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APRIL 2014 The Official Publication of International Container Terminal Services, Inc.

ICTSI to invest in Port of Umm Qasr, Iraq


Directory

ICTSI Global Operations

Staff Box

PortFolio is published by International Container Terminal Services, Inc. for its employees.

NARLENE A. SORIANO JUPITER L. KALAMBAKAL JOHN PAULO C. COSTINIANO ZINNO B. GUDEZ MARIE ANNALIE T. MARFIL MAVERICK A. JAVIER PAOLO MIGUEL S. RACELIS JUSTINO RAMON L. TAYAG III Photographers RONNEL P. JAVIER DEXTER F. LANDICHO EDWARD R. MILAG

Editor-in-Chief Managing Editor Associate Editor Researchers

Correspondents Manila ALBERT JOSEPH R. CANCERAN MA. BERNADETTE C. DE GUZMAN MA. CONCEPCION M. DIZON ROSE A. LOBRIN RICARDO D. PAREDES JESTONIE V. VINSON Davao City CHIARA MAY C. ATIS Gen. Santos City REJAMNA S. PANDANGAN Misamis Oriental KIRK KHURNYLLA R. GONO

If you wish to receive a copy of the PortFolio, please write, call or e-mail us at: Public Relations Office, ICTSI Administration Bldg. Manila International Container Terminal, MICT South Access Road Port of Manila, 1012 Manila, Philippines • Telephone: +632 / 245 4101 E-mail: jcostiniano@ictsi.com • URL: www.ictsi.com/media-center/newsletters/

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T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .


International Container Terminal Services, Inc.

APRIL 2014

Contents

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ICTSI to invest in Port of Umm Qasr, Iraq

ICTSI holds annual stockholders meeting

ICTSI, Anchorage employees ink 5-year CBA

ICTSI Oregon: business as usual despite snowstorm

Tech Talk

Meets and Greets

On Board

People

5 8 9 10 10 13 15

Port of Umm Qasr, Iraq

An Anvil for ICTSI

ICTSI Oregon wins safety awards

Ship Ahoy

Spotlight

Level Up

Healthy Lifestyle

T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .

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ICTSI Newsbreak

ICTSI to invest in Port of Umm Qasr, Iraq International Container Terminal Services, Inc. (ICTSI) is partnering with the Government of Iraq to invest in the Port of Umm Qasr. The partnership, which has an initial investment of over USD130 million, is envisioned to unlock Iraq’s enormous economic potential by building the country’s “port facilities of the future.” ICTSI will operate and expand container and general cargo facilities in the Port. Phase 1 of the Umm Qasr expansion will include a new 200-meter quay and a 300,000-TEU capacity container yard. At full build, the facility will have 600 meters of quay and a 900,000 TEU capacity container yard. Aside from the new facilities, ICTSI will operate and manage the existing container terminal on Umm Qasr’s Berth 20.

“This is by far the largest ever private investment in Iraqi ports. We are excited about this opportunity, and we would like to thank the Government of Iraq for the continued support in this endeavor,” says Enrique K. Razon Jr., ICTSI Chairman and President. Located on Iraq’s Gulf coast, Umm Qasr is the largest port in Iraq and the main gateway to the Iraqi market. The

Hans-Ole Madsen, ICTSI Senior Vice President & Head – Europe & Middle East Region (left) and Mazin Khrabut, Deputy to the Director General of the General Company for the Ports of Iraq during the announcement of ICTSI’s port project in the Port of Umm Qasr.

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T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .


International Container Terminal Services, Inc.

APRIL 2014

Port handles liquid and dry bulk, general cargo and containers. It has 21 berths, with a total berth length of 5,000 meters. Container volumes for 2013 totaled 500,000 TEUs. “The Port has seen impressive growth over the past decade ago, and this is testimony to the spirit and skills of Umm Qasr Port’s management team,” says Hans-Ole Madsen, ICTSI Senior Vice President for Europe and Middle East Region. He adds: “But current cargo volumes are still only a fraction of what is expected in the future. The Iraqi economy is being transformed as Iraq develops its industrial potential and catches up with its neighboring economies. ICTSI will provide the world-class port infrastructure and cargo handling skills required to support Iraq’s economic transformation.” With its operational excellence and large scale investments, ICTSI will serve its customers in Iraq – the importers and exporters, the shipping lines, and the shipping community – at the highest standards, thereby ensuring that Umm Qasr will become the pre-eminent international trading hub for Iraq’s international trade.

Port of Umm Qasr, Iraq The Port of Umm Qasr Port is Iraq’s only deepwater port and the largest in the country. Part of the city of Umm Qasr, the Port is strategically located on the western edge of the al-Faw peninsula, where the mouth of the Shatt al Arab waterway enters the Persian Gulf. It is separated from the border of Kuwait by a small inlet.

(Source: Google Earth)

ICTSI’s Berth 20 at the Port of Umm Qasr

Illustration shows artist’s rendition of the expansion of ICTSI’s operations in Umm Qasr, Iraq. At full build, the facility will have 600 meters of quay and a container yard at 900,000 TEU annual capacity.

Iraq’s economy is dominated by the oil sector, which has provided about 95 percent of foreign exchange earnings in modern times. The country’s recent contracts with major oil companies have the potential to greatly expand oil revenues. An improved security environment and an initial wave of foreign investment are helping to spur economic activity, particularly in the energy, construction, and retail sectors.

(Source: iraq-businessnews.com)

T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .

