ICTSI rolls out enhanced online container tracking system
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PORTFOLIO The Official Publication of International Container Terminal Services, Inc. ICTSI rolls out enhanced online container tracking system January 2015 PORTFOLIO INTERNATIONAL EDITION ICTSI OPERATIONS TABLE OF CONTENTS COVER STORY 4 ICTSI rolls out enhanced online container tracking system 2 PEOPLE 8 9 ICTSI 9M 2014 net income up 5% to US$135.7 million 10 ICTSI in ‘ASEAN ICTSI NEWSBREAK all-stars’ of Nikkei Asian Review 6 ICTSI Polish 11 ICTSI wins terminal installs 2 platinum in The new quay cranes Asset Corporate 7 ICTSI Honduran unit speeds up vessel Awards 2014 operations in Puerto Cortés 8 Two months into operation, BGT off to a good start DO GOOD 12 ICTSI Foundation brings Real Madrid youth football clinic to Manila 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 Te r m i n a l S e r v i c e s , I n c . 13 Sharing Christmas with indigenous communities 13 The joy of Christmas continues for Parola day care kids International Container Terminal Services, Inc. JANUARY 2015 19 AGCT joins MEDNET for seamless operations in the Mediterranean ICTSI NEWSBREAK 14 ICTSI, SBMA hold Subic golf tournament 16 Clients’ Christmas Party 2014 18 ICTSI, NMPINAFLU first joint Christmas celebration SPOTLIGHT 19 AGCT at CEE Futurail Conference 2014 19 CRG at port users meet 19 AGCT in annual Slovakian freight forwarders meet 19 CRG in Asia Logistics Summit ON-BOARD LEVEL UP 20 ICTSI names new 20 New MICT CEO for Croatian unit canteen opens MEETS AND GREETS 20 Australian, US Embassies visit 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 Te r m i n a l S e r v i c e s , I n c . 3 PORTFOLIO INTERNATIONAL EDITION COVER STORY ICTSI rolls out enhanced online container tracking system ICTSI flagship launches Track and Trace version 4.0 I nternational Container Terminal Services, Inc. (ICTSI) flagship, Manila International Container Terminal (MICT), updated Track and Trace, an online container tracking system developed in-house for MICT customers, to version 4.0. The latest update further improved overall system functionality and user experience. “The new version of the MICT Track and Trace further enhances the system’s overall functionality and value for both ICTSI and our clients at the MICT. As we have developed this system in-house, we could easily update and improve Track and Trace to become a more robust and dependable system,” says Christian Lozano, ICTSI Commercial Director. Version 4.0 features the new email notification function that delivers container movement updates straight to a client’s inbox. Users simply need to enter an email address where they want to receive updates. The email notification feature follows the release of the SMS notification system, which came out with version 3.0. “The Track and Trace system was specifically built to provide clients with visibility, control and automation, allowing them to stay updated on the status of their containers. The system embodies ICTSI’s initiative to provide clients with transparency, helping them improve their daily work output by giving them access to important information anytime and anywhere,” Mr. Lozano adds. Users can search for import and export laden containers, as well as empty containers within MICT premises. Registration is not required. Clients simply need to input the bill of lading and container 4 number. Container movement and storage period are on record, and stored in the system for three months. Trucks’ time of entry and exit to and from MICT are recorded into the system. Clients need to enter the plate numbers of their trucks to monitor their movements within MICT in the last 30 minutes. ICTSI aims to improve this feature to provide real-time tracking by early 2015. ICTSI uses data gathered by Track and Trace as a business metric to gauge increases and declines in container movement, as well as system efficiency. “We’ve noticed a significant increase in the number of users, daily search hits and unique container searches, which points to how the system has improved in terms of value and usability,” explained Mr. Lozano. Track and Trace also monitors and records every invalid search attempt by users. ICTSI contacts its clients at the end of each month to ask for feedback regarding the invalid search attempts. The Company uses the feedback mechanism to fine-tune the system and help clients use Track and Trace more efficiently. ICTSI is working to add more features to Track and Trace. One such feature is the live chat, which will allow MICT clients to engage the Company’s customer care agents to ensure 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 Te r m i n a l S e r v i c e s , I n c . International Container Terminal Services, Inc. JANUARY 2015 that inquiries and concerns are attended to in real time. An application, the MICT Mobile, is also being developed. The application will enable clients to access Track and Trace using their mobile devices. ICTSI aims to offer full mobile functionality through another mobile feature called Text and Trace. This feature will allow clients to receive container movement updates via text messaging. In the pipeline is a client dashboard interface for Track and Trace, which will transform data into a visually appealing and easy to understand monitoring tool. It will allow clients to see all data and reports on container movement. This will provide MICT customers with useful information in making business decisions. Track and Trace was first implemented in February of 2012 to complement the MICT iBox, an e-commerce facility designed to provide MICT clients with information on vessel schedules, cargo movements and statement of accounts among others. As ICTSI continues to improve Track and Trace, port users can expect better and more transparent terminal operations and handling of containers at the MICT. Home page of the MICT Track and Trace 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 Te r m i n a l S e r v i c e s , I n c . 