The Official Publication of International Container Terminal Services, Inc.

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CGSA gets Green Point certification

ICTSI Global OperationsDirectory

Staff Box PortFolio is published by International Container Terminal Services, Inc. for its employees.

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

Manila

Davao CityGen. Santos City

Misamis Oriental

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

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 4101

E-mail: jcostiniano@ictsi.com • URL: www.ictsi.com/media-center/newsletters/

2 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 .

Contents

54

6ICTSI 2013 net income up 20% to US$172.4 M

810Meets and Greets

Do Good

CGSA gets Green Point certification

ICTSI stresses need for true understanding of trade

6ICTSI and Bloomberry support rehabilitation of Tacloban

8BICTL joins Adjara Region Mini Football Tournament

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Spotlight

People

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ICTSI Newsbreak

CGSA gets Green Point certificationLorena Tapia, Ecuadorian Environment Minister, presented to Contecon Guayaquil SA (CGSA) the Green Point certification during her visit to the Guayaquil Container and Multi-purpose Terminals (GCMT) last 6 February. After a series of evaluation, CGSA obtained the certification primarily due to the electrification of its rubber tired gantries, thereby allowing the Company to save on diesel consumption and filter and lubricant use. The Ecuadorian government, through its Ministry of Environment, grants Green Point certifications to companies that implement measures to protect and conserve the environment. Photo shows José Miguel Muñoz (left), CGSA Chief Executive Officer, receiving the certificate from Minister Tapia. (Katty Ossa Bianchi)

At the GCMT (from left): Gustavo Cercós CGSA Engineering Director; John Villamil, CGSA Safety Chief; José Guarderas; Jaime Guazhco, CGSA Maintenance Manager; Minister Tapia; Mr. Muñoz; Eduardo Arosemena, CGSA Chief Financial Officer; Maritza Arza, CGSA Human Resources Manager; and Edyson Guillermo, CGSA Maintenance Officer

4 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 .

International Container Terminal Services, Inc. (ICTSI) recently belied reports of congestion in the Port of Manila, even as it cautioned lawmakers and the general public in issuing broad statements without really understanding the trade and logistics situation.

Reacting to Rep. Raneo Abu of the second District of Batangas’ statement on congestion in the Port of Manila, Christian R. Gonzalez, ICTSI Head of the Asian Region, pointed out that the Port of Manila is the 25th largest non-transshipment port in the world, and the 37th largest container port overall in terms of capacity and volume handled.

Mr. Gonzalez explains: “There are thousands of container ports around the globe. The Port handles more containerized cargo than any single port in 10 of the 20 member states of the G20 largest economies in the world. Specifically, the Port also handles more containers than any container port in Australia, France, Italy, Brazil, Canada or Russia.”

He goes on to add that the whole Port of Manila handles about 3.8 million twenty-foot equivalent units (TEU). Batangas, on the other hand, has a theoretical maximum capacity of no more than 300,000 TEUs today.

“People need to be more responsible with their use of statistics,” says Mr. Gonzalez. Manila has 24 ship-to-shore cranes and more than 70 yard gantry cranes, whereas Batangas has 2 and 4, respectively.

Mr. Gonzalez further explains that the market is made up, first, of approximately 1.4 million TEUs of imports, a majority of which are consumption goods utilized in and around the capital. Second, about 500,000 TEUs are exports, a good majority of which are spread across Calabarzon, but with most actually coming from Cavite on the Manila Bay side, areas inaccessible today by road from the Port of Batangas. Approximately 900,000 TEUs are empty containers, a result of the trade imbalance, and from which majority of truck movements are created because of multiple handling. The remaining 900,000 plus TEUs are containers used for domestic movements around the archipelago.

Laments lack of infrastructure that leads to road congestion

ICTSI stresses need for true understanding of trade

“I am extremely surprised about the irresponsible use of the statistic of 66 percent of trade being bound to and coming from Calabarzon,” he says.

Mr. Gonzalez further stresses that there has been strong and robust investment in port infrastructure everywhere in Luzon, investments that create substantial economic capacity and which have been privately undertaken.

