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BOSS TALK
Razon Moves Quickly, From Ports to Resorts
Philippine Billionaire Takes Undemocratic Approach to Running Two Big Businesses
By JAKE MAXWELL WATTS
Nov. 23, 2014 2:11 p.m. ET
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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.
Mr. Razon has a net worth of US$5.2 billion, according to Forbes, and is chairman
and president of Manila-listed International Container Terminal Services Inc. and
chairman of Bloomberry Resorts Corp.Both companies are expanding rapidly. ICTSI
already has an international footprint but has its sights on Africa and Latin America,
where it is finding growth despite global trade remaining lackluster. Bloomberry
subsidiary Solaire Resort & Casino has doubled in size this year and opened its
doors Nov. 22.
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BOSS TALK
Razon Moves Quickly, From Ports to Resorts
Philippine Billionaire Takes Undemocratic Approach to Running Two Big Businesses
By JAKE MAXWELL WATTS
Nov. 23, 2014 2:11 p.m. ET
0 COMMENTS
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.
Mr. Razon has a net worth of US$5.2 billion, according to Forbes, and is chairman
and president of Manila-listed International Container Terminal Services Inc. and
chairman of Bloomberry Resorts Corp.
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Mr. Razon left school when he was 17 years old to take a minimum-wage job at the
familys cargo-loading business, where he worked his way through the ranks and
eventually joined and became chairman of ICTSI, which was founded in 1987 with
Mr. Razon as executive vice president. The port empire now extends from Asia to
Africa and Latin America.
In a recent interview at the Forbes Global CEO Conference 2014 in Singapore, Mr.
Razon, 54 years old, spoke about his companies expansion plans and the need for
new infrastructure in the Philippines.Edited excerpts:
Mr. Razon:Not democratic. Things filter up to me and I make decisions right away.
Quickly. Most often unilaterally.
Managing the resort is much more complicated from a headquarters point of view
because youre dealing with people. In the port business youre dealing with
containers and ships. Containers dont complain even if you drop them. Theres only
two kinds [of people]those who have suggestions and those who complain.
Mr. Razon:We are looking to expand on our [Manila] yard capacity by 10%-15%. We
need to store more containers. On the berth side if its a normal situation we have
more than enough capacity as it is.
Africa is a very good place for us. There is very little competition and they need the
investment badly. Bottom line: Returns are best there with high yields in the
handling business. To handle a box in our terminal in Yantai, [China], we charge
about $45-$50. The same container in Africa easily goes for $200-$250.
WSJ: How important do you think it is for the Philippines to build new infrastructure?
WSJ: There is some speculation that ICTSI is negotiating with Hutchison Port
Holdings about a possible joint venture in Australia. Whats the latest?
Mr. Razon: Weve been talking but nothing has come of it yet. There is some logic
for the three terminals having a tie-upSydney, Melbourne and Brisbanebut its
not a necessity for us. The talks are more or less between me and the CEOits a
good idea, maybe we should talkthats about it.
WSJ: What kind of growth do you think is likely for your gambling business, Solaire
Resorts, given that the gambling market in Asia is increasingly crowded and
Singapores casinos, as an example, are stagnating?
Mr. Razon:We are where Singapore was four or five years ago. Revenue will start
growing in both segments [the VIP and mass markets] but we are coming from a
much lower base. Now the Manila market is worth about $2.5 billion-$2.8 billion.
That could be $4 billion in about two years. At some point youll have some
saturation but were still way off that. Other Asian countries are going to start going
into gaming so the key is really the local market.
Mr. Razon:I say ICTSI is my day job and Solaire is my night job. I shuttle between the
two offices. I travel extensively, maybe around 200 days a year. I have family in the
Philippines. I have kids, yeah. Thats about as far as Im going to go.
Rsum
Career: Mr. Razon Jr. became chairman
of ICTS in 1995 and Bloomberry in 2012.
He started as executive vice president at ICTSI in 1987.
Education: Mr. Razon left school at 17 and began working in several locations in the
Philippines and Saudi Arabia for his fathers cargo-loading business.
