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PORTFOLIO The Official Publication of International Container Terminal Services, Inc. INTERNATIONAL EDITION March 2016 VICT ready for yearend opening

The Official Publication of International Container ... 2016... · They form part of Phase 1 equipment deliveries, which ... ICTSI NEWSBREAK By Michael Ratrimo Madagascar International

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PORTFOL IOThe Official Publication of International Container Terminal Services, Inc. INTERNATIONAL EDITION • March 2016

VICT ready for yearend opening

ICTSI OPERATIONS

TABLE OF CONTENTS

COVER STORY4 VICT ready for yearend opening

SIDEBAR6 VICT at the 7th Intermodal Asia Exhibition and Conference

7 Australian Ambassador visits MICT

ICTSI NEWSBREAK7 MICTSL posts record productivity

7 Metro Manila Council backs TABS, lifts truck ban for registered truckers

8 Non-cash, one-time charges pull down ICTSI net income by 68% to US$58.5M

9 ICTSI Foundation chosen as 2015 AnakTV juror

10 BGT celebrates successful year

LEVEL UP11 SCIPSI receives Investors in People gold accreditation

PORTFOL IO INTERNATIONAL EDITION

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

11 Technical trainers recognized

DO GOOD12 ICTSI Foundation launches Employee Volunteerism Program

13 EVP logo

14 RJC, championing employee volunteers

14 Apologia

15 ICTSI Foundation staff featured in volunteers expo

15 ICTSI Foundation donates tools and equipment to Manila High School

16 Record turnout for Contecon Manzanillo charity run

TECH TALK17  SMS notification feature added to MICT Track and Trace

CLIENT GOODWILL18 ICTSI holds 25th invitational golf tournament

MAKING THE LIST20 PICT honored at 31st MAP Corporate Excellence Awards

20 ICTSI safety guide wins Anvil

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.

MARCH 2016

VICT ready for COVER STORY

The first four ASCs from Kalmar were unloaded from AAL Hongkong last 14 March.

Victoria International Container Terminal (VICT), International Container Terminal Services, Inc.’s (ICTSI) US$400 million fully automated container terminal at Webb Dock East in the Port of Melbourne, Australia, is on track for its scheduled start of operations by December this year.

Three ZPMC-manufactured Neo-Panamax cranes that scheduled for turnover to VICT sometime between March to May.

“VICT is poised to become Australia’s premiere container terminal. It is the first automated terminal within the ICTSI Group, and will become one of the most advanced in the world in terms of the scale of its automation once it starts to operate. With its industry-leading design and engineering, we expect VICT to set the bar high for the industry by introducing revolutionary levels of operational efficiency,” says Christian R. Gonzalez, ICTSI Senior Vice President and Head of Asia-Pacific Region and MICT.

Equipment deliveries are on schedule. VICT received the first batch of four automated stacking cranes (ASC) on the 15 March. They form part of Phase 1 equipment deliveries, which include eight more ASCs, 11 Automatic Container Carriers (ACC), and three Neo-Panamax quay cranes — all set to arrive between March and May.

Meanwhile, Phase 2 equipment deliveries, which include two Neo-Panamax quay cranes and eight ASCs, are due to arrive in November and December, respectively.

The ASCs and ACCs are manufactured by Kalmar, while the five remote-controlled Neo-Panamax quay cranes are made by ZPMC with automation delivered by ABB.

VICT will be using the Navis N4 terminal operating system, fully integrated with ABB crane automation, Kalmar ASC / ACC automation system (TLS), Camco unmanned gate solution

and the 1-Stop vehicle booking system (VBS) to provide and ensure streamlined terminal operations to both waterside (vessel) and landside (truck) operations simultaneously and truly 24/7.

PORTFOL IO INTERNATIONAL EDITION

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 .4

Ongoing civil works at VICT.

yearend opening

VICT’s strategic location offers a better option for shipping lines in terms of cost and time savings.

VICT switched on the LEP lights for the first time on 23 February. The photo clearly shows the difference between the port’s usual “orange” high-pressure sodium bulbs and VICT’s light-emitting plasmas supplied by BLS.

The plants and trees surrounding the noise wall create visually pleasing scenery that effectively blends the industrial façade of the terminal with its surrounding community.

Phase 1 and 2 development Operating under a 26-year concession agreement with the

Port of Melbourne Corp. (PoMC), VICT occupies a total land area of 35.4 hectares. Phase 1 development, which started in the third quarter of 2014, includes a 664-meter berth to be equipped with three Neo-Panamax quay cranes capable of servicing 19 across +8,000-TEU capacity vessels. The terminal will have an initial capacity of ~500,000 TEUs by the end of 2016, and upon completion of Phase 2 development by 2Q 2017, the fully commissioned VICT will have a capacity of 1 million TEUs.

VICT is working on future-proofing the terminal to allow two +8000 TEU-vessels to berth simultaneously. Eventually, the terminal will be equipped with eight Neo-Panamax quay cranes and feature an annual capacity of more than 1.5 million TEUs.

Innovations for sustainability Aside from being a catalyst for economic growth, VICT

aims to be a good neighbor to its surrounding communities by limiting its operational impact on the local environment. Aside from introducing unparalleled operational efficiencies, the technologies behind the terminal’s fully automated operations are designed to minimize the impact of light and noise on the surrounding community.

