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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

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Correspondents

philippines International

Manila

Davao CityGen. Santos City

Misamis Oriental

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ArgentinaBrazilChina

CroatiaEcuadorGeorgia

IndonesiaJapan

MadagascarMexicoPoland

USA

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46A Message

from the Chairman

7SCIPSI’s IMS recommended for re-certification

8912

Do Good

Level Up

ICTSI Ltd. names VP for Global Infrastructure

ICTSI launches Mindanao’s largest container terminal

5Tagum: Palm Tree City of the Philippines

77SCIPSI receives IiP Bronze accreditation

7CMSA introduces SCT-II to Mexican brokers

8Gearing Up

11Spotlight

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2 3T 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 . 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 .

ICTSI Newsbreak

capable of servicing five to seven vessels at one time.

Development plans include terminal automation and the rollout of leading edge port technology used in major global trade gateways. On full development, the HIP will be equipped with 12 Panamax quay cranes and 36 rubber tired gantries–the largest container handling equipment fleet in Mindanao.

Currently, the HIP is a reclaimed, brownfield development of over 10 hectares. It has two berths, 127 meters long and 150 meters long; two cargo sheds located in the wharf area; and various terminal support facilities. It handles approximately 300,000 metric tons of mostly banana volumes annually.

Mindanao is the Philippines’ “fruit basket” where the country’s major fruit exports are produced. The export of bananas makes the country the world’s third largest banana exporter, and the largest in Asia. The HIP will address the growing fruit trade in the Davao region and the high demand to transport delicate fruit produce through refrigerated containers.

The HIP will also serve the estate’s agro-industrial locators, such as enterprises involving food manufacturing and processing, and its support industries like warehousing and packaging.

The port’s strengths lies in its proximity to major Asian markets; proximity to large fruit plantations; land accessibility via arterial routes such as the Davao–Butuan Highway, Tagum–Mati Highway, Tagum–Maco Highway and Bukidnon–Talaingod Road.

As with all of ICTSI’s ports, the HIP will be operated at internationally accepted standards for port operation. With backing from ICTSI, HIPS has easy access to professional port management and expertise, development resources and funding, and training and advancement for the workforce.

Including the HIP, ICTSI is now involved in 28 ports in 19 countries. The HIP is ICTSI’s seventh terminal in the Philippines.

ICTSI’s partner, HRC, is a diversified group involved in leisure and tourism, agribusiness, property development and port operations. Established in 1959, the company is a pioneer in the cultivation and exportation of Cavendish bananas to Japan.

HRC’s flagship project, the Hijo Estates, is a 770-hectare planned township composed of a well-integrated modern port and an agro-industrial estate, which includes residential, commercial and leisure areas.

Ms. Tuason-Fores speaks before the conference delegates in Davao City.

ICTSI launches Mindanao’s largest container terminalInternational Container Terminal Services, Inc. (ICTSI) recently launched the re-development of Hijo International Port (HIP) in the Davao Gulf into the largest container terminal in Mindanao in southern Philippines.

ICTSI and partner, Hijo Resources Corp. (HRC), launched HIP’s development plans during the Davao City Chamber of Commerce and Industry’s Second Davao Investment Conference and Exhibit last November at the SMX Convention Center in Lanang, Davao City.

“I proudly announce that you will see more of the color orange in the heart of Davao Gulf, as ICTSI and Hijo Resources come together to offer Hijo International Port, a massive commitment to the continued development of a peaceful and progressive Mindanao,” said Rosanna Tuason-Fores, President and Chief Executive Officer of Hijo Estate Resorts.

“With ICTSI, we are confident that the Mindanao businessman can now more efficiently tap a global market. We are confident that the small farmer will be able to get higher margins for his fresh produce. We will bring costs lower for corporate buyers as we bring the benefits of modern logistics to the local farmers and global consumers,” she added.

In mid-November, ICTSI acquired the 65 percent controlling stake in Hijo International Port Services, Inc. (HIPS), owner and developer of the HIP, a private commercial port located within the Hijo Estates, a special economic zone owned by HRC in Tagum City, Davao del Norte. HIPS is a joint venture company of ICTSI and HRC.

“ICTSI is raising the bar in port operations in the Davao Gulf with HIPS. We are ready to transform the HIP into southern Philippines’ premier international trade gateway,” said Jose Manuel de Jesus, ICTSI Vice President for Business Development–Asia.

“This comes at an opportune time when Mindanao’s international trade is growing at an unprecedented pace, and the need to transport the region’s imports and exports quickly and safely is of prime necessity,” he added.