Where are the ICTSI shares listed? What is your stock symbol?
ICTSI shares are listed and traded on the Philippine Stock Exchange. The stock
symbol of ICTSI is ICT.
One of the wealthiest yet quite enigmatic and media-shy billionaires in the
Philippines is 52-year-old Ports King Ricky Razon, who on Oct. 17 hosted a rare
press conference at the Peninsula Manila Hotel in Makati City to launch his US$1billion Solaire Casino & Resorts project.
In a short prepared speech he read, Razon announced that the first phase of Solaire
would open in March 2013. It will be the first of the four rival mega-resort projects in
Pagcors Entertainment City by the Manila Bay with licenses granted to the four
groups under former President Gloria Macapagal Arroyo. It aims to rival Macau and
Singapore.
Enrique Ricky Razon Jr. of International Container Terminal Services, Inc. (ICTSI) is
ranked the Philippines No. 3 wealthiest billionaire with an estimated net worth of
US$3.2 billion just behind Henry Sy Sr. of SM/BDO and Lucio Tan of Philippine
Airlines/PNB/Asia Brewery/Tanduay.
Tanned, with an athletic build, the six-foot La Salle graduate is one of the late
Enrique Pocholo Razon Sr.s five children. He is the youngest of the Philippines
top-ranked billionaires and grandson of a former governor of Nueva Ecija province.
His family is of ethnic Basque heritage with ancestral roots in northern Spain, similar
to the billionaire clans, the Zobel-Ayalas of Makati and the Aboitizes of Cebu.
What are the success secrets of the accomplished Ricky Razon, who despite once
owning broadsheet newspaper Manila Standard (which he sold to the Romualdez
family) and a close ally/confidant of various former presidents is extremely
media-shy?
Years ago this writer had a short chat with him at Okuda Hotel Tokyo during
President Joseph Estradas visit to Japan. Razon is amiable, sociable and smart. Here
are some of his success secrets, culled from my exclusive interviews with the port
kings closest business and golf associates as well as top executives:
1. Be a visionary. Ricky Razon has a bold vision, not just to operate a profitable
enterprise, but it also seems he wants to be world-class and possibly outshine the
worlds No. 1 Casino King, the legendary American self-made tycoon Sheldon
Adelson of The Sands Las Vegas, Macau and Singapore. Adelson has an estimated
net worth of $20.5 billion and is a big donor to Jewish charities/causes.
I noticed many of Razons people behind Solaires planning and operations are
alumni or formerly executives of Adelson. The top-caliber management team behind
Solaire is led by Global Gaming Asset Management chairman and CEO William
Weidner (former president of Adelsons Las Vegas Sands Corp.), president Bradley
Brad Stone (former president of global operations of Las Vegas Sands Corp., the
first Western casino in Macau), and EVP Garry Saunders (he helped open Lawrence
Hos City of Dreams Macau in 2008).
In Solaire itself, chief operating officer Michael French used to work for Sands casino
under Adelson. Even the architect of Razons Solaire Resort, Paul Steelman, was the
same guy who designed Adelsons mega-projects like the Sands Macau and Four
Seasons Macau.
2. Take risks. Jose Eduardo Alarilla, vice chairman and board director of Razons
publicly listed Bloomberry Resorts Corporation, which is behind Solaire, is owner of
the Mega Subic Terminal Services, Inc., and a business and golfing friend of Razons
for over 25 years. Alarilla told me, Ricky Razon is really a risk-taker, because he
loves challenges when it comes to business. He said if the business is ordinary and
easy to do, theres not much opportunity.
Bloomberry Resorts director Donato Almeda, who has known Razon for six years,
said, Ricky Razon knows how to take risks and hes good at managing his risks.
3. Be passionate. Bradley Stone said, Ricky Razon is a very intense and demanding
guy. He wants Solaire to be world-class and to be the game changer in Philippine
gaming entertainment. The Philippines is ahead of others in terms of your
governments tax rate for VIP junket customers for casino resorts at only 15
percent, while the tax rate is 39 percent for Macau. With Solaires grand plans,
luxurious facilities and the best people deployed by Razon, this project will be really
world-class.