Strategic location Located outside the narrow and restrictive Yarra River, in

which the two existing container terminals are situated, VICT is the clear choice for future larger vessels (6,000-10,000 TEUs) calling into Melbourne. With a crane outreach of 19 across, VICT is capable of accommodating larger container vessels. With its 450-meter turning basin and 250-meter channel width, VICT has direct access to the main channel serving Port Philip Bay without the 50-meter air draught restriction imposed by the West Gate Bridge.

Establishing good community relations Within the terminal’s immediate vicinity are a lifesaving

organization’s headquarters, residential housing, a beach and a recreational park and trail. This port-city location led the team at VICT to carefully consider how they could make the terminal sustainable, safe and secure in order to lessen impact of VICT’s operations on the surrounding community.

VICT is bordered by a noise wall, which minimizes the effect of terminal sounds on the neighboring communities. The height of the wall varies in some areas, which disguises the view of the terminal for the neighbors. Landscaping was also implemented in the walls’ surrounding space to enhance the visual aesthetics of the area.

VICT has been proudly supporting various corporate social responsibility initiatives in the immediate port community via an ongoing grants program which supports the positive development of health and education for youth and young people.

VICT has partnered with Bright Light Systems (BLS), a leading manufacturer of light-emitting plasma (LEP) luminaires, to provide high-mast plasma lighting to the terminal premises. The 350 high-efficiency plasma lights will illuminate an area of more than 350,000 square meters on an as-needs basis.

This state-of-the-art lighting system can be controlled wirelessly and provides clear yet non-obtrusive lighting. Unlike the usual high-pressure sodium lamps used at ports, which emit an unnatural dim and “scattered” orange light, BLS plasma luminaires prevent light spill and night sky glow. VICT expects to reduce energy usage by up to 70 percent using this innovative solution.

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 . 5

InternationalContainer TerminalServices, Inc.

MARCH 2016

Victoria International Container Terminal (VICT) was among the

participant-exhibitors at the 7th Intermodal Asia Exhibition and Conference held from 24 to 26 February at the Intercontinental Melbourne, The Rialto Hotel in Melbourne, Australia.

The three-day event kicked-off with a technical site visit to VICT, which is located at Webb Dock East, Port of Melbourne, followed by a two-day conference and exhibition program The Honourable Luke Donnellan, Victoria’s Minister for Ports, graced the event and delivered the conference’s opening remarks.

Anthony Desira, VICT Operations Manager, was one of the speakers at the conference. He talked about the ongoing development at VICT, which is scheduled to open for business in December, and discussed several aspects of the terminal’s operations including VICT’s projected positive economic impact to the city of Melbourne.

Entering its fourteenth year, Intermodal Asia is Australia’s largest biennial container ports, shipping and transport logistics exhibition and conference.

The VICT exhibition at the InterContinental Melbourne, The Rialto Hotel.

Anthony Desira (center), VICT Operations Manager, answers questions from conference guests during the technical site visit at VICT.

At the VICT exhibit (from left): Mr. Doyle; Mr. Donnellan; Claire Jordan-Whillans, VICT Media and Community Relations Manager; Mr. Easy; and Marcell Judkins, VICT CFO.

Nick Easy (left), Port of Melbourne Corp. CEO joins Luke Donnellan (center), Victoria Minister for Ports, and Rory Doyle, Transport Events Management Managing Director, during the ribbon-cutting ceremony of the exhibition.

Mr. Desira talks about the technological innovations at VICT and how they would revolutionize operations at the terminal.

VICT at the 7th Intermodal Asia Exhibition and Conference

SIDEBAR

PORTFOL IO INTERNATIONAL EDITION

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 .6

ICTSI Senior Vice President and Regional Head of Asia-Pacific & MICT Christian R. Gonzalez welcomed Her Excellency, Amanda Gorely, Australian Ambassador to the Philippines, when she visited the Manila International Container Terminal (MICT) last 24 February. Ambassador Gorely, who assumed the position in January, replaced former Ambassador Bill Tweddell. Photo shows (from left): Mr. Gonzalez, Anthony Weymouth, Australian Senior Trade Commissioner for the Philippines and Micronesia, and Ambassador Gorely at the MICT.

ICTSI NEWSBREAK

By Michael Ratrimo

Madagascar International Container Terminal in the Port of Toamasina, Madagascar posted record productivity levels last 18 February when it serviced the 1,900-TEU vessel MSC Antonia.

MICTSL posts record productivity

The MSC Antonia at the Madagascar International Container Terminal.

The Toamasina terminal grossed a vessel productivity of 77.26 moves per hour on a total of 1,513 moves. The terminal handled MSC Antonia using four mobile harbor cranes (MHC) during 19 hours of operation.

The record achievement is a confirmation of ICTSI Madagascar’s exceptional operational performance in recent years, demonstrating the excellent synergy of operations and engineering teams.

February was marked by another record on average monthly crane productivity. Average productivity was 21.89 moves per hour per MHC.

With its reliable performance, Madagascar International Container Terminal Services Ltd. is strengthening the market position of the Port of Toamasina in the Indian Ocean to encourage more shipping lines to add new routes and services in the Port.

Metro Manila Council backs TABS, lifts truck ban for registered truckers

The Metro Manila Council-Special Traffic Committee recently approved to lift the 24/7 truck ban on all trucks registered in the Terminal Appointment Booking System (TABS).

Through the Metro Manila Development Authority (MMDA) Resolution No. 02, Series of 2016, trucks participating in TABS are granted truck ban exemptions.

TABS is an online booking system implemented through the collaborative efforts of the Office of the Cabinet Secretary and the Philippine Ports Authority in partnership with the international terminal operators in the Port of Manila, International Container Terminal Services, Inc. for Manila International Container Terminal and Asian Terminals, Inc. for South Harbor Terminal, and TABS developer 1-Stop Connections of Australia.

