International Container Terminal Services Inc: Raise, raise again – another upgrade as ICTSI delivers on all fronts

Research evidence excerpt

International Container Terminal Services Inc: Raise, raise again – another upgrade as ICTSI delivers on all fronts

Karen Li, CFA Asia Pacific Equity Research

(852) 2800-8589 04 August 2026

karen.yy.li@jpmorgan.com

capacity commercially very quickly and expects Mexico to remain a key driver of

growth.

• Iraq remains a drag on organic growth and profitability, but the group is

fully operational and ready to scale up as soon as conditions allow.

If Iraq were excluded from the organic comparison, or if Iraq were assumed to be

flat, the group would have grown around 7% in volume terms, and revenue and

EBITDA would each have been roughly 5% higher. The port in Iraq has

remained open, with only short-term stoppages for employee safety, and the

operation is ready to scale up immediately if the Strait of Hormuz fully reopens.

• Ramp-up in Durban and Indonesia is encouraging, but patience is needed as

these large terminals are brought up to group standards.

Durban is performing somewhat ahead of financial projections after six months,

but there is still a lot of work to do, especially on equipment and IT systems. The

transition has been smooth operationally, with no stoppages or strikes, but it may

take at least another two years before Durban can truly be described as a full

ICTSI-style terminal. Batam and East Java are also expected to be important

contributors going forward.

• Cost control and operating leverage remain top priorities, with margin

improvement targeted through both tariff actions and operational efficiency.

Opex remains a major focus, with cost control a top priority, including fuel,

productivity, labor efficiency, administrative costs, taxes, and other expense lines.

The company wants operating leverage to come not only from tariff increases,