November 2013
The Official Publication of International Container Terminal Services, Inc. • International Edition
PH government revitalizes Tacloban Port Taps ICTSI resources, manpower to improve port operation
I N T E R N AT I O N A L E D I T I O N
Directory
ICTSI Global Operations
Staff Box
International PortFolio is published by International Container Terminal Services, Inc. for its employees, clients, and friends. 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 Philippines 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
International Argentina Brazil China Croatia Ecuador Georgia Indonesia Japan Mexico Pakistan Poland USA
MIGUEL CHALAR FABIANA SOUZA APOLLO ZHOU IVA ROMAN KATTY OSSA BIANCHI BENJAMIN D. ROSARIO RINI HERAWATY TAKETOSHI TOYAMA PAMELA DE LA VEGA MOHAMMAD ATIQ MICHAL KUZAJCZYK DAVID TRZYZEWSKI
If you wish to receive a copy of the International 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/
2
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.
NOVEMBER 2013
Contents
4 6 8 10 12
PH government revitalizes Tacloban Port
ICTSI 9-month net income up 22% to US$128.8 million
PICT ranks 6th in the Employer of the Year Award 2012
Spotlight
Level Up
5 8 9 11
Pakistani Minister of Ports and Shipping visits PICT International Container Terminal Services, Inc. E
XCELLENCE
U
NCONTAINED
BICTL lauded for container volume growth
Do Good
Ship Ahoy
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 .
3
I N T E R N AT I O N A L E D I T I O N
ICTSI Newsbreak
PH government revitalizes Tacloban Port
Taps ICTSI resources, manpower to improve port operation
The Philippine government, through the Department of Transportation and Communication (DOTC) and the Philippine Ports Authority (PPA), is revitalizing Tacloban’s port facilities and operation, a move seen not only to accelerate but also to ensure safe delivery of the massive humanitarian aid for Tacloban and other devastated areas in Eastern Visayas. 4
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.
NOVEMBER 2013
DOTC and PPA have tapped International Container Terminal Services, Inc. (ICTSI) to reinforce and improve port services given the influx of support from countries the world over and the immediate need to transport aid. Christian R. Gonzalez, ICTSI Head of Asian Region, says: “Today, we signed a relief support agreement with the PPA. We have been closely working round-theclock with DOTC and PPA to get this project running at the quickest time possible. We have dispatched our equipment, which should arrive in Tacloban by Tuesday. By then, the port will be fully operational.” ICTSI is deploying various cargo handling equipment valued at over PhP200 million. This includes a brand new mobile harbor crane (MHC) already being commissioned in Davao for possible deployment to Leyte if required. Commissioning is being done in Davao due to the lack of water depth at the Tacloban Port to support the heavy lift vessel carrying it. As its donation to the typhoon victims, spreader manufacturer Stinis from Holland added two more back-up spreaders to ensure the smooth and continuous operation. Moreover, a start-up team composed of top-notch engineers, operations managers and staff, equipment operators from the Manila International Container Terminal (MICT), ICTSI’s flagship, have been dispatched to support port operation. Mr. Gonzalez added that ICTSI will run the Tacloban Port free, and will continue to do so up until the close of the government’s relief operations and normal transportation network has been restored, at which time ICTSI will take back all the equipment and pull out its personnel. Meanwhile, at the MICT, ICTSI has opened its container freight station (CFS) facilities to the Philippine Department of Social Welfare and Development (DSWD). The terminal’s CFS-2 in particular was designated as DSWD’s relief operations center (ROC), where international relief donations entering the Port of Manila are processed. The ROC is manned 24 / 7 by ICTSI volunteer-employees along with DSWD volunteers working 24 / 7 as foreign aid continue to pour in for the typhoon victims. ICTSI and the ICTSI Foundation, Inc. (ICTSI-FI) are closely coordinating with and supporting the initiatives of DSWD, partner foundations and non-government organizations such as the Philippine Business for Social Progress and Philippine National Red Cross, and the local Roman Catholic Church for relief efforts. ICTSI-FI also spearheaded a fund-raising and aid collection campaign within the ICTSI Group. ICTSI subsidiaries in 19 countries along with their business partners, client shipping lines, and suppliers have overwhelmingly responded, and donations are pouring in. Donations will be used to augment relief efforts as well as a rehabilitation program. ICTSI is also extending aid to employees who have relatives affected by typhoon.
