November 2015 portfolio philippine edition

P O R T F O L I ONOVEMBER 2015 • The Official Publication of International Container Terminal Services, Inc.

ICTSI enhances transparency, customer experience at the MICT

ICTSI OPERATIONS

TABLE OF CONTENTSSMM OCT. 2016

Present Draft Strategy

SMM MAR. 2017

Release Final Plan

OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

2015 2016 2017

PHASE 1

REFINECORPORATESTRATEGY

2-4 MONTHS

PHASE 3

PROJECTCHARTERING

4-6 MONTHS

PHASE 5

HSSE PROGRAMDEPLOYMENT

ANDMONITORING

PHASE 2

DATA GATHERING

6 MONTHS

PHASE 4

WORKSHOP

2-4 DAYS PERWORKSHOP2 MONTHS

COVER STORY | TECH TALK 4 ICTSI enhances transparency, customer experience at the MICT

GEARING UP6 MICT gets 4 new yard cranes

MAKING THE LIST6 Nayon ng Kabataan honors ICTSI Foundation

7 DSWD cites ICTSI Foundation

TECH TALK7 ICTSI launches MICT mobile app

SPOTLIGHT8 ICTSI brings Forbes Global CEO Conference to the Philippines

SAFETY10 MICT conducts security exercises

ICTSI NEWSBREAK11 ICTSI 3Q net income higher at US$136M; recurring net income up 9%

ICTSI NEWSBREAK | LEVEL UP12 ICTSI to implement Global HSSE program by 2Q 2017

P O R T F O L I O

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 T e r m i n a l S e r v i c e s , I n c .2

ICTSI NEWSBREAK14 BCT handles record shipment of windmill parts

GEARING UP14 VICT taps Bright Light Systems to illuminate new terminal

SHIP AHOY15 CMA CGM launches new service in Manzanillo

GREEN PORT16 BICT goes green with paperless stripping operations

MEETS & GREETS17 New KCAA president visits PICT

17 Victoria Ports Minister visits VICT development site at Webb Dock East

ICTSI NEWSBREAK18 CMSA participates in the 22nd Mexican Foreign Trade Congress

DO GOOD19 BGT celebrates Eid with Umm Qasr community

PEOPLE19 Movements - October

20 Birthdays - December

NOVEMBER 2015

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 T e r m i n a l S e r v i c e s , I n c . 3

InternationalContainer TerminalServices, Inc.

COVER STORY | TECH TALK

ICTSI enhances transparency, customer experience at the MICT

The Manila International Container Terminal (MICT), the flagship terminal of International Container Terminal Services, Inc. (ICTSI), assures its loyal clients and stakeholders of the MICT port community that the Company remains committed to improving transparency and customer experience.

Screenshot of MICT’s website (www.mictweb.com). In line with the transparency campaign, plans are underway to further improve the site’s user interface.

Citing improvements to the Company’s website and online services, Erika Gonzales-Ambrosio, MICT Client Relations Manager, said “MICT continues to further improve our services for the benefit of all our port users. It is in our best interest to provide everyone premium customer experience as you process your transactions with us.”

MICT WebsiteThe MICT Website (www.mictweb.com) serves as a portal

for online tools that allow port users to monitor their shipment 24/7. Using Track & Trace, port users can get real-time updates on their cargoes, truck entry/exit times and vessel schedules.

P O R T F O L I O


Over the past years, MICT has made considerable investments in technology to improve transparency and the overall experience of its customers.

Real-time vessel status is also available through the Vessel Berthing Schedule. Port users can use the feature to access vessel arrival and berthing times, loading cut-offs and target completion.

Another monitoring tool is the Export Empty Allocation. This feature provides the latest information regarding export empty allocations and number of available slots per shipping line.

Aside from monitoring their shipment, port users can also monitor the road status and traffic flow at the terminal gates, Delpan and South Access Road. The MICT Eyes, a live video streaming facility, lets truck drivers and other users monitor the actual situation at the terminal’s main access points.

ACTS Billing SystemDesigned to streamline the processing of payments at the

MICT, the ACTS billing system was launched in April. The system shortens the procedure into five quick steps with the help of self-service kiosks where port users can input their shipment details and secure queueing numbers.

MICT is currently working on phase two of the billing system, which would include an Internet module for that would enable remote online transactions.

Terminal Appointment Booking System (TABS)Launched last October, the Terminal Appointment Booking

System is an electronic platform for booking containers at the MICT. TABS allows port users to plan their truck arrivals ahead of time and choose a pick up schedule that best suits their plans. Ultimately, those who have booked schedules using TABS shall be exempted from future truck bans.

MICT Mobile AppIn a move considered to be one of the industry’s firsts, MICT

launched its mobile app for smartphones on 2 November. Available for both iOS and Android, the current version of the MICT Mobile App gives users access to Track & Trace and Customer Support on the go.

“The MICT mobile app is just one of the many innovations that MICT has in the pipeline. It’s a solid first step towards the technological advancements that we want to implement at the terminal,” says Christian Lozano, MICT Commercial Director.

Mr. Lozano says clients should expect other features like billing calculator, client dashboard, MICT advisory, MICT Eyes, ACTS online payment system and the recently launched TABS, to be included in the future versions of the mobile app.

Client Dashboard (Coming Soon)One of the other features currently in the pipeline, the

Client Dashboard is an enhanced version of Track & Trace. The Client Dashboard is a separate, single-window interface that gives clients more comprehensive real-time updates on their shipments. This feature will be exclusive to select customers who are able to meet the criteria set by MICT. These customers will be required to log in to a secured portal to access the dashboard, which also generates statistical reports.

In light of the recent and upcoming enhancements to MICT’s services, the Company shall continue to aggressively pursue opportunities to improve its processes and services for the benefit of its loyal clients and the MICT port community.