In consultation with port stakeholders, TABS was developed to ease road congestion by trucks in Metro Manila and by managing truck movement in and out of the port.

“To reduce the number of trucks during traffic peak periods without affecting the total number of imports and exports going in and out of the port, utilize traditional supply chain off-peak hours and reduce truck cycle times and maximize truck utilization,” says the MMDA resolution.

Free slots and rebates will be given to truckers who will be

utilizing TABS slots which are not within the daily rush hour, including weekends. However, truckers who arrive late as well as those who do not show up on their scheduled appointments will be penalized.

To protect the interest of trucking companies and to aid traffic enforcers, real-time SMS service will be incorporated in TABS. Truckers and enforcers may send a truck’s plate number to the TABS hotline, and the system will automatically generate a reply to confirm the truck’s TABS booking. Trucking companies may also use this SMS service to track movement of their containers.

During the morning truck ban hours, TABS users are given a two-hour window before their trucks’ scheduled booking, and two hours after the trucks’ reported time of departure from the Port. TABS users who will be covered by the evening truck ban hours, are given a two-and-a-half-hour window before their trucks’ scheduled booking, and another two-and-a-half hours after the trucks’ reported time of departure from the port.

Former Cabinet Secretary Jose Rene Almendras urged stakeholders in the Port of Manila to be more transparent in their transactions with the terminal operators in line with efforts to ease road congestion in Metro Manila.

“We are trying to create a more transparent system to curb or minimize opportunities for corruption,” says Secretary Almendras.

Australian Ambassador visits MICT

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 . 7

InternationalContainer TerminalServices, Inc.

MARCH 2016

ICTSI NEWSBREAK

Non-cash, one-time charges pull down ICTSI net income by 68% to US$58.5M

• Recurring net income up 1% to US$174.7 million • Throughput grew 5% to 7.8 million TEUs• Revenues down 1% to US$1.051 billion• EBITDA improved 2% to US$450.0 million

International Container Terminal Services, Inc. (ICTSI) reported audited consolidated financial results for the year ended 31 December 2015, posting revenue from port operations of US$1.051 billion, one percent lower compared to US$1.061 billion the year earlier; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$450.0 million, two percent higher than the US$443.0 million generated the previous year; and Net Income attributable to equity holders of US$58.5 million, down 68 percent compared to the US$182.0 million earned in 2014. Diluted earnings per share for the period declined 85 percent to US$0.011, from US$0.075 in 2014. Excluding the effect of one-time adjustments to carrying value of certain subsidiaries and non-recurring charges, recurring net income would have increased one percent to US$174.7 million, from US$172.6 million in 2014.

In 2015, the Company recognized non-recurring charges totaling US$116.2 million composed principally of impairment charges on the concession rights assets of Tecplata S.A. (TECPLATA), the Company’s terminal in Buenos Aires, Argentina, amounting to US$88.0 million due to lower projected cash flows on its updated business plan as a result of the prevailing and challenging economic conditions in Argentina and the goodwill of subsidiaries PT ICTSI Jasa Prima Tbk and PT OJA in Jakarta, Indonesia aggregating US$26.6

million as a result of lower projected cash flows on its updated business plan than originally expected. In addition, the Company recognized non-recurring gains and charges such as the US$0.3 million gain on the sale of the terminal in Naha, Japan, the recognition of US$1.3 million wealth tax charge on its equity in its project in Aguadulce, Colombia, and US$0.6 million super tax charge at the terminal in Karachi, Pakistan. In 2014, the Company also recognized gains on the sale of a non-operating subsidiary in

ICTSI and SubsidiariesFinancial HighlightsYoY Comparison

For the full year ended December 31

(in mmillion USD, except Earnings per share date) 2014 2015 % ChangeGross Revenues USD 1,061.2 USD 1,051.3 -1%EBITDA 443.0 450.0 2%Net Income 191.5 69.0 -64%Net Income Attributable to Equity Holders 182.0 58.5 -68%Earnings per share

Basic 0.075 0.011 -85%Diluted 0.075 0.011 -85%

Nonrecurring items:Non-cash impairment charge on goodwill/port infrastructure (TECPLATA)

38.1 88.0

Non-cash impairment charge on goodwill (PT OJA and PT JASA) 26.6

wealth tax (SPIA) 1.3

super tax (PICT) 0.6

Gain on sale of NICTI (0.3)

Gain on sale of YRDICTL (31.8)

Gain on sale of CICTI (13.2)

Gain on termination of Kattupalli Port (1.9)

Net Gain on insurance claims of BCT and CGSA (0.6)

Recurring Net Income Attributable to Equity Holders 172.0 174.7 1%

Cebu, Philippines (US$13.2 million), the termination of management contract in Kattupalli, India (US$1.9 million), the net settlement of the insurance claims in Guayaquil, Ecuador and Gdynia, Poland (US$0.6 million), the gain on the sale of Yantai Rising Dragon International Container Terminal as part of the consolidation of the terminal operations at the Port of Yantai in Yantai, China (US$31.8 million), and the write-down of intangibles at TecPlata (US$38.1 million). Excluding these non-recurring gains and charges,

PORTFOL IO INTERNATIONAL EDITION

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recurring net income in 2015 would have been one percent higher at US$174.7 million compared to the US$172.6 million earned the previous year.