Pakistani Minister of Ports and Shipping visits PICT
Pakistan International Container Terminal (PICT) welcomed Senator Kamran Michael (center), Pakistani Federal Minister of Ports and Shipping, during his visit to PICT last September. After listening to a brief corporate presentation, Senator Michael toured the terminal and its facilities. Photo shows Capt. Zafar Iqbal Awan (left), PICT Chief Executive Officer; and Capt. Haleem A. Siddiqui (right), PICT Chairman, presenting a token to Senator Michael. (Mohammad Atiq)
Senator Michael (third from left) tours the PICT. At PICT: Capt. Siddiqui (from row, fourth from left), Senator Michael (from row, fifth from left) and Capt. Awan (from row, sixth from left); Romeo Salvador (back row, far left), International Container Terminal Services, Inc. Country Representative; and the delegates
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 .
5
I N T E R N AT I O N A L E D I T I O N
ICTSI Newsbreak
ICTSI 9-month net income up Volume up 13% to 4.6 million TEUs, revenues up 19% to US$624.7 million, EBITDA improves 26% to US$285.5 million International Container Terminal Services, Inc. (ICTSI) reported unaudited consolidated financial results for the first nine months of 2013, posting revenue from port operations of US$624.7 million, an increase of 19 percent over the US$524.7 million reported for the same period last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$285.5 million, 26 percent higher than the US$225.8 million generated in the first nine months of 2012; and net income attributable to equity holders of US$128.8 million, up 22 percent over the US$105.8 million earned in the same period last year. The higher net income attributable to equity holders for the first nine months of 2013 was mainly due to strong revenue growth and margin improvement in certain key terminals and the contribution from the new terminal in Karachi, Pakistan. Diluted earnings per share for the period was likewise higher by 17 percent at US$0.054, from US$0.046 in 2012. For the quarter ending 30 September 2013, revenue from port operations increased 17 percent, from US$179.7 million to US$211.0 million while EBITDA was 27 percent higher at US$97.3 million, from US$76.7 million. Net income attributable to equity holders grew 29 percent, from US$35.6 million to US$45.9 million, and diluted
6
earnings per share improved 27 percent to US$0.019, from US$0.015 in 2012. ICTSI handled consolidated volume of 4,628,117 twenty-foot equivalent units (TEUs) for the first nine months of 2013, 13 percent more than the 4,083,842 TEUs handled in the same period in 2012. The increase in volume was mainly due to the continuous growth in international and domestic trade in most of the Company’s terminals and the volume generated by Pakistan International Container Terminal (PICT) and PT Olah Jasa Andal (PT OJA), the Company’s new container terminals in Karachi, Pakistan and Jakarta, Indonesia, respectively. Excluding volume from the two new terminals and the effect of the cessation of the operations in Syria effective January 2013, organic volume growth increased by one percent. The Company’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 79 percent of the Group’s consolidated volume in the first nine months of 2013. For the quarter ending 30 September 2013, total consolidated throughput was 16 percent higher at 1,601,112 TEUs compared to 1,386,107 TEUs in 2012. Gross revenues from port operations for the first nine months of 2013 surged 19 percent to US$624.7 million, from the US$524.7 million reported in the same period in 2012. The increase in revenues was mainly due to the volume growth, higher storage revenues and ancillary services, tariff rate increases in certain key terminals, and the
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.
