April 2014 PortFolio_International Edition

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The Official Publication of International Container Terminal Services, Inc. • International Edition April 2014 ICTSI to invest in Port of Umm Qasr, Iraq

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The official publication of International Cotainer Terminal Services, Inc.

Transcript of April 2014 PortFolio_International Edition

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

April 2014

ICTSI to invest in Port of Umm Qasr, Iraq

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ICTSI Global OperationsDirectory

Staff Box

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 RoadPort of Manila, 1012 Manila, Philippines • Telephone: +632 / 245 4101

E-mail: [email protected] • URL: www.ictsi.com/media-center/newsletters/

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

Editor-in-ChiefManaging EditorAssociate Editor

Researchers

Photographers

NARLENE A. SORIANOJUPITER L. KALAMBAKALJOHN PAULO C. COSTINIANOZINNO B. GUDEZMARIE ANNALIE T. MARFILMAVERICK A. JAVIERPAOLO MIGUEL S. RACELISJUSTINO RAMON L. TAYAG IIIRONNEL P. JAVIERDEXTER F. LANDICHOEDWARD R. MILAG

Correspondents

Philippines International

Manila

Davao CityGen. Santos City

Misamis Oriental

ALBERT JOSEPH R. CANCERANMA. BERNADETTE C. DE GUZMANMA. CONCEPCION M. DIZONROSE A. LOBRINRICARDO D. PAREDESJESTONIE V. VINSONCHIARA MAY C. ATISREJAMNA S. PANDANGANKIRK KHURNYLLA R. GONO

ArgentinaBrazilChina

CroatiaEcuadorGeorgia

IndonesiaJapan

MexicoPakistan

PolandUSA

MAGDALENA RIANIFABIANA SOUZAAPOLLO ZHOUIVA ROMANKATTY OSSA BIANCHIBENJAMIN D. ROSARIORINI HERAWATYTAKETOSHI TOYAMAPAMELA DE LA VEGAMOHAMMAD ATIQMICHAL KUZAJCZYKDAVID TRZYZEWSKI

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Contents

54

8An Anvil for ICTSI

9101114

Ship Ahoy

Spotlight

Level Up

ICTSI Oregon wins safety awards

ICTSI to invest in Port of Umm Qasr, Iraq

Port of Umm Qasr, Iraq

6ICTSI holds annual stockholders meeting

9ICTSI, Anchorage employees ink 5-year CBA

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ICTSI Oregon: business as usual despite snowstorm

Tech Talk

Meets and Greets

On Board

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ICTSI Newsbreak

ICTSI to invest in Port of Umm Qasr, Iraq

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.

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.”

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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 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.

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.

Port of Umm Qasr, Iraq

(Source: iraq-businessnews.com)

(Source: Google Earth)

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.

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.

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ICTSI Newsbreak

ICTSI holds annual stockholders’ meeting

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

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.

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.

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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 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 VolumesIn 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 PerformanceGross 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 interest-bearing 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.

OthersICTSI 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.

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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.

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.

An Anvil for ICTSIPeers 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 Kalambakal, ICTSI Associate Head – Public Relations, and Jocelyn Badoy, publication consultant, received the trophy for the brochure project. The 49th PRSP Anvil Awards was held at the Grand Ballroom of Solaire Resort and Casino in Entertainment City Manila, Parañaque City.

PRSP received a total of 407 entries from 103 participating corporations, agencies, media companies, publications, government

and non-government organizations, and local government units. From the 407, PRSP selected 109 PR programs and tools implemented in 2013 as recipients of the coveted Anvil.

The Anvil is the second award of the publication project. In November 2013, the ICTSI Silver Brochure Series received the Philippine Quill Award of Excellence from the International Association of Business Communicators.

ICTSI Newsbreak

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ICTSI, Anchorage employees ink 5-year CBA By Michael Rainier Alcazar

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.

A five-year Collective Bargaining Agreement (CBA) between International Container Terminal Services, Inc. (ICTSI) and the Anchorage Labor Union-ICTSI-National Federation of Labor Unions (ALU-ICTSI-NAFLU), 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

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.

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.

ICTSI Oregon: business as usual despite snowstormIn 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.

By David Trzyzewski

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Ship Ahoy

Tech Talk

More service routes launched at Contecon Manzanillo’s SCT-IIBy 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.

Adriatic Gate launches new web site By Iva Roman

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.

Adriatic Gate Container Terminal’s website, www.ictsi.hr, is accessible via desktop / laptop computers, tablets and smart phones.

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.

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Spotlight

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

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, one of the largest in West Africa.

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.

SBITC at Transport Summit 2014 With reports from PortCalls

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.

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.

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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.

AGCT: new gateway to the Danube regionBy Iva Roman

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

Spotlight

ICTSI at SupplyLink 2014By Paolo Miguel Racelis

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

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.

ICTSI subsidiary Adriatic Gate Container Terminal (AGCT) was among the presenters in a conference hosted by the City of Rijeka for the EU South East Transport Axis Project (SETA).

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.

By Iva RomanAGCT at the Rijeka meet of the EU South East Transport Axis Project

Zarko Acinger, AGCT Commercial Manager, talks on “Development of Container Traffic at the Adriatic Gate Container Terminal” during the EU SETA Project conference.

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.

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Meets and Greets

Kenya Port Authority visits ICTSI

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.

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.

Ecuadorian authorities visit Contecon Guayaquil’s narcotic-proof facilities

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

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.