NOVEMBER 2015



GEARING UP

MAKING THE LIST

International Container Terminal Services, Inc. (ICTSI) recently took delivery of four new rubber tired gantry cranes (RTGs) for its flagship Manila International Container Terminal (MICT). The new RTGs are part of ICTSI’s large port equipment order from Cargotec’s Kalmar. They also form part of MICT’s port equipment upgrading to complement and sustain the multimillion dollar infrastructure development project at the terminal, which includes the expansion of the container yard. Photo shows the new RTGs onboard the barge carrier Wu Liu Xian Feng arriving at the MICT’s Berth 6.

MICT gets 4 new yard cranes

Nayon ng Kabataan honors ICTSI FoundationBy Joy Lapuz

The Philippine Department of Social Welfare and Development (DSWD) presented a plaque of appreciation to the ICTSI Foundation, Inc. in recognition of the latter’s support to the Nayon ng Kabataan, a DSWD residential care facility for abused, orphaned and abandoned children last 30 September in Mandaluyong City. The awarding was part of the 47th foundation day program of the institution. Photo shows Narlene A. Soriano (far right), ICTSI Foundation Executive Director, receiving the plaque from Natividad Canlas (center), DSWD National Capital Region Assistant Regional Director for Administration, and Asuncion M. Flores, Nayon ng Kabataan Head.

P O R T F O L I O


DSWD cites ICTSI FoundationBy Joy Lapuz

The National Capital Region (NCR) office of the Philippine Department of Social Welfare and Development (DSWD) lauded the ICTSI Foundation, Inc. for its key role in implementing DSWD-NCR’s various programs and projects benefitting ICTSI’s host communities in Parola and Isla Puting Bato in the City of Manila. DSWD-NCR presented the award during the 37th anniversary celebration of the Department’s NCR office held at the Cuneta Astrodome in Pasay City last 23 October. Photo shows Filipina C. Laurena (fifth from left), ICTSI Foundation Deputy Executive Director, together with the other awardees.

TECH TALK

MAKING THE LIST

ICTSI launches MICT mobile appInternational Container Terminal Services, Inc. (ICTSI) has launched a mobile smartphone application that allows customers of the Manila International Container Terminal (MICT) to monitor their containers in real-time while on the go.

Available for iOS and Android users, the MICT mobile app is designed to deliver information right at the port users’

Gearing up for full functionality, the MICT will integrate more features into the upcoming versions of the app.

Scan this QR code with your SmartPhone to download the Android app

Scan this QR code with your iPhone to download the IOS app

fingertips. The app's version 1.0 allows port users to use MICT’s Track and Trace system to check the status of their import and export shipment, truck entry and exit times, as well as vessel arrival and departure schedules.

“The MICT mobile app is just one of the many innovations that MICT has in the pipeline. It’s a solid first step towards the technological advancements that we want to implement at the terminal,” says Christian Lozano, MICT Commercial Director.

Another feature of the app is email support, which allows users to get real-time customer service from MICT’s customer care department.

The plan is to launch the app in stages, adding features with each new version. “This will allow us to fine-tune each feature before adding other features to the app,” explains Mr. Lozano.

MICT’s clients should expect other features like billing calculator, client dashboard, MICT advisory, MICT EYES, a live video stream of traffic flow at the terminal gates, ACTS online payment, and the recently launched Terminal Appointment Booking System (TABS), to be integrated in the future versions of the mobile app.

Users can visit www.mictweb.com for the download link to the MICT mobile app.

Last month, ICTSI rolled out TABS in response to the increasing road traffic congestion in Metro Manila. The online container booking system is designed to minimize traffic in Manila’s roads and prevent container build-up as the holiday season approaches.

NOVEMBER 2015



SPOTLIGHT

International Container Terminal Services, Inc. (ICTSI), together with SM Investments Corp. – BDO Unibank, Inc. and San Miguel Corp., brought to the Philippines for the first time the prestigious, by-invitation-only Forbes Global CEO Conference, an annual gathering of the world’s leading businessmen last 12 – 14 October. Some 400 global CEOs, tycoons, entrepreneurs, up-and-comers, capitalists and thought leaders attended the 15th edition of the conference in Manila.

ICTSI brings Forbes Global CEO Conference to the Philippines

No less than His Excellency, Benigno S. Aquino III, President of the Republic of the Philippines, was keynote speaker. Speakers included Steve Forbes, Chairman and Editor-in-Chief of Forbes Media; Sir Michael Hintze, AM, Chief Executive of CQS, United Kingdom; Richard Li, Chairman and CEO of Pacific Century Group, Hong Kong; Mario Moretti Polegato, Chairman of GEOX Group, Italy; Boris F.J. Collardi, CEO of Julius Baer Group Ltd., Switzerland; and Eduardo Saverin, Co-Founder of Facebook, among others.

Some of the speakers from the Philippines, on the other hand, were Cesar V. Purisima, Philippine Secretary of Finance; Teresita Sy-Coson, Vice Chairperson of SM Investments Corp. and Chairperson, BDO Unibank, Inc.; Jaime Augusto Zobel de Ayala, Chairman and CEO of Ayala Corp.; and Enrique K. Razon Jr., ICTSI Chairman and President.

ICTSI successfully hosted the event at the Solaire Resort and Casino, where Mr. Razon is also Chairman. The Grand Ballroom was the main venue for the

From left to right, front: Steve Forbes, Forbes Magazine Editor-in-Chief; Benigno S. Aquino Jr., Philippine President; and Enrique K. Razon Jr., ICTSI Chairman and President.

plenaries, while the function rooms at The Forum served as media center and interview rooms. Guests were billeted at the suites of the integrated resort. Through production house Full House Asia, ICTSI treated the guests to a world-class entertainment show featuring the best of Filipino local and global talent at The Theatre.

The conference theme was “Toward a Winning Vision,” which focused on visionary leadership – how leaders at the helm of great companies conceive

P O R T F O L I O


and articulate vivid visions that capture the imagination of their teams, inspire confidence among investors, and win the hearts and minds of consumers.

