July 2013

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

New quay at Adriatic Gate Container Terminal

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: jcostiniano@ictsi.com • URL: www.ictsi.com

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

MICHAEL G. AGUSTINALBERT JOSEPH R. CANCERANMA. BERNADETTE C. DE GUZMANMA. CONCEPCION M. DIZONROSE A. LOBRINRICARDO D. PAREDESJESTONIE V. VINSONCHIARA MAY C. ATISREJAMNA S. PANDANGANKIRK KHURNYLLA S. RAYOSO

ArgentinaBrazilChina

CroatiaEcuadorGeorgia

IndonesiaJapan

MadagascarMexicoPoland

USA

MIGUEL CHALARFABIANA SOUZAAPOLLO ZHOUIVA ROMANKATTY OSSA BIANCHIBENJAMIN D. ROSARIORINI HERAWATYTAKETOSHI TOYAMAMICHAEL RATRIMOPAMELA DE LA VEGAMICHAL KUZAJCZYKDAVID TRZYZEWSKI

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Contents

InternationalContainer TerminalServices, Inc.

44

5ICTSI one of Best Managed and Best Investor

Relations Companies

791011

AGC golfers win big in Taiwan tourney

Do Good

Ship Ahoy

ICTSI selects ComOps Microster Workforce

Management Solution

Maersk vessel calls first at AGCT’s new quay

New quay at Adriatic Gate Container Terminal

5PICT wins environment excellence award

5PICT cited for safety, health and environmental

practices

6EKRazon’s message at the ICTSI Gala Night

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MICTSI turns five

Spotlight

Meets and Greets

Level Up

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ICTSI Newsbreak

Maersk Kawasaki called at Adriatic Gate Container Terminal’s (AGCT) new 320-meter long quay last 4 July. It was the first vessel to do so at the quay, which currently has a depth of 14.2 meters. AGCT will increase the new quay’s depth to 14.5 meters.

AGCT used its new ZPMC post-Panamax quay cranes to service the 318-meter long and 6,500-TEU vessel.

Jan Ružičić, Ivica Čeprnja, Davor Balen and Mile Vojvodić were the first AGCT quay crane operators to use the new cranes.

Last 20 May, AGCT received new equipment worth €23 million from Shanghai, China.

Rijeka, 10 July 2013 – The new quay of Adriatic Gate Container Terminal (AGCT) has been put into operation. This project is worth over €30 million, and was financed by the International Bank for Reconstruction and Development as part of the maritime component of the Rijeka Gateway project of the Port of Rijeka Authority. Thanks to the investment, all of the preconditions for substantial traffic growth of the Port of Rijeka and for transforming it into the EU’s top port of call in the Adriatic have been satisfied.

By Iva Roman

By Iva Roman

New quay at Adriatic Gate Container Terminal

At AGCT’s new quay: Phillip Marsham (left), Chief Executive Officer; and Ognjen Ružić, Operations Manager

Adriatic Gate Container Terminal services Maersk Kawasaki using its two new post-Panamax quay cranes.

Maersk vessel calls first at AGCT’s new quay

From 2011 to the present, AGCT has invested nearly €30 million in the development of the container terminal and the purchase of new equipment for the terminal. Additional €35 million is planned to be invested in the coming years.

The length of the new quay is an impressive 320 meters. The equipment, consisting of two post Panamax STS high tonnage quay cranes, six RTGs and two RMGs, is valued at over €23 million. Thanks to this investment, AGCT is now as technologically equipped as the most modern ports in the world. This will enable

AGCT to reach its strategic goal of transforming the Port of Rijeka into an inevitable destination for cargo being transported by maritime routes from all over the world to Central and Southeast Europe.

“The first phase of the Adriatic Gate project is behind us, in which all the necessary infrastructure needed for the transformation of the Port of Rijeka into the top port of the Adriatic has been put in place. In the next phase we will focus on finding business partners from the region and beyond so we could enable the even faster

growth of traffic. We are certain that in this business process we will continue to have the strong support of the Croatian Government and Croatian Railways, whose role will be extremely important in the transport of cargo from the port to European destinations,” said Phillip Marsham, AGCT CEO.

To take full advantage of the traffic capacity potential of the port in Rijeka, some of the railway connections from Rijeka to Central and Southeast Europe must be reconstructed to enable more than 60 percent of the port’s cargo to be transported by railways.