At full development, the port will have an area of over 50 hectares and an annual capacity of about two million TEUs. Its 12-meter draft berth will be among the longest in the Philippines at 1,200 meters,

An artist’s perspective of a re-developed Hijo International Port

At the Second Davao Investment Conference and Exhibit (from left): Rosanna Tuason-Fores, Hijo Estate Resorts President and Chief Executive Officer; and Jose Manuel de Jesus, International Container Terminal Services, Inc. Vice President for Business Development-Asia and Hijo International Port Services, Inc. President

Tagum City is a first class city of the first congressional district of the province of Davao del Norte, Philippines. It is also the province’s capital. Cited as one of the 20 most viable and most competitive business sites in the Philippines in 2005 by the Philippine Cities Competitiveness Ranking Project, Tagum City is one of the fastest-

growing cities in Mindanao and in the Philippines. In 2006, it became known as the Palm Tree City of the Philippines. It holds an unofficial record for having the tallest Christmas tree in the Philippines. At 153 feet tall, the stunning structure, which was erected at the Freedom Park behind the City Hall, rivaled Puerto Princesa City’s 100 feet tall Christmas tree. Tagum City is also home to the world’s biggest wooden rosary, which can be found at the Christ the King Cathedral. Since 2000, the city has annually hosted the Musikahan Festival aimed at showcasing the musical talents of Tagumeños, Mindanaoans and Filipinos in general. (Source: www.wikipedia.com)

Palm Tree City of the Philippines

Tagum:

I n t e r n at I o n a l e d I t I o n d e c e m b e r 2 0 1 2

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4 5T 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 . 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 .

A Message from the Chairman

I congratulate all of you, the hardworking men and women of the ICTSI Group, for a job well done all year long. Thank you for keeping our Company on top and on course.

We achieved much this year. We signed a sub-concession agreement with Lekki Port LFTZ for the development and operation of the container terminal at Tolaram Port@Lekki in Nigeria. In the last quarter, we acquired 65 percent of the outstanding capital stock of Hijo International Port Services, Inc., owner of the Hijo International Port, a private commercial port in Tagum City, Davao del Norte in the Gulf of Davao, Philippines. We also completed the acquisition of 41.627 percent of the total issued capital of Pakistan International Container Terminal Ltd. Last but not the least, our volumes and earnings group-wide continued to rise.

We continued to be cited for our good work. We were hailed as Best Investor Relations Company in the Philippines by CorporateGovernanceAsia. The latter also cited our Company’s continuing commitment to the development of corporate governance in the region. Earlier on, our US$350 million perpetual corporate hybrid bond transaction won as the Philippine Capital Markets Deal of the Year from IFR Asia in 2011 and Best Deal of the Year from The Asset.

I expect another good year ahead, especially as we look forward to celebrating our 25th year. It has been a challenging yet rewarding 25 years. I expect the same for the next year, and further down the road. I shall continue to challenge myself and you to step up to the plate, further raise the ramp for an even more exceptional year ahead.

I also extend my profound gratitude to clients and stockholders who travel the road with us. I am confident that we shall continue to gain benefits from our business partnerships.

May you and your loved ones receive abundance, grace and glee this holiday season and the year to come.

Enrique K. Razon Jr.ICTSI Chairman and President

Enrique K. Razon Jr.ICTSI Chairman and President

ICTSI Newsbreak

South Cotabato Integrated Port Services, Inc. (SCIPSI) recently received the Bronze Award for Investors in People (IiP), becoming the first and only Philippine company to obtain the accreditation. The awarding ceremony was held during the general membership meeting of the People Management Association of the Philippines (PMAP) at the Hotel Intercontinental in Makati City last 24 October. IiP helps various organizations develop performance through their people. Photo shows Gabriel Muñasque (fifth from left), SCIPSI General Manager, receiving a plaque of recognition from Gerry Plana (sixth from left), IiP Philippines Chief Executive; and Teresita Villanueva

SCIPSI receives liP Bronze accreditation

SCIPSI’s IMS recommended for re-certification South Cotabato Integrated Port Services, Inc.’s (SCIPSI) OHSEQS Integrated Management System comprising ISO 9001: 2008 (QMS), ISO 14001: 2004 (EMS) and OHSAS 18001: 2007 (OHSMS) was recently recommended for re-certification. The re-certification audit was held last 28 to 29 June. AJA Registrars Inc. conducted the audit, which included interviews, audit sampling and actual verification of documents and records as well as on-site inspection of operational controls and engineering maintenance practices. SCIPSI’S QMS was originally certified in 2005, while its EMS and OHSMS were both certified in 2004. (Angelo Niño Grafilo)