Mr. Razon, one of the panelists in Session III with the topic “Road map to riches,” emphasized the need to “find the right market where you will be the benchmark of a particular sector.”

“We're taking a very long term view. We've learned from past experience.” With this strategy, the “investor may own the market in the years ahead,” he adds.

However, he cautions that due to the current volatile global economy, investors should be careful in markets they want to enter: "I think the economy at present is not very good globally. In spite of that, markets continue to go up. This is triggered by liquidity and retained interest rates. But one should

be extra selective in where to put your money. You should find value in this market.”

Session III was moderated by Rich Karlgaard, Publisher of Forbes Magazine. With Mr. Razon during the panel were Mr. Collardi, Goodwin Gaw, Chairman of Gaw Capital, Sir David K.P. Li, Chairman / CEO of The Bank of East Asia, and Yoshihiko Miyauchi, Chairman of ORIX Corp.

Also in attendance were Mrs. Felicia S. Razon; Katrina Razon; Jose C. Ibazeta, Stephen A. Paradies and Jon Ramon Aboitiz, Board Directors; Martin O’Neil, Executive Vice President; Christian R. Gonzalez, Senior Vice President for Asia Pacific Region and MICT; Joel D. Consing Jr.; Senior Vice President and Chief Financial Officer; and Jose Joel M. Sebastian, Senior Vice President, Finance.

Christian R. Gonzalez, ICTSI Senior Vice President and Head of Asia Pacific Region and MICT; Mrs. Felicia S. Razon; Rafael D. Consing Jr., ICTSI Senior Vice President and Financial Officer; and Jose Joel M. Sebastian, ICTSI Senior Vice President, Finance.

Mr. Razon speaking at the panel discussions.

Stephen A. Paradies, ICTSI Director; Martin L. O’Neil, ICTSI Executive Vice President; Mr. Ibazeta; and Thomas Arasi, Solaire Resort and Casino President and Chief Operating Officer.

Narlene A. Soriano, ICTSI Public Relations Director; Michael Ray Aquino, Solaire Resort and Casino Security Director; Vicky Tabuena; Lilibeth A. Bonga, ICTSI Administrative Services Manager; and Gina Godinez, Fullhouse Asia President.

Ramon S. Ang, San Miguel Corporation CEO; Teresita Sy-Coson, SM Investments Vice Chairman and Banco de Oro Universal Bank Chairman; Manuel Villar, Vista Land Chairman and former Philippine senator; Mr. Razon; and Cesar V. Purisima, Philippine Finance Secretary.

Mr. Gonzalez with Jose C. Ibazeta, ICTSI Director

Terrie Lam, Forbes Asia Deputy Executive Director; Jupiter L. Kalambakal, ICTSI Public Relations Manager; Marie Monozca, Forbes Media Philippine Partner; Ms. Soriano; Marie Annalie T. Marfil, ICTSI Public Relations Assistant Manager; Mary Jane Llanes, SMC Media Affairs Assistant Vice President; and Avix Amarillo, Vista Land Media Officer

Mr. Razon shares a light moment with Mr. Ang and Secretary Purisima.

Panel of speakers for the 2015 Forbes CEO Summit

held last 12-14 October at the Solaire Resort and

Casino in Manila.

NOVEMBER 2015



SAFETY

MICT conducts security exercisesBy Aris Palayad

The Manila International Container Terminal (MICT) conducted the Port Facility Security Exercise last 12 October in compliance with the Office for Transportation Security of the Philippine Department of Transportation and Communication’s (DOTC-OTS) mandate to oversee compliance with the International Ship and Port Facility Security (ISPS) Code set by the United Nations International Maritime Organization.

The objective of the security exercise is to review the implementation of MICT’s security contingency plans against potential maritime security threats. Participants were introduced to command, control and communication procedures and various responses to specific maritime threats. The activity also aims to validate the new processes and resources to be deployed during security incidents.

The exercise was spearheaded by Raul S. Venturina, MICT Terminal Security / Community Relations Manager and Port Facility Security Officer, in coordination with Manila Police District Explosive and Ordinance Disposal team, Police Community Precinct, Delpan Detachment personnel, the Philippine Ports Authority Port Police Department and the Philippine Coast Guard, with support from ICTSI’s security unit, RVV, and the ICTSI Emergency Response Team.

Aris Palayad, Surveillance and Access Control Superintendent, communicates to the Security exercise Chief Controller before the execution of the next event.

A MPD-EOD personnel prepares to detonate an IED.

ERT members transport “injured crew” to the medical triage.

Police officers from the Delpan Detachment simulate the capture of a suspected terrorist from the vessel MV HS Oceano docked at Berth 6 during the security exercise.

The emergency medical team gives first aid treatment to an “injured crew.”

Caption here please.

Participants of the 2015 MICT Port Facility Security Exercise

Members of the government agencies that participated in the security exercise with Mr. Venturina (eighth from left). With him were participants from the Philippine Coast Guard (PCG), Philippine Ports Authority (PPA), Manila Police District- Delpan Detachment, ant the Manila Police District - Explosive Ordnance Disposal Team.

P O R T F O L I O


ICTSI NEWSBREAK

ICTSI 3Q net income higher at US$136M; recurring net income up 9%

• Throughput grew 7% to 5.8 million TEUs• Revenues increased 2% to US$792.0 million• EBITDA improved 4% to US$339.5 million

International Container Terminal Services, Inc. (ICTSI) reported unaudited consolidated financial results for the first nine months of 2015 posting revenues from port operations of USD792.0 million, an increase of two percent over the USD779.2 million reported for the same period last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of USD339.5 million, four percent higher than the USD326.1 million generated in the first nine months of 2014, and net income attributable to equity holders of USD136.2 million, up 0.3 percent over the USD135.7 million earned in the same period last year. Diluted earnings per share for the period was one percent lower at USD0.0550 from USD0.0556 in 2014.

