2nd of 4 parts on Filipino tycoons invested in political parties
READ: Part 1 | 2025 Philippine elections: Where do billionaire-linked parties stand?)
Unlike Filipino billionaires who have experienced being at the crosshairs of the powers that be, ports tycoon Enrique “Ricky” Razon Jr., 65, has successfully managed his empire’s political risks. Keeping a low profile in his supposed political party, the National Unity Party (NUP), may be one of the reasons for this, but a key factor is that he’s been able to have good ties with whoever is in power.
“‘You don’t fight City Hall!’ Friends and foes of Ricky Razon Jr. have this to say on how the ‘Port King’s’ businesses flourish and remain entrenched, whoever sits in Malacañang,” said veteran business journalist Val Villanueva, who writes the popular Vantage Point column published by Rappler.
Based on the latest Forbes listing of the world’s billionaires, Razon is the second richest Filipino with a net worth of US$10.9 billion. His company, International Container Terminal Services Incorporated (ICTSI), is the Philippines’ largest multinational corporation. It is the world’s biggest independent ports operator, handling 32 terminals in 19 countries across six continents.
In the Philippines, it operates 10 ports led by the Manila International Container Terminal (MICT) in the city of Manila. It operates five other ports in the Asia Pacific; eight in Europe, the Middle East, and Africa; nine in the Americas (all in South America).
In its latest earnings report (1st quarter 2025) released on May 5, Razon reported that the company set “another record high net income of US$239.54 millon, up 14%.”
“Our international portfolio performed very well with consolidated volume up 12 percent, benefiting from our geographic diversification across 19 countries, which has enabled us to generate continued growth,” Razon said.
The Razon family’s port business started after the MICT was privatized during the Cory Aquino administration. MICT handles the international container cargo of the port of Manila.
ICTSI, then owned by the Soriano group (later bought out by Razon) and the Razons, started operating in June 1988 after the Philippine Ports Authority awarded it a 25-year exclusive concession contract to run the MICT. During the administration of Benigno S. Aquino III, this contract was extended for another 25 years, or until May 18, 2038.
A shipping industry source said the MICT had been the most important part of the Razon enterprise. “It starts with protecting the MICT, the head of the snake of his vast empire. It is from this entity that he gets his vaunted war chest which he used to tighten his companies’ stranglehold in some of the country’s vital businesses,” the source told Rappler.
Supporting national and local bets
Razon, chairman and president of ICTSI, had previously admitted that he has high stakes in the city of Manila, where he had been rumored to be a big donor during elections. For efficient operations, his MICT business requires a good relationship with incumbent local officials as well as potential winners.
When then-Manila mayor Isko Moreno, who was at that time vice-chair for political affairs of NUP, made a surprise bid for the presidency in 2021, Razon was said to have been behind the move. Razon belied the rumors.
“That’s not true. Isko ran because he was number one in the early surveys but come election time, the result was different, BBM [Bongbong Marcos] won,” he said in Filipino during a rare interview he gave to former ABS-CBN broadcaster Anthony Taberna in 2023.
Razon, however, admitted that he was a friend of the former mayor, and that his ports business needed to have good relations with city hall.
“I’m a friend of Isko because ICTSI, MICT, our biggest business, is in Manila. We’re the biggest taxpayer, biggest employer, so we have close coordination with the Manila mayor,” he said in Filipino also during the same interview.
He brushed aside observations that he’s a kingmaker. “I don’t know where those come from, I’m not a politician, I’m a businessman. That’s not true, what’s a kingmaker? Why can’t I make myself king if I’m a kingmaker?” Razon said in Filipino.
In August 2021, Moreno decided to leave the NUP and run for president under Aksyon Demokratiko, prompting political analyst Manolo Quezon to say that this was triggered by Razon withdrawing support for him. The lack of funds for his campaign, aside from other factors, had a big impact and Moreno ended up in fourth place in a field of five presidential candidates. (READ: How Isko Moreno’s promising candidacy petered out)
In the 2022 elections, Razon was also alleged to have backed the tandem of then-term-limited senators Panfilo “Ping” Lacson and Vicente “Tito” Sotto III. This was after former interior secretary Ronaldo “Ronnie” Puno, chairman of the NUP, joined the Lacson-Sotto tandem as campaign manager.