Contecon Manzanillo, S.A. (CMSA) recently introduced the upcoming Specialized Container Terminal-II (SCT-II) to more than 100 customs brokers and members of AAPUMAC, the professional association of customs brokers in Manzanillo, Colima, Mexico. CMSA highlighted the imminent advantages that SCT-II’s infrastructure, working environment, equipment and technology will offer. The presentations took place at the Hotel Camino Real in Manzanillo last 18 and 25 October. Once fully operational, SCT-II will help achieve the Port of Manzanillo’s goal of moving four million twenty-foot equivalent units every year. Photo shows the ongoing construction of the SCT-II. (Pamela de la Vega)

CMSA introduces SCT-II to Mexican brokers

(far right), IiP Assessor. Also in photo are (from left): Arthur Luis Florentin, PMAP President; Reynaldo Escosura, Union President; Nestor Tirol, SCIPSI Assistant Operations Manager; and Rejamna Pandangan, SCIPSI Human Resources Senior Supervisor. (Rejamna Pandangan)

I n t e r n at I o n a l e d I t I o n d e c e m b e r 2 0 1 2

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6 7T 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 . 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 .

Do GoodOn Board

Gearing Up

International Container Terminal Services, Inc. Ltd. (ICTSI Ltd) recently appointed Guillaume Lucci as Vice President and Global Infrastructure Director as part of the ICTSI Group’s organizational restructuring of its corporate engineering functions.

Guillaume Lucci, ICTSI Ltd. Vice President and Global Infrastructure Director

ICTSI Ltd. names VP for Global Infrastructure

The appointment is seen to primarily address the need for stronger project management of various expansion projects as well as of greenfield construction.

Mr. Lucci will be responsible for the entire life cycle of the construction of new ports and construction-related expansions of existing ports from design through bidding, negotiating and awarding contracts, and construction project management. Aside from leading asset management for infrastructure, he will also support ICTSI Ltd.’s international Business Development Offices during due diligence processes.

“I am delighted to join ICTSI’s senior management team. I look forward to contributing to the continued success and growth of the organization through the development of strategically located ports throughout the world,” says Mr. Lucci.

Before joining the ICTSI Group, Mr. Lucci was Vice President and Latin America Infrastructure Commercial Director at CH2M HILL based in Brazil. He was also a Director and Board Member of various legal entities in the Americas. Before that, he was Halcrow’s Regional Director for the Maritime Business Group in Latin America. He also led the maritime business group of a subsidiary of Kinder Morgan’s Energy Partners.

Mr. Lucci, holder of a master’s degree in Structural Engineering, Mechanics and Materials from the University of California Berkeley, obtained his bachelor’s degrees in Civil Engineering and in Mathematics from Florida Institute of Technology and the University of Toulon et du Var, France, respectively. He is a registered Structural Engineer in Florida. He is fluent in French, Spanish, English and Brazilian Portuguese.

New MICT side liftersEquipment: Side lifter. Number of units: Five. Manufacturer: Kalmar. Capacity: 8 to 9 tons. Lift: Seven-high empty container stacking. Delivery date: 16 November. (Mike Agustin)

10 ◢

ICTSI-FI rolls out education and health projects in Davao CityICTSI Foundation, Inc. (ICTSI-FI), in partnership with Davao Integrated Port and Stevedoring Services Corp. (DIPSSCOR), recently launched three projects in Davao City.

Last 5 July, ICTSI-FI turned over a newly constructed daycare center to Panacan Diversion Road Homeless Association Inc. in Baranggay (Village) Sasa, Davao City. Aside from the new facility, ICTSI-FI also donated books, educational toys, tables and chairs.

Meanwhile, ICTSI-FI and the Department of Education (DepEd) Division of Davao City Schools conducted a free medical and

By Jes Vinson

At the turnover of the daycare center (from left): Sonny Sebellino, Davao Integrated Port and Stevedoring Services Corp. (DIPSSCOR) Operations Manager; Eloida Arcena, ICTSI Foundation, Inc. (ICTSI-FI) Administrative Head; Filip Laurena, ICTSI-FI Deputy Executive Director; Juanito Flores Jr., Baranggay (Village) Sasa Chairman; Rodrigo Duterte, Davao City Vice Mayor, and Roel Betita, DIPSSCOR Engineering and Maintenance Head

Narlene Soriano (third from left), International Container Terminal Services, Inc. Public Relations Head and ICTSI-FI Executive Director, receives a plaque of appreciation from Nestor Mauhay (second from left), Davao City Councilor, as Teresita Del Valle (far left), DepEd Davao City Adopt-A-School Coordinator; and Ms. Laurena look on.

dental mission at Nam-Nam Primary School in Marilog District, Davao City last 5 October. This mission benefited 217 Nam-Nam residents, including 115 students of Nam-Nam Primary School. They all received hygiene kits containing hand towels, toothbrushes, toothpaste, soap, anti-lice shampoo, combs, and nail cutters.

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8 9T 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 . 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 .