5 PORTFOLIO INTERNATIONAL EDITION ICTSI NEWSBREAK ICTSI Polish terminal installs 2 new quay cranes Baltic Container Terminal (BCT), International Container Terminal Services, Inc.’s (ICTSI) container handling facility in the Port of Gdynia, Poland, recently received two new quay cranes (QC), further boosting the capacity of the terminal as a key port in Eastern Europe and in the Baltic region. Measuring more than 60 meters high with a reach of more than 50 feet towards the water, BCT’s new QCs have a capacity of more than 60 tons. They arrived in Gdynia on 7 December aboard the vessel Zhen Hua 8. “It is certainly a very important date in the history of the BCT. Not only will the new cranes replace the old ones damaged two years ago by the vessel Stena Spirit, they will also increase our reloading capacity significantly. It is another step towards serving ocean ships in Gdynia,” says Krzysztof Szymborski, CEO of the Baltic Container Terminal. Valued at over PLN 200 million (USD 58 million), the QCs were purchased through an investment program in 2012. Funded by the European Union and the Infrastructure and Environment Operational Program, the investment covers the purchase of reloading equipment including railway gantry cranes, backhoe loaders and container trailers. It also involved the surface replacement of storage yards and the rollout of specialized terminal IT systems. The cranes were supplied and manufactured by Shanghai Zhenhua Heavy Industries Co. Ltd. Each crane can service 19-bay wide container vessels, which in practice are ships with 13,000 TEU capacities. The delivery took two months, with the Zhen Hua 8 also delivering three similar equipment to the Port of Lome in the Republic of Congo. The process of unloading the cranes lasted for about an hour and involved special, temporary tracks placed between the ship and the quayside. Retrofitting of the BCT railway terminal had also been carried out in coordination with the Management Board of the Gdynia Marine Port. The move aims to enable the simultaneous servicing of full trainloads. All these investments are expected to increase the terminal’s reloading capacity by more than half. Measuring more than 60 meters high with a reach of more than 50 feet towards the water, the new quay cranes of ICTSI’s Baltic Container Terminal have a capacity of more than 60 tons. They arrived at the Port of Gdynia on 7 December aboard the vessel Zhen Hua 8. 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 Te r m i n a l S e r v i c e s , I n c . International Container Terminal Services, Inc. JANUARY 2015 ICTSI Honduran unit speeds up vessel operations in Puerto Cortés A container vessel docked at ICTSI’s Specialized Container and Cargo Terminal in Puerto Cortés, Honduras. Operadora Portuaria Centroamericana SA de CV (OPC), a wholly-owned subsidiary of International Container Terminal Services, Inc. (ICTSI), rolled out new systems and processes that reduced service times of container vessels berthing at the Specialized Container and General Cargo Terminal in Puerto Cortes, Honduras. OPC’s move to fast track the loading and unloading of containers successfully eliminated vessel downtimes and improved the overall efficiency of dock operations. Port users happily welcomed the improvement, which significantly reduced transport times as well as operational costs. “We are glad with how port stakeholders in Honduras and the Caribbean received the new systems and processes we implemented in Puerto Cortes to improve customer service. We envision our ICTSI Puerto Cortes terminal not only to become a major terminal in the Group, but a key port in the Caribbean serving Central American trade,” says Marcelo Suarez, Senior Vice President and Head of the Americas Region. A new vessel segregation system based on destination, size and weight had been set in place together with a new “window docking” scheme that enables ships arriving at a predefined time to dock immediately upon arrival. The mechanism greatly reduces the logistics costs for port users, unlike in the past when ships had to wait for hours at the bay, sometimes even up to days before docking. The window docking system allows precise planning and better resource management of resources and personnel, as well as maintenance of machinery and spaces within the port. Vessels can unload their containers immediately within 24 hours provided that requirements and full documentation are accomplished in advance. Port users now have access to OPC’s free web portal for the processing of export entries, eliminating the need for manual data retrieval. This technology-based component was specifically designed to help users adapt to the changes and streamline processes at the port. OPC has managed to keep operations running normally despite the guideline issued by the Honduran Executive Directorate of Revenue requiring Customs personnel to empty containers for inspection. Recognizing the policy’s security implications to the port and businesses in general, OPC increased the number of its workers from 30 to 150 to offset the added processing time brought about by the new inspection routine. Puerto Cortés is one of the El Salvadoran exporters’ main gateways to the Caribbean. OPC aims to re-position the port as a regional key player in Latin America, highlighting the port’s importance not only as a business gateway but also as key contributor to the Honduran economy. OPC won a 30-year concession to manage and operate the Specialized Container and General Cargo Terminal back in February 2013. The ICTSI subsidiary is expected to invest US$624 million for the first 10 years of concession in an attempt to sustain the region’s development and growth. 