Razon Moves Quickly, From Ports to Resorts

Philippine Billionaire Takes Undemocratic Approach to Running Two Big

Businesses
Frank and to the point, Enrique K. Razon Jr., the Philippiness third-richest man,
isnt afraid to admit that his management style at the countrys largest port operator
and one of its largest resorts developers isnt democratic.

WSJ: How important do you think it is for the Philippines to build new
infrastructure?
Mr. Razon:Theres no choice. It is a structural constraint. Were still growing at
about 6.5% to 7% but well hit a ceiling very shortly I think. The single most

Mr. Razon has a net worth of US$5.2 billion, according to Forbes, and is chairman

important thing for the Philippines right now is a new airport at Manila. This

and president of Manila-listed International Container Terminal Services Inc. and

administration has the most liquidity of any ever. The government has a lot of

chairman of Bloomberry Resorts Corp.

money and they can afford to do it.

Both companies are expanding rapidly. ICTSI already has an international footprint

WSJ: There is some speculation that ICTSI is negotiating with Hutchison Port

but has its sights on Africa and Latin America, where it is finding growth despite

Holdings about a possible joint venture in Australia. Whats the latest?

global trade remaining lackluster. Bloomberry subsidiary Solaire Resort & Casino

Mr. Razon: Weve been talking but nothing has come of it yet. There is some logic

has doubled in size this year and opened its doors Nov. 22.

for the three terminals having a tie-upSydney, Melbourne and Brisbanebut its

Mr. Razon left school when he was 17 years old to take a minimum-wage job at the

not a necessity for us. The talks are more or less between me and the CEOits a

familys cargo-loading business, where he worked his way through the ranks and

good idea, maybe we should talkthats about it.

eventually joined and became chairman of ICTSI, which was founded in 1987 with

WSJ: What kind of growth do you think is likely for your gambling business,

Mr. Razon as executive vice president. The port empire now extends from Asia to

Solaire Resorts, given that the gambling market in Asia is increasingly crowded and

Africa and Latin America.

Singapores casinos, as an example, are stagnating?

In a recent interview at the Forbes Global CEO Conference 2014 in Singapore, Mr.

Mr. Razon:We are where Singapore was four or five years ago. Revenue will start

Razon, 54 years old, spoke about his companies expansion plans and the need for

growing in both segments [the VIP and mass markets] but we are coming from a

new infrastructure in the Philippines.

much lower base. Now the Manila market is worth about $2.5 billion-$2.8 billion.

WSJ: How would you describe your management style?

That could be $4 billion in about two years. At some point youll have some

Mr. Razon:Not democratic. Things filter up to me and I make decisions right away.

saturation but were still way off that. Other Asian countries are going to start going

Quickly. Most often unilaterally.

into gaming so the key is really the local market.

Managing the resort is much more complicated from a headquarters point of view

WSJ: How do you manage your work life?

because youre dealing with people. In the port business youre dealing with

Mr. Razon:I say ICTSI is my day job and Solaire is my night job. I shuttle between

containers and ships. Containers dont complain even if you drop them. Theres

the two offices. I travel extensively, maybe around 200 days a year. I have family in

only two kinds [of people]those who have suggestions and those who complain.

the Philippines. I have kids, yeah. Thats about as far as Im going to go.

WSJ: What plans do you have to expand ICTSI as a business?

Rsum

Mr. Razon:We are looking to expand on our [Manila] yard capacity by 10%-15%.

Career: Mr. Razon Jr. became chairman

We need to store more containers. On the berth side if its a normal situation we

of ICTS in 1995 and Bloomberry in 2012.

have more than enough capacity as it is.

He started as executive vice president at ICTSI in 1987.

Africa is a very good place for us. There is very little competition and they need the

Education: Mr. Razon left school at 17 and began working in several locations in

investment badly. Bottom line: Returns are best there with high yields in the

the Philippines and Saudi Arabia for his fathers cargo-loading business.

handling business. To handle a box in our terminal in Yantai, [China], we charge

Hobbies:Outside of work Mr. Razon Enjoys golf and kite boarding.

about $45-$50. The same container in Africa easily goes for $200-$250.

Family: He is married with two children.