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ICTSI Newsbreak

Pakistan International Container Terminal Ltd. (PICT) won an award during the 10th Annual Environment Excellence Awards organized by the National Forum for Environment and Health last 5 July in Karachi, Pakistan. Photo shows Saud-Ur-Rehman (fifth from left), PICT Manager QHSE, receiving the award on behalf of the Company from Mirza Ikhtiar Baig (third from left), Pakistan State Oil Chairman and Former Advisor to the Prime Minister on Textile. PICT also won the award during the 8th and 9th Annual Environment Excellence Awards in 2011 and 2012, respectively, which shows its management’s commitment towards occupational health, safety and environment. (Mohammad Atiq)

International Container Terminal Services, Inc. (ICTSI) was named one of the Best Managed and Best Investor Relations Companies of the Philippines in FinanceAsia’s 2013 poll. ICTSI placed fifth in the Best Managed category after getting 15 votes, and placed ninth in the Best Investor Relations category after garnering eight votes. The awards were presented at a dinner sponsored by Maybank ATR Kim Eng last 19 June at the Makati Shangri-la Hotel in the Philippines. Photo shows Arthur Tabuena (third from left), ICTSI Treasury Director and Head of Investor Relations, receiving the award on behalf of the Company from (from left): Lorenzo Roxas, Ramon Arnaiz and Manuel Tordesillas of Maybank ATR Kim Eng.

Pakistan International Container Terminal Ltd. (PICT) placed third in the overall category of the 8th Best Practices in Occupational Safety, Health and Environment Awards held last 27 April in Karachi, Pakistan. The Employers’ Federation of Pakistan handed out the awards. Photo shows Saud-Ur-Rehman (far left), PICT Manager QHSE, receiving the award on behalf of the Company from Syed Abid Ali Shah (fourth from left), Pakistani Department of Labor Secretary. Also in photo are Francesco d’Ovidio, International Labor Organization-Islamabad, Pakistan Director; and the officers of the federation. (Mohammad Atiq)

PICT wins environment excellence award

ICTSI one of Best Managed and Best Investor Relations Companies

PICT cited for safety, health and environmental practices

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ICTSI Newsbreak

EKRazon’s message at the ICTSI Gala Night

Good evening, ladies and gentlemen.Tonight is not about showcasing the achievements of ICTSI over

the last 25 years. Rather, tonight is about thanking the people who, in one way or another, contributed to the success of the Company.

There are those who put their trust in us when we were but a fledgling, armed only with determination and integrity. There are those who partnered with us to achieve our goals. There are those who opened up opportunities for us to grow and expand. And then there are those who loyally took the journey with us through good times and bad. To all of you, I say thank you.

As we celebrate this milestone, one cannot help but be retrospective, and at the same time prospective.

Today, we have 27 ports in 19 countries in the Americas, Europe, Middle East, Africa and Asia. Twenty-five years ago, we just had one: the Manila International Container Terminal.

Back then, the dust of revolution had barely settled. Thankfully, given that it was a largely peaceful revolution, the dust mostly came not from the chaos of battles, but from rebuilding a democracy, reforming institutions, re-crafting the nation’s charter. It was a time of sea change for the nation under the newly-installed Aquino Administration, from a completely controlled economy to one that was a free-for-all in some respects.

It seems easy now to capture those early post-EDSA years in a neat paragraph or so. But back then, it was far from easy.

Power struggles were occurring at the local and national levels. An entire congress, the 1984 Batasang Pambansa, was abolished. Many of those who cheered the departure of the dictatorship were now clasping their hands in expectation.

As for us, when we established this Company, we saw a pioneering opportunity. The new administration was experimenting on economic policies and ways to raise money for a bankrupt treasury, and privatization was one of the roads they decided to take to generate funds through the sale of government owned or controlled assets.

The privatization of the MICT was thus not only the pilot project of the Philippine Ports Authority. It was, in fact, the pilot privatization project of the Aquino Administration. It would also become the benchmark by which succeeding government privatization projects would follow.

The bidding and awarding process though was long, tedious, and wrought with controversy from various sectors and from the losing bidders themselves. But it was also during this time that the Aquino Administration demonstrated its true grit. Sticking to the bidding rules, they remained unswayed by self-serving protests, and focused

harder than ever to maintain transparency. After 11 months of delays and congressional hearings, we were

finally awarded the MICT contract. For this, we owe a debt of gratitude to the late President Cory Aquino and her then Secretary of Transportation and Communication Rainerio Reyes. They gave us our start, so to speak. They believed we deserved to win, and we were not going to let them down.