In the first nine months of 2014, the Company recognized gains on the sale of a non-operating subsidiary in Cebu, Philippines, the termination of management contract in Kattupalli, India, the net settlement of the insurance claims in Guayaquil, Ecuador and Gdynia, Poland, the gain on the sale of Yantai Rising Dragon International Container Terminal (YRDICT) as part of the consolidation of the terminal operations at the Port of Yantai in Yantai, China, and the write down of intangibles at Tecplata S.A. (TECPLATA), the Company's terminal in Buenos Aires, Argentina of USD13.2 million, USD1.9 million, USD0.6 million, USD31.8 million, and USD38.1 million respectively. In the first nine months of 2015, the Company also recognized non-recurring items such as the USD0.3 million gain on the sale of the terminal in Naha, Japan, the recognition of a USD1.3 million wealth tax on its equity in its project in Aguadulce, Colombia, and a USD0.6 million super tax recognized at the terminal in Karachi, Pakistan. Excluding these non-recurring gains and charges, recurring net income surged nine percent in the first nine months of 2015.

For the quarter ending September 30, 2015, revenue from port operations decreased 11 percent from USD268.9 million to USD239.9 million while EBITDA was 10 percent lower at USD102.1 million from USD113.9 million. Net income attributable to equity holders was up five percent from USD34.1 million to USD35.8 million in 2015. Excluding the non-recurring gain on the sale of YRDICT, the write-down of TECPLATA intangibles, and the settlement of insurance claim at BCT, net income would have declined 13 percent. Diluted earnings per share for the quarter decreased one percent from USD0.0131 in 2014 to USD0.0129 in 2015.

ICTSI handled consolidated volume of 5,768,248 twenty-foot equivalent units (TEUs) in the first nine months of 2015, seven percent more than the 5,410,224 TEUs handled in the same period in 2014. The increase in volume was mainly due to the continuing volume ramp-up at Contecon Manzanillo S.A. (CMSA) in Manzanillo, Mexico and Operadora Portuaria

Centroamericana, S.A. de C.V. (OPC) in Puerto Cortez, Honduras; new shipping line contracts and services at Pakistan International Container Terminal (PICT) in Karachi, Pakistan; increased demand for services at Subic Bay International Terminal Corp. (SBITC) in Subic Bay, Philippines; favorable impact of consolidation at Yantai International Container Terminal (YICT) in Yantai China; and the contribution of the

Company’s new terminal, ICTSI Iraq, in Basra, Iraq which began commercial operation in November 2014.

Excluding the volume generated by the new terminal in Iraq, organic volume growth was at five percent. The Company’s eight key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras, which accounted for 77 percent of the Group’s consolidated volume in the first nine months of 2015, grew five percent compared to the same period last year. For the quarter ending September 30, 2015, total consolidated throughput was two percent higher at 1,880,118 TEUs compared to 1,844,200 TEUs in 2014.

Gross revenues from port operations for the first nine months of 2015 increased two percent to USD792.0 million from USD779.2 million reported for the same period in 2014. The increase in revenues was mainly due to volume growth at most of the Company’s terminals; favorable volume mix and higher ancillary services at SBITC in Subic Bay, Philippines; new shipping line contracts and services at PICT in Karachi, Pakistan; favorable impact of the consolidation of terminal operations in Yantai, China; continuing ramp-up at OPC in Puerto Cortes, Honduras and CMSA in Manzanillo, Mexico; and the revenue contribution of the Company’s new terminal in Basra, Iraq.

This, however, was partially off-set by unfavorable volume mix and lower storage and break-bulk revenues combined with the 38 percent depreciation of the Brazilian Reals (BRL) against the US dollar at Tecon Suape S.A (TSSA) in Recife, Brazil; slow economic activity coupled with the 22 percent depreciation of the Euro at Madagascar International Container Terminal Services, Ltd. (MICTSL) in Toamasina, Madagascar; the 19 percent depreciation of the Mexican Peso (MXN) at CMSA in Manzanillo, Mexico; the two percent depreciation of Philippine Peso (PHP) at various Philippine terminals; the discontinued vessel calls by two major shipping lines as a result of continuing labor disruption at ICTSI Oregon,Inc. (IOI) in Portland, Oregon, USA; and weaker short-sea trade and reduced vessel calls at Baltic Container Terminal (BCT) in Gdynia, Poland.

Excluding the revenues from the new terminal in Iraq, organic revenue growth was one percent lower. The Group’s eight key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras, which accounted for 82 percent of the Group’s consolidated revenues

Cont...p.18 ◢

NOVEMBER 2015



ICTSI to implement Global HSSE program by 2Q 2017

International Container Terminal Services Inc. (ICTSI) is set to roll out a dedicated Health, Safety, Security and Environment (HSSE) program across the ICTSI Group by early 2017 to establish a concrete strategy that addresses the occupational safety, health and environmental challenges faced by all the terminals in the Group.

SMM OCT. 2016


SMM MAR. 2017

Release Final Plan


2015 2016 2017

PHASE 1


2-4 MONTHS

PHASE 3

PROJECTCHARTERING

4-6 MONTHS

PHASE 5


ANDMONITORING

PHASE 2

DATA GATHERING

6 MONTHS

PHASE 4

WORKSHOP


HSSE program timeline

ICTSI NEWSBREAK | LEVEL UP

“The program aims to enhance the operational performance of all ICTSI terminals by integrating our HSSE programs and sharing best practices so as to minimize incidents to acceptable levels,” explains Guillaume Lucci, ICTSI Vice President-Global Engineering. “This will be achieved through proper reporting, monitoring, investigation, analysis and implementation of preventive and corrective protocols,” he adds.

Spearheading the project is Pablo Penalba, ICTSI’s first Global HSSE Director.