ICTSI handled consolidated volume of 7,775,993 twenty-foot equivalent units (TEUs) for the year ended 31 December 2015, five percent more than the 7,438,635 TEUs handled 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 Cortes, Honduras; new shipping line contracts and services at Pakistan International Container Terminal (PICT) in Karachi, Pakistan and at Contecon Guayaquil S.A. (CGSA) in Guayaquil, Ecuador; 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 from ICTSI Iraq, the Company’s new terminal in Umm Qasr, Iraq which began commercial operation in November 2014. Excluding the volume from the new terminal in Iraq, organic volume increased three percent.

Gross revenues from port operations was one percent lower in 2015 at US$1.051 billion compared to the reported US$1.061 billion in 2014. The slight decline in revenues was mainly due to unfavorable container volume mix, lower storage revenues and ancillary services, and the negative foreign exchange translation impact of the Brazilian Reais (BRL) at Tecon Suape S.A (TSSA) in Recife, Brazil, the Euro (EUR) at Madagascar International Container Terminal Services, Ltd. (MICTSL) in Toamasina, Madagascar, the Mexican peso (MXN) at CMSA in Manzanillo, Mexico and the Philippine peso (PHP) at various Philippine terminals. In addition, ICTSI’s revenues was adversely affected by 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. The decrease was partially offset by tariff rate adjustments at certain terminals; new shipping line contracts and services; 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 Umm Qasr, Iraq. Excluding the revenues from the new terminal in Iraq, organic revenues were three percent lower.

Consolidated cash operating expenses decreased five percent in 2015 to US$432.3 million from US$454.5 million the year earlier. The decrease was mainly due to lower equipment and facilities-related expenses as the company benefited from lower global fuel prices and lower repairs and maintenance expenses; lower

variable cost at ICTSI Oregon due to significant volume decline; and the depreciation of the local currency at the various ports of the Company as cash operating expenses of these terminals were translated to a lower US dollar equivalent upon consolidation. The reduction, however, was tapered by the contributions and start-up costs of the new terminal in Iraq and new projects in the Philippines, Mexico, Australia and Democratic Republic of Congo. Excluding the cost associated with the new terminal and projects, consolidated cash operating expenses would have decreased seven percent in 2015.

Consolidated EBITDA increased two percent to US$450.0 million in 2015 from US$443.0 million the previous year mainly due to the continuing ramp-up and further improvement in operating efficiencies at the terminals in Honduras and Mexico; strong operating results in Asia; and the positive contribution from the new terminal in Iraq. Consolidated EBITDA margin improved to 43 percent in 2015 from 42 percent in 2014.

Consolidated financing charges and other expenses surged 238 percent in 2015 to US$183.5 million from US$54.3 million in 2014. The increase was mainly due to the recognition of a US$1.3 million wealth tax on its equity in its project in Aguadulce, Colombia, US$0.6 million super tax recognized at the terminal in Karachi, Pakistan and impairment charges at its subsidiaries in Buenos Aires, Argentina and Jakarta, Indonesia of US$88.0 million and US$26.6 million, respectively.

Capital expenditure mainly related to construction and procurement of equipment amounted to US$353.5 million for the full year 2015, approximately 67 percent of the original US$530 million capital expenditure budget. The capital expenditure was mainly 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 US$95.1 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 Group’s capital expenditure budget for 2016 is approximately US$420.0 million mainly allocated for the completion of the initial stage of the Company’s new container terminals in Democratic Republic of Congo and Iraq, and the continuing development of the Company’s project in Australia. With regard to ICTSI’s joint venture container terminal development project in Buenaventura, Colombia, the Company allocated approximately US$60.0 million for its share in 2016 to complete the initial phase of the project.

ICTSI Foundation chosen as 2015 AnakTV jurorBy Melissa M. Echevarria

AnakTV invited the ICTSI Foundation as one of the jurors for the 2015 second level jury screening for child-sensitive programs.

Similarities in advocacy regarding children’s welfare prompted AnakTV to identify the Foundation as a credible juror. The Foundation’s Francis Bartolome, Program Head, and Melissa Echevarria, Project Assistant, reviewed 12 entries selected by more than 2,500 TV viewers nationwide.

“We are proud to be part of this process considering it is in line with our vision of a society that supports and maximizes the

growth potentials of the youth,” says Mr. Bartolome.

AnakTV jurors recognized 2015’s most child-sensitive programs from 12 different local TV networks, and selected Makabata Stars (artists honored as role models to the youth) from a selection of local TV personalities. The jurors represented parents, teachers, students, NGOs, media, business and religious sectors.

A total of 12 television shows were evaluated to receive the AnakTV seal. Programs that bear the seal are safe for children to watch with minimal or no adult supervision.

AnakTV is an organization that advocates child-sensitive and family-friendly television in the Philippines. Aside from evaluating TV shows and choosing TV personalities, the organization also promotes child welfare by safeguarding them from any form of abuse and shielding their young minds from violence.

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 . 9

InternationalContainer TerminalServices, Inc.

MARCH 2016

Over 200 personnel from Basra Gateway Terminal (BGT) along with guests from the Iraqi Port Authority gathered for a night of food and music last 18 January as ICTSI Iraq hosted a banquet to celebrate a successful year of operations in BGT.

Phillip Marsham, BGT CEO and event host, welcomed the guests and delivered the opening remarks together with Hany Salama, BGT CFO, citing the Company’s achievements and direction for 2016. He also congratulated BGT employees for surpassing organizational targets, and pledged to continue the momentum moving forward.