Having finally secured the MICT concession, we quickly went from elated to earth-bound. Our work was cut out for us from Day 1. We did what we had committed to do. The rest, as they say, is history.

In only a few years, hard work and investments began paying off. And after only six years, we were ready to go out into the world.

Easier said than done.The Asian financial crisis, which

began in 1997 and lasted up to the year 2000 was the toughest time for the Company. But, we emerged from the crisis stronger, leaner and smarter. The ICTSI of today was the ICTSI that was born in the dark days of the Asian crisis, and the lessons learned during that most tumultuous time guide our every move up to today.

From the year 2000 to 2013, we won concessions all over the world in countries such as Brazil, Poland, Madagascar, Japan, Indonesia, Syria, China, Ecuador, Georgia, Colombia, Argentina, Brunei Darussalam, Mexico, USA, Croatia, India, Nigeria and Pakistan. And most recently, Honduras.

Credit for where we are today goes to our global management team, the hard working men and women of ICTSI all over the world, our customers, banks, investors and other partners who have demonstrated their unwavering faith and confidence in the Company.

Ultimately, there is the value of the long view. Our long-term vision of continuously creating shareholder value is an anchor that has held us fast, and continues to do so.

So tonight, we do not just look back. We look forward. And we do not merely look forward. We look far ahead. From one port in 1988, to 27 ports in 2013, and to 100 ports in the next 25 years.

Thank you. I hope you enjoy the evening.

Enrique K. Razon Jr.ICTSI Chairman and President

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ICTSI selects ComOps Microster Workforce Management SolutionInternational Container Terminal Services, Inc. (ICTSI) recently chose to deploy ComOps Microster workforce optimisation software at flagship Manila International Container Terminal (MICT).

ICTSI will use Microster to efficiently manage variable labor costs, including overtime and roster related fatigue within its port operations in Manila, resulting in improved productivity, efficiency and, ultimately, the organization’s profitability.

Microster replaces ICTSI’s current Excel spreadsheet and paper-based manual processes, which offered limited visibility into best overtime allocations and the costs associated with poor decisions. Staff previously assigned to managing the manual roster process will now be employed in more strategic, revenue driving activities.

Microster will be deployed with embedded fatigue management and interactive voice response features at employee self-service kiosks within the MICT. More than 500 individual workers will initially be on-boarded onto Microster, the majority of which work within the Company’s Operations Department.

Microster will assist ICTSI to reduce the time it takes to plan and allocate staff for day-to-day operations while ensuring that last minute allocation is as efficient as possible by tracking the actual hours worked, and the skills, competencies and availability of different team members required. Microster will also help to manage overtime costs, effectively roster casual and full-time employees and provide an audit trail on all rostered hours in compliance with all relevant industrial awards and enterprise agreements. The solution will ultimately help align skills-based rosters to the workload requirement to ensure that staff utilization is optimized.

Roberto Locsin, ICTSI Operations Manager for Special Projects, said: “We required a system that could more efficiently allocate the best people at the best cost in order to maximize productivity for the business overall. During the review process, we concluded that we required an IT solution that also incorporated governance and process design features as part of an overall comprehensive workforce optimization solution.

“As ComOps already has a strong presence and demonstrated success within the ports and stevedoring industry, the company was a natural choice. At the same time, we obviously looked at the technical and functional features within Microster and recognized that a major advantage was its ability to be configured to our own individual processes. Another useful benefit is that the software utilizes best practice rostering techniques that align skills-based rosters to the workload requirement ensuring that staff utilization is optimized.”

InternationalContainer TerminalServices, Inc.

“We are also very excited about the Microster fatigue management module, which will ensure that we can maintain our very high levels of safety within the organization. After all, if we’re not safe, we cannot be productive. Microster will help to roster for peak productivity

rather than just filling gaps and potentially exhausting our people. At the same time, the IVR technology will enable us to automate roster availability with each worker and replace what has until recently been a manual and time consuming process.”

Microster will be integrated with ICTSI’s existing Navis platform for managing the movement of cargo through terminals, as well as the organization’s SAP HR, payroll and automatic timesheet software. This will ensure that the rules engine in Microster can allocate personnel based on their skills competency and ensure that the best available operator is assigned to the highest priority equipment.

Mr. Locsin added: “One of the major contributing factors to our desire to work with ComOps was their team’s demonstrable professionalism and discipline which was evident throughout the evaluation, sales and delivery processes. Microster will give us a right-sized approach to rostering.”