He laments: “What is lacking, and what has been lacking for the last few decades, is road infrastructure. Congestion on land is largely a result of the lack of road infrastructure to match the growth of the economy. The low utilization of outports is likewise driven by poor road infrastructure. No shipping line or customer of a shipping line will want to use Batangas or Subic if it cannot get the majority of imports destined into the capital through the roads.”

Last but not least, on the current truck ban issue, Mr. Gonzalez emphasizes that truck movements represent trade: “Trade represents growth. Growth represents jobs and prosperity. Closing the roads to trade slows down growth, jobs and prosperity. It’s that simple.”

“Those are the facts, and those are the statistics, and people need to start understanding them in order to develop proper and sustainable strategies to keep trade moving and our economy growing” concludes Mr. Gonzalez.

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ICTSI Newsbreak

International Container Terminal Services, Inc. (ICTSI) and Bloomberry Resorts Corp. (BRC) have pledged to shepherd the rehabilitation of Zone 1 of Tacloban City in the Philippines. ICTSI and BRC will be working closely with the Presidential Assistant for Recovery and Rehabilitation and other government agencies and private entities for this project. Part of this project is the relocation and rehabilitation of the Eastern Visayas Regional Medical Center. ICTSI and BRC will shepherd the relocation and rebuilding of the hospital’s main building. Groundbreaking ceremonies were held last 25 February as part of the Philippines’ celebration of the EDSA People Power anniversary. Photo shows the groundbreaking rites with (from left) Enrique Ona, Department of Health (DOH) Secretary; Dir. Cirilo Galindez, Eastern Visayas Medical Center OIC-Chief; Dir. Jose Lacuna, DOH Regional Director; Benigno Aquino III, Philippine President; Enrique K. Razon Jr., ICTSI and BRC Chairman; and Alfred Romualdez, Tacloban City Mayor.

ICTSI and Bloomberry support rehabilitation of Tacloban

ICTSI 2013 net income up 20% to US$172.4 M

Volume up 12% to 6.3 M TEUs, revenues up 17% to US$852.4 M,

EBITDA improves 23% to US$377.3 M

6 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 .

International Container Terminal Services, Inc. (ICTSI) reported audited consolidated financial results for the year ended 31 December 2013, posting revenue from port operations of US$852.4 million, an increase of 17 percent over the US$729.3 million reported for the same period the previous year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$377.3 million, 23 percent higher than the US$307.6 million generated last year; and net income attributable to equity holders of the parent of US$172.4 million, up 20 percent compared to the US$143.2 million earned in 2012.

The higher net income attributable to equity holders of the parent in 2013 was mainly due to strong revenue growth and marginal improvement in certain key terminals and contribution from the new terminal in Karachi, Pakistan. Diluted earnings per share for the period was likewise higher by 22 percent at US$0.071, from US$0.058 in 2012.

ICTSI handled consolidated volume of 6,309,840 twenty-foot equivalent units (TEUs) for the year ended 31 December 2013, 12 percent more than the 5,628,021 TEUs handled 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; new shipping lines and routes; full year contribution of new terminals, PT Olah Jasa Andal (PT OJA) and Pakistan International Container Terminal (PICT), which were consolidated in August 2012 and October 2012, respectively; and the start of commercial operations of new terminals, Contecon Manzanillo S.A. de C.V. (CMSA) and Operadora de Puerto Cortés, S.A. de C.V. (OPC), beginning November 2013 and December 2013, respectively. Excluding the volume contribution from the four new terminals and the effect of the cessation of operations in Syria effective January 2013, organic volume growth increased by two percent. The Company’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 78 percent of the Group’s consolidated volume in 2013.

Gross revenues from port operations in 2013 surged 17 percent to US$852.4 million, from the US$729.3 million reported in 2012. The increase in revenues was mainly due to volume growth, higher storage revenues and ancillary services, tariff rate increases in certain key terminals, full year contribution of terminal operations in Karachi, Pakistan and Jakarta, Indonesia, and the inclusion of new terminals in Manzanillo, Mexico and Puerto Cortes, Honduras. Excluding revenues from the newly acquired terminals and the effect of the cessation of operations in Tartous, Syria, organic revenue growth was seven percent. The Group’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 84 percent of the

Group’s consolidated revenues in 2013. Consolidated cash operating expenses in 2013 grew 13

percent to US$359.5 million, from US$318.9 million in 2012. The increase was 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 as the Company pursued a number of opportunities within the year, full-year impact of the expenses of PICT and PT OJA, and the inclusion of the expenses of new terminals, CMSA and OPC. 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 three percent.