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ICTSI Newsbreak

ICTSI holds annual stockholders’ meeting At the 2014 ICTSI Stockholders’ Meeting, Enrique K. Razon Jr., ICTSI Chairman and President, reported a 17 percent increase in gross revenues from port operations in 2013: from US$729 million in 2012 to US$852 million in 2013. He attributed the growth to the Group’s expanding terminal portfolio and from the contributions of its key ports in the Philippines, Madagascar, Brazil, Ecuador and Pakistan. Below is Mr. Razon’s full report during the stockholders’ meeting last 10 April at the Rigodon Ballroom of the Peninsula Hotel Manila, Makati City: In 2013, ICTSI continued to generate superior financial results, despite continued sluggish global economic performance and more subdued levels of trade growth than what we enjoyed in the years leading up to the 2008 global financial crisis. Our strong financial performance reflects the success of our strategy to expand and diversify beyond our home market of the Philippines—with a focus on adding small to medium sized terminals mostly in developing economies. Many of our investments and acquisitions made over the past six to seven years have matured into important contributors to current profits and cash flow. Madagascar, Brazil, Ecuador and Pakistan all deserve special mention. We are working hard to convert today’s investment spending into future profit contributors. Initial indications from our more recent terminal start-ups and takeovers in Manzanillo, Mexico and Puerto Cortes, Honduras look particularly promising. In addition to the challenges posed by the global macroeconomic environment, ICTSI also faces new and continuing challenges specific to the evolution of the global maritime transport industry. Our shipping line customers remain committed to increasing the size of vessels in their fleets to levels unimaginable just a decade ago. During

my career at ICTSI I have witnessed the evolution of ship sizes from “Panamax” to “Post-Panamax” to “Super Post Panamax.” And now there are 18,000 TEU vessels that can only be described as “Beyond Super Post Panamax.” This trend has led to a need for major upgrades to related landside infrastructure, with the current project to widen the 100-year old Panama Canal the most prominent example. We believe that a combination of ICTSI’s unique terminal portfolio and highly experienced management are well positioned to cope with these challenges. Finally, I should mention that ICTSI took a number of important steps during 2013 to strengthen its capital base, extend the maturities of our long-term borrowings, and capitalize on the favorable global interest rate environment to raise low-cost, long-term fixed rate funding. None of us should assume that the prevailing low interest rate environment will continue indefinitely. Assuring that ICTSI is well capitalized and maintains a liability structure appropriate to its long term infrastructure asset base will continue to be an important foundation of the Company’s success. Before turning to the details of our operating and financial performance during 2013, I would like to mention some key highlights for the year: The Manila International Container Terminal marked its 25th year of operation in June. The MICT represents the first, most important and flagship operation in ICTSI’s global

The ICTSI Board of Directors during the Company’s 2014 Annual Stockholders’ Meeting at the Peninsula Manila (from left): Andres Soriano III, Stephen A. Paradies, Atty. Silverio Benny J. Tan, Assistant Corporate Secretary, Enrique K. Razon Jr., Chairman and President, Jon Ramon Aboitiz, Jose C. Ibazeta and Octavio Victor R. Espiritu. Not in photo is Joseph Higdon. 6

T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .


International Container Terminal Services, Inc.

APRIL 2014

portfolio, and the 25th anniversary celebration coincided with the MICT handling its 25 millionth TEU. We look forward to achieving continued success in the next 25 years, and I would like to take this opportunity to thank the over 200 ICTSI employees who have been with us since the beginning, and who received 25 year service medals in recognition of their contributions to the company. Also in June, we celebrated the 10th anniversary of the Baltic Container Terminal in Gdynia, Poland. BCT was ICTSI’s first significant acquisition in this millennium, and has been an important component in building our international portfolio. In August, Contecon Manzanillo serviced its first vessel. This was followed by an official inauguration ceremony in January this year. Manzanillo is Mexico’s busiest port, and an important gateway for trade with the Asia-Pacific region. In October, we finalized the sale of roughly one-half of our ownership stake in Sociedad Portuaria Industrial Aguadulce in Buenaventura, Colombia to PSA International. We are looking forward to developing and constructing this important new terminal on the Pacific Coast of Colombia together with our partners at PSA. In December, we took over commercial operation of Puerto Cortes in Honduras through our subsidiary, Operadora Portuaria Centroamericano. OPC currently handles over 600,000 TEUs per year, and represents the main port for the Central American country of Honduras. Finally, in February of this year with La Societe De Gestion Immobiliere Lengo, we finalized a new joint venture in the Democratic Republic of Congo to construct a multi-purpose terminal located at the important river port of Matadi. 2013 Volumes In 2013 consolidated volume handled reached 6.3 million TEUs, representing growth of 12 percent over the 5.6 million handled in 2012. Asia accounted for the highest growth at 17.4 percent, from 3.2 million TEUs to 3.8 million TEUs, almost double the growth rate of the prior year. The Americas also grew strongly at 9.5 percent from 1.57 million TEUs to 1.73 million TEUs. The Europe-Middle East-Africa region declined slightly by 3.6 percent from 823,000 TEUs to 794,000 TEUs, mostly due to weak economic conditions in Central and Eastern Europe. Financial Performance Gross revenues from port operations were US$852 million, an increase of 17 percent over the US$729 million for the previous year. Net income attributable to equity holders was US$172 million, an increase of 20 percent over US$143 million in 2012. Diluted earnings per share for the period were likewise higher by 22 percent at 7.1 cents, from 5.8 cents in 2012. Consolidated cash operating expenses grew 13 percent to US$359 million from almost US$319 million in 2012 with the