By Kathy Ossa Bianchi

PISFA visits ICTSI Subic container terminalsWith reports from PortCalls

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.

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.

By Gagan Seksaria

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ICTSI, NMCTS provide training to localize Muara workforceBy Rey Betonio

CY Handling Equipment operator trainees

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:

• Ahmad Ilmi Hj Adanani, Assistant Operations Manager – Instructor on Terminal Operation System (TOS)

• Suriani Hj Abas, Assistant Manager for Admin/HR – Instructor on Company Policies

• Roswalee Hj Abu Bakar, QC Operator – Instructor on QC Operations

• Hj Khambrin Hj Ibrahim, QC Operator – Instructor on QC Operations

• Jasmi Naim, CHS Operator – Instructor on CHS Operations• Edafinde MatSalleh, CHS Operator – Instructor on CHS

Operations• Eswandi Hj Abas, First-in-Charge Technician – Instructor on

Technical and MaintenanceOn the second week, the new trainers on quay crane (QC)

operations and container yard handling equipment did their first training for would be operators. The following are the trainees for QC operations:

• Amalulariffin Morni, Operations Assistant – QC Operator Trainee

• Amirsyam Hj Samsudin, Operations Assistant – QC Operator Trainee

• Hamidi Hj Abd Hamid, Operations Assistant – QC Operator Trainee

• Samsudin Hj Ideris, Prime Mover Driver – QC Operator Trainee

• Edafinde MatSalleh, CHS Operator and Instructor – QC Operator Trainee

The QC Operators Training was also divided into two parts: classroom training involving TOS, Company policy, Technical and Maintenance, and QC Operations for three days. On the succeeding two days, the trainees were exposed to the quay crane itself. Mr. Baliwag, together with Ahmad Ilmi and Suriani Hj Abas, closely supervised the training to ensure that the trainers were doing it right.

The training went on until May after which the trainees were deployed to different groups and hands-on training under supervision of the current instructors and other QC operators. Ahmad Ilmi, Suriani and Alfred Sanchez supervised the training. Still on the same month, all the trainees took written exams as part of the course requirement. After the tests, hands-on training continued until December. In January this year, two positions needed to be filled up due to the retirement of foreign operators. Thus, five more QC operator trainees took a practical exam in actual QC operations with vessel during discharging and loading phase:

• Amalulariffing Morni, QC Operator under probation effective February 2014

• Amirsyam Hj Samsudin, QC Operator under probation effective February 2014

• Hamidi Hj Abd Hamid, Back-up QC Operator effective February 2014

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• Samsudin Hj Ideris, Back-up QC Operator effective February 2014

• Edafinde MatSalleh, Back-up QC Operator effective February 2014

The second batch of QC operator trainees commenced training in October last year and will end in June 2014.

• Mohd Azurhan “Abdul Martin” Hj Ali• Mohd Shamsul Hj Metassim

Not only did the program intend to train the QC Operators but also CY Handling Equipment Operators. In May, after successfully passing the trade test, the trainees were put on probation as CHS Operators effective May 2013. Following completion of the Trainers Program in April last year, the CHS instructors conducted their first CHS Operator Training Program with the following trainees:

• Wasli Hj Yahaya, Prime Mover Driver – CHS Operator Trainee• Harman Zulkifli PA Hj Ahmad, Prime Mover Driver – CHS

Operator Trainee• Hj Latif Hj Mohd Noor, Prime Mover Driver – CHS Operator

TraineeThereafter, management decided to conduct a second run of the

CHS Operator Training to replace retiring foreign operators on June 2013. The following are the trainees for CHS:

• Adulani Pindah, Prime Mover Driver – CHS Empty Handler Unit Operator Trainee

• Samlinan Ali Rahman, Prime Mover Driver – CHS Empty Handler Unit Operator Trainee

• Bakri Hj Ahmad, Prime Mover Driver – CHS Empty Handler Unit Operator Trainee

• Hj Bungsu Zakaria, Prime Mover Driver – CHS Empty Handler Unit Operator Trainee

• Kamaluddin Hj Ahmad, Prime Mover Driver – CHS Empty Handler Unit Operator Trainee

• Sofri Hj Saidin, CHS Empty Handler Unit Operator – CHS Laden Handler Unit Operator Trainee

Training went on until June including trade tests in the same month. Three out of the five trainees for prime mover operators passed the exam, and proceeded to train as CHS operator trainees until end of January 2014. Four trainees passed the tests also in January, and put on probation in March this year.

The third batch for the CHS training was conducted for empty handler unit operator trainees that started in October last year up to the present. The trainees are:

• Azrul Azmi Gani• Ali Raina Mahali

Willy Baliwag (standing) of ICTSI Manila in one of the classroom training.

The trainers in a group photo

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On Board

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.

By Iva RomanSebastiano Cerneka: EME Deputy Regional IT Head

Sebastiano Cerneka

TecPlata’s new PortFolio correspondentICTSI 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.

Magdalena Riani, TecPlata PortFolio correspondent.

MICT Emergency Response Team seminar, drill By Paulo Carlo Penalba

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.

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.

ICTSI Foundation joins SWAPPCon 2014 By Marie Bernadette de Guzman

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 Commission in 2010.

SWAPP is a non-profit association of national government agencies, local government units, institutional organizations, professionals and solid waste management practitioners.

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 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 happening in June in London, England.

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