To help improve the quality education in Mindanao, the 100 lowest performing elementary schools in the DepEd Division of Davao City each received a set of science and technology instructional materials from ICTSI-FI. Among the instructional materials given were illustrations of the human heart, parts of the brain and the human skeleton. The visual aids were printed on tarpaulins. The project turnover was held at DepEd Davao City Division Training Center last 6 October.

During the turnover of educational materials, ICTSI-FI received a plaque of appreciation from DepEd Division of Davao City.

◤ 9 ICTSI-FI...

At the medical and dental mission (from left): Jes Vinson (fifth from left) and Nap Balajadia (seventh from left), ICTSI-FI Project Assistants; and Ian Carlo Meimban, ICTSI-FI Project Officer, with the volunteers

Nam-Nam Primary School students received hygiene kits after undergoing medical and dental check-ups.

DepEd Division of Davao City elementary school teachers are all smiles after receiving their new visual aids.

International Container Terminal Services, Inc. (ICTSI) scholars from Bauan Technical High School won two of the three top prizes in the recent ICTSI Christmas card design contest. Declared first and second prize winners were Jessa Ilagan and Mary Joy Caringal, respectively. Both are second year high school students in Bauan Technical High School. Ms. Ilagan received PhP6,000 for her winning entry. She also received an additional PhP4,000 when her entry was adopted as the design of the official 2012 ICTSI Christmas card. Meanwhile, Ms. Caringal won PhP5,000. The third prize winner was Nina Cyrelina Poraque of Olongapo City. With the theme Generosity: a 24/7 Christmas spirit, this year’s contest gathered a total of 55 card entries from ICTSI scholars in the Philippines. Photo shows (from left) Filip Laurena, ICTSI Foundation, Inc. Deputy Executive Director; and Ferdinand Magtalas, Bauan International Port, Inc. Terminal Manager, awarding the first prize to Ms. Ilagan. (Joy Lapuz)

Bauan scholars win big in Christmas card design contest

Do Good Spotlight

Christian R. Gonzalez, International Container Terminal Services, Inc. (ICTSI) Vice President, Manila International Container Terminal General Manager, and Asia Region Head, was among the key speakers in the recently concluded Subic Bay Maritime Conference and Exhibition held at the Subic Bay Exhibition and Convention Center. He shared his insights on the emergence of the Subic Bay Freeport

as one of Asia’s up and coming logistics hubs with New Container Terminals (NCT) 1 and 2, operated by ICTSI subsidiaries Subic Bay International Terminal Corp. and ICTSI Subic, Inc. respectively, as the Freeport’s international gateways. “We are aiming to duplicate our success in the Port of Manila in both NCT 1 and 2, and with the right strategy in place, Subic could be the Philippines’ next great gateway

port,” Mr. Gonzalez said. The conference gathered more than 500 participants from various government agencies, maritime transport organizations, freeport locators and companies in the northern and central Luzon. The conference aimed to promote the Subic Bay Freeport zone as a premier player in the maritime logistics sector in the region. Photo shows (from left) Norberto Sosa, Subic Bay Metropolitan Authority (SBMA) Director; Mark Millar, M Power Associates Hong Kong Managing Partner; Susumu Naruse, International Association of Ports and Harbors Secretary General; Mr. Gonzalez; Roberto Garcia, SBMA Chairman; Hector Miole, Philippine Ports Authority Southern Luzon Port District Manager; Joven Reyes, SBMA Board Member; and Reimond Silvestre, SBITC General Manager. (Paolo Racelis)

ICTSI Subic: The Philippines’ next key gateway port

Jose Manuel de Jesus (far left), International Container Terminal Services, Inc. (ICTSI) Vice President for Business Development-Asia and Hijo International Port Services, Inc. President; and Julien Domingo (third from left), Davao Integrated Port and Stevedoring Services Corp. General Manager, introduced ICTSI’s recent terminal acquisition, Hijo International Port, at the second Davao Investment Conference and Exhibit. Also in photo are Virgie Lou (second from left), China Shipping Davao Output Office Officer-In-Charge; and Eunice Garte, OOCL Davao Branch Manager. (Paolo Racelis)

Davao Investment Conference and Exhibit

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10 11T 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 . 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 .

A fire drill was successfully held last 8 November at the premises of the Yantai Rising Dragon International Container Terminals Ltd. (YRDICTL) Main Office Building. Jimmy Xu, YRDICTL Safety Supervisor, taught his fellow employees how to survive a building fire. He also demonstrated the proper use of fire-fighting equipment. Photo shows a participant extinguishing “fire” during the drill. (Jane Wong)

YRDICTL holds fire drill

Level Up

A trainer from YRDICTL Safety and Security Department demonstrates the proper use of fire-fighting equipment.

I n t e r n at I o n a l e d I t I o n

12 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 .