inclusion of operating expenses at new terminals accounting for the majority of this increase. Consolidated EBITDA for 2013 increased 23 percent to US$377 million, from US$307 million in 2012. Consolidated EBITDA margin increased to 44 percent in 2013 compared to 42 percent in 2012. Consolidated financing charges and other expenses increased 38 percent to US$48 million, from US$35 million in 2012 due mainly to higher amounts of outstanding interestbearing debt. ICTSI’s capital expenditure in 2013 amounted to US$477 million. Last year’s capital expenditures were mainly comprised of construction of new terminals in Mexico and Argentina, capacity expansion in Rijeka, Croatia, and costs related to the takeover of the Company’s newly acquired terminal in Puerto Cortes, Honduras. The Group’s capital expenditure for 2014 is projected to be US$310 million, principally for the completion of the new terminals in Mexico and Argentina, and the development of terminals in Honduras and DRC. This excludes $120 million for our share of SPIA in Colombia as it is no longer consolidated. Others ICTSI continues to be recognized internationally for its achievements beyond financial performance. Euromoney acknowledged ICTSI as the “Best managed company in Asia for the transportation/shipping sector” in 2013. Similarly, FinanceAsia named ICTSI as one of the Philippines Best Managed companies, and CorporateGovernanceAsia cited ICTSI as one of Asia’s Icons in Corporate Governance in its 9th Corporate Governance Asia Recognition Awards. However, of equal importance to these accolades and our strong financial performance is ICTSI’s service to its community. In this regard I would like to close by mentioning the efforts of many of our employees in assisting the devastated community of Tacloban to recover from Typhoon Yolanda. In addition to relief efforts undertaken by the ICTSI Foundation, we have been providing container handling services at the Port of Tacloban free of charge since last November. Before that, we opened our CFS to become DSWD’s staging area for the massive relief efforts. ICTSI was among the first corporate citizens to respond to the Philippine Government’s call to rebuild devastated areas. To this end, we have adopted an area in the northern portion of Tacloban City, which we will help rehabilitate. The Foundation is also helping in the rehabilitation of the historic town of Balangiga. Through all these developments—as a business organization, as a member of many local communities, and as a growing player in the larger maritime trade industry—ICTSI holds fast to one principle. Simply stated, the company always takes the long-term view of things. Our first quarter century proves the wisdom of that approach; the success of our next quarter century rests on that same foundational principle as well.

T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .

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ICTSI Newsbreak

An Anvil for ICTSI Peers in the public relations profession once again recognized International Container Terminal Services, Inc. (ICTSI) for excellence in public relations. Last 26 February, the Public Relations Society of the Philippines (PRSP) conferred the Anvil Award of Merit to the ICTSI Silver Brochure Series, a publication project timed for ICTSI’s 25th anniversary celebration in June 2013. Narlene Soriano, ICTSI Head of Public Relations, Jupiter government and non-government organizations, and local Kalambakal, ICTSI Associate Head – Public Relations, and government units. From the 407, PRSP selected 109 PR Jocelyn Badoy, publication consultant, received the trophy programs and tools implemented in 2013 as recipients of the for the brochure project. The 49th PRSP Anvil Awards was coveted Anvil. held at the Grand Ballroom of Solaire Resort and Casino in The Anvil is the second award of the publication Entertainment City Manila, Parañaque City. project. In November 2013, the ICTSI Silver Brochure Series PRSP received a total of 407 entries from 103 participating received the Philippine Quill Award of Excellence from the corporations, agencies, media companies, publications, International Association of Business Communicators.

Photo shows Narlene A. Soriano (fourth from left) holding the Anvil for the ICTSI Silver Brochure Series together with Jupiter L. Kalambakal (third from left), Jopie Badoy (fifth from left) and jurors of the PRSP 49th Anvil Awards.

The award-winning team of the ICTSI Public Relations Office (from left): Jaythree Tayag, Bambi Marfil, Paolo Racelis, Ms Soriano, Ms Badoy, Mila Lumactao, editorial consultant, Paulo Costiniano and Maverick Javier. Not in photo is Anthony Villanueva, creative consultant.

The award-winning ICTSI Silver Brochure Series (from left): the ICTSI Profile, which provides the Company’s capability statement and institutional overview; ICTSI Silver Horizon, a commemorative brochure chronicling ICTSI’s 25-year history; and the ICTSI Factbook, which details the Group’s terminal portfolio worldwide. 8

T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .


International Container Terminal Services, Inc.

APRIL 2014

ICTSI, Anchorage employees ink 5-year CBA

By Michael Rainier Alcazar

A five-year Collective Bargaining Agreement (CBA) between International Container Terminal Services, Inc. (ICTSI) and the Anchorage Labor Union-ICTSINational Federation of Labor Unions (ALU-ICTSINAFLU), the bargaining agent for the Anchorage Section of ICTSI’s flagship Manila International Container Terminal, was signed last 27 February 2014. The new CBA contains provisions on wage increases and employee benefits to union members such as paid leaves, medical and dental coverage, hospitalization, insurance coverage, profit-sharing and retirement, among others. The CBA will expire on 26 February 2019, and a new CBA will be negotiated.

ICTSI Oregon wins safety awards

By David Trzyzewski

ICTSI Oregon, Inc. recently won awards in various categories of the 66th Annual Pacific Maritime Safety Awards. ICTSI Oregon received a trophy and plaque for achieving first place in the Pacific Northwest for Group C Container Operations, and a plaque for an improvement in OSHA frequency rate for 2013. The safety awards were a major accomplishment as ICTSI Oregon was competing against other terminal operators not only in Portland, but also in the much larger ports of Seattle and Tacoma. The Pacific Maritime Safety Awards were presented by the Columbia River / Oregon Coast Area Accident Prevention Committee to honor the safety accomplishments of member companies of the International Longshore and Warehouse Union and Pacific Maritime Association.