NOVEMBER 2013
22% to US$128.8 million revenue contribution from the new terminals in Jakarta, Indonesia and Karachi, Pakistan. Excluding the revenues from the newly acquired terminals and the effect of the cessation of the operations in Tartous, Syria, organic revenue growth was eight percent. The Group’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 85 percent of the Group’s consolidated revenues in the first nine months of 2013. Gross revenues from port operations for the quarter ended 30 September 2013 surged 17 percent to US$211.0 million, from the US$179.7 million reported in the same period in 2012. Consolidated cash operating expenses in the first nine months of 2013 grew 13 percent to US$255.4 million, from US$225.4 million in the same period in 2012. The increase was mainly driven by higher volume-related expenses (i.e., on-call labor, fuel, power and repairs and maintenance), government-mandated and contracted salary rate increases in certain terminals, higher business development expenses, and the inclusion of the expenses of the new terminals in Jakarta, Indonesia and Karachi, Pakistan. Excluding the cash operating expenses of the new terminals as well as the expenses incurred in the Company’s operation in Syria in the same period in 2012, total cash operating expenses would have increased by only five percent. Consolidated EBITDA for the first nine months of 2013 increased 26 percent to US$285.5 million, from US$225.8 million in 2012 mainly due to the volume growth and stronger revenues arising from
favorable volume mix, higher revenues from storage and ancillary services, tariff increases in certain key terminals and the contribution of the new terminals in Jakarta, Indonesia and Karachi, Pakistan. Excluding PICT and PT OJA, as well as TICT in 2012, EBITDA growth would have been at 12 percent. Meanwhile, consolidated EBITDA margin increased to 46 percent in the first nine months of 2013 compared to 43 percent in the same period in 2012. For the quarter ended 30 September 2013 consolidated EBITDA increased 27 percent to US$97.3 million, from US$76.7 million in 2012 while consolidated EBITDA margin also improved to 46 percent compared to 43 percent in the same period in 2012. Consolidated financing charges and other expenses for the first nine months of 2013 increased 57 percent to US$33.9 million, from US$21.6 million in 2012 due mainly to higher outstanding interestbearing debt. ICTSI issued US$400 million of 10-year bonds in January 2013 mainly to fund its capital expenditure program for 2013 and refinance medium-term loans. Capital expenditures for the first half of 2013 amounted to US$357.9 million, approximately 65 percent of the US$550.0 million capital expenditure budget for the full year 2013. The established budget is mainly allocated for the completion of the Company’s terminal development projects in Mexico and Argentina, and the ramp-up of construction activities in Colombia and Davao, southern Philippines.
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 .
7
I N T E R N AT I O N A L E D I T I O N
ICTSI Newsbreak
BICTL lauded for container volume growth For the third consecutive year, Batumi International Container Terminal LLC (BICTL) received an award of recognition for having the highest growth in rate in 2012. BICTL produced the most dynamic growth in containerized cargo turnover among all Black Sea container ports. The awarding ceremony was held last 5 September in Odessa, Ukraine during the International Black Sea Container Summit. In 2012, BICTL recorded a 60.9 percent growth year-on-year, and was second among all container ports in the Black Sea basin. Receiving the award on behalf of the Company were Ketevan Oragvelidze (left), BICTL Marketing Manager; and Giorgi Tsuladze, BICTL Operations Manager. (Ketevan Oragvelidze)
PICT ranks 6th in the Employer of the Year Award 2012 Pakistan International Container Terminal (PICT) ranked sixth among 27 finalists in the large sector industry category of the first Employer of the Year Award 2012 held last mid-September in Karachi, Pakistan. The Employers’ Federation of Pakistan (EFP) launched the award in recognition of the efforts of enterprises towards the creation of skilled workforce and provision of a safe work environment. Photo shows Hans Bruns (far left), TVET RSP GIZ Project Coordinator, awarding a certificate to Mohammad Atiq (third from left), PICT Corporate and Human Resources Manager, as Zafar Elahi (second from left), Industries Government of Sindh Secretary; and Mr. K.M. Nauman, EFP President look on. (Mohammad Atiq) PICT officers at the Employer of the Year Award 2012 (from left): Muhammad Waqas, HSE Assistant Manager; Mr. Mohammad; Saud ur Rehman, Procurement Manager and Management Representative; Tariq Jamil, Human Resources Assistant Manager; and Junaid Waseem, HSE Safety Engineer
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.