Factoring the Group’s demographic diversity, ICTSI envisions a program that rests on localized and customized rules based on the knowledge of ICTSI’s staff on the ground. The HSSE initiative, therefore, requires the highest degree of pragmatism and flexibility.

The program will be implemented in five phases. Phase 1, which began

in October, is focused on refining the Company’s corporate strategy.

Phase 2 will have a timeframe of six months starting January 2016. The focus for this period is on data gathering and analysis. Visits to representative terminals, namely MICT, PICT, OPC, CGSA, CMSA, BCT and MICTSL, will be conducted to collect detailed information regarding their respective HSSE programs. A recurring HSSE reporting program will be established based on trends identified.

The third phase of the project will focus on project chartering. Resulting data from Phases 1 and 2 will determine the validity of the implementation plan and development of different HSSE program elements like leadership and commitment, policy and strategic objectives, risks / hazards and effective management plan, among others. Feedback from different terminals will be used as basis in determining the human resource needs to support the HSSE

program. Mr. Lucci reminds the program committee that it is imperative for Phase 3 to be completed by 3Q of 2016 in order for a relevant and sustainable HSSE program to be implemented by March 2017.

Finally, Phase 4 will be dedicated to workshops for specific personnel identified with regional management. These workshops will be key to validating and finalizing the HSSE guidelines and the actual rollout of the program.

Once everything is in place, a special communication will be prepared for distribution to the Company’s shareholders. ICTSI also plans to include a comprehensive HSSE section to the Company’s 2017 Annual Report to acknowledge the performance of its subsidiaries around the world.

P O R T F O L I O


SMM OCT. 2016


SMM MAR. 2017

Release Final Plan


2015 2016 2017

PHASE 1


2-4 MONTHS

PHASE 3

PROJECTCHARTERING

4-6 MONTHS

PHASE 5


ANDMONITORING

PHASE 2

DATA GATHERING

6 MONTHS

PHASE 4

WORKSHOP


Appointed as the first ICTSI Global HSSE Director, Pablo L. Penalba will spearhead the planning and implementation of the HSSE program.

NOVEMBER 2015



VICT taps Bright Light Systems to illuminate new terminal

BLS to install innovative and sustainable plasma lightingBy Claire Jordan-WhillansVictoria International Container Terminal (VICT) has partnered with Bright Light Systems (BLS) to provide high-mast plasma lighting to its new international container terminal at Webb Dock in the Port of Melbourne, Australia.

“Installing Bright Light Systems’ leading-edge, plasma lighting with sophisticated networked lighting controls helps us achieve VICT’s project goals of reducing energy consumption and minimizing obtrusive lighting for surrounding communities, while providing the safest possible environment for our workers. It further demonstrates our commitment to becoming one of the most advanced and sustainable container terminal facilities in the world,” says Anders Dømmestrup, VICT CEO.

BLS is set to supply more than 350 high-efficiency plasma lights to illuminate a 350,000 square meter area

GEARING UP

ICTSI NEWSBREAK

on an as-is needs basis, and deploy its Bright Light Management System (BLMS) to optimize lighting and reduce maintenance costs.

Brad Lurie, BLS President and CEO, says “we very excited to offer our innovative Light Emitting Plasma (LEP) high-mast lighting solution to Victoria International Container Terminal. The superior quality light that plasma technology offers combined with our lighting management platform will enable VICT to maximize energy savings while providing a safe and secure work environment for port personnel.”

“The BLMS wireless lighting controls

enable customers to achieve an additional 25-30% energy savings on top of the high-efficiency lighting we deliver,” says John Chalmers, BLS Marketing Director. “Our easy-to-use web-based interface offers powerful lighting management, monitoring and reporting tools for container terminal facilities to optimize lighting around their operational needs,” he adds.

VICT joins an extensive list of leading facilities including the Port of Seattle, Port of Oakland, Port of Barbados and the Port of Newark, which utilize Bright Light Systems’ innovative lighting solutions. With operations scheduled to begin by yearend 2016, ICTSI’s Australian operation will be one of the most automated and advanced terminal in the world. Upon completion, VICT, with its prime bayside position at Webb Dock East, will have a total of five quay cranes an annual capacity of at least 1.4 million containers.

BCT handles record shipment of windmill parts

Baltic Container Terminal (BCT) recently handled the largest shipment of wind turbine components at the Port of Gdynia in Poland. The windmill parts arrived at the BCT last October, with the terminal deploying one of its two mobile harbor cranes to service HHL Valparaiso of project cargo shipper Hansa Heavy Lift GmbH.

The HHL Valparaiso at the BCT.

With Morska Agencja Gdynia Sp. z o.o. Logistyka as shipping agent, the components are for Danish wind power company Vestas Wind Systems A/S, which included 32 sections of wind towers, 75 sheets of propellers, seven hubs, seven nacelles and

five loaded containers with parts related to the shipment. BCT offloaded the windmill components in nine hours.

With the shipment coming from China, the vessel took the northern sea route via the Arctic instead of the traditional route via the Indian Ocean and Suez Canal to reach BCT.

Built in 2010, HHL Valparaiso is a self-sustaining general cargo vessel equipped with three cranes onboard: two large cranes with lifting capacities of 700 tons each, and a smaller crane with a lifting capacity of 180 tons. The vessel has a gross tonnage of 17,634 tons, a deadweight tonnage of 19,413 tons, cargo capacity of 26,337 cubic meters, and load capacity of 912 TEUs. The vessel’s overall length is 168.68 meters, draft of 7.2 meters, overall width of 25.20 meters, and a height of 45.15 meters from the keel to the top of the highest mast.

P O R T F O L I O


CMA CGM launches new service in ManzanilloContecon Manzanillo S.A. de C.V. received the maiden call of CMA CGM Tarpon to the Specialized Container Terminal II (SCT II) at the Port of Manzanillo last 21 September, signaling the start of CMA CGM’s new Caribbean Pacific Express Service (PEX 2) in Manzanillo.