About ComOpsWith a 40-year history of delivering competitive edge through

technology, ComOps’ Workforce Management Solutions are built on a simple premise: best fit, lowest price, least risk.

The Company specializes in Workforce Management Solutions & Services, covering: Rostering & Scheduling, Award Interpretation, Labour Cost Management, Fatigue Risk Management, Leave Management, Time & Attendance, Employee Self-Service Portals, Workforce Analytics, Risk Management & Safety Compliance and Learning & Development. By focusing on the three crucial areas of people, productivity and profit, our end-to-end solutions have restored millions to the bottom lines of our clients, made entire workforces more productive and also bullet-proofed businesses against future risk.

ComOps’ solutions are used by some of the world’s most recognised global brands: Toshiba, the Hyatt Group, Sara Lee, Bundaberg Brewed Drinks, Melbourne & Olympic Parks Trust, RailCorp, QUBE Logistics, BHP Billiton Iron Ore, DP World, Queensland Department of Public Works, City of Melbourne and Tasmanian Fire Services.

ComOps is a Microsoft Gold Partner and is ISO 9001:2008 Quality Accredited.

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ICTSI Newsbreak

Mindanao International Container Terminal Services Inc. (MICTSI) celebrated its fifth anniversary last 25 June with fun-filled and memorable activities. The celebration, participated in by all MICTSI employees, RVVSSI security guards and LRZ Trucking and Stevedoring Services Inc., started with a motorcade around the main streets of Tagoloan, and was followed by a thanksgiving mass. The highlight of the celebration was the awarding of certificates of recognition to the Company’s five-year service awardees during the culminating activity in the evening. (Kirk Rayoso)

MICTSI turns five

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AGC golfers win big in Taiwan tourneyGolfers of the Aircargo Golf Club (AGC) of the Philippines stamped their class and captured the overall team championship in the Aircargo Golf Regional Tournament at the Tong Hwa Golf and Country Club and Royal Kuan-Hsi Golf Club recently held in Taiwan.

The Filipinos scored 984 Stableford points, beating the hosts by six in the two-day, 20-to-play, 13-to-count format tournament. The Philippines bested Hong Kong (964), Thailand (940), Myanmar (915), Indonesia (853) and Singapore (806).

AGC members Marlon Villanueva and Justin Limjap won the doubles crown. The latter also won the individual low gross honors. Meanwhile, Manny Salgado finished second in Class A.

The Philippines fielded 24 players in the tournament staged to foster camaraderie and promote cooperation among industry members within the ASEAN region. The Aircargo Golf Club of each country is composed of players from airfreight forwarders, airlines, ground handling agents, logistics, port managers and operators, and other related businesses.

The Philippines last won the crown in 2010 when it hosted the annual event at Sta. Elena and Orchard Golf and Country Club.

Thailand will host next year’s edition of the event.AGC Philippines was headed by Jimmy Bautista, Chairman; Lito

Colona, President; Terry Capistrano, Team Manager; Mon de Leon, PRO; Rudy Fulo and Marlon Villanueva, Team Skippers; Mike Aquino, Treasurer; and Gregg Sebastian, Tournament Director. Other members of the team were Ed Abesamis, Tom de Vera, Owen Fulo, Engel Guzman, Kenneth Lachica, Chris Lozano, Buddy Madrigal, Jim Melo, Nelson Mendoza, Mario Pangan, Guilbert Purcia, Reimond Silvestre, Doming Talosig and Jay Valdez.

International Container Terminal Services, Inc., Subic Bay International Container Terminal Corp., TMS Group, Pairpags, Cargohaus / Lina Group, Eagle Express Group and Pac Atlantic Group sponsored the team.

The Aircargo Golf Club of the Philippines wins the overall team championship in the Aircargo Golf Regional Tournament recently held in Taiwan.

Gagan Seksaria, International Container Terminal Services, Inc. (ICTSI) Africa Region Chief Financial Officer and Investments Head, represented the Company in Africa Ports & Harbors Show, Africa’s largest maritime event attended by over 1,200 senior industry representatives. The show was held in Johannesburg, South Africa last 25 June. Mr. Seksaria lectured on Building African Ports the PPP Way in which he used ICTSI projects in Africa, including Madagascar and Nigeria, to illustrate contrasting models of public-private partnerships in port development in Africa and the varying effectiveness with which they combine private capital and expertise with public agenda. He highlighted several trends that are re-defining the African ports industry including the polarization of trade between Asia and Africa, the emergence of green field, deep water ports outside of metropolitan areas, developing transshipment over-capacity in some African regions and the rapidly evolving readiness of financiers to support the projects backed by strong strategic partners.

