While global container terminal operators must take risks to stay afloat in today’s developed and emerging markets, Drewry says ICTSI’s risks in particular are perceived as “negative”. This is especially true of its investments in economies such as Pakistan, Syria and Iraq.
But Drewry says it believes the company’s recent steps to “reduce or diversify risks” – investing in less-risky markets, selling partial stakes in assets and partnering with experienced global players in terminal start-ups – could pay off.
Africa is one of the key markets that ICTSI is targeting. In line with this strategy, the company recently formed a joint venture to develop and operate a river multipurpose terminal along the banks of the Congo River in Matadi, Democratic Republic of Congo.
In the first phase, the venture plans to develop a 120,000 teu capacity terminal to be ready in 18 to 24 months. Drewry says the location of the proposed development is “reasonably strategic” as it can feed the Kinshasa market with consumer goods.
Despite these “better” risks, the company is expected to quadruple its portfolio to 100 terminals in the next 25 years. Drewry says it hopes it will continue a more “practical approach”.