According to Jorge Kogakis, CMSA Director of Operations, the new service “represents not only the sustained volume growth but also the trust of customers in Contecon. CMSA experienced improvements in its processes and productivity since mid-2014. For this year, productivity has improved by 20 percent coupled with a volume of growth of 50 percent.”

The PEX 2 service connects Manzanillo to Busan in South Korea; Qingdao, Shangai, Ningbo and Chiwan in China; Kaohsiung, Taiwan; Hong Kong; Ensenada, Mexico; Manzanillo, Panama; Cartagena, Colombia; Kingston, Jamaica; Caucedo, Dominican Republic; Puerto Cabello,Venezuela; Port of Spain in Trinidad; and Vastochny in Russia.

The addition of new infrastructure and equipment at the SCT II makes it a very attractive choice for new routes and services. As the Port of Manzanillo continues to position itself as the leading port in Latin America, CMA CGM looks forward to increasing its operations in Contecon by making calls on a weekly basis.

File photo of the CMA CGM Tarpon.

Mr. Kogakis (left) hands a commemorative plaque to the captain of the CMA CGM Tarpon.

SHIP AHOY

NOVEMBER 2015



GREEN PORT

BICT goes green with paperless stripping operationsBy Benjamin Rosario

In support of the Company’s commitment to operate as an eco-friendly terminal, Batumi International Container Terminal (BICT) has started implementing a stripping schedule program that eliminates the use of paper.

The automated stripping schedule module is integrated into the new Terminal Management System (TMS) designed and configured by Data Karchava and Mate Gasviani of BICT’s IT Department. Implemented last September, the new TMS is also interfaced with the Customs’ online system.

Operations personnel can update the stripping schedule using handheld tablets, which is also used by the tallyman to encode real-time data like the stripping date, container number, forwarder’s name and cargo in the TMS. Once encoded, the BICT’s clients can immediately access the data and start the process of cargo retrieval.

Prior to this, the tallyman had to manually accomplish tally sheet forms to enter data into the old system. The new TMS makes the stripping scheduling more efficient, reduces the quantity and cost of paper consumed, and effectively optimizes man-hours and manning schedules resulting in cost savings. Aside from the paperless aspect of the TMS, other features of the system includes improved interface with the Customs’ system, one-window system and real-time updates.

Screenshot of the stripping schedule module as viewed from the handheld tablet.

Giorgi Tsuladze (right), BICT Operations Manager, observes as a tallyman inputs details on the handheld tablet during a stripping operation.

P O R T F O L I O


New KCAA president visits PICT

The newly elected president of the Karachi Custom Agents Association (KCAA), Shahnawaz A. Sattar, visited the Pakistan International Container Terminal (PICT) last 20 October to establish good relations with industry stakeholders.

Khurram Aziz Khan, PICT Chief, welcomed the guests and congratulated Mr. Sattar on his election.

During the meeting, PICT briefed Mr. Sattar and his group about ICTSI’s global operations, and vowed to add value to its services by adhering to international service and trade standards.

Mr. Shahnawaz acknowledged PICT’s ongoing efforts and said it will surely increase KCAA’s confidence in the Company.

The KCAA is one of the largest and oldest shipping and logistics organizations in Pakistan. The group, whose new president and managing committee took charge last October, plays an important role in defining import / export policies, as well as in facilitation of trade in the country.

In the context of conventional container terminal business, the terminal operator and shipping lines normally have

Participants of the recent stakeholder meeting at PICT.

At the meeting (from left): Nadeem Kamil, KCCA Secretary General; Waqar Ali Khan, PICT Customer Care Manager; Shahnawaz A. Sattar, KCAA Presiden; and Khurram Aziz Khan, PICT COO.

By Arif Raza

close relationships. PICT is looking to break away from this traditional setup by moving forward and joining hands with other industry stakeholders. This approach helps the terminal to innovate and customize its services based on the needs of its unique customers. Moving forward, PICT has arranged regular meetings with clearing and forwarding agents, importers, exporters and transporters in this respect.

MEETS & GREETS

Victoria Ports Minister visits VICT development site at Webb Dock East

Victoria International Container Terminal Ltd. (VICT), together with BMD Group, Port of Melbourne Corp. (POMC) and URS, welcomed the Honorable Luke Donnellan, Victoria Minister for Ports, to a tour of the VICT Webb Dock East development last 9 September.

On site (from left): Mr. Dømmestrup; Luke Donnellan, Victoria Minister for Ports; Jeff Gallus, BMD GM; and Nick Easy, POMC CEO.

The Minister was keen to see first-hand the progress being made and new developments taking shape at the VICT project, which is currently running eight months ahead of schedule.

Anders Dømmestrup, VICT CEO, said "This is a $550M project over two years. When complete, Victorian International Container Terminal Ltd will provide Melbourne with one of the most technologically advanced, environmentally sustainable and safest container terminals in the world. It will also be a significant stimulus for the Victorian economy."

VICT will begin operating when the first phase of construction is complete in December 2016.

NOVEMBER 2015



ICTSI NEWSBREAK

CMSA participates in the 22nd Mexican Foreign Trade Congress

Contecon Manzanillo S.A. de C.V. was one of the exhibitors at the 22nd Mexican Foreign Trade Congress organized by the Consejo Empresarial Mexicano de Comercio Exterior, Inversión y Tecnología A.C. (Mexican Business Council for Foreign Trade, Investment and Technology) in Puerto Vallarta, Mexico last 30 September.

Led by Fortino Landeros, CMSA CEO; Jorge Kogakis, CMSA Operations Director; and Tun Diana, CMSA Commercial Director, the CMSA delegation presented the logistical advantages of using the Specialized Container Terminal 2, which is one of the country’s most advanced terminals.