After Lacson lost, placing fifth and last, he declared it was time to serve his family for a change. Lacson had, on a number of occasions, spoken highly of Razon, publicly citing the tycoon’s contributions to address the COVID-19 pandemic, such as building a mega vaccination facility in Parañaque. He described Razon as the Philippines’ “unofficial calamity czar.”
With Moreno and Lacson doing poorly in pre-election surveys, the NUP decided on March 24, 2022 to support the strongest bet — the Uniteam tandem of Ferdinand Marcos Jr. and Sara Duterte which eventually won via a landslide. Razon was rumored to have been among the biggest contributors to the Marcos-Duterte campaign.
In January 2023, Marcos tapped Rafael Consing, the senior vice president and chief financial officer (CFO) of Razon’s ICTSI, as an adviser on investment and economic affairs.
Months later, the President appointed Consing as president and chief executive officer (CEO) of the controversial Maharlika Investment Corporation (MIC). (READ: In This Economy: Scrutinizing Maharlika’s maiden investments in power transmission, mining)
In the May midterm elections, the NUP is supporting the administration ticket under the Alyansa para sa Bagong Pilipinas. Other parties in the coalition include the Lakas-CMD, Partido Federal ng Pilipinas, Nacionalista Party, and the Nationalist People’s Coalition.
Razon reportedly hosted a dinner in Solaire last March 27 for Lacson and Sotto, who are with the administration slate and are likely winners in the senatorial race, based on pre-election surveys.
Gaming business
Razon also owns Bloomberry Resorts Corporation, whose primary business is in the gaming industry. He has been the chairman and CEO of Bloomberry since 2011.
Bloomberry operates the Solaire Resort Entertainment City, an integrated casino, hotel and entertainment complex in Parañaque City, which began commercial operations in March 2013.
Bloomberry invested $1 billion to put up the Solaire Resort North in Vertis North, Quezon City Central Business District, which was launched in May 2024. The opening was graced by no less than the President and First Lady Liza Araneta-Marcos.
Bloomberry has other gaming interests abroad, such as the Jeju Sun Hotel and Casino in Jeju, South Korea.
Despite his interests in the gaming industry, Razon doesn’t gamble. “Hindi ako marunong magsugal. Hindi ko nga alam ang rules eh…Nasubukan namin sa Las Vegas, wala pang 30 seconds ubos na ‘yung $200. Mula noon ayoko na,” he told Taberna. (I don’t know how to gamble. I don’t even know the rules. I tried it in Las Vegas, in 30 seconds I lost $200. Since then, I said no more.)
Franchise benefits
Being associated with a party that has had a core group in the House of Representatives has proved useful for Razon. It has helped him secure support for pieces of legislation related to his business.
For instance, in the legal as well as franchise battle between long-time Iloilo City electricity provider Panay Electric Company (PECO) and Razon’s MORE Electric Power Corporation, the latter ended up the winner.
PECO had sought to have its franchise renewed as it was expiring in January 2019, but Congress instead moved to grant MORE a franchise to provide electricity in the city of Iloilo. On February 14, 2019, Duterte signed into law Republic Act 11212 that gave MORE the franchise to distribute power in Iloilo. It also gave MORE the right to acquire the assets of PECO. (READ: Power play for Iloilo electricity reaches Supreme Court)
Political analyst and lawyer Joel Butuyan, in a commentary on the “marriage of business and politics” in the Philippines, said Congress sat on PECO’s application and then approved MORE’s franchise in a “record-breaking” period of three months.
Infrastructure giant
Razon has grown his infrastructure businesses through Prime Infra, a major infrastructure developer and operator. The most important businesses in this conglomerate are Prime Energy Resources Development B.V. (Prime Energy) and Manila Water Company Incorporated (Manila Water).
In July 2022, Razon’s Prime Infra subsidiary, Prime Energy Resources Development B.V., acquired the company of Duterte’s 2016 campaign donor Dennis Uy that operates the Malampaya Deep Water Gas-to-Power project off Palawan province.
Prime Infra acquired the 45% interest previously held by Shell, while Uy still has a 45% stake in Malampaya through shares bought from Chevron.
The Malampaya gas field is among the Philippines’ most important power assets, producing natural gas for power plants in Batangas City that account for around 20% of Luzon’s total electricity requirements. It began operations in 2001.
