Page 1

March 2013

The Official Publication of International Container Terminal Services, Inc. • International Edition

AGCT’s new quay, yard near completion

International Container Terminal Services, Inc.


I N T E R N AT I O N A L E D I T I O N

Directory

International Container Terminal Services, Inc.

M ARCH 2013

Contents

ICTSI Global Operations

4 6 8 9 10 12 12

AGCT’s new quay, yard near completion

ICTSI 2012 net income grows 10% to US$143.2 million

SCIPSI’s 3rd Awards night held

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

Gearing Up

Spotlight

Correspondents Philippines Manila MICHAEL G. AGUSTIN ALBERT JOSEPH R. CANCERAN MA. BERNADETTE C. DE GUZMAN MA. CONCEPCION M. DIZON BYRON GEORGE M. GONDA 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 S. RAYOSO

International Argentina Brazil China Croatia Ecuador Georgia Indonesia Japan Madagascar Mexico Poland USA

SCIPSI’s “Istiba” Christmas party

MIGUEL CHALAR FABIANA SOUZA APOLLO ZHOU IVA ROMAN KATTY OSSA BIANCHI BENJAMIN D. ROSARIO RINI HERAWATY TAKETOSHI TOYAMA MICHAEL RATRIMO PAMELA DE LA VEGA MICHAL KUZAJCZYK DAVID TRZYZEWSKI

Level Up

5 7 8 9 11 12 L&T Ports inaugurates KICT

22nd ICTSI Golf

PCM-M, SCIPSI ink CBA

ICTSI inaugurates new Gas Refueling Station

Do Good

Ship Ahoy

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

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 .

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

International Container Terminal Services, Inc.

M ARCH 2013

ICTSI Newsbreak

AGCT’s new quay,

Before and during the loading of the cranes onto Zhenhua 20, the AGCT Engineering team visited the ZPMC fabrication site in China where they underwent extensive maintenance training. Photo shows (from left): Cepanec Igor, Tepes Zoran, Tom Goodwin, Tatalovic Ratko and Marinac Marko.

By Iva Roman

yard near completion

Civil works for Adriatic Gate Container Terminal’s (AGCT) new quay and container storage yard are in the final stages of construction. When completed in April, the new 328-meter long quay and 29,000-square meter storage area for containers will be handed over to AGCT by the contractor. Complementing the new facilities is the acquisition of new equipment. A vessel carrying two post-Panamax quay cranes, six rubber tired gantries and two rail mounted gantries are currently heading towards AGCT, and is expected to arrive on 13 May. The vessels left ZPMC’s factory in Changxing Island, Shanghai, China last 13 March. Go-live of terminal systems and processes will happen in July, coinciding with the inclusion of Croatia in the European Union.

L&T Ports inaugurates KICT

By Mahewasri Raju

L&T Ports, Kattupalli held a trade meet on 11 February following the inauguration of the Kattupalli International Container Terminal (KICT) held last 30 January. The meeting took place at The Leela Palace, MRC Nagar. K. Venkatesh, L&T and MD , L&T IDPL Senior Vice President, welcomed the trade members and guests, and encouraged them to patronize the world-class facility, which was built by Larsen & Toubro. Mr. Gandhirajan, L&T Ports, Kattupalli Chief Operating Officer, discussed the infrastructure available at the port. On the other hand, Vishal Mathur, L&T Ports, Kattupalli General Manager-Marketing & Commercial, presented the advantages of the Kattupalli Port and how

they will benefit from the EXIM trade in and around Chennai. Meanwhile, Mohamed Ghandar, General Manager of International Container Terminal Services (India) Pvt. Ltd., KICT’s exclusive developer and operator, gave an update on operational readiness and International Container Terminal Services, Inc.’s (ICTSI) global presence. Last August 2012, ICTSI and and Lekki Port LFTZ signed a subconcession agreement for the development and operation of the KICT. Under the agreement, ICTSI was granted the concession to develop and operate the terminal on an exclusive basis for a 21-year period.