The award winning ICTSI Oregon Terminal 6 team (from left): RC Miller, Noah Scheidel, Kevin Young, Shawn Ball, Chris Hartigan, Adis Trnjanin, Brian Yockey, Terminal Manager, Jim Mullen and Kelly Roby, Assistant Terminal Manager.

Photo shows the CBA signing (from left, standing): Charlie Rata, Jaime Inosanto, Tirso Lagarte, Virgilio Santos, Rodrigo Labonite, Richard Pantino, Rouzel Handoc, Rogelio Tolero, Juan Ausa, Joel L. Pajuyo, ICTSI Assistant Manager, Anchorage, Atty. Nicanor Jimeno, ICTSI legal counsel, and Ruben Bongco; and (from left, seated): Daniel Saligumba, Vice President, ALU-ICTSI-NAFLU; Manuel Arias, National President, NAFLU, Reynaldo Salido, President, ALU-ICTSI-NAFLU, Christian R. Gonzalez, ICTSI Vice President and Head of Asia-Pacific Region, Ma. Cristina G. Zulueta, ICTSI Human Resources Development Manager and Julio L. Cabral, ICTSI Manager, Yard/Marine Operations and Terminal Services.

ICTSI Oregon: business as usual despite snowstorm

By David Trzyzewski In mid-February, a record snowstorm hit Portland, Oregon for five consecutive days. Snow started falling by midweek and continued throughout the weekend dumping a foot of snow. By Friday evening, a winter storm warning was announced for freezing rain, sleet and snow for the next several days. The Portland International Airport cancelled most of its flights, area businesses were closed and the Office of the Mayor issued a travel ban due to hazardous road conditions. That weekend, Terminal 6 had Hanjin, Hapag Lloyd and Westwood all making vessel calls in the middle of the snowstorm. The entire ICTSI Oregon staff made it to work, and was able to keep the Terminal open and operational during the bad weather. T6 has its own snow plow and sander, which were deployed 24/7 to keep the terminal cleared of snow and ice. ICTSI Oregon staff was able to work all vessels during the snowstorm. The vessels were able to sail out of Portland subject to weather conditions. Photo shows ICTSI Oregon’s Lake Oswego offices located south of Terminal 6 during the snowstorm.

T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .

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Ship Ahoy

More service routes launched at Contecon Manzanillo’s SCT-II By Pamela Dela Vega

Maiden call of MSC Chicago at the Specialized Container Terminal-II at the Port of Manzanillo, Mexico.

International shipping lines MSC, CMA CGM and CSAV are the latest addition to Contecon Manzanillo S.A.’s (CMSA) clientele at the Specialized Container Terminal-II in the Port of Manzanillo, Mexico. Through the three shipping lines’ joint venture services, CMSA serviced MSC Chicago last 28 January. The joint service involves two service routes, ANDEX 1 and ANDEX 3, connecting ports in the Latin American West Coast to ports in Asia, and an intra-regional service route, TIKAL, connecting Manzanillo to the West Coast ports of Central America. The first container vessel CMSA serviced was Maersk Kalamata in August 2013.

Tech Talk

Adriatic Gate launches new web site Adriatic Gate Container Terminal (AGCT) recently launched its website, www.ictsi.hr, to raise the level of service and ease of operation and communication with its clients. The new website is multi-platform, using a responsive web design technology, which allows all content and functional elements to be available on a desktop or laptop computer, tablet or smart phone. Key features and functionalities of the website include: sailing list of announced vessels, direct access to the users of Navis, and creation of on-line orders. Other features are: price calculator, real-time container tracking at the terminal, visitor appointment, open tenders by AGCT’s procurement department, real-time road traffic information, and download facility for port documents and procedures.

Spotlight

Lekki International Container Terminal joins 12th Intermodal Africa By Gagan Seksaria

Jens Floe (center), ICTSI Senior Vice President & Head of African Region, discusses the Lekki Port project with Senator Idris Umar (right), Transport Minister of Nigeria, at the LICTS exhibit. 10

By Iva Roman

Adriatic Gate Container Terminal’s website, www.ictsi.hr, is accessible via desktop / laptop computers, tablets and smart phones. ICTSI subsidiary Lekki International Container Terminal Services LFTZ Enterprise (LICTS) participated in the 12th Intermodal Africa International Conference and Exhibition held in March at the Lagos Oriental Hotel in Lagos, Nigeria. Jens Floe, ICTSI Senior Vice President and Head of African Region, delivered a presentation titled “Developments in Lekki Port Terminal,” where he discussed ICTSI’s ongoing port project at the Lagos Free Trade Zone. The future 2.5 million TEU-capacity Lekki International Container Terminal (LICT) is one of the largest port projects in Sub Saharan Africa. The LICT will provide Nigerian and West African trade with a modern, deep water port to support growing volume in the region. The terminal is targeted to be operational in 2017. Senator Idris Umar, Federal Transport Minister of Nigeria, opened the event. During his visit to the LICTS exhibition booth, Senator Umar expressed confidence with the development at Lekki as well as support for the infrastructure project.

T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .


International Container Terminal Services, Inc.