NOVEMBER 2013
Do Good
ICTSI-FI shores up sports development assistance to Mindanao school ICTSI Foundation, Inc. (ICTSI-FI), in partnership with Mindanao International Container Terminal Services Inc. (MICTSI), recently continued its Sports Development Assistance program for Tagoloan National High School (TNHS) in Misamis Oriental in the Philippines. As a follow-up to last year’s provision of gears and equipment to TNHS taekwondo team, ICTSI-FI and MICTSI renovated the school’s taekwondo room. Forty sets of taekwondo uniforms were also provided to the taekwondo team. The spruced up room and new uniforms were officially turned over to TNHS in a simple ceremony held last 19 September. According to Alexie Ungab, TNHS Taekwondo Coordinator, the assistance has been a major factor in
the improved performance of the school’s taekwondo team in various competitions. Just this year, the team won silver and gold medals in competitions such as the CPJ Taekwondo Championship and the Regional New Race Taekwondo Championship, both held in Cagayan de Oro City. Left photo shows (from left) Filip Laurena, ICTSI-FI Deputy Executive Director; Johnny Rodondo, Tagoloan Department of Education Sports Coordinator; Severa Go, TNHS Principal; Mario Charlie Emano, Baranggay (Village) Poblacion Chairman; and Joma Fernandez, MICTSI Terminal Manager, cutting the ceremonial ribbon to inaugurate the newly renovated TNHS taekwondo room. (Marie De Guzman) The TNHS taekwondo team sporting their new uniforms
ERRATUM
In the October issue, in the story titled ICTSI-FI shores up sports development assistance to Mindanao school on page 6, we inadvertently published wrong photos due to a printing glitch. We are re-printing the article in full with the correct photos under Do Good. We apologize for this error.
ICTSI-FI aids victims of typhoon Odette
ICTSI Foundation, Inc. (ICTSI-FI) recently partnered with Subic Bay International Terminal Corp. (SBITC) in the conduct of relief operations for victims of typhoon Odette that struck Olongapo and Subic in the Philippines. Aside from SBITC and ICTSI-FI employeevolunteers, a contingent from the Rotary Club of Olongapo joined the repacking of relief goods. The team distributed relief packs containing rice, canned goods, noodles, biscuits and coffee to 1,035 affected families in Baranggay (Village) Sta. Rita and 55 SBICT employees. (Marie de Guzman) Napoleon Balajadia (standing, second from left), ICTSI-FI Administrative Assistant, leads the distribution of relief goods to the affected residents.
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 .
9
I N T E R N AT I O N A L E D I T I O N
Do Good
ICTSI-FI supports family day activities of 8 Manila day care centers Realizing the importance of strong family ties, ICTSI Foundation, Inc. (ICTSI-FI) supported the Family Day celebration of eight day care centers in Parola, Manila. Over 1,000 children and their respective parents took part in various fun-filled, family-oriented activities meant to strengthen bonds held last 11 October at the Delpan Sports Complex. Left photo shows Danilo Tanael (10th from left), Baranggay (Village) 20 Chairman; ICTSI-FI staff Marie de Guzman (12th from left) and Yehlen de la Luna (13th from left); and the day care workers of Parola and Isla Puting Bato preparing materials and meals for distribution. (Marie de Guzman)
Spotlight
RJConsing speaks at the Rising Stars of the Philippines Forum Rafael J. Consing (third from left), International Container Terminal Services, Inc. Vice President and Treasurer, was a panelist at the inaugural Rising Stars of the Philippines Forum held last 17 October at Solaire Resort and Casino in Manila. Two hundred seventy-four delegates attended the forum. Also in photo are (from left) Jose Sio, SM Investments Executive Vice President and Chief Financial Officer; Aldrin Cerrado, ABS-CBN Chief Financial Officer; and Batara Sianturi, Citi Regional Head for Philippines and Guam.