At the trade meet (from left): Mohamed Ghandar, International Container Terminal Services (India) Pvt. Ltd. General Manager; Mr. Gandhirajan, L&T Ports, Kattupalli Chief Operating Officer; Vishal Mathur, L&T Ports, Kattupalli General Manager-Marketing & Commercial; and Capt. Viswanathan, L&T Ports Marine General Manager

Adriatic Gate Container Terminal’s (AGCT) new 328-meter long quay and 29,000-square meter container storage yard are nearly complete.

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 .

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 2012 net income grows 10% to US$143.2 million Recurring net income up 15%

International Container Terminal Services, Inc. (ICTSI) reported consolidated audited financial results for the year ended 31 December 2012, posting revenue from port operations of US$729.3 million, 10 percent higher than the US$664.8 million reported last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$307.4 million, an increase of nine percent over the US$281.4 million generated in 2011; and net income attributable to equity holders of US$143.2 million, up 10 percent over the US$130.5 million earned in the same period last year. Recurring net income attributable to equity holders increased 15 percent for the year ended 31 December 2012 after adjusting the previous year’s net income attributable to equity holders to US$124.4 million from the one-time net gain of US$6.1 million from the sale of ICTSI’s 16.79 percent ownership stake in Portek International Limited and a one-time equity tax charge imposed by the Colombian tax authorities on all legal entities and individuals in Colombia. ICTSI handled consolidated volume of 5,628,021 twenty-foot equivalent units (TEUs) for the year ended 31 December 2012, eight percent more than the 5,233,795 TEUs handled in 2011. The increase in volume was mainly due to the growth in international and domestic trade, new shipping line customers and routes, continuous containerization of break bulk cargoes, the full period contribution of the Company’s new ports in Portland, Oregon, USA and Rijeka, Croatia, and the consolidation of the volume generated by the Company’s new terminal operations in Jakarta, Indonesia and Karachi, Pakistan. Excluding the volume from the four recent port acquisitions, organic volume growth was at four percent. Volume from the Group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 73 percent of the Group’s consolidated volume for 2012, increased six percent, from 3,867,407 TEUs to 4,109,082 TEUs. Gross revenues from port operations for the year ended 31 December 2012 increased 10 percent to US$729.3 million, from the US$664.8 million reported in 2011. The increase in revenues was mainly due to the volume growth on all geographic segments, higher storage revenues and ancillary services, favorable volume mix, new shipping line customers, tariff rate increases in certain 6

key terminals, full year contribution of Portland, Oregon, USA, and Rijeka, Croatia, and the inclusion of the new terminals in Jakarta, Indonesia, Kattupalli, India and Karachi, Pakistan. Excluding the revenues from the newly acquired terminals, organic revenue growth was at six percent. Revenue contribution from the Group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 83 percent of the Group’s consolidated revenues in 2012, increased seven percent, from US$565.6 million to US$602.8 million. Consolidated cash operating expenses in 2012 grew 10 percent to US$319.0 million, from US$289.3 million in 2011. 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 concession fees in the Company’s operations in Recife, Brazil, higher business development expenses, the full period consolidation of the expenses of the terminals in Portland, Oregon and Rijeka, Croatia 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, total cash operating expenses would have increased by only six percent. Consolidated EBITDA for 2012 increased nine percent to US$307.4 million, from US$281.4 million in 2011 mainly due to higher revenues from storage and ancillary services, tariff increases in selected key terminals, favorable volume mix, full year contribution from the Company’s terminal operations of Portland, Oregon USA, and Rijeka, Croatia, and the inclusion of the new terminals in Jakarta, Indonesia, Kattupalli, India and Karachi, Pakistan. Consolidated EBITDA margin remained flat at 42 percent. Consolidated financing charges and other expenses for 2012 was 25 percent lower at US$35.0 million compared to the previous year’s US$46.4 million. The lower consolidated financing charges and other expenses was mainly due to the higher capitalized borrowing cost registered in 2012 as the Company expanded its existing terminals in Manila, Brazil and Ecuador as well as developed new projects in Mexico and Argentina. ICTSI’s capital expenditure in 2012 amounted to US$465.6 million against a full year capital expenditure budget of US$550.0 million. The capital expenditure was mainly attributed to the construction of a new berth, additional yard space and acquisition of major cargo handling equipment in the Company’s container terminal operation in Manila, capacity expansions in its operations in Ecuador and Brazil, and development of new container terminals in Argentina and Mexico. The Group’s capital expenditure budget for 2013 is approximately US$550.0 million mainly allocated for the completion of the Company’s terminal development projects in Argentina and Mexico 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 .