APRIL 2014

Spotlight

SBITC at Transport Summit 2014

With reports from PortCalls

ICTSI subsidiary Subic Bay International Terminal Corp. (SBITC) joined fellow stakeholders in the Philippine supply chain sector at the Transport Summit 2014 conference held last April at the Sofitel Philippine Plaza. Organized by the Philippine International Seafreight Forwarders Association and maritime publication PortCalls, the Summit gathered the country’s major ports, logistics and import / export companies to discuss key issues in the country’s transport sector. With the theme “Removing Barriers in Cargo Transportation and Customs,” the Summit held a panel discussion between the government and the private sector on issues such as the expanded truck ban in Manila and other government policies. Reimond Silvestre, SBITC General Manager, delivered a presentation on ICTSI’s operations in Subic. ICTSI, through subsidiaries SBITC and ICTSI Subic, Inc., operates the Freeport’s NCT 1 and 2, respectively. At the Transport Summit’s panel discussion (from left): Rona Gatdula of the Philippine Liner Shipping Association; Emilio Llavor of the Metro Manila Development Authority; Ruperto Bayocot of the Confederation of Truckers Association of the Philippines; Tereso Panga of the Philippine Economic Zone Authority; Patrick Ronas of the Association of International Shipping Lines; and Reimond Silvestre of Subic Bay International Terminal Corp.

AGCT: new gateway to the Danube region Adriatic Gate Container Terminal (AGCT), the ICTSI-operated terminal in the Port of Rijeka, Croatia, was among the key participants in the Multimodal Solutions for the Danube Macro Region Conference last March in Salzburg, Austria. Zarko Acinger, AGCT Commercial Manager, presented to the delegates the benefits of using the AGCT as the “gateway” for the Danube region. With AGCT’s upgraded terminal capacities and equipment, strategic location in the middle of major EU markets, and highway and rail connections to the Danube hinterland, AGCT is recognized as an important seaport and gateway for the region. Following the adoption of the EU Strategy for the Danube by the European Commission in 2010, Danube became the third European Macro Region after the Mediterranean and Baltic.

ICTSI at SupplyLink 2014

By Iva Roman

Zarko Acinger, AGCT Commercial Manager, delivers his presentation during Danube Macro Region Conference.

By Paolo Miguel Racelis

International Container Terminal Services, Inc. (ICTSI) was among the resource and sponsoring organizations in the recently concluded SupplyLink 2014 international conference and exhibition organized by the Philippine Institute for Supply Management (PISM). Held in March at the SMX Convention Center in Pasay City, the event’s theme centered on the current challenges facing the supply chain professional. The conference featured speakers from the Philippines and across the Asia-Pacific region. Antonio Coronel, Head of Purchasing, Mariel Zamora, Purchasing Manager and incumbent PISM President, and officers and staff of the Purchasing Department represented ICTSI. The Company also participated in the exhibition through a booth showcasing terminal efficiencies at its flagship Manila International Container Terminal. Speaking on behalf of Christian R. Gonzalez, ICTSI Head of Asia-Pacific Region, was Roberto Locsin who delivered ICTSI’s paper on “Port Infrastructure, Management and Development Plans” in one of the plenaries.

Roberto Locsin, from the Office of the ICTSI Head of AsiaPacific Region, discusses ICTSI’s paper on “Port Infrastructure, Management and Development Plans” in one of the plenaries of the SupplyLink 2014 conference.

T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .

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Spotlight

AGCT at the Rijeka meet of the EU South East Transport Axis Project By Iva Roman Zarko Acinger, AGCT Commercial Manager,

ICTSI subsidiary Adriatic Gate Container Terminal (AGCT) was talks on “Development of Container Traffic at among the presenters in a conference hosted by the City of the Adriatic Gate Container Terminal” during Rijeka for the EU South East Transport Axis Project (SETA). the EU SETA Project conference. Zarko Acinger, AGCT Commercial Manager, presented to project partners recent developments in AGCT’s container terminal facilities at the Port of Rijeka. The presentation was key to the plenaries of the SETA meet as AGCT plays a key role in the EU project. As project partner, AGCT, together with fellow Croatian stakeholders of SETA, will work closely with the transport sectors of partner countries in establishing transport links between north and south Europe. Partner countries are Croatia, Austria, Slovakia, Hungary, Slovenia and Italy. The SETA project was launched in 2011 in response to the need to establish transport connections between the Baltic and the Adriatic regions. A transport corridor was identified starting from the Port of Rijeka all the way to Zagreb and western Hungary and up to the transshipment hub of Central Europe stretching between Vienna and Bratislava. By year 2020, the SETA initiatives should have created an efficient rail link between Central Europe and the North Adriatic ports. The Rijeka conference is the last of a series of SETA meetings, which started in Bratislava, Slovakia three years ago. Project partners signed a memorandum of understanding on the last day of the Rijeka meet.

Meets and Greets

Kenya Port Authority visits ICTSI By Gagan Seksaria

The Chairman of Kenya Port Authority, Danson Mungatana, visited ICTSI’s flagship operation Manila International Container Terminal (MICT) last March. During the visit, Mr. Mungatana observed ICTSI’s world-class terminal operations and services. Of interest to him were the various technological innovations currently under operation and implementation in the terminal. Mr. Mungatana also visited the Philippine Ports Authority (PPA) and discussed with PPA officials public private partnerships in the port sector in the Philippines. Kenya is one of the most important and fastest growing economies in Africa, and is recognized to be a regional economic powerhouse for East Africa. Mombasa, the country’s main port, is one of the busiest in Africa having handled 900,000 TEUs in 2013 and is currently considering opening its port sector to private operators.