In May 2023, the Marcos Jr. administration signed the renewal agreement for the Malampaya Service Contract for 15 more years to 2039 after it expired in February 2024. The PNOC Exploration Corporation has a 10% interest in the project. (READ: Marcos signs deal extending Malampaya Service Contract 38 by 15 years)
With its gas field estimated to run dry by 2027, Prime Infra said it aimed to put new wells in Malampaya into commercial operation in 2026. Prime Infra is also seeking other fields around Malampaya to ensure long-term gas output.
White knight?
Razon’s takeover of the Manila Water concession from the Zobel de Ayalas during the Duterte administration shows how being in the good graces of the incumbent can be an edge.
In 2020, Razon’s Prime Metroline Holdings Incorporated signed a subscription agreement with Ayala-led Manila Water for a 25% stake in Manila Water for P10.7 billion. The Ayala group remains a shareholder, however, with 38.6% stake. Despite this, brothers Jaime Augusto and Fernando Zobel de Ayala and other Ayala group officers stepped down from Manila’s Water management in 2021 after the subscription agreement was completed. (READ: Zobels, Ayala execs out as Manila Water officers after Razon takeover)
In short, Ayala maintains its economic interest in Manila Water, but Razon’s group is the one running the operations. Razon’s daughter, Katrina Maria, is a member of the board of directors of Manila Water.
The agreement came after Manila Water and the Ayalas were pressured by then-president Duterte who had repeatedly shamed and cursed the Ayalas over the allegedly onerous water concession agreement.
Duterte was also displeased when Manila Water won a P7.4-billion arbitration case over water rates. The company initially sought a “middle ground,” but decided to totally forego the indemnification in the face of presidential pressure.
Some analysts had described Razon as the “white knight” that the Ayalas needed at that time.
With Razon being on good terms with Duterte, the deal enabled Manila Water to survive that critical period. (In contrast, the Lopez family’s ABS-CBN’s broadcast business was ordered shut down by the Duterte administration after its franchise expired in 2020; its renewal bid was rejected in the House.)
Manila Water serves seven million consumers in the east zone of Metro Manila and the province of Rizal.
With the Ayalas no longer in the Manila Water board, Manila Water got a franchise bill approved before Duterte stepped down from office.
In December 2021, Duterte signed into law Republic Act 11601 which granted 25-year franchises to Manila Water as well as Maynilad, which handles the west zone. The new franchises came months after the two water concessionaires signed revised concession agreements with the government to appease Duterte, who was outraged by “unfair” provisions of the previous deal.
Mining interests
Razon, via the 49% stake of Prime Strategic Holdings Incorporated, also owns Apex Mining Company Incorporated, which operates the Maco Mines in Maco, Davao de Oro. In June 2015, Apex Mining acquired Itogon-Suyoc Resources (ISRI), which produces gold and silver from ISRI’s Sangilo Mine in Itogon, Benguet and the Suyoc Mine in Mangkayan, Benguet.
Razon is the chairman and CEO of Prime Strategic Holdings but is not heavily involved in Apex Mining’s operations.
Apex Mining came out unscathed despite a deadly landslide that happened outside its area of operations in Barangay Masara, Maco, Davao de Oro on February 6, 2024; it killed 98 people, including nine mining employees. As environmental groups and activists demanded a shutdown of its mining operations, Apex Mining continued its business. Its Maco mine had limited operations for only five months as the company helped undertake mitigating measures with its equipment and personnel.
Transactional politics
Razon’s unique personal background could be a factor in his ability to navigate the world of business and politics. He graduated from De La Salle Greenhills in grade school in 1974 and went to La Salle Greenhills High School, the same school of the incumbent president.
Razon dropped out of college in the US, opting instead to work in his father Enrique Sr.’s business in the pier starting as a laborer. Eventually, he became his father’s right-hand man in running ICTSI, and he took over the reins of the company following the death of his father in 1994.
Ayala Corporation chairman Jaime Augusto Zobel de Ayala described him back in 2020 as “an astute, intuitive, perceptive and agile businessman.”
According to a source who declined to be named, a key factor in Razon’s success through the years is his political skills.
“It’s no secret that he funds the campaign of both national and regional politicians. His critics say that Razon has mastered the art of transactional politics,” the analyst said.
Expect Razon’s empire to continue to grow in the years ahead as he plays his cards right in Philippine politics. – with reports from Ralf Rivas and Reuters/Rappler.com
