August 2013

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

ICTSI Mexico services first vessel

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 R. GONO

ArgentinaBrazilChina

CroatiaEcuadorGeorgia

IndonesiaJapan

MexicoPakistan

PolandUSA

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

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Contents

54

6ICTSI 1H 2013 net income up 18% to US$82.9 million

812Spotlight

Do Good

AGCT handles first container at new yard

ICTSI Mexico services first vessel

5ICTSI hailed as one of Asia’s Icons on Corporate Governance

7SBITC’s 13th anniversary

8Tech Talk

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Ship Ahoy

Level Up

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ICTSI Newsbreak

Maersk Kalamata calls first at the SCT 2.

Contecon Manzanillo, S.A. (CMSA), operator of the Specialized Container Terminal 2 (SCT 2) in Manzanillo, Mexico, recently serviced its first vessel - the 5,500-TEU capacity Maersk Kalamata. CMSA registered a crane productivity rate of 46.1 moves per hour in servicing the Kalamata. The post-Panamax vessel will call weekly at the terminal, and run the route of Yokohama – Manzanillo – Lazaro Cardenas – Balboa – Buenaventura – San Antonio – San Vicente. The inaugural call also marks the return of Maersk to Manzanillo. The SCT 2 will be officially inaugurated later on in the year.

Photo shows two of CMSA’s four super post-Panamax quay cranes servicing Kalamata. These are the largest and fastest cranes operating in the ICTSI Group, having an outreach of 63 meters to service vessels having 23 wide containers on deck.

ICTSI Mexico services first vessel

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Adriatic Gate Container Terminal (AGCT) handled the first container at its new yard using one of its new rubber tired gantries (RTG) last 29 June. Recently, AGCT deployed two new post-Panamax quay cranes, six new RTGs and two new rail mounted gantries at the new facility. (Iva Roman)

Dragan Fumić and Alen Gršković (from left), AGCT Equipment Operators, undergo RTG training. A ZPMC trainer facilitated the training.

International Container Terminal Services, Inc. (ICTSI) was cited by CorporateGovernanceAsia as one of Asia’s Icons on Corporate Governance during the 9th Corporate Governance Asia Recognition Awards held at Marriott Hotel Manila last 25 June. CorporateGovernanceAsia also recognized Enrique K. Razon Jr., ICTSI Chairman and President, as one of the Asian Corporate Director Recognition Awardees for 2013. Receiving the award on behalf of ICTSI was Arthur Tabuena (left), ICTSI Treasury Director and Head of Investor Relations. Also in photo is Aldrin Monsod, New Initiative Media Limited Managing Director and Publisher. (Photo courtesy of CorporateGovernanceAsia)

AGCT handles first container at new yard

ICTSI hailed as one of Asia’s Icons on Corporate Governance

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ICTSI Newsbreak

Throughput grew 12% to 3 million TEUsRevenues increased 20% to US$413.7 millionEBITDA improved 26% to US$188.1 million

International Container Terminal Services, Inc. (ICTSI) reported unaudited consolidated financial results for the first six months of 2013, posting revenue from port operations of US$413.7 million, an increase of 20 percent over the US$345 million reported for the same period last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$188.1 million, 26 percent higher than the US$149.2 million generated in the first half of 2012; and net income attributable to equity holders of US$82.9 million, up 18 percent over the US$70.3 million earned in the same period last year.

The higher net income attributable to equity holders for the first semester was mainly due to strong revenue growth and margin improvement in certain key terminals, and the contribution of the new terminal in Karachi, Pakistan. Diluted earnings per share for the period was likewise higher by 14 percent at US$0.035, from

ICTSI 1H 2013 net income up 18% to US$0.031 in 2012.

For the quarter ending 30 June 2013, revenue from port operations increased 19 percent, from US$171.2 million to US$204.4 million while EBITDA was 25 percent higher at US$90.6 million, from US$72.4 million. Net income attributable to equity holders grew 21 percent, from US$34.9 million to US$42.2 million, and diluted earnings per share for the quarter improved 21 percent to US$0.018, from US$0.015 in 2012.

ICTSI handled consolidated volume of 3,027,005 twenty-foot equivalent units (TEUs) for the first six months of 2013, 12 percent more than the 2,697,735 TEUs handled in the same period in 2012. The increase in volume was mainly due to the continuous growth in international and domestic trade in most of the Company’s terminals and the volume generated by Pakistan International Container Terminal (PICT) and PT Olah Jasa Andal (PT OJA), the Company’s new container terminal in Karachi, Pakistan and Jakarta, Indonesia, respectively. Excluding the volume from the two recent port

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Officers and employees of Subic Bay International Terminal Corpo-ration (SBITC) recently celebrated the Company’s 13th anniversary. Reimond Silvestre, SBITC General Manager, led the celebration.