International Container Terminal Services, Inc.

M ARCH 2013

22nd ICTSI Golf

With reports from Zinno Gudez

A woman led an elite list of new champions in the 22nd ICTSI invitational golf tournament held last 2 February at The Country Club (TCC) in Canlubang, Laguna, Philippines. Therese Dabao, the lone female champion, reigned supreme in Class A. The other champions were: Jong Castaneda in Class B, Benjamin Herbosa in Class C, and Jose Baltazar in the Fellowship Class. Over 100 business associates, shipping line executives, government officials, and other select executives competed in the annual event. Chen Zu of China Shipping Manila Agency, Inc. won the event’s most coveted raffle prize, a BMW 520D. Celebrity host Issa Litton again emceed the awarding ceremony held at the new ICTSI Tent. Class A Champion 1st Runner-up 2nd Runner-Up 3rd Runner-up 4th Runner-up

Therese Dabao Octavio Espiritu Rico Brizuela Earl McCarthy Juan Ibazeta

Class B Champion 1st Runner-up 2nd Runner-Up 3rd Runner-up 4th Runner-up

Jong Castaneda Lorenzo Fores Donato Almeda Geronimo Bella Constante Farinas

Class C Champion 1st Runner-up 2nd Runner-Up 3rd Runner-up 4th Runner-up

Benjamin Herbosa Willy Monillas Jimmy Bartolome Reimond Silvestre Leandro Rosero

Class D / Fellowship Champion Jose Baltazar 1st Runner-up Soichi Maeda 2nd Runner-Up Efren Caboteja 3rd Runner-up Yasuyuki Usui 4th Runner-up Lasmar Edullantes

Therese Dabao (left), Class A Champion; and Enrique K. Razon Jr., International Container Terminal Services, Inc. Chairman and President

Jong Castaneda (left), Class B Champion; and Mr. Razon

Benjamin Herbosa, Class C Champion

Jose Baltazar (left), Fellowship Class Champion; and Mr. Razon

Chen Zhu, winner of a BMW 520D, and Mr. Razon

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

International Container Terminal Services, Inc.

M ARCH 2013

ICTSI Newsbreak

SCIPSI’s 3rd Awards night held South Cotabato Integrated Port Services, Inc. (SCIPSI) held its third Filipiniana-themed Awards night and Christmas party last 14 December 2012 at the Tierra Montana Hotel. The Company’s Human Resources Department (HRD) prepared a program comprising electronic raffle of prizes, parlor games and live band entertainment. HRD also continued to award employees who embody SCIPSI’s core values and excellence. The major awards were Employee of the Year and Project of the Year. This year, SCIPSI launched new awards such as Outstanding Foreman, Most Punctual Employee, Outstanding Safety Performance and Highest Reported Near Miss. (Rejamna Pandangan)

PCM-M, SCIPSI ink CBA After only a few meetings, PRO_CHAMP Labor Movement in Makar (PCM-M) and the management of South Cotabato Integrated Port Services, Inc. (SCIPSI) signed a new collective bargaining agreement for 320 rank-and-file employees constituting a large number of the company workforce last 5 November 2012 at the Roadhaus Hotel. Witnessing the signing were legal counsels of the management and union: Atty. Nicanor Jimeno, Atty. Tomas Falgui III and Atty. Mariano Lugares. (Rejamna Pandangan)

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 .