Before the end of the night, several prizes including a flat-screen TV, an iPhone, a motor bike, gold and jewelry where raffled off to lucky guests. Tokens of appreciation were also handed to everyone who attended the event held at the newly renovated engineering workshop. BGT plans to conduct this event yearly as one of the means to promote camaraderie among employees and boost morale at the workplace.

By Sheeba Khan

BGT celebrates successful year

Mr. Salama delivers the opening remarks.

Munther Al-Saiegh (far right), BGT Chief Commercial Manager with management personnel from the Iraqi Port Authority.

BGT staff enjoying the food.

Mr. Marsham (standing) with BGT employees.

Redouane El Ayadi (center), Operations Shift Manager, facilitates the raffle draw with the help of Maria Lee Sumadchat (far right), Human Resources Manager.

Jim Stewart (far left), Director of

Operations, having a light moment with

some of the BGT staff.

ICTSI NEWSBREAK

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SCIPSI receives Investors in People gold accreditationBy Rejamna Jubelag

South Cotabato Integrated Port Services, Inc. (SCIPSI) was conferred the Gold Award for excellence in people management by Investors in (IiP) Phils. at the 5th IiP Concourse: International Good Practices in People Management held at the Auditorium of St. Luke’s Medical Center in Global City, Taguig last 25 November.

Gabriel Muñasque, SCIPSI General Manager, received the award and talked about SCIPSI’s Housepoints Rewards Program. Over 400 human resources practitioners attended the IiP event.

SCIPSI underwent assessment from 8 to 11 July last year, and was able to manifest its commitment to 167 good people management practices and IiP criteria, which include organizational alignment, empowerment, learning and development, leadership, and continuous improvement.

Left photo shows Mr. Muñasque sharing some insights on SCIPSI’s Housepoints Rewards Program at the 5th IiP Concourse. Right photo shows (from left) Henry Las Piñas, Union President, Rejamna Jubelag, SCIPSI HR Head, and Mr. Muñasque receiving the IiP gold accreditation.

LEVEL UP

Technical trainers recognizedBy Nathaniel J. Abogada

The Manila International Container Terminal (MICT) Human Resources Training Department organized a simple dinner for technical trainers last 28 January in recognition of their performance and contributions to the success of the technical trainings last year.

The event, held at Aling Tonya’s Restaurant in Dampa, Pasay City, was attended by 20 trainers who were also briefed on what to look forward to in 2016.

Edward Bonilla, Manager for Operations Execution, delivered the opening remarks along with Margie Lyn Cuadera, Assistant Manager for HR Training and Organizational

Development. Both also spearheaded the discussions regarding each department’s training needs, expectations and other related concerns.

The training team expects to have their hands full with year-round trainings to support Operations’ manpower requirements. Possible collaborations and sharing of best practices with other ICTSI terminals were also discussed in an effort to strengthen partnerships within the Group and improve operational efficiency. 

The following are the technical trainers who were given recognition:

• Cesar Badua• Wilfredo Baliwag Sr.• Armando Basco

The MICT HR Training Department with the technical trainers during the 2016 training kick-off and trainers’ recognition at Aling Tonya’s Restaurant last 28 January.

• Edward Bonilla• Ramon Chito Calingo• Jan Patrick Constantino• Ramoncito Cua• Eammond Byan Fraginal• Danny Garcia• Sergio Hingzon Sr.• Arnel Labajo• Alexander Laliag• Leandro Santos II• Arturo Reyes• Cecilio Joel Saballegue• Rosaldo Salvacion• Adelino Vestil• Albert Villanueva• Michael Villarin• Jovinel Yambao

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InternationalContainer TerminalServices, Inc.

MARCH 2016

DO GOOD

By Dr. Patricia M. Licup

The ICTSI Foundation recently launched the Employee Volunteerism Program for ICTSI employees. The first of its kind in the ICTSI Group, the program provides opportunities for employees to engage in activities that will help marginalized sectors in ICTSI’s host communities.

ICTSI Foundation launches Employee Volunteerism Program

Treasury and Insurance Group and ICTSI Foundation: (seated from left) Patricia Licup and Loida Arcena of ICTSI Foundation; (front row) Filip Laurena, ICTSI Foundation (2nd from left) with Global Treasury: Gigi Miguel; Joel Consing; Abby Estrella; Letty Galang; Die Robel; Maricel Bataller; Virgie Miraflor; Zeny Magtalas from the EVP office, Jo-Ann Bustamante from CAO and Global Engineering; Joy Lapuz, ICTSI Foundation; and Mel Echeverria; (back row from left): Arnie Tablante; Manuel Pascua; Art Tabuena; King Mantecon; Rolan Quitangon from the Insurance group and Vincent Salaga from Global Treasury

Initially launched at ICTSI’s flagship Manila International Container Terminal (MICT), the program allows employees to share their time, talents, skills and resources and volunteer in any of the Foundation’s projects under its three development pillars: education, community welfare and sports. The program provides holistic benefits for employees through 

volunteer service to an individual, group or community while generating social value in the form of increased employee engagement and opportunities for unity and teamwork. It also aims to create positive impact and goodwill in the communities where ICTSI operates and give employees a sense of purpose and fulfilment by providing opportunities of giving back. 

The program highlights ICTSI’s culture of caring and serving, and aims to bring out altruism, compassion, solidarity, and concern for others.

A soft launch was done last December 2015 with the Christmas Wish Tree Project as the pilot activity. Close to 200 Christmas wishes from orphans of Manila Boystown were

gathered and placed in the Foundation’s Christmas tree board panels.