Consolidated EBITDA for 2013 increased 23 percent to US$377.3 million from US$307.6 million in 2012 mainly due to volume growth and stronger revenues arising from favorable volume mix, higher revenues from storage and ancillary services, tariff increases in certain key terminals, and full year contribution from the Company’s operation in Karachi, Pakistan. Excluding the impact of the four new terminals in Pakistan, Indonesia, Mexico and Honduras, as well as the effect of the cessation of operations in Tartous, Syria in 2012, organic EBITDA growth is 12 percent. Meanwhile, consolidated EBITDA margin increased by 44 percent in 2013 compared to 42 percent in 2012.

Consolidated financing charges and other expenses for 2013 increased 38 percent to US$48.2 million, from US$35.0 million in 2012 due mainly 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. Subsidiaries in Ecuador, Poland and Croatia availed of term loans locally.

ICTSI’s capital expenditure in 2013 amounted to US$477.6 million against a full year capital expenditure budget of US$550.0 million. Last year’s capital expenditure was mainly attributed to the development of new container terminals in Mexico, Argentina and Colombia; capacity expansion in Croatia; and the Company’s newly acquired terminal in Honduras. The Group’s capital expenditure budget for 2014 is approximately US$310.0 million mainly allocated for the completion of phase one development in the Company’s new container terminals in Mexico and Argentina, and to start the development of the terminals in Honduras and Democratic Republic of the Congo. This does not include the Company’s share in the joint venture project with PSA International Pte Ltd. (PSA) for the development of the container terminal in Buenaventura, Colombia which, for 2014, is approximately US$120.0 million.

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ICTSI Newsbreak

Do Good

BICTL joins Adjara Region Mini Football TournamentBatumi International Container Terminal LLC (BICTL) recently joined a regional mini football tournament hosted by the Adjara local government in Georgia. Seven companies from Batumi joined the tournament, which started last 1 February. During BICTL’s first game, the 10-member team won with a score of six goals against Europabet’s four goals. BICTL personnel led by Awi Garcia, Managing Director, watched the game to cheer for the team and provide morale support. Photo shows some of the members of Team BICT. (Benjie Rosario)

BICTL officers and employees led by Mr. Garcia cheer for their team.

ICTSI-FI cited for its solid waste management effortsThe Philippine National Solid Waste Management Commission recently recognized the efforts of ICTSI Foundation, Inc. (ICTSI-FI) to address the garbage problem at Parola, Manila through the Parola Solid Waste Management Project (PSWMP).

The commission presented a certificate of appreciation to ICTSI-FI because of its leading role in the implementation of Republic Act (RA) 9003 (The Ecological Solid Waste Management Act of 2000) during celebrations held marking RA 9003’s 13th anniversary at the Department of Environment and Natural Resources Central Office in Quezon City, Philippines.

ICTSI-FI attributes the success of the less-than-a-year-old project to multi-stakeholder engagement, awareness campaigns through posters and seminars, deployment of the Parola eco-patrols, and regular garbage collection in partnership with the City of Manila’s Department of Public Services.

In 2014, ICTSI-FI will intensify its information and education communication activities, and will also embark on cleaning the coastal areas in Parola. During the event, Cora Jimenez, Metro Manila Development Authority General Manager, assured ICTSI-FI of their support on the coastal clean-up initiative.

Last year, ICTSI-FI entered into a partnership with the commission for the implementation of the PSWMP.

Filipina Laurena (second from left), ICTSI Foundation, Inc. Deputy Executive Director, receives a certificate of appreciation from (from left): Engr. Eligio Ildefonso, National Solid Waste Management Commission (NSWMC) OIC-Executive Director; Cora Jimenez, Metro Manila Development Authority General Manager; and Crispian Lao, NSWMC Commissioner.