SBITC’s 13th anniversaryacquisitions and the effect of the cessation of the operations in Syria

effective January 2013, organic volume growth remained flat. The Company’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 79 percent of the Group’s consolidated volume in the first half of 2013. For the quarter ending 30 June, total consolidated throughput was 13 percent higher at 1,530,543 TEUs compared with 1,359,419 TEUs in 2012.

Gross revenues from port operations for the first six months of 2013 surged 20 percent to US$413.7 million, from the US$345 million reported in the same period in 2012. The increase in revenues was mainly due to higher storage revenues and ancillary services, favorable volume mix, tariff rate increases in certain key terminals, and the revenue contribution from the new terminals in Jakarta, Indonesia and Karachi, Pakistan. Excluding the revenues from the newly acquired terminals and the effect of the cessation of operations in Syria, organic revenue growth was eight percent. The Group’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 85 percent of the Group’s consolidated revenues in the first half of 2013. Gross revenues from port operations for the quarter ended 30 June surged 19 percent to US$204.4 million, from the US$171.2 million reported in the same period in 2012.

Consolidated cash operating expenses in the first half of 2013 grew 15 percent to US$171.9 million, from US$149 million in the same period in 2012. The increase was mainly driven by higher volume-related expenses (i.e., on-call labor, fuel, power and repairs and maintenance), government-mandated and contracted salary rate increases in certain terminals, higher business development expenses, and the inclusion of expenses of new terminals in Jakarta, Indonesia, and Karachi, Pakistan. Excluding the cash operating expenses of the new terminals as well as the expenses incurred in the Company’s operation in Syria in the same period in 2012, total cash operating expenses would have increased by only seven percent.

Consolidated EBITDA for the first half of 2013 increased 26 percent to US$188.1 million, from US$149.2 million in 2012 mainly due to the favorable container mix, stronger revenues from storage and ancillary services, tariff increases in certain key terminals and the contribution of the new terminals in Jakarta, Indonesia and Karachi, Pakistan. Excluding PICT and PT OJA as well as TICT in 2012, EBITDA growth would have been at 11 percent. Meanwhile, consolidated EBITDA margin increased to 45 percent in the first six months of 2013 compared to 43 percent in the same period in 2012.

Consolidated financing charges and other expenses for the first half of 2013 increased 53 percent to US$24.8 million from US$16.2 million in 2012 due to higher outstanding interest-bearing debt. ICTSI issued US$400 million of 10-year bonds in January 2013 mainly to fund its capital expenditure program for 2013, and to refinance medium-term loans.

Capital expenditures for the first half of 2013 amounted to US$280.1 million, approximately 51 percent of the US$550 million capital expenditure budget for the full year 2013. The established budget is mainly allocated for the completion of the Company’s terminal development projects in Mexico and Argentina, and the ramp-up of construction activities in Colombia and Davao, southern Philippines.

US$82.9 million

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Tech Talk

International Container Terminal Services, Inc.’s Information Technology Systems and Services (ITSS) Department recently deployed Microsoft System Center 2012 Endpoint Protection, an antivirus and antimalware application for Windows-based desktop computers, servers, laptops, and virtual machines.

Microsoft System Center 2012 Endpoint Protection allows for automating virus scans and updates on client computers. It provides real-time protection by scanning and monitoring files and program actions, and checking for patterns of suspicious activities on the system. It safeguards computers against the latest spywares, rootkits, and other network-based attacks. It employs a consolidated view of machine health and protection status, and alerts IT administrators whenever a potentially harmful program attempts to install itself on a computer. Items that are detected as potentially harmful can either be automatically quarantined or deleted.

It is built on Microsoft System Center 2012 Configuration

Manager, a management console that provides centralized settings administration, security policy creation, patch update, and assessment and inventory of computers across the Manila International Container Terminal network.

In addition, Microsoft Center 2012 Endpoint Protection enables scanning of archive files and removable drives, creation of system restore point, and removal of quarantined files after a certain period. It also offers Microsoft Active Protection Service for automatically sending information to Microsoft about found malware and other malicious programs. With this service, IT administrators can better respond to potential threats by informing Microsoft about the discovery, behavior, and attempts to eradicate the unwanted software.

The rollout of Microsoft Center 2012 Endpoint Protection is in line with ITSS’ vision of continually securing the Company’s computer system. Philip Gonzales, ITSS Security Administrator, spearheaded the project.