Francis Lumen, successful co-producer of Phantom of the Opera and producer of the
upcoming Jennifer Lopez concert, got the entertainment contract of Solaires 150seat Entertainment Lounge. He said, Ricky Razon strikes me as a passionate,
adventurous visionary. He is not afraid. He reminds me of Britains billionaire
Richard Branson. Even in his personal lifestyle, hes into board kiting sport.
4. Work relentlessly hard. Alarilla said, Ricky Razon is a hard worker. When he
needs to do something, he pursues it relentlessly.
5. Travel the world. Stone said, One of the reasons he knows how to make Solaire
Resort & Casino world-class is because Ricky Razon is a world traveler. He has
Solaire COO Michael French said, Filipinos love to eat, and Ricky Razon told us,
Well have the best restaurants in the Philippines in Solaire. So we have first-class
Chinese-Cantonese, Italian, Japanese, steakhouse and buffet restaurants with the
very finest chefs in this complex.
7. Be straightforward and direct. Alarilla said, His late father Enrique Pocholo
Razon Sr. was also very industrious with lots of friends; he also had more PR and
charm in implementing the business. While the son Ricky Razon is more
straightforward in business style, very direct.
8. Have a flexible personality. Despite being one of the countrys top three
wealthiest billionaires, Alarilla said of Ricky Razon, His personality is very flexible.
He can be with the top CEOs, politicians and also with workers or people from below.
He is down-to-earth.
9. Politics is only for business, nothing personal. I asked how it is that Razon has
been closely associated with past presidents, from Gloria Macapagal Arroyo and
Joseph Estrada to Fidel Ramos and now President Noynoy Aquino, not to mention
diverse politicos of all stripes.
Alarilla said, If you really look at it, politically theres no personalan (nothing
personal). Hes really a true businessman; politics, its for business and friendship.
The politics is possibly as an aside, its not the main issue.
10. Have a healthy lifestyle. Donato Almeda said, Aside from being a class-A golfer
and starting as a junior golfer, Razon lives a healthy lifestyle. He is very athletic. He
regularly goes to the gym for exercises I heard Razon has personal gym trainers for
his exercise regimens, and has quit smoking.
11. Be sports-minded. Bradley Stone said that one of Razons favorite sports is kite
boarding, which is now in the Olympics. Stone said, When one hits a wave, you can
fly as high as 30 feet above the sea. Razon is similar to the adventurous British
billionaire Richard Branson of the Virgin Group in this aspect of life. He lives life.
Alarilla said, Ricky says his golf handicap is a six, but I think its more like a two. He
was a junior golfer, maybe he started playing golf even in his early teens. He has
put up the Philippine Golf Tour Foundation to help the sport.
12. Have supreme self-confidence. Razon believes in himself, his abilities and his
grand vision.
13. Hire the best people. Aside from recruiting the best management team and
executives from the resort casino industrys top firms, Solaire COO Michael French
revealed that they interviewed and vetted 50,000 applicants to hire 4,500 full-time
managers and staff for Solaire. He added that hiring good people is only the start;
they will continuously train them, too.
14. Be a decisive leader. French said that Razon makes decisions decisively.
15. Love to read. Razons associates told me the tycoon loves to read books,
whether business, history or biographies. He also reads magazines and other
publications.
16. Be time-conscious. Friends say Razon is time-conscious. To him, his time is very
precious so he flies to his favorite golf course in The Country Club in Santa Rosa,
Laguna, via personal helicopter for his afternoon games.
18. Be a good listener. French, who has met and worked for other billionaire casino
resort bosses like Sheldon Adelson and Lawrence Ho of the famous Stanley Ho clan,
said, Ricky Razon is a good guy because he listens. He responds. Among a lot of
people in that level up there, they dont usually do that. Ive worked for Lawrence
Ho as my boss; he opened the half-billion-dollar West Crown Macau and later the
$2.3-billion City of Dreams Macau. Lawrence Ho is very affable, easy to talk to, an
all-around decent guy, but he was slower at decision-making, has lots of people
around him and it was harder to reach him. In contrast, our boss Ricky Razon is very
accessible; he responds to text messages if not busy and he has frequent meetings
with us
as more interesting than other cities in the region. Photo from Forbes
SINGAPORE I come from Manila, so when I come to Singapore, it still feels like I'm
in a hospital. Although it is perfect and clean.