Photo shows Danson Mungatana (center), Kenya Port Authority Chairman, with Enrique K. Razon Jr. (left), ICTSI Chairman and President, and Gagan Seksaria, ICTSI Vice President and Chief Investment Officer for the African Region.

Ecuadorian authorities visit Contecon Guayaquil’s narcotic-proof facilities By Kathy Ossa Bianchi Key government and police officials of Ecuador visited Contecon Guayaquil S.A.’s (CGSA) terminal facilities at the Port of Guayaquil last March in their bid to further boost its anti-narcotics campaign in the country. José Serrano, Security Minister; Francisco Rivadeneira, Foreign Trade Minister; Rodrigo Suárez, General Commander of the Police; and Juan Carlos Barragán, National Director for Anti-narcotics, visited the installations of the Port to observe the process of inspection of cargo and to promote security in port operations. José Miguel Muñoz Jiménez, CGSA CEO, explained to the authorities the transparency of the terminal to police inspections especially in the reefer yards and roofed warehouses, including online access to cargo information. He assured officials that CGSA supports anti-narcotics police in their function to apply controls to detect contaminated cargo at the Port. 12

Photo shows José Miguel Muñoz Jiménez, CGSA CEO, discussing with Ecuadorian ministers and police authorities the terminal’s security features and port inspection procedures.

T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .


International Container Terminal Services, Inc.

APRIL 2014

Meets and Greets

PISFA visits ICTSI Subic container terminals With reports from PortCalls

Key officials of the Philippine International Seafreight Forwarders Association (PISFA) visited the Subic Freeport Zone last March to check developments at International Container Terminal Services, Inc. (ICTSI)-operated New Container Terminals (NCT) 1 and 2. Reimond Silvestre and Tony Ramos, Subic Bay International Terminal Corp. (SBITC) General Manager and Administration and Finance Manager, respectively, welcomed PISFA officials to NCT 1 and 2. Mr. Silvestre briefed PISFA officers on the cost and time advantages of shipping through Subic for northern Luzon consignees. The officers were later given a tour of the terminals. PISFA officials later had a courtesy call with Roberto Garcia, Subic Bay Metropolitan Authority Chairman. PISFA officers requested Mr. Garcia to look at easing accreditation requirements for Subic port users. The officers said documentation requirements for those delivering or picking up cargoes at the Freeport zone should be less than those for locators.

PISFA courtesy call on Roberto Garcia, SBMA Chairman (from left): Tony Ramos, SBITC Administration and Finance Manager; Liza Almonte, PortCalls Publisher; Erich Lingad, PISFA Vice President; Atty. Jocelyn Alvarado, SBMA Senior Deputy Administrator for Regulatory Group; Chairman Garcia; Mariz Regis, PISFA President; Doris Toris, PISFA Director; and Reimond Silvestre, SBITC General Manager.

Level Up

ICTSI, NMCTS provide training to localize Muara workforce By Rey Betonio In response to the call of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam for the localization of the national workforce, ICTSI subsidiary New Muara Container Terminal Services Sdn. Bhd. (NMCTS) has successfully formed a training team composed of local employees from the management staff for the Muara Container Terminal (MCT). In April last year, the management of NMCTS along with parent company ICTSI arranged to send a trainer capable of imparting training skills to would-be trainers at the MCT. A training team was created to provide technical and operational know-how on terminal operation systems and procedures, safety and Company policies. Wilfredo Baliwag, an experienced trainer from ICTSI flagship Manila International Container Terminal, was sent to the MCT to conduct “training the trainers” for two weeks. The following are the members of the NMCTS training team: CY Handling Equipment operator trainees • Ahmad Ilmi Hj Adanani, Assistant Operations Manager • Eswandi Hj Abas, First-in-Charge Technician – – Instructor on Terminal Operation System (TOS) Instructor on Technical and Maintenance • Suriani Hj Abas, Assistant Manager for Admin/HR – On the second week, the new trainers on quay crane Instructor on Company Policies (QC) operations and container yard handling equipment did • Roswalee Hj Abu Bakar, QC Operator – Instructor on their first training for would be operators. The following are QC Operations the trainees for QC operations: • Hj Khambrin Hj Ibrahim, QC Operator – Instructor on • Amalulariffin Morni, Operations Assistant – QC QC Operations Operator Trainee • Jasmi Naim, CHS Operator – Instructor on CHS • Amirsyam Hj Samsudin, Operations Assistant – QC Operations Operator Trainee • Edafinde MatSalleh, CHS Operator – Instructor on CHS Operations p. 14 T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .

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Level Up ⧒

ICTSI, NMCTS provide...