By Joy Lapuz

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Do Good

ICTSI Foundation, Inc. (ICTSI-FI) recently distributed in-kind donations from employees and clients of International Container Terminal Services, Inc. to 410 families affected by typhoon Haiyan in Roxas City, Capiz in the Philippines. The recipients of the donations consisting of brand-new and used clothes, towels and toiletries were verified by the City Social Welfare and Development Office. Photo shows Yehlen dela Luna (far left), ICTSI-FI Accountant, handing out packed items to the residents of Roxas City. (Jes Vinson)

Donations from ICTSI employees and clients benefit families in Roxas City

ICTSI Foundation, Inc. (ICTSI-FI), in partnership with the Philippine Department of Environment and Natural Resources-Environment Management Bureau, recently held a two-day team building workshop for partner councils of Baranggay (Village) 20-Parola, Tondo and Baranggay 275-Parola, Binondo last 19 to 20 February at Cloud 9 Resort and Hotel in Antipolo City, Philippines. Sixteen participants attended the activity, which aims to promote team spirit within each and between the two councils as they move forward with the implementation of the Parola Solid Waste Management Project. (Marie de Guzman)

ICTSI-FI project stakeholders attend team building

The attendees actively participate in team building activities.

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Spotlight

Meets and Greets

MICTSL joins 8th Indian Ocean Ports and LogisticsMadagascar International Container Terminal Services Ltd. (MICTSL) took part in the eighth edition of the Indian Ocean Ports and Logistics exhibition and conference held last 23 to 24 January in Mauritius. MICTSL’s exhibit was beside the Toamasina Port Authority booth. The two entities showed the on-going port developments in Toamasina, Madagascar consisting of doubling the terminal capacity to reach 400,000 twenty-foot equivalent units upon completion of the first phase this first semester. Development of ports and infrastructure in the region was one of the main topics of the conference. One of the conference speakers, Tim Vancampen, MICTSL Chief Executive Officer, made a presentation on how to manage increasing containerized traffic by increasing port efficiency and capacity. Mr. Vancampen said that operational efficiency is a key element affecting port capacity rather than focusing exclusively on heavy investments in infrastructure. The case of the Madagascar International Container Terminal managed by International Container Terminal Services, Inc. (ICTSI) through its local subsidiary, MICTSL, was mentioned as the perfect example. He added that fast-growing container volume versus tight space and limited infrastructure could be managed by improving berth productivity and reducing container dwell time. With the port authority, MICTSL is

continuing to prepare the next phase of the port expansion to cope with expected traffic growth. MICTSL plans to extend the current berth by 320 meters by 2018. Photo shows Mr. Vancampen (third from left); and Jens Floe (far right), ICTSI Senior Vice President and Head of Africa Region, exchanging views and opinions with two delegates. (Michael Ratrimo)

Officers of Chiquita Brands led by Edward Lonergan, President and Chief Executive Officer, visited Contecon Guayaquil SA (CGSA) to witness how the latter efficiently operates the Guayaquil Container and Multi-purpose Terminals, especially in banana modality. Photo shows officers and executives of CGSA and Chiquita Brands headed by José Miguel Muñoz (fifth from left), Chief Executive Officer; and Mr. Lonergan (sixth from left), respectively. (Katty Ossa Bianchi)

Chiquita Brands officers visit CGSA

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Meets and Greets

Executives of Naha Port Authority from Japan toured the Manila International Container Terminal (MICT) and New Container Terminal-1 in Subic, Zambales, Philippines last 3 to 4 March. Photo shows (from left): Ryuichi Kuwajima , JICA Expert for the Department of Transportation and Communications Manila Office; Makoto Nakamoto and Katsuichi Yabunaka, Naha Port Authority Executives; Yoshihisa Fujita, Naha Port Authority Executive Vice President; Edgardo Abesamis, International Container Terminal Services, Inc. (ICTSI) Consultant and NICT President; Taketoshi Toyama, Naha International Container Terminal Services, Inc. Administration Supervisor; and Jay Valdez, ICTSI Operations Manager, at the MICT Operations Center. (Dexter Landicho)