Frank and candid, the president and chairman of International Container Terminal
Services Incorporated (ICTSI), Enrique Razon, elicited laughter from the crowd at the
Fobes Global CEO Conference here on Wednesday, October 29, wherein he touted
the Philippines as Asia's cool destination.
The country's 3rd richest man also pointed out that despite the lack of
infrastructure, we been receiving [tourists].
People will come. We just have to improve the experience, the arrival experience,
he said.
Razon, who also heads Solaire Resort and Casino and built the country's first
integrated resort in Manila, predicted the Philippines will be very competitive for
the international players when it comes to gaming because of the city's unique
personality.
Asked whether he foresees it being the next Macau, Razon responded, Manila is
going to be the next Manila.
It's a different market. We have a big local market that Macau doesn't have. In the
US 20 years ago, there were only two states with gaming New Jersey and Nevada.
Now they have 48, he said.
And I foresee with other governments, when they see the taxes collected from
gaming, they will probably have gaming in all of the countries in Asia at some point,
which is, to me, the trend.
Everybody benefits from these investments, he added before joking: I'd rather be
the only one really to tell you the truth, but a couple more is acceptable.
Government helpful
While the Philippines, he said, is on its way up, he acknowledged other challenges
the country still has to address.
Like Thailand and Indonesia, the Philippines has the problem of having one major
city which is really congested. He said this is something that will continue to be a
problem, but that things are getting better by the day, partly due to the
government.
We have a high population growth rate and a big influx of immigrants from other
parts of the country into the city. So we still need to develop and finance more of
the basic infrastructure before we can get to the other side. And the government is
addressing that now, he said.
Razon said there are many more projects left to be done and that the country has
lots of financial needs. He remained optimistic, however, praising the government
for its slow albeit determined efforts.
It has taken a very long time, but the administration now is one the most serious in
getting things done. They're also very cautious, so we're really far behind in what
we should be doing, he said.
When you build a flyover, a railway system, an airport, it doesn't happen overnight.
It takes years to complete...but it's improving daily. .
Enrique K. Razon Jr.
Chairman, Chief Executive Officer, President, Chairman of ICTSI Limited and
President of ICTSI Limited,International Container Terminal Services Inc.
Age Total Calculated Compensation This person is connected to 11 board
members in 5 different organizations across 10 different industries.
--
Background*
Mr. Enrique K. Razon, Jr., serves as an Executive Chairman and Chief Executive
Officer of Bloomberry Resorts Corporation. Mr. Razon serves as the Chief Executive
Officer and President of International Container Terminal Services Inc. He is the
Owner of Prime Metroline Transit Corporation. Mr. Razon serves as the President of
Cebu International Container Terminal, Inc. He serves as the Chairman and President
of ICTSI Ltd., International Container Terminal Holdings, Inc., ...
Read Full Background
Corporate Headquarters*
ICTSI Administration Building
Manila, -- 1012
Philippines
Education*
BSBA 1980
La Salle University
Other Affiliations*
EEI Corp.
La Salle University
A. Soriano Corp.
Active Alliance, Incorporated.
Apex Mining Co. Inc.
Pakistan International Container Terminal Ltd
ICTSI Warehousing, Inc.
Monte Oro Resources & Energy, Inc.
Prime Metroline Transit Corporation
Bloomberry Resorts Corporation
ICTSI (Hong Kong) Ltd.
We have a track record that confirms our ability to rapidly adapt to different
operating environments, and to add substantial value to our operated terminals by
enhancing their efficiency at every level. We also have the proven ability to perform
We take pride in being a partner in the true sense of the word in the development
and management of port operations with governments divesting themselves of
maritime port assets by privatization or sale vehicles.