Mr. Landeros stressed the importance of promoting the Port of Manzanillo to attract new exporters and boost the country’s economy.

CMSA at the 22nd Mexican Foreign Trade Congress (from left to right): Tania Martinez, Commercial Analyst; Jorge Kogakis, Operations Director; Diana Tun, Commercial Manager; and Fortino Landeros, CEO.

in the first nine months of 2015, grew two percent compared to the same period last year.

Consolidated cash operating expenses in the first nine months of 2015 was down two percent to USD326.6 million from USD334.1 million in the same period in 2014. The decrease was mainly due the depreciation of the BRL at TSSA, EURO at MICTSL, and MXN at CMSA as the cash operating expenses of these terminals in Brazil , Madagascar and Mexico were translated to a lower USD equivalent. The consolidated cash operating expense included the contribution of a new terminal in Iraq and start-up costs of projects in Melbourne, Australia, LGICT in Laguna, Philippines, and Matadi, DR Congo. Excluding the cost associated with the new terminal and projects, total cash operating expenses would have decreased by four percent.

Consolidated EBITDA for the first nine months of 2015 increased four percent to USD339.5 million from USD326.1 million in 2014 mainly due to revenue growth driven by the continuing ramp-up at the terminals in Honduras and Mexico; favorable volume mix and higher ancillary services at SBITC in Subic Bay,

Philippines; favorable impact of the consolidation in Yantai, China, and the positive contribution of the new terminal in Iraq. Excluding the impact of the new terminal and projects, consolidated EBITDA would have increased three percent in the first nine months of 2015. Consequently, consolidated EBITDA margin improved to 43 percent in the first nine months of 2015 from 42 percent in the same period in 2014.

Consolidated financing charges and other expenses for the first nine months increased 27 percent from USD38.4 million in 2014 to USD48.6 million in 2015. The increase was mainly due to higher debt level and the absence of a one-time gain on the sale of subsidiaries (YRDICT and CICTI), termination of management contract in Katupalli, India (KICT) and settlement of insurance claims at CGSA in Ecuador and BCT in Poland in 2014.

Capital expenditures for the first nine months of 2015 amounted to USD254.6 million, approximately 48 percent of the USD530 million capital expenditure budget for the full year 2015. The established budget is mainly allocated for the completion of development at the Company’s new

container terminals in Mexico, Honduras and Iraq, capacity expansion in its terminal operation in Manila, and to start the development of the new terminals in Democratic Republic of Congo and Australia. In addition, ICTSI invested USD79.1 million in the development of Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal development project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia.

The Company’s share for 2015 to complete phase one of the project is approximately USD140 million. Given the under spending trend recorded in the first three quarters of 2015, the Company has reduced its capital expenditure budget and its investment budget in SPIA for the full year 2015 to USD350 million and USD97 million, respectively. The under spending on capital expenditures was mainly from longer payment schedules on civil works and equipment contracts in most of the Company’s greenfield projects, foreign exchange related savings brought about by the stronger USD dollar, and a number of postponed capital expenditures on volume-related expansions given the weak global trade outlook.

◤ ICTSI 3Q net income...p.11

P O R T F O L I O


DO GOOD

BGT celebrates Eid with Umm Qasr communityBasra Gateway Terminal (BGT) managed to put a smile on the faces of more than 150 families in Umm Qasr during the Eid al-Adha celebration.

With the help of a local charity group, BGT administration and operations staff added meaning to a special day by distributing lamb meat to the local community. The team arranged for the slaughter of 10 lambs, in line with the Muslim holy days of sacrifice, and packaged the meat in bags with the message “Eid Wishes” in Arabic.

The BGT team went into the inner areas of Umm Qasr, knocked on doors and delivered the presents. Some families sent their kids out to collect their share of the meat.

It was a sight to behold as the members of the community smiled and sent well wishes to the Company.

BGT staff distribute lamb meat to the immediate community of Port of Umm Qasr in observance of the Muslim holiday.

Movements - October

PEOPLE

New HiresGraham John Railton Executive Director-Aviation, COB-AviationJames Russell Hill Director of Maintenance & Hangar Operations, COB-AviationAbdul Rasheed L. Daquiz Safety Inspector, Safety SectionLawrence Bryan G. Lee HR Manager, Shared ServicesLeandro A. Santos II Industrial Relations Officer, HRDRowen Llander Utility, Admin, SCIPSILeo Doren Winchman, Operations, SCIPSIRodolfo Rebalde Winchman, Operations, SCIPSIRomeo Cardones Jr. Winchman, Operations, SCIPSIAlfredo Apilado Equipment Operator, SCIPSIWelly Balangaan Equipment Operator, SCIPSIRonnie Rebalde Stevedore, Operations, SCIPSI

Retirements / Resignations JChristine Dyan B. Labanda Training & Management Development Manager, HRDCatherine D. Hizo Supervisor, CY/CFS Arrastre BillingKim Christine A. Mendoza Management Trainee, HRDErnie F. Ramirez Quay Crane Operator, CY MarineJose Joy R. Banaag Prime Mover Operator, CY MarineJustino C. Casao Prime Mover Operator, CY MarineJoel A. Gregorio Prime Mover Operator, CY MarineMario Dela Cruz Wichman Instructor, SCIPSIFlorendo Parreno Stevedore, Operations, SCIPSIRuel Delos Reyes Equipment Dispatcher, SCIPSI