10
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.
NOVEMBER 2013
Ship Ahoy
PICT welcomes maiden voyage of OEL Freedom Pakistan International Container Terminal (PICT) warmly welcomed OEL Freedom and celebrated the vessel’s maiden voyage. OEL Freedom was carrying about 860 twenty-foot equivalent units. Regional container carrier Orient Express Lines recently launched a new dedicated feeder service connecting key hub ports in the Indian subcontinent region. The service calls every fortnight, and plies the Karachi-Mundra-Colombo-Karachi route. Left photo shows (from left) Riaz Rehmatullah, Rahmat Shipping Managing Director; S.M. Imran Moosa, PICT Marketing and Commercial Manager; and Shahbaz Ali Naveed, PICT Operations Manager presenting a bouquet of flowers to the vessel master. (Mohammad Atiq)
At the celebration of the maiden voyage (from left): Mr. Riaz; Mr. Imran; Mr. Shahbaz; the vessel master; and Sohail Lillani Rahmat, Shipping Operations Manager
APL Oakland calls at NCT-1 APL Oakland (V065W) called at the New Container Terminal-1 (NCT-1) at the Subic Bay Freeport Zone at 5:25 p.m. last 16 October to discharge and load cargoes. With a length-over-all of 267 meters, the vessel carried NYK Lines first-ever container co-loaded via APL for Subic discharge. Twenty-footer container number NYKU2763248 consigned to NYK-Fil Japan Shipping Corporation was discharged at NCT-1 Yard at exactly 6:05 p.m. last 16 October. After getting stripped of its cargo, this same NYK Line container will be used by one of the Subic locators for export cargo. This is the result of Subic Bay International Terminal Corp.’s and ICTSI Subic, Inc.’s continuous marketing efforts and collaboration with different public and private organizations in the North Luzon area, namely, the Subic Bay Freeport Chamber of Commerce, Clark Investor Locators Association, Subic Bay Maritime Authority, Clark Development Corporation, Philexport Region 3, Philippine Chamber of Commerce and Industry Region 3, European Chamber of Commerce of the Philippines, Metro Angeles Chamber of Commerce, Philippine International Seafreight Forwarders Association, Association of International Shipping Lines and Japanese International Cooperation Agency to promote the utilization of the Subic Bay Container Terminal. (Reimond Silvestre)
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 .
11
I N T E R N AT I O N A L E D I T I O N
Level Up
ICTSI Earthquake Preparedness seminar Training Attendees Speakers Date Venue
: Earthquake Preparedness seminar. : International Container Terminal Services, Inc. employees. : Amy Daura Gumboc and Charmaine Villamill, Philippine Department of Science and Technology-Phivolcs representatives. : 16 July. : ICTSI Training Room. (Mavic Lopez)
ICTSI Internal Auditors for IMS seminar Training Attendees Facilitator Date Venue
: Internal Auditors for IMS seminar. : International Container Terminal Services, Inc. employees. : Arnel Guevarra, CI Philippine Representative. : 8 to 10 October. : ICTSI Training Room. (Mavic Lopez)
PICT conducts capacity building program for Maintenance staff In order to enhance the professional skills of its Maintenance staff, Pakistan International Container Terminal (PICT), in collaboration with Hinopak Industries, recently held a week-long workshop for select staff. It was a simulation-based training focused on skill development and enhancement, and encompassed the overall hauling of engine and maintenance of Hinopak prime movers. After the workshop, the attendees received professional training certificates. Photo shows the PICT attendees and Hinopak trainers after the distribution of certificates. (Mohammad Atiq)
12
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 .