• Hamidi Hj Abd Hamid, Operations Not only did the program intend to train the Assistant – QC Operator Trainee QC Operators but also CY Handling Equipment • Samsudin Hj Ideris, Prime Mover Operators. In May, after successfully passing the Driver – QC Operator Trainee trade test, the trainees were put on probation as • Edafinde MatSalleh, CHS Operator and CHS Operators effective May 2013. Instructor – QC Operator Trainee Following completion of the Trainers Program The QC Operators Training was also in April last year, the CHS instructors conducted divided into two parts: classroom training their first CHS Operator Training Program with involving TOS, Company policy, Technical the following trainees: and Maintenance, and QC Operations for • Wasli Hj Yahaya, Prime Mover Driver – three days. On the succeeding two days, the CHS Operator Trainee trainees were exposed to the quay crane itself. • Harman Zulkifli PA Hj Ahmad, Prime Mr. Baliwag, together with Ahmad Ilmi and Mover Driver – CHS Operator Trainee Suriani Hj Abas, closely supervised the training • Hj Latif Hj Mohd Noor, Prime Mover The trainers in a group photo to ensure that the trainers were Driver – CHS Operator Trainee doing it right. Thereafter, management decided The training went on until May to conduct a second run of the CHS after which the trainees were Operator Training to replace retiring deployed to different groups and foreign operators on June 2013. The hands-on training under supervision following are the trainees for CHS: of the current instructors and other • Adulani Pindah, Prime Mover Willy Baliwag QC operators. Ahmad Ilmi, Suriani Driver – CHS Empty Handler (standing) of ICTSI and Alfred Sanchez supervised the Unit Operator Trainee Manila in one of the training. Still on the same month, • Samlinan Ali Rahman, Prime classroom training. all the trainees took written exams Mover Driver – CHS Empty as part of the course requirement. Handler Unit Operator Trainee After the tests, hands-on training continued until December. • Bakri Hj Ahmad, Prime Mover Driver – CHS Empty In January this year, two positions needed to be filled up Handler Unit Operator Trainee due to the retirement of foreign operators. Thus, five more • Hj Bungsu Zakaria, Prime Mover Driver – CHS Empty QC operator trainees took a practical exam in actual QC Handler Unit Operator Trainee operations with vessel during discharging and loading phase: • Kamaluddin Hj Ahmad, Prime Mover Driver – CHS • Amalulariffing Morni, QC Operator under probation Empty Handler Unit Operator Trainee effective February 2014 • Sofri Hj Saidin, CHS Empty Handler Unit Operator – • Amirsyam Hj Samsudin, QC Operator under probation CHS Laden Handler Unit Operator Trainee effective February 2014 Training went on until June including trade tests in the • Hamidi Hj Abd Hamid, Back-up QC Operator effective same month. Three out of the five trainees for prime mover February 2014 operators passed the exam, and proceeded to train as CHS • Samsudin Hj Ideris, Back-up QC Operator effective operator trainees until end of January 2014. Four trainees February 2014 passed the tests also in January, and put on probation in • Edafinde MatSalleh, Back-up QC Operator effective March this year. February 2014 The third batch for the CHS training was conducted for The second batch of QC operator trainees commenced empty handler unit operator trainees that started in October training in October last year and will end in June 2014. last year up to the present. The trainees are: • Mohd Azurhan “Abdul Martin” Hj Ali • Azrul Azmi Gani • Mohd Shamsul Hj Metassim • Ali Raina Mahali

MICT Emergency Response Team seminar, drill By Paulo Carlo Penalba

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The Emergency Response Team (ERT) of the ICTSI flagship Manila International Container Terminal held a seminar and drill last March at CFS1 Training Room and at ECD ITHA Hanjin Office. Some 37 members of the ERT participated in the activity. During the seminar and drill, the Bureau of Fire Protection headed by Chief Inspector Rex Arvin Afalla assisted the ERT.

T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .


International Container Terminal Services, Inc.

APRIL 2014

ICTSI Foundation joins SWAPPCon 2014 The ICTSI Foundation, Inc., together with its project partners in the Foundation’s Parola Solid Waste Management Project, participated in the SWAPPCon 2014 last March at the Concourse Convention Center in Legazpi City. Organized by the Solid Waste Management Association of the Philippines, Inc. (SWAPP), around 150 participants who are committed to proper solid waste management attended the conference. This year’s theme focused on mainstreaming and integrating the informal waste sector (IWS) into the organized and larger solid waste management system. The IWS includes waste pickers, waste reclaimers and junk shop operators among others, The conference presented social inclusion mechanisms available for IWS and alternative livelihood and social enterprises that can be developed for them. The SWAPPCon 2014 is in support of the National Framework Plan for the Informal Waste Sector in Solid Waste Management adopted by National Solid Waste Management

On Board

Sebastiano Cerneka: EME Deputy Regional IT Head By Iva Roman

Sebastiano Cerneka, IT Manager of ICTSI Croatian unit Adriatic Gate Container Terminal (AGCT), was recently appointed as concurrent Deputy Regional IT Head for Europe and the Middle East (EME) of ICTSI. Mr. Cerneka was Project Manager in charge of the rollout of Navis Sparcs N4 in AGCT in 2011 when the new system was implemented in a record time of three months. An IT professional for the past 14 years, he has been working in various industries, focusing on enterprise software and hardware solutions. In recent years, he was actively

By Marie Bernadette de Guzman

ICTSI Foundation SWAPPCon 2014 delegates (from left): Sandy Cresidio, Barangay 275-Parola Council Member; Filipina Laurena, ICTSI Foundation Deputy Executive Director; Atty. Maureen Tolentino, Department of Public Services-Manila Legal Head; Francis J Algernon Bartolome, Foundation Program Head; Allan Parce, Barangay 20-Parola Tondo Council Chairman; Joy Lapuz, Foundation Senior Program Head; and Marie de Guzman, Foundation Project Officer. Commission in 2010. SWAPP is a non-profit association of national government agencies, local government units, institutional organizations, professionals and solid waste management practitioners. involved in the project management and development of business processes for container terminals in the Adriatic region. Mr. Cerneka is a sought after speaker in IT conferences such as TOC events and Navis World conferences. In 2013, he was among the resource persons of Tech TOC, together with Ognjen Ruzic, AGCT Operations Manager, in Rotterdam, Netherlands, where he shared his project on 3G mobile communications for terminal network connectivity. The project has earned him and AGCT’s IT team an award for one of three best innovations for the ICTSI Group during the ICTSI Global IT Conference in Los Angeles, California in October 2012. This year, Mr. Cerneka was invited again to present at TOC Europe Sebastiano Cerneka happening in June in London, England.