The Foundation invited ICTSI employees to make a child smile on Christmas by picking a child’s wish in the Christmas tree and making it come true. Employees enthusiastically responded to the call with some picking two, three even up to five Christmas wishes. A number of personnel from shipping lines and brokerage companies also participated.

In February, the Foundation cascaded the program to different ICTSI corporate offices and MICT departments.  Officers and staff were briefed and surveyed on the choice of Foundation assistance programs they would like to engage in. Based on the results of the survey, employees will be grouped according to their preferred programs, and the Foundation will then organize activities for their participation.

Orientations are ongoing at the MICT. Plans are underway to cascade the program in subsidiaries, and dovetail the program to the Group’s global operations.

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Treasury / Insurance and ICTSI Foundation at the Cancer Patients Ward of the National Children’s Hospital

At the cancer patients ward (from left) King Mantecon, Mel Echeverria, Arnie Tablante, Art Tabuena and Filip Laurena with cancer patients and a mother.

Foundation officers consult with Sally Inonog of ICTSI Global Corporate Human Resources, on cascading the EVP to different departments and subsidiaries.

ICTSI Foundation discusses the EVP with the Legal Department

Joy Lapuz (right), ICTSI Foundation Program Manager, and Filipina C. Laurena (second to the right), Foundation Deputy Executive Director, during the Employee Volunteerism Program orientation with the Global IT Department.

EVP logo

To connect to more people and promote what it stands for, a logo was created for the Employee Volunteerism Program. The colors, fonts and images capture what the program is all about. The colors represent the company ICTSI (orange), the employees (yellow), and the external stakeholders / beneficiaries (green).  The three figures represent the ICTSI Foundation’s three development pillars: education, sports and community welfare upon which the program activities are anchored.

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InternationalContainer TerminalServices, Inc.

MARCH 2016

DO GOOD

RJC, championing employee volunteers

Rafael Joel D. Consing (RJC), ICTSI Senior Vice President and Chief Financial Officer, was among the first respondents who pulled out wish notes from the Christmas Tree panels displayed last December 2015 at the lobby of the ICTSI Administration Building. These wish notes, gathered by the ICTSI Foundation, were from the indigent and orphaned youth residing at Manila Boystown in Marikina City.

Mr. Consing’s enthusiastic response to the Christmas outreach was an inspiration for the Foundation staff as he not only chose one wish note, but five wish notes. 

“RJC’s response to our Christmas Wish Tree Project is significant to us because we have a key executive of the Company supporting our year-end outreach. Later on, RJC even volunteered in one of our gift giving activities,” says Filipina C. Laurena, Foundation Deputy Executive Director.

The Foundation was then developing the Employee Volunteerism Program with the Christmas Wish Tree Project as its testing ground. Ms. Laurena admits that Mr. Consing’s generosity, coupled with his modesty, sparked the Foundation to go full blast with the program.

“RJC has been asking us on many occasions on how he could help the Foundation and contribute to its projects. He shared that he would like to help those in need, as giving back was ‘good for the soul.’ At that time, no one knew that we were working on this program,” she adds.

“I emailed him our concept and he was ecstatic! He immediately signified interest to participate in almost all of the programs even before the Foundation officially launched it.  We are happy to find a champion in RJC, someone from top management who can help us entice and inspire employee volunteers locally, globally,” Ms. Laurena concludes.

Dr. Licup of the ICTSI Foundation interviews Mr. Consing on his thoughts on employee volunteerism. What are your thoughts on the Employee Volunteerism Program?

It’s an absolutely great program. I think it’s an excellent opportunity for us, the entire ICTSI team, to go beyond our objectives in the workplace and to pursue something bigger than ourselves. It’s a chance to be guided in our lives by altruism. Being guided by altruism gives one a deep sense of purpose

Rafael Joel D. Consing (RJC), ICTSI Senior Vice President and Chief Financial Officer.

and fulfilment, which in turn, leads to greater productivity as an employee. Do you believe that the program could be more beneficial to the employees rather than to the recipients? I think it can be beneficial in three ways.  It obviously benefits 

the recipients, as that is given, but both the giver, the recipient, and the Company are going to benefit significantly from it. How can you help encourage, if not all, at least most of the employees to really participate in the program?

I think that we have to have a kinder philosophy of success. It’s not all about making money, albeit that is critical in our business. It’s not all about what we achieve here within the confines of our workspace that’s important.  There are bigger things in life that will give us greater satisfaction. I strongly encourage the members of the ICTSI family to be led or to be guided by altruism in making their decisions in life. I think that it will lead to greater happiness for them. I assure the ICTSI Foundation that you can definitely count 

on me and my whole team for activities and undertakings by the Foundation. The team is very committed to the program, and that we all share the same philosophy.

I think that we as individuals have to have local commitment and a very global responsibility because this is where we live. We want to take care of ourselves, take care of other people, and at the same time take care of the planet. You’re actually contributing to the betterment of the world. We need to have a kinder philosophy of success and again, global responsibility. We have to, within our control, create a very caring economy. It’s not just about ourselves.

Once the Program is well-established here, we’re bringing the program to the subs. Hopefully, we can also encourage our overseas subs.

I am very excited to help in whatever way I can.