NOVEMBER 2015



Birthdays - December

1 Darwin Castillo Keempee Casundo Woodie Florentino Christian Lozano Virna Manalo Roderic Pines Jecelyn Robin Ervin Villanueva Jr.2 Aldrin Bermejo Michael Hilario Roylan Naval Ruiz Dennis3 Elpedio Caintoy Alfredo Mabini4 Ramil Alayon Noel Fran Fernand Inting Francisco Ros5 Filip Laurena Sammy Torillas Romeo Tantiado, SCIPSI Ronelo Estandarte, SCIPSI6 Dante Benedicto Jr. Belmor Capinig Maricon Guinto Bonifacio Matildo Rommel Polloso Jaime Lanogan, SCIPSI Bonnie Gelbero, SCIPSI7 Joselito Cadenas Sonny Nunez Connie Tan Vicente Anatalio, SCIPSI8 Christian Cristobal Alphert Padayao Cristina Sheenalyn Uy Nestor Tirol, SCIPSI9 Archimeyes Concordia Fausto Fabi Jr. Roland Jaschob Reynaldo Sarmiento Salvador Dumaboc Sr., SCIPSI Crisanto Gargoles, SCIPSI10 Henry Bataller John Jayvee Labaday Jerry Mararac11 Dino Dolloso12 Geraldine Carilla Benigno Ellaso Jr. Alberto Lentejas Peejay Sale

13 Antonio Andrade Reynaldo Bolivar Nida Dagook Paolo Pica Rosana Subion Allan Taylo14 Conrado Abrigo Zeny Magtalas Jimfrancis Navarro Rogelio Tenezo, SCIPSI Melchor Teneso, SCIPSI Orley Muyco, SCIPSI15 Armando Basco Freddie Conde Robin Cruickshanks Guillermo Rago Jesus Calunsag, SCIPSI Denver Balinas, SCIPSI16 Felipe Baculpo Noel Ricablanca Jury Sioquim, SCIPSI Oliver Jaleco, SCIPSI17 Sir Deonard Avelino John Erick De Leon Sylvia Magat Jacklord Paradero Domingo Velasco Henry Gutierez, SCIPSI18 Larry Camba Jr. Gerald Columbres Jenerie Dajay Carlo Magno Dominguez Roy Gonzales Arthur Mendoza19 John Brian Abordo Ryan Colis Aurelio Garcia Aladin Mislang Rogelio Omela20 Ricardo Cano Rowell Desquitado Lloyd Christian Gregorio Luis Pangilinan Rosaldo Salvacion Dante Gargolis, SCIPSI21 Allan Espuerta Gary Gacilan Reynaldo Jaime Roberto Layug Ferdinand Vacaro Benjamin Velasco Jr.

22 Dennis Crimen Eduardo Milag Jerom Sedigo Arturo Solis Judith Villanueva Eduardo Guno, SCIPSI Airez Anatalio, SCIPSI23 Francis Marqueses Ronilo Pelomida, SCIPSI Ruel Lava, SCIPSI Jessie Ortigoza, SCIPSI24 Gency Concepcion Harold Crisostomo Bernie Jaime Christopher Leal Rodel Manansala25 Romeo Bactol Jr. Jesse Paul Mangmang Wilma Mantilla Rhelan Roque Christopher Torres Rey Las Piñas, SCIPSI26 Alexander Chua Astral Mitra Pablito Tesoro, SCIPSI Christopher Apellido, SCIPSI Gilbert Nisperos, SCIPSI27 Rhandel Aguila Jose Lebrias Helen Grace Martinez 28 Salvador Aquino Randy Blas Oscar Zornosa29 Jay Jay Francisco David Lagarde Demetrio Prio30 Ronald Andriano Eloida Arcena Caroline Causon Rizalyn Dela Cruz Reah Trinidad Ronelio Telano, SCIPSI31 Melchor Ferran Dante Geling Silvestre Jadulco Paulina Laxamana Noelito Ngo

PEOPLEPortFolio is published by

International Container Terminal Services, Inc. for its employees, clients, and friends.

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 RoadPort of Manila, 1012 Manila, Philippines

Telephone: +632 / 245 4101E-mail: [email protected]

URL: www.ictsi.com/media-center/newsletters/

P O R T F O L I ONARLENE A. SORIANO

EDITOR-IN-CHIEF

JUPITER L. KALAMBAKALMANAGING EDITOR

DENNIS T. SURIBAASSOCIATE EDITOR

RESEARCHERSZINNO NICCOLO B. GUDEZMARIE ANNALIE T. MARFILPAOLO MIGUEL S. RACELIS

JUSTINO RAMON L. TAYAG IIIRONNEL P. JAVIER

PHOTOGRAPHERSDEXTER F. LANDICHO

EDWARD R. MILAGJOHN PAOLO C. SIAT

PHILIPPINE CORRESPONDENTSMANILA

ALBERT JOSEPH R. CANCERANMARIE BERNADETTE C. DE GUZMAN

MA. CONCEPCION M. DIZONROSE A. LOBRIN

RICARDO D. PAREDESPAULO CARLO C. PEÑALBA

JESTONIE V. VINSONFRANCIS J ALGERNON G. BARTOLOME

JOY E. LAPUZ

SUBICOLGA C. URETA

JULIUS DEL ROSARIO

LAGUNAANNIE MAGSINO

BATANGASBELLE LUCERO

DAVAO CITYCHIARA MAY C. ATIS

GEN. SANTOS CITYREJAMNA JUBELAG

MISAMIS ORIENTALFRANCIS PADUGANAN

INTERNATIONAL CORRESPONDENTSARGENTINA

MAGDALENA RIANI

AUSTRALIACLAIRE JORDAN-WHILLANS

BRAZILFABIANA SOUZA

CHINASEAN XIE

MICHAEL QI

CROATIAIVA ROMAN

ECUADORKATTY OSSA BIANCHI

GEORGIAKETEVAN ORAGVELIDZE

BENJAMIN ROSARIO

IRAQSHEEBA KHAN

MADAGASCARMICHAEL RATRIMO

MEXICOLORENA VALERO

PAKISTANARIF RAZA

SYED IMRAN MOOSA

POLANDMICHAL KUZAJCZYK

USADAVID TRZYZEWSKI

P O R T F O L I O


Documents

November 2015 portfolio philippine edition