ITSS rolls out Microsoft System Center 2012 Endpoint ProtectionBy Albert Joseph Canceran

A screenshot of Microsoft System Center 2012 Endpoint Protection updating the latest virus and spyware definitions on a client computer

A screenshot of Microsoft System Center 2012 Configuration Manager showing the setting for automatic deployment of Microsoft System Center 2012 Endpoint Protection to all client computers

Do Good

South Cotabato Integrated Port Services, Inc. (SCIPSI) participated in the mangrove planting activity of the City Environment and Natural Resources Office (CENRO) at Menanga, Buayan in the Philippines last 22 June. SCIPSI plans to hold the activity quarterly starting this year. (Rejamna Pandangan)

SCIPSI’s mangrove planting activity

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Do Good

Employees of Contecon Manzanillo, S.A, (CMSA) and their respective families recently took part in Comisión Nacional Forestal’s (National Forestry Commission) reforestation campaign in Nahual Mountain located just outside Coquimatlan City in Colima, Mexico last 28 July. All 48 of them successfully planted 250 trees. Before going to the tree planting site, they converged at 8 a.m. outside Torre Puerto (Port Tower), their Administration Building. CMSA is a green company, and is committed to environmental conservation. (Pamela de la Vega)

CMSA volunteers plant trees

Claudio Mustico (standing), CMSA IT and Services Director, and his family work hand in hand to plant a tree.

Children of CMSA employees also showed their love for the environment.

ICTSI Foundation, Inc. (ICTSI-FI) recently supported the Little League Philippines-Manila’s (LLP-M) title-retention bid in the 2013 Big League Softball World Series held last 2 to 10 August in Sussex, Delaware in the United States. Previously, LLP-M won the nationwide softball competition for the right to represent the Philippines in the Asia Pacific Regional Meet last July in Clark Parade Ground in Pampanga, Philippines. During the regional competition, LLP-M also won, which made them the official

representative not only of the Philippines, but of the Asia Pacific Region in the 2013 World Series. Photo shows Filipina Laurena (sixth from left), ICTSI-FI Deputy Executive Director; Narlene Soriano (seventh from left), ICTSI-FI Executive Director; Engr. Rafael Borromeo (eighth from left), LLP-M President; and Arsenio Lacson Jr. (ninth from left), LLP-M Marketing Director,

signing the Memorandum of Agreement. Also in photo are the LLP-M players. (Jes Vinson)

ICTSI-FI supports Little League Philippines-Manila

ICTSI Foundation, Inc. held a medical and dental mission in Baranggay (Village) New Kalalake, Olongapo City last 26 July at Baranggay New Kalalake Covered Court. A total of 105 dental patients and 267 medical patients availed of the free services. Subic Bay International Terminal Corporation, Olongapo City Dental Chapter, and an Olongapo LGU supported the mission, which was called Gamutan sa Pantalan (Healing at the Port). (Marie de Guzman)

ICTSI-FI provides medical and dental assistance to Olongapo residents

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Do Good

ICTSI Foundation, Inc. (ICTSI-FI), through its My Reading Nook project, beefed up the libraries of Tapinac and Asinan Elementary Schools in Olongapo City in Zambales, Philippines through the provision of close to 2,000 storybooks and reference materials. This project will benefit about 1,800 elementary students. The project’s objective is to assist schools in enhancing their students’ good reading habits and reading comprehension, which will improve their academic performance. Filipina Laurena, ICTSI-FI Deputy Executive Director, led the ceremonial turnover held last 25 July at the respective schools. Photo shows (from left): Marlon Austria, PTA President; Roland Fronda, DepED Olongapo Education Program Supervisor; Ms. Laurena; Mariane Fronda, Tapinac Central Elementary School Principal II; Brenda Golocino, Reading Coordinator; Marie Bernadette de Guzman, ICTSI-FI Project Officer; and Hon. Remigio Buenafe, East Tapinac Baranggay (Village) Chairman, at the ceremonial turnover of My Reading Nook at Tapinac Central Elementary School. (Marie de Guzman)

ICTSI-FI supports DepEd’s “Read-a-thon” program in Olongapo public schools

At the ceremonial turnover of My Reading Nook at Asinan Elementary School (from left): Ms. Laurena; Hon. Conrado Viray Jr., New Asinan Baranggay Chairman; and Josefina Macapagal, Asinan Elementary School Principal II

ICTSI Foundation, Inc. (ICTSI-FI) held a kick-off meeting last 30 July with 62 Parola residents for the implementation of its solid waste management project in Baranggays (Village) 20 and 275, Tondo, Manila, which has an estimated population of more than 100,000 informal settlers. These are the two baranggays adjacent to the Manila International Container Terminal South Access Road in the Port of Manila.

By Ian Carlo Meimban

ICTSI-FI mobilizes Parola residents for its solid waste management project

Parola Eco Patrols and ICTSI Foundation, Inc. staff (ICTSI-FI) assemble at the kick-off meeting.

Filipina Laurena, ICTSI-FI Deputy Executive Director, facilitates the kick-off meeting.