SCIPSI’s “Istiba” Christmas party

South Cotabato Integrated Port Services, Inc. (SCIPSI) held the third “Istiba” Christmas party last 7 December 2012. The event cited exemplary on-call employees who received special recognition on stage for their enormous contributions to the success of SCIPSI and their dedication to work. Lucky attendees took home prizes such as an LCD television during the raffle. (Rejamna Pandangan)

ICTSI inaugurates new Gas Refueling Station International Container Terminal Services, Inc. (ICTSI) inaugurated its new Gas Refueling Station last 26 February. Representing ICTSI were Lito Feliciano, Engineering Manager; and Tony Coronel, Purchasing Manager, while Antonio Santos, Assistant Vice President-Industrial Sales, represented Petron. (Mike Agustin)

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

Gearing Up

ICTSI-FI renews commitment to support ALS

By Pamela De La Vega Upon completion of the first phase later this year, the Port of Manzanillo will have the capacity to move over two million TEUs annually, and this will add significantly to the success of the port and to Mexico’s foreign trade. Contecon Manzanillo, S.A. de C.V. officers, the Harbor Master, port authorities, API, immigration officials, Custom Brokers Association and the Mexican Steamship Agent Association celebrate the arrival of four super postPanamax ship-to-shore cranes at the Port of Manzanillo in Mexico.

New CMSA tractors Equipment: Tractors and chassis. Manufacturer: Kalmar. Delivery date: 6 March.

10

M ARCH 2013

Do Good

CMSA receives four super post-Panamax cranes Contecon Manzanillo, S.A. de C.V. (CMSA) received four super post-Panamax quay cranes last 16 February at the Specialized Container Terminal-II in Manzanillo. SCT-II is located in the north zone of the port, and is positioning itself to be the most dynamic and most modern terminal in Mexico. Operations are planned to begin in the second half of 2013 with an initial investment of USD55 million for equipment and more than USD350 million for infrastructure. The cranes are among the newest and most modern in the world. Earlier, CMSA received four rubber tired gantries. To celebrate the arrival of the cranes, CMSA, with the participation of the Harbor Master, port authorities, API, immigration officials, Custom Brokers Association and the Mexican Steamship Agent Association, held a press conference attended by mainstream media. The port authorities and all port stakeholders present congratulated Enrique Gutierrez, CMSA General Manager, and his entire team for their roles in the advancement of the Port of Manzanillo. With the infrastructure and equipment acquisition, SCT-II will double the capacity of the Port of Manzanillo along with its ability to compete with other Pacific Coasts ports in the Americas.

International Container Terminal Services, Inc.

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 .

ICTSI Foundation, Inc. (ICTSI-FI) signed a memorandum of agreement (MOA) to renew its commitment to support F. Bangoy Central Elementary School’s (FBCES) Alternative Learning System (ALS) program for another year. The MOA signing was held at FBCES premises in Davao City last 28 February. ALS is an out-of-school youth education program designed by the Department of Education (DepEd) to provide better opportunities to school drop-outs who quit school due to poverty and other personal reasons. The Foundation has been supporting FBCES’ ALS since 2011 through the provision of monthly honoria for two ALS teachers. Since then, around 500 students were able to graduate from the program. Photo shows (from left): Rodel Baciera, FBCES ALS teacher; Ricardo Bohol, ALS Coordinator for FBCES, Sasa District, Davao City; Filipina Laurena, ICTSI-FI Deputy Executive Director; Narlene Soriano, ICTSI-FI Executive Director; Mariclu Alpas, FBCES Principal; and Philip Gerodias, FBCES ALS Computer Technology Teacher. (Jes Vinson)