Naha Port Authority tours the MICT and NCT-1

Hiroshima Industrial Promotion Organization headed by Masaaki Kawakita, Managing Director, visited the Manila International Container Terminal last 20 January. (Zinno Gudez)

Hiroshima Industrial Promotion Organization visits MICT

Officers of MOL Philippines Inc. toured the Manila International Container Terminal with the assistance of Billy Gutierrez, International Container Terminal Services, Inc. Customer Relations Manager. (Zinno Gudez)

MOL officers at the MICT

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People

Mga KaarawanTinipon ni Rose A. Lobrin

Abril1 Shajee Auman Herman Jardinico Malou Matabang Federico Tenoria2 Manuel Belano3 Ricardo Magbanua Jonathan Solidum4 Adorme Cabeje Alfredo Carillo Arlene Laquian Severino Monesit Jr.5 Gerard Anthony Baduya Buboy Frilles6 Joselito Agarado Niño Cacapit Timoteo Dangate Sixto Librao7 Nathaniel Atienza Renato Balza Ezekiel De Guzman Teodoro Gayondato Joseph Remedios8 Arnel Adato Rhea Morris Galura Ging Macaraeg Venchito Salaga

9 Raymond Calaguing Garry Francisco Noel Monzon Brummel Quizon Howard Rances10 Godofredo Castillo Jr. Antero Edquid Florani Pacheco11 Rod Bayran 12 Noel Lagang Janice Macalalad Dianito Sepra13 Chris Gonzalez Aris Palayad Remigio Rubia Reydel Salazar Ruben Taratara 14 Reymundo Mamaril Jr. Levi Relloto Pio Rodulfo Romeo John Sinocruz Rolando Somera Jr. Randy Subion15 Felix Corpus II Jay Martinada Michael Pimentel

16 Ernesto Cacho Jr. Alberto Chenilla Ramil Dela Cruz Angelito Dionisio Ronaldo Paner17 Villeurbanne Ave Joey Basallo Nestor Soliva18 Pete Fresco Aniceto Soliva Leonardo Tapong Raul Emmanuel Valdez19 Randy Arizala Salvador Bautista Rodrigo Caber Em De Leon George Pimentel Henry Rayon20 Mark Fallorina Servillano Mico Victor Paslon Feliciano Ramoy John Resfel Sarmiento21 Kathrina Pagtakhan22 Nicolas Aguilon Raymond Everett

Movements(February 2014)

New HiresSandy A. Alipio Vice President, Audit and Compliance Darius V. Fernando Executive Driver, Global Corporate HRJoemar B. Valentin PM Operator on call, Operations-CY / MarineRoger B. Duallo Jr. PM Operator on call, Operations-CY / MarineAldrin D. Bermejo PM Operator on call, Operations-CY / MarineMark Anthony G. Asis PM Operator on call, Operations-CY / Marine

Retirements / ResignationsSusan S. Domingo Vice President, Audit and ComplianceMa. Estella O. Abad Santos Manager, Business Development-AsiaNelson P. Abarquez Checker, Operations-CFSCorleone O. Palattao Vessel Billing Staff, Vessel Billing

23 Effril Amada Jeshier Tim Dangate Barbara Joyce De Guzman Eduardo Magpusao Raymundo Magtoto In Mora-Suarez Roger Moreno Rodolfo Paña Jr. George Quiminales Arturo Reyes Sr. Rodel Robeso24 Alexander Baylon Roger William Gregory Yee25 Dolores Galano Patrick Oconer26 Jonathan Manzo27 Louie Cabaguing Jonathan Garcia Vincent Lasaga Edwin Conrad Oca Jr. Tony Ramos28 Dory Camit Darius Fernando Matias Pelarija29 Ernesto Mediana Michael Novales30 Romulo Dacallos Oscar Mendoza

Kimberly Lopez, daughter of Marivic Lopez, International Container Terminal Services, Inc. Safety Clerk, recently joined Jaime Cardinal Sin Training Center’s JS Prom. Kimberly is currently a third year high school student.

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