By Dr. Patricia M. Licup

In the February issue of PortFolio, we published the story Sharing holiday cheer with the children of Manila Boys Town which included the list of individuals who participated in the ICTSI Foundation’s Christmas gift-giving project for the Children of Manila Boys Town. We, the PortFolio and the ICTSI Foundation editorial teams, would like to extend our apologies to these kind-

Apologia

hearted people whose names were either misspelled or unintentionally left out of the list:

• Arlyn McDonald• Baby Magat• Bryan Peter Garcia• Buboy Frilles• Cate Fajardo• Jocelyn Gamosa• June Carlo Carasco

• Kathrina Pagtakhan• Leila Peralta• Maricel Laud• Maricon Guinto• Marie Jadloc • Melody Rebudiao• Rosana Miranda• Sandro Perez• Ton Van den Bosch• Winnie Agudo

Dr. Patricia Licup during the interview with Mr. Consing about employee volunteerism.

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ICTSI Foundation’s Yehlen de La Luna, Project Accountant, was one of the volunteers featured during the Go Volunteer Expo held last 5-6 March at the Glorietta Activity Center in Makati City.

Organized by iVolunteer Philippines, the expo aims to introduce participants to non-profit organizations which are involved in projects that improve the lives of marginalized Filipinos. The event hopes to spur the spirit of volunteerism among Filipinos.  Twenty-five organizations representing various causes and advocacies took part in the event.

Prior to her full-time engagement with the ICTSI Foundation, Ms. De La Luna has been an active volunteer for U Happy Events since 2014. U Happy Events organizes outreach activities and programs for marginalized children in Metro Manila. Yehlen Dela Luna, ICTSI Foundation Project Accountant

By Marie Bernadette De Guzman

The ICTSI Foundation recently donated an assortment of tools and equipment to Raja Soliman Science and Technology High School in support of the school’s technical-vocational curriculum.

Rajah Soliman Science and Technology High School Officer in Charge Julieta Fajardo welcomed the donation, saying it greatly improves the school’s Civil Technology, Carpentry and Woodworking programs. She underscored the importance of being able to apply the concepts learned in the classroom, adding that effective teaching and learning would be difficult to achieve if students don’t have access to the proper tools and equipment. She also gave assurance that all the equipment will be properly maintained to maximize use.

The equipment donation is part of the Foundation’s Technology and Livelihood Education (TLE) Assistance Program, which aims to assist public high schools in the implementation of the Department of Education’s K to 12 program.

Ms. Fajardo thanks the ICTSI Foundation during the turnover ceremony last 23 February.

Joy Lapuz (second from left), ICTSI Foundation Program Operations Manager

spearheads the ceremonial turnover of the tools and equipment to the Raja Soliman

Science and Technology High School.

ICTSI Foundation donates tools and equipment to Manila High School

ICTSI Foundation staff featured in volunteers expo

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InternationalContainer TerminalServices, Inc.

MARCH 2016

DO GOOD

Record turnout for Contecon Manzanillo charity run

Men, women and children from

different parts of Mexico participated

in the biggest charity race in Manzanillo.

Hundreds of individuals from different parts of Mexico heeded the call to help raise funds for the benefit of underprivileged children in need of eyeglasses by participating in the Contecon Manzanillo Run for a Cause last 28 February.

Organized by Contecon Manzanillo SA de C.V., the charity race drew more than a thousand participants and broke the attendance record for any similar event held in Manzanillo.

Fortino Landeros, CMSA General Manager, thanked sponsors and participants for supporting the cause and helping the underprivileged children of Manzanillo.

“In Contecon, we are motivated to be agents of change for a more prosperous and equitable community. Through our operations, we are strengthening Manzanillo’s position as the most important port in the country. What actually drives us every day is the opportunity to contribute to the sustainable development of the community, as well as the ability to promote not only the professional and personal growth of our employees, but also the quality of life of those in our host communities.”

Lorena Valero, ICTSI Americas Public Relations Director, said the event was held within the corporate social responsibility framework of International Container Terminal Services, Inc. (ICTSI). “With this first race, we looked for 

people, and the public and private sectors to unite in a cause that creates a positive impact on society. We want to promote the awareness that if we unite, we can help people who need help the most,” said Ms. Valero.

Ms. Valero looks forward to having the event held annually with the aim of raising funds to support different causes for the benefit of the people of Manzanillo. 

The charity run was organized in partnership with the Sport Institute of Colima, the Athletics Association of the State of Colima and the Municipal Institute of Sport. The event was also

backed by private organizations including the Regional Confederation of Mexican Workers, Integrace, Welldex, Electrolit, API Manzanillo, Woodward Group, Hano Paniagua, Association of Customs Agents-Port of Manzanillo, Kiosko, Honda, City Express, Transport Hazesa, Manzanillo Dreams, Vocablo, Dos8, and ISCE.

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TECH TALK

SMS notification feature added to MICT Track and Trace

Checking the status of container shipments at the Manila International Container Terminal (MICT) has become a lot easier with the addition of the SMS notification feature to the MICT Track and Trace. The new feature allows clients to receive automatic container status updates through their mobile devices.  In order to use this feature, the user must first register a mobile number (there is an option to register additional mobile numbers) in the Track and Trace system by following these steps:

2. Go to search and select your type of inquiry from the dropdown menu. Provide the necessary container reference numbers and tick “I accept the Terms and Conditions.”

3. At the container information page, key in the mobile number where the updates are to be sent and click the AUTO NOTIFICATION VIA SMS button. (Customers can also receive updates via email by entering their email addresses and clicking the AUTO NOTIFICATION VIA EMAIL button).

4. Once the page redirects to the registration page, provide the required information including the BL/Container Number and check “I accept the Terms and Conditions.” Click Ok.