TecPlata’s new PortFolio correspondent Magdalena Riani, TecPlata PortFolio correspondent.

ICTSI Argentinean subsidiary TecPlata S.A. has a new correspondent for the PortFolio. Magdalena Riani, Commercial Business Analyst at TecPlata, is a B.S. Political Science and International Affairs graduate from the University of Salvador in Buenos Aires, Argentina, and is a licensed real estate auctioneer / appraiser from University of Formosa also in Buenos Aires. She is a public relations professional.

Healthy Lifestyle

Annual physical examination at the MICT Employees at the ICTSI flagship Manila International Container Terminal (MICT) had their annual physical examination last March at the MICT Clinic. Health Maintenance, Inc. (HMI), the accredited health maintenance organization of ICTSI, provided the medical service as part of the employees’ HMI membership benefits. Photo shows employees on queue as the await their turn in the various exams, which included electrocardiogram, complete blood count, chest X-ray, and eyesight check up among others. T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .

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People

Congratulations!

Congratulations to Jahn Camille Valdez, daughter of Jay Valdez, MICT Operations Planning Manager (in photo together with mom, Maribel), for graduating with a degree B.S. Biology from the University of Santo Tomas. Jahn Camille will enroll in medical school and plans to specialize in cardiology.

Congratulations to Kevin Ian Thadeus Urdaneta, son of Encie Urdaneta of the MICT Commercial and Risk Management Department, for receiving the Loyalty Award and Best in Research in Science from the Jesus Good Shepherd School.

Movements (March) Retirements / Resignations Charlito I. Flores Superintendent, Records Section Merlyn M. Mondarte Sr. Records Staff, Records Section Arlene H. Pison Jr. Records Staff, Records Section Joelito S. Eguna Jr. Records Staff, Records Section Diosdado G. Ebol Messenger, Records Section Edgardo D. Nico Electrical Technician, Engineering (FMS) Thomas M. Isurda Prime Mover Operator, ECD Arjay C. Caber Stevedore, Anchorage Division

Mga Kaarawan Tinipon ni Rose A. Lobrin Mayo 1 Oliver Lacap Robinson Monterozo 2 Orven Carmona 3 Epefanio Berre Mylene Icalla Ricti Montañano 4 Renato Cajayon Oliver Lañas 5 Edwin Buan Romeo Mangalus Sr. Mao Paredes Delfin Pomarca Jr. 6 Andreo De Quiroz Anthony Dy Albert Villanueva 7 Jose Boy Banaag Christopher Espera Rene Logronio Randy Verocil 8 Fruzzel Paul Dianzen Danilo Magat Sherwin Sanchez 16

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Danny Belano Delio Caber Romeo Estabaya Samuel Gayas Vicente Campillo Rodillo Irac Michael Javier Merly Loza Marvin Martinez Mark Ailo Ramos Racquel Ros Rogelio Hingzon Michael Quijano Ruben Campillo Bing Sumadchat Recto Valdez Jr. Rolando Espinas Michael Ignacio Justino Casao Paolo Racelis

New Hires Charles J. Garcia Juanito B. Soliman Rafael S. Manukay Lady April C. Collantes

Portfolio Specialist, Global IT Implementation Specialist, Global IT Executive Driver, Global Engineering Customer Care Agent, Commercial & Risk Management Wilfredo F. Canales Jr. Welder, Engineering-MES Joel A. Deculawan GPW on Call, CY Marine Eleonardo H. Dela Cruz GPW on Call, CY Marine Timothy John A. Galvez GPW on Call, CY Marine Dennis G. Olinarez GPW on Call, CY Marine Ian R. Peña GPW on Call, CY Marine Arvin F. Gallinera PMO on Call, CY Marine Dante S. Perez PMO on Call, CY Marine Marinio M. Soriano PMO on Call, CY Marine Regino G. Yonting PMO on Call, CY Marine 15 16 17 18 19 20 21 22

Romulo Ariñavo Alexander Ayuson William Gulane Ricardo Paglinawan Sandro Perez John Sumampong Danilo Arradaza Ricky Gonzales Jr. Pablo Peñaranda Annabelle Reyes Macario Arzaga Joey Mores Justino Ramon Tayag III Jessie Todoc Mario Echevarria Joefren Ramirez Domingo Dela Cruz Jr. Bing Festin Allan Jasojaso Malou Jolejole Ruel Paredes Tito Dacca Jr. Cecilio Reyes Bernarda Torres Ramie Agnes Benjamin Blase Florentino Gas Renato Magdaet

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Danilo Bruza Haje Cuaterno Andrea Dawal Erick Manzano Pepito Sanchez Arvin Abuan Felipe Baldos Ruel Malipot Cesar Azul Ruben Bongco Michael Fernando Raldy Lido Feliza Parojenog Leonilo Gabral Danny Peliño Michael Babaran Jesus Tristeza Jr. James Paul Adula Wilfredo Baliwag Sr. Marlon Besa Ben Nuguit Patricia Marie Rebong Luis Belano Froilan Magtalas Vangie Musni Encie Urdaneta

T h e O f f i c i a l P u b l i c a t i o n o f I n t e r n a t i o n a l C o n t a i n e r Te r m i n a l S e r v i c e s , I n c .


April 2014 PortFolio_Philippine Edition