ICTSI-FI turns over medical supplies to disaster victims in Mindanao Part of the overall effort to help Typhoon Pablo victims, International Container Terminal Services, Inc. (ICTSI), together with ICTSI Foundation, Inc. (ICTSI-FI) and Davao Integrated Port and Stevedoring Services Corp. (DIPSSCOR), donated medicines to the affected families of Davao Oriental District 1 in the Philippines last 28 February. Present during the turnover were Congressman Nelson Dayanghirang (third from left) who received the medicines on behalf of his constituents and Julius Duterte, Philippine Department of Social Welfare and Development Davao External Relations Officer. ICTSI was represented by Narlene Soriano (far left), ICTSI-FI Executive Director; Julien Domingo (second from left), DIPSSCOR General Manager; and Filipina Laurena (fourth from left), ICTSI-FI Deputy Executive Director. (Jes Vinson)

ICTSI-FI aids Manila fire victims

ICTSI Foundation, Inc. conducted a relief operation for 1,994 individuals left homeless last 19 February in Parola, Tondo, Manila. International Container Terminal Services, Inc. volunteers from different departments helped distribute 305 packs of assorted relief goods to the affected families last 22 February at the Delpan Sports Complex. (Jes Vinson)

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

Spotlight Side B

GSeksaria speaks at Indian Ocean Ports & Logistics Summit International Container Terminal Services, Inc.’s (ICTSI) Gagan Seksaria, Africa Region Chief Financial Officer and Investments Head, was invited to speak at the prestigious Indian Ocean Ports & Logistics Summit held in the port city of Beira in Mozambique last 27 and 28 February. Mr. Seksaria, sharing the panel with His Excellency Dr. Alberto Vaquina, Mozambique Prime Minister; Honorable Manuela Rebelo, Mozambique Deputy Minister of Transport and Communication;

and the chief executive officers of Beira and Maputo ports and Walvis Bay corridor, presented ICTSI’s perspectives on publicprivate-partnership (PPP) driven investments in the African port sector, and introduced Lekki Container Terminal as a role model for PPP investments in Africa. He described it as the perfect marriage between private enterprise and public agenda. In his presentation, Mr. Seksaria complimented the trade-led growth Mozambique has consistently demonstrated over the last several years and acknowledged its emergence as the key gateway for the Southeastern and South-central Africa region, one of ICTSI’s focus regions. Given ICTSI Madagascar Port’s ideal location within the Indian Ocean region, he also shared the on-going developments at the Toamasina Port, highlighting its emergence as an excellent alternative for transshipment operations in the region.

Ship Ahoy

MICT Vessel: Louds Island Line: Wallem Capacity: 2,702 TEUs Date: 22 February Photo (from left): Albert Rene Espina, Wallem Philippines Boarding Officer; Alberto Chenilla, International Container Terminal Services, Inc. Operations Superintendent; Unniraj Gangadhar Arathe, Vessel Master; and Vinod Chahal, Vessel Chief Officer. (John Resfel Sarmiento)

Level Up

Navis familiarization Madagascar International Container Terminal Services Ltd. (MICTSL) Operations officers and staff recently underwent training on Navis at the Manila International Container Terminal. Photo shows (from left): Arvin Abuan, ICTSI Safety Aide; Serg’s Hingzon Jr., ICTSI Safety Superintendent; Charlemagne Patrick Rakotonirina, MICTSL Planning Officer-in-Charge; Aime Patsalhy, MICTSL Yard Planner; Zoe Marda, MICTSL Billing Officer-in-Charge; Dirk Van Acker, MICTSI Terminal Manager; Jean Frederic Talata, MICTSL Vessel Planner; and Jay Valdez, ICTSI Operations Manager.

Apologia 12

Effective Implementation of Document Control Date: 11 February. Venue: Richmonde Hotel, Pasig City, Philippines. Attendees: Girlie Ong, International Container Terminal Services, Inc. (ICTSI) Engineering Secretary; and Marivic Lopez, ICTSI Safety Staff. (Marivic Lopez)

In the February 2013 issue, in Gearing Up on page 6, we inadvertently wrote CMSA rubber tired gantries’ stacking was “one over five high.” It should have been one over six high. We apologize for this error. 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 .

March 2013 PortFolio  
March 2013 PortFolio  

ICTSI's official publication

Advertisement