5. A confirmation will pop up indicating the successful registration.  Container status updates will be sent to the registered number until the specified container leaves the terminal gates.

1. Using a web browser, go to www.mictweb.com and click MICT Track and Trace.

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InternationalContainer TerminalServices, Inc.

MARCH 2016

ICTSI holds 25th invitational golf tournament

International Container Terminal Services, Inc. hosted its 25th annual golf invitational tournament for clients and stakeholders last 1 February at the Sta. Elena Golf and Country Club in Sta. Rosa, Laguna.

More than 120 executives from shipping lines, banks, logistics companies and other stakeholders suited up for the event, making this year’s tournament the biggest in terms of participation.

This year’s circle of champions was headed by Enrique K. Razon Jr., ICTSI Chairman and President, who successfully defended his Class A crown. He is joined by the other class champions Therese Dabao of The Country Club, Class B; Gary Legarda of Development Bank of Singapore, Class C; and Leonardo Achacoso of Transwealth Parking Services, Inc., Class D. For the grand raffle prize, Norman Uy of 

RFM Corp. took home a brand new Mercedes Benz GLA 180. Celebrity host Issa Litton emceed the awarding ceremonies.

John Manansala of Asia Pacific Chartering

Tim Wickman (left) of MCC with Anders Dømmestrup of VICT

Jun Lacson of MOL, Jose Ramon Garcia and Rene Garcia of K Line

Socorro Niro of TDG with Daniel Ventanilla of NYK and Carmela Rodriguez of LGICT

Raffle winner Jun Onodera of K Line with Christian Gonzalez

Rolando Bautista Jr. Of Hongkong Shanghai Banking Corporation, winner of a Sony Playstation 4 unit Shuji Harada of NCT

Philippines wins an iPad Pro.

Enrique Razon Jr. with Class C 3rd runner up, Martin Garcia of Orient Freight International, Inc.

CLIENT GOODWILL

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Enrique K. Razon Jr., ICTSI Chairman and President,

hoists his trophy after successfully defending his title as the Class A Champion at the 25th ICTSI Golf Invitational.

Jay Valdez, MICT Operations Director

Wacky moment courtesy of Hector Miole of the Philippine Ports Authority and Ernest Villareal of Aboitiz Transport

Virgilio Angeles of COSCO Philippines wins a quadcopter in the raffle

Enrique Razon Jr. congratulates Class B 2nd runner up Jong Castaneda of NYK Auto Logistics.

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InternationalContainer TerminalServices, Inc.

MARCH 2016

PortFolio 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/

NARLENE A. SORIANOEDITOR-IN-CHIEF

JUPITER L. KALAMBAKALMANAGING EDITOR

DENNIS T. SURIBAJOYCE FRANZLY C. RACOMA

ASSOCIATE EDITORS

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

COLOMBIAJULIA DAZA

CROATIAIVA ROMAN

ECUADORKATTY OSSA BIANCHI

GEORGIAKETEVAN ORAGVELIDZE

BENJAMIN ROSARIO

IRAQSHEEBA KHAN

MADAGASCARMICHAEL RATRIMO

MEXICOLORENA VALERO

PAKISTANARIF RAZA

SYED IMRAN MOOSA

POLANDMICHAL KUZAJCZYK

USADAVID TRZYZEWSKI

PORTFOL IOMAKING THE LIST

PICT honored at 31st MAP Corporate Excellence Awards

By Arif Raza

The Management Association of Pakistan (MAP) has bestowed on Pakistan International Container Terminal, Ltd. (PICT) the Corporate Excellence Award for service sector during the 31st MAP Corporate Excellence Awards ceremony held recently in Karachi, Pakistan.

“This award is an expression of our commitment to best management and governance practices. Winning this award not only gives us pride but also strengthens our determination to continue responsible growth,” said Capt. Zafar Iqbal Awan, PICT CEO.

The MAP recognizes and honors companies that show outstanding performance and

Capt. Awan (far left) receives the Corporate Excellence Award on behalf of PICT.

ICTSI safety guide wins AnvilInternational Container Terminal Services, Inc. (ICTSI) won a Silver Anvil from the Public Relations Society of the Philippines (PRSP) for the publication, the MICT Terminal Safety Guide. PRSP cited the safety guide for “providing comprehensive user-friendly terminal safety guidelines ensuring awareness of and compliance with regulations and standards by internal and external users.” The guide is given to all visitors, contractors and truck operators transacting at ICTSI’s flagship operation, the Manila International Container Terminal (MICT). The MICT Terminal Safety Guide features an infographic on the 12 basic life-saving rules, emergency hotlines, emergency and safety guidelines, and an evacuation map for disasters. The guide is part of ICTSI’s commitment to uphold international safety standards as a global organization, and adherence to local safety regulations as a Philippine company. Photo shows ICTSI’s safety and public relations officers and staff, including publication consultants, during recent awarding ceremonies at the Shangri La Makati (from left): Henry Dy, safety inspector; Marie Annalie Marfil, assistant public relations manager; John Paolo Siat, public relations officer; Anthony Villanueva, creative consultant; Jocelyn Badoy, publication consultant; Joyce Racoma, public relations officer; Serge Hingzon, safety superintendent; and Dexter Landicho, public relations officer.  Organized annually by the PRSP, the Anvil Awards recognizes outstanding PR programs and tools.

demonstrate progress, as well as best management practices through its Corporate Excellence Award. MAP was formed in 1964 to meet the impending demand for managerial talent within the Pakistan, consequent to the rapid increase in industrialization.

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