GSeksaria speaks at Africa Ports and Harbors Show

Spotlight

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In March 2013, five of the one hundred scholars of ICTSI Foundation, Inc. (ICTSI-FI) completed their high school education in Tondo High School namely, Camille Labad, Jayson Bernard Ignalig, J.M. Joper Dimalanta, Pauline Daligdig and Jana Marie Alano. For this school year, ICTSI-FI has continued its support to these students through a college scholarship grant, covering financial assistance for their tuition and project fees, books, meal and transportation allowances. (Jes Vinson)

ICTSI-FI grants college scholarships ICTSI Foundation, Inc.

(ICTSI-FI) partnered with Operation Smile for the operation of 47 children with cleft palates last June 2013. During the actual day of operations, ICTSI-FI assembled a small playroom for the children and mothers waiting for their turn to be operated on by the Operation Smile medical team. This is ICTSI’s second round of sponsorship with Operation Smile. Last year, ICTSI sponsored the operation of 100 children with cleft palates. (Jes Vinson)

ICTSI supports Operation Smile

At Operation Smile (from left): Roberto Manzano, Operation Smile President and Executive Director; Anne Gonzalez, Operation Smile Trustee; Freddy Gonzalez; Edgardo Abesamis, ICTSI-FI President; and Filipina Laurena, ICTSI- FI Deputy Executive Director

Directors of the Chamber of Commerce of Guayaquil (CCG) recently visited Contecon Guayaquil SA (CGSA) to see developments in the Guayaquil Container and Multipurpose Terminals that have been beneficial to Ecuadorian and regional trade. Since taking over, CGSA rolled out improvements in facilities, technology and equipment. The need to dredge the access channel to Guayaquil and its importance to the competitiveness of the country, which will favor Ecuadorian exporters and importers, were discussed during the visit. Photo shows (from left): Eduardo Peña, CCG President; José Miguel Muñoz, CGSA Chief Executive Officer; Jaime Cucalón, CCG Director; and Roberto González, Consulegis. (Katty Ossa Bianchi)

CCG visits CGSA

Do Good

Meets and Greets

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Meets and Greets

Ship Ahoy

Twenty-six officers and representatives of ICTSI Honduras, Coalianza and port operators of Puerto Cortés visited Contecon Guayaquil SA (CGSA) to witness terminal operations last May. They visited the offices of CGSA’s Operations, Human Resources, Finance and Information Technology. Puerto Cortés port authorities were impressed with the developments in the Guayaquil Container and Multipurpose Terminals since CGSA’s takeover in 2007. (Katty Ossa Bianchi)

ICTSI Honduras visits CGSA

MICTVessel: Nona. Line: NYK. Date: 24 May. Photo (from left): Wilfredo Baliwag Sr., International Container Terminal Services, Inc. (ICTSI) Equipment Superintendent; Shapak Alexander, Vessel Master; Fidem Sigaya, NYK Terminal Manager; and Emmanuel Valdez, ICTSI Operations Supervisor. (Edmon Sanguyo)

Line: NYK. Date: 1 June. Photo (from left): Levy Relloto, International Container Terminal Services, Inc. (ICTSI) Operations Supervisor; Artemio Lim, ICTSI Operations Superintendent; Joebert Patatag, Vessel Chief Officer; and Fidem Sigaya, NYK Terminal Manager. (Eric Deligencia)

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Level Up

ICTSI

NMCTS

Training: Communication Assertiveness workshop. Attendees: PortFolio editorial staff and correspondents. Trainer: Altine Jimenez, Guthrie Jensen Training Consultant. Date: 4 to 5 April. Venue: ICTSI Safety Training Room.

Training: Training the Trainers course. Facilitator: Wilfredo Baliwag Sr. (sixth from left), International Container Terminal Services, Inc. (ICTSI) Trainer. Date: 8 to 11 April. Venue: New Muara Container Terminal Services Sdn. Bhd., Brunei Darussalam. Photo shows (from left): Jimmy, NMCTS Assistant Operations Manager; HJ Khambrin Haji Ibrahim, QC Operator; Ahmad Ilmi Haji Adanani, Operations Supervisor; Rey, Operations Supervisor; Suriayani Haji Abas, Human Resources Officer; Edafinde Matsalleh, CHS Trainer; Jasmi Naim, CHS Trainer; Roswalee HJ Abu Bakar, QC Trainer; and Mohd Eswandi HJ Abas, Technician

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