark International Airport’s P15.34 billion new terminal building, which is expected to be completed in 2020. The Clark airport will also be linked with the Philippine National Railway line running from Malolos to Clark Green City.
However Mr. Pernia said airport bids are not being ruled out, and will still be part of the investment pipeline under the National Economic and Development Authority-Investment Coordination Council (NEDA-ICC).
“That is what we need in the immediate and short term. So in other words the unsolicited proposals are on the back burner,” he said.
“The (unsolicited) airport projects are still not dead. We are looking at them, we’ll let them go through the process. They are going through the ICC board, then the ICC, and then we will make sure that there will be no conditions,” Mr. Pernia added.
There have been at least two unsolicited proposals to build a new airport near Metro Manila submitted to the current government. One is led by San Miguel Corp.’s Ramon S. Ang with a $14-billion airport in Bulacan, involving a 2,500-hectare property that can accommodate up to six runways.
The other was proposed by All-Asia Resources & Reclamation Corp., the Tieng family’s team-up with the Sy family’s Belle Corp., for a $50-billion airport and economic zone at Sangley Point in Cavite.
The Bulacan airport feasibility study is complete, and is currently in the pipeline with the ICC technical board, while studies for the Sangley airport are awaiting submission, according to Mr. Pernia.
Still, the proposals — which are considered public-private partnership projects and subject to Swiss challenge — are likely to be completed by the next administration.
“They will take some time to build. The new Hong Kong airport took 10 years, I understand, to build. So that’s really going to be more of interest to the next admin rather this one. But in terms of processing, they have been submitted and we are looking into it,” said Mr. Pernia.
“They’re going to go through the usual process. There’s no special treatment,” he said. — Elijah Joseph C. Tubayan
Voyager unveils Silicon Valley-inspired HQ
VOYAGER Innovations, Inc., the digital innovations unit of PLDT, Inc., last week unveiled its new Silicon Valley-inspired headquarters in Mandaluyong City.
Located at the Launchpad Building, Voyager’s new headquarters is patterned after offices of tech giants and start-ups in Silicon Valley.
“This is like a Silicon Valley campus for emerging markets. We have designed our headquarters to be an attractive and agile space for creative innovation to thrive,” Voyager President and CEO Orlando B. Vea was quoted as saying in a statement.
With no cubicles and dividers that separate employees from different units and brands, Voyager promotes a relaxed and collaborative working environment for its mostly millennial work force. It also provides nap rooms and a fitness facility for its workers.
“Digital transformation has helped equalize opportunities for the common folk, in a very profound way, and we are proud that Voyager is behind innovations that push boundaries and tear down walls for the benefit of all,” PLDT and Smart Chairman Manuel V. Pangilinan was quoted as saying in a statement.
First established four and a half years ago, Voyager has released breakthrough digital products and platforms aimed at digital transformation of individuals, businesses, and institutions.
PayMaya, a digital payment service platform that allows users to make payments without using credit cards, now has the largest prepaid wallet base in the country.
FINTQ, through its digital loan platform Lendr, now has the most extensive digital lending footprint in the country, with 90% of cities and 8% of municipalities covered and partnerships with over 40 banks and nonbank entities.
On the other hand, Voyager’s digital customer engagement platforms such as freenet and hatch allow businesses to reach further to their audiences through free data access to various apps and sites and robust SMS marketing campaigns.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls.
PLDT shares on Friday added P20 or 1.18% to close at P1,720 apiece. — PPM