Filipina Laurena, ICTSI-FI Deputy Executive Director, provided an overview of the program, and discussed details on the participation of the project stakeholders like ICTSI-FI, Philippine Department of Environment and Natural Resources (DENR), Philippine Department of Social Welfare and Development (DSWD), officials of Baranggays 20 and 275, City Government of Manila, Philippine Business for Social Progress (PBSP) and the residents of Parola.

Capping off the event was the Parola residents’ signing of the Statement of Participation and Cooperation in the project. The project stakeholders then named the volunteers Parola Eco Patrols.

This collaborative effort aims to initiate a regular system and schedule of garbage collection; to raise consciousness and trigger behavior change among Parola residents on the proper way of disposing and segregating garbage; and to provide technologies on how garbage could become a source of livelihood.

The active participation of the Parola Eco Patrols is vital in the success of the program. They underwent a selection process from the baranggays and DSWD-NCR and a seminar on leadership and solid waste management from DENR’s National Solid Waste Management Commission. They will be part of the project implementing team who will help disseminate information on proper solid waste management as well as encouraging the Parola residents to comply with guidelines on wastes segregation, schedule on disposal and collection of solid wastes, etc.

Through this project, ICTSI-FI aims to empower the residents to create a healthier and cleaner environment for themselves, with livelihood projects on the side. The resulting community organization will also be the springboard for other related projects and for these host communities to generate better growth opportunities.

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Ship Ahoy

Pakistan International Container Terminal Ltd. (PICT) recently hosted dinner for shipping agents / officers of NYK Pakistan and Express Feeder Pakistan to formally inaugurate Hercules service. The service’s vessel, Callao Bridge, made its maiden voyage 101E carrying 1,140 twenty-foot equivalent units. Callao Bridge calls weekly at PICT. Hercules service of NYK encompasses east-bound sea routes from Karachi, Nhava Sheva, Colombo, Singapore to Laem Chabang. With the addition of the new service, shipping lines would attain additional niches for Karachi to Singapore routes, and also provide a more competitive and commercial advantage to PICT. Photos shows Capt. Tariq Masud (far left), NYK Pakistan (Pvt.) Ltd. Chief Executive Officer, receiving a plaque from Capt. Zafar Iqbal Awan (third from left), PICT Chief Executive Officer. Also in photo are Romeo Salvador (second from left), International Container Terminal Services, Inc. Country Representative; and Sohail Muhammadi, NYK Pakistan Finance Manager. (Mohammad Atiq)

PICT inaugurates Hercules service

Capt. Atiq Siddiqui (far left), Xpress Feeder Pakistan (Pvt.) Ltd. General

Manager, receives a plaque from Captain Awan (third from left). Also in photo are

Mr. Salvador (second from left), and Jaffer Younus Goplani, Xpress Feeder Manager.

Callao Bridge Vessel Master (third from left) receives a plaque from Captain Awan. Also in photo are (from left) S.M. Imran Moosa, PICT Marketing and Commercial Manager; Arshad Hamid, NYK Pakistan Deputy General Manager; and Capt. Tariq Masud.

Honorable Domingo Lucenario Jr. (far left), Philippine Ambassador to Pakistan, receives a memento from Captain Awan (second from left). Also in photo are Mr. Salvador (third from left) and Honorable Conrado Demdem Jr., Deputy Chief of Mission.

At the inauguration of Hercules service (from left): Mohammad Atiq, PICT

Corporate and Human Resources Manager; Mr. Salvador; Captain Awan;

Consul Demdem Jr.; Waqar Ali Khan, PICT Customer Services Manager; and

S.M. Imran Moosa

Captain Awan (sixth from left) with PICT officers

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Ship Ahoy

Spotlight

Level Up

MICTVessel: Los Angeles. Line: APL. Capacity: 4,250 TEUs. Date: 27 July. Photo (from left): Jojo Valencia, APL Agent; Capt. Petro Gusyev, Vessel Master; Sergery Bulanov, Chief Officer; and Wilfredo Baliwag Sr., International Container Terminal Services, Inc. Operations Superintendent. (Arvin Abuan)

Gabriel Munasque, South Cotabato Integrated Port Services, Inc. (SCIPSI) General Manager, was one of the resource speakers at the 4th People Management Association of the Philippines Regional Congress held last 25 April at Phela Grande Convention in General Santos City in The Philippines. Mr. Munasque’s topic was Valuing People in the Organization. He also discussed SCIPSI’s best people practices, which the Company derived from the Investors in People framework. About 150 human resource practitioners attended the congress. (Rejamna Pandangan)

SCIPSI at the 4th PMAP Regional Congress

Training: Port Safety and Health Standards seminar. Attendees: International Container Terminal Services, Inc. (ICTSI) Operations staff. Trainers: Bong Evangelista, Serg’s Hingzon and Paulo Penalba. Date: 4 July. Venue: ICTSI Safety Training Room (Mavic Lopez)

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