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 Te r m i n a l S e r v i c e s , I n c . 7 PORTFOLIO INTERNATIONAL EDITION ICTSI NEWSBREAK Two months into operation, BGT off to a good start By Iva Roman Making startups work can be a real challenge. However, ICTSI’s professionalism and global capabilities have sparked huge developments at the Basra Gateway Terminal (BGT) in the Port of Umm Qasr, Iraq. Two months after taking over port operation, ICTSI is on track with its vision for the Group’s sole Middle Eastern port project. ICTSI has made considerable investments in BGT’s modernization specifically in the areas of automation, infrastructure and human resources. The new maintenance shop hosts an exceptionally productive engineering team that is responsible for implementing ICTSI’s high standards on equipment reliability, resulting in a 40 percent increase in productivity. Construction of a new operations center is underway, as well as the renovation of the yard pavement. The key to ICTSI’s global success is its highly trained manpower. ICTSI has assembled a multinational team tasked to train the local BGT staff. The team is composed of employees from its Philippine and Croatian operations, including expert staff from Morocco, United Kingdom and Egypt. The team aims to introduce ICTSI’s trade tools, which are the primaries of everyday port operations. BGT has recruited new personnel for each department and has started training staff for Operations, Finance, Maintenance, IT and HRD. In line with ICTSI’s multinational standards and professionalism, BGT has placed huge emphasis towards respecting the local culture, religious customs and traditions. For ICTSI, the success of its international operations hinges on its ability to assimilate to host countries. Management has also implemented guidelines to ensure smooth operations and safe working environment, and create a proper culture on occupational health, safety, security and environment protection. So far, all efforts have already yielded promising results for both BGT and its clients. Vessels have increased their average load by 100 containers. This translates to 64 percent more than the terminal throughput before ICTSI took over. Vessel productivity has also improved to over 34 moves per hour per crane, which is a welcome development for port users. The Port of Umm Qasr serves as the main gateway to the Iraqi market, handling liquid and dry bulk, general cargo and containers. BGT has taken a good first step towards capturing the market’s attention, effectively positioning itself as a reliable and trustworthy business partner in the region. Vessel operations at ICTSI’s Basra Gateway Terminal in the Port of Umm Qasr, Iraq PEOPLE Basra Gateway Terminal (BGT) celebrates New Year’s Eve. Photo shows BGT’s multinational team on the eve of the first day of 2015, working round-the-clock in facilitating Iraqi trade, while welcoming the New Year. 8 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 Te r m i n a l S e r v i c e s , I n c . International Container Terminal Services, Inc. JANUARY 2015 ICTSI 9M 2014 net income up 5% to US$135.7 million Throughput grows 17% to 5.4 million TEUs, revenues up 25% to US$779.2 million, EBITDA improves 14% to US$326.1 million. International Container Terminal Services, Inc. (ICTSI) reported unaudited consolidated financial results for the first nine months of 2014, posting revenue from port operations of US$779.2 million, an increase of 25 percent over the US$624.7 million reported for the same period last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$326.1 million, 14 percent higher than the US$285.5 million generated in the first nine months of 2013; and net income attributable to equity holders of US$135.7 million, up five percent over the US$128.8 million earned in the same period last year. Diluted earnings per share for the period was four percent higher at US$0.056, from US$0.054 in 2013. The increase in net income attributable to equity holders for the first nine months of 2014 reflects the impact of higher container volume throughput levels due to the commencement of commercial operations at new terminals in Manzanillo, Mexico (CMSA) and Puerto Cortes, Honduras (OPC) as well as more favorable volume mix and increased revenues from ancillary services at several existing terminals. These positive factors were partially offset by increased depreciation charges and higher levels of interest expense driven by the commencement of commercial operations at CMSA and OPC. In addition, net income for the first nine months of 2014 was positively impacted by the sale of a nonoperating subsidiary in Cebu, Philippines (US$13.2 million), the termination of the management contract in Kattupalli, India (US$1.9 million), and the restructuring of the Company’s operations in Yantai, China (US$31.8 million). These gains were reduced by a one-time non-cash charge of US$38.1 million arising from the write-down of intangible assets at the Company’s terminal in Buenos Aires, Argentina (TecPlata S.A.). Excluding these non-recurring items, net income for the first nine months would have been US$126.3 million, or two percent lower than the US$128.8 million reported in the prior year period. For the quarter ending 30 September 2014, revenue from port operations increased 27 percent, from US$211.0 million to US$268.9 million while EBITDA was 17 percent higher at US$113.9 million from US$97.3 million. Net income attributable to equity holders decreased 26 percent, from US$45.9 million to US$34.1 million mainly due to the start up costs and the consolidation of operating expenses of the new terminals, lower capitalized borrowing cost at CMSA, and the recognition of US$38.1 million impairment charge on intangible assets in TecPlata. Diluted earnings per share for the quarter decreased 32 percent to US$0.013, from US$0.019 in 2013. Excluding the non-recurring items, net income would have declined 10 percent to US$41.2 million. ICTSI handled consolidated volume of 5,410,224 twenty-foot equivalent units (TEU) for the first nine months of 2014, 17 percent more than the 4,628,117 TEUs handled in the same period in 2013. The increase in volume was mainly due to the volume generated by CMSA and OPC, the Company’s new container terminals in Manzanillo, Mexico and Puerto Cortes, Honduras, respectively, the impact of the consolidation of terminal operations at the Port of Yantai in Yantai, China and the 23 percent volume growth in Baltic Container Terminal (BCT) in Gdynia, Poland. Excluding the volume from the two new terminals, organic volume growth would have been flat. The Company’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan, which grew by four percent, accounted for 70 percent of the Group’s consolidated volume in the first nine months of 2014. For the quarter ending September 30, 2014, total consolidated throughput was 15 percent higher at 1,844,200 TEUs compared to 1,601,112 TEUs in 2013. Excluding the volume from the Company’s new terminals, organic volume growth was minus one percent, principally due to the negative effect of the truck ban and related congestion issues at the Manila International Container Terminal, the Company’s largest facility in Manila, Philippines. Gross revenues from port operations for the first nine months of 2014 surged 25 percent to US$779.2 million from the US$624.7 million reported in the same period in 2013. The increase in revenues was mainly due to the revenue contribution from the new terminals CMSA and OPC, a strong 39 percent revenue growth from the Company’s consolidated terminal operations in Yantai, China, favorable volume mix, and higher revenues from ancillary and other services. Excluding the revenues from the new terminals, organic revenue growth was eight percent. All three geographical segments reported double-digit growth in gross revenues with Americas posting a remarkable growth of 46 percent, followed by EMEA at 15 percent and Asia at 13 percent. The Group’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan, which registered a strong growth of 10 percent, accounted for 75 percent of the Group’s consolidated revenues in the first nine months of 2014. Gross revenues from port operations for the quarter ended 30 September 2014 increased 27 percent to US$268.9 million from the US$211.0 million reported in the same period in 2013. Consolidated cash operating expenses in the first nine of 2014 grew 31 percent to US$334.1 million, from US$255.5 million in the same period in 2013. The increase was mainly driven by higher volume-related expenses (i.e., on-call labor, fuel, power and repairs and maintenance), governmentmandated and contracted salary rate increases in certain terminals, increased business development activities, and cash operating expenses and startup costs of new terminals. Excluding the cash operating expenses of the new terminals, total cash operating expenses would have increased by only eight percent. Consolidated EBITDA for the first nine of 2014 increased 14 percent to US$326.1 million, from US$285.5 million in 2013 mainly due to the contribution from the new terminals in Puerto Cortes, Honduras and Manzanillo, Mexico, positive impact of the consolidation of operations at the Yantai port, and stronger revenues from ancillary and other services. Meanwhile, consolidated EBITDA margin decreased by 42 percent in the first nine months of 2014 compared to 46 percent in the same period in 2013 mainly due to the effect of the new terminals and higher business development expenses as the Company pursued more new projects during the period. For the quarter ended September 30, 2014 consolidated EBITDA increased 17 percent to US$113.9 million from US$97.3 million in 2013 while consolidated EBITDA margin declined to 42 percent compared to 46 percent in the same period in 2013. Financing charges and other expenses increased 13 percent, from US$33.9 million in the first nine months of 2013 to US$ 38.4 million for the same period this year mainly due to the recognition of a US$38.1 million impairment charge on intangible assets at TecPlata and the lower capitalized borrowing cost at CMSA. Capital expenditures for the first nine months of 2014 amounted to US$177.2 million, approximately 57 percent of the US$310 million capital expenditure budget for the full year 2014. The established budget is 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 Congo. In addition, ICTSI invested US$39.0 million in the development of SPIA, its joint venture container terminal development project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia. The Company’s expected share for 2014 is approximately US$120.0 million. ICTSI and Subsidiaries Financial Highlights YoY Comparison For the nine months ended Sept 30 For the quarter ended Sept 30 9M 2014 9M 2013 % Change USD 779.2 USD 624.7 25% Gross Revenues EBITDA 326.1 285.5 14% EBITDA Net Income 142.3 135.7 5% Net Income Attributable to Equity Holders 135.7 128.8 5% (in million USD except Earnings per share data) Gross Revenues Earnings per share 3Q 2014