ICTSI Ltd.
ICTSI Ltd., a wholly owned subsidiary, manages our foreign operations. Aside from
developing new port concessions, this subsidiary is also tasked with overseeing
operations of all acquired foreign terminals. Regional representatives in Manila,
Hong Kong, Miami, Sydney, Dubai and Cape Town afford us the immediacy to
respond quickly to investment opportunities.
Vision
Leadership in global port management is, for ICTSI, a means to a larger end: the
vision of building long-term shareholder value.
Nevertheless, despite such highly variable conditions, our vision remains fixed.
Mission
With our clients and with the host governments of our ports, we have long-term
contractual obligations, defined in measurable outputs, in time-bound deliverables.
Last but certainly not the least, there are the day-to-day, transaction-pertransaction commitments we uphold: to provide superior services marked by
efficiency, reliability, professionalism and profitability. It is in fulfilling these on a
daily basis that we are ultimately able, over the long term, to meet and even
surpass our contractual obligations, and to honor our commitments to employees,
partners, and shareholders.
Strategy
Maintain and consolidate our leadership position in the markets where we now
operate;
Constantly improve our current operations, with strategic investments in enhanced
organizational capability and human resources, information technology, support
structures, and cargo handling equipment; and,
Develop our allied businesses.
Values
ACCOUNTABILITY. We value our work and take responsibility for our actions. We also
carry a positive attitude, believing that by working with optimism and selffulfillment, we produce positive results for the Company and for ourselves. ICTSI
management and employees give worth to being employed.
ACCOUNTABILITY. We value our work and take responsibility for our actions. We also
carry a positive attitude, believing that by working with optimism and selffulfillment, we produce positive results for the Company and for ourselves. ICTSI
management and employees give worth to being employed.
GROWTH. Our purpose in doing our work is to grow: grow as individuals, expand as
a business, and progress as a global organization. More than sustaining lives, we
work because of self-worth and dignity. As we further improve ourselves personally
and professionally, we believe that the stability and continuous growth of ICTSI
follows.
International Experience
Our management has a proven track record of success in port development and
management in numerous ports all over the world.
Alert to Opportunities
We mainly specialize in developing market container ports, which have the greatest
potential.
Labor Expertise
The Philippines newest US$1 billion luxury destination Solaire Resort & Casino is
the flagship property for parent company Bloomberry Resorts. It is the first
integrated resort to open in the government-sponsored Philippine Amusement and
Gaming Corporation economic development zone known as Entertainment City.
Being the local industry standard for digital measurement, Effective Measure has
helped us monitor our online assets and digital advertising placements. As we have
a number of digital suppliers in addition to doing our digital buys in-house, we want
to be able to make sure we are investing on the right channel and we are getting
good cost-efficiency, said Solaire Resort & Casino Philippines digital marketing
director, Jed Marcaida.
Under the alliance, Solaire has selected Effective Measure as its primary
measurement currency to bring depth, validity and surety to its campaign targeting
and executions.
Im very impressed by the digital team and leadership at Solaire. The Philippine
digital media industry is showing unique distinction with the brands themselves
taking on digital performance monitoring directly. Clearly evident is the deep digital
knowledge displayed by brands like Solaire. EM Philippines is glad to have partnered
with Solaire during their launch and assist them in pushing digital leadership
practices locally, said Effective Measures country managing director for the
Philippines, Maria Java.
Deploying the Effective Measure brand platform has allowed Solaire to make
strategic digital campaign decisions, investments and gather valuable customer
insight and data in the lead up to launch and gather demographic data that will be a
formidable resource as the business evolves.
Solaire Resort is pushing the digital media ecosystem in the Philippines forward, by
setting new benchmarks among its digital contemporaries in the travel and
hospitality category. They chose to start on the right foot with paid and owned
media measurement and an orientation bias for consumer preference. Across their
traditional media investments, tied into digital, they are hitting their preferred
audience with just the right momentum and digital GRPs, said Effective Measures
group director of brand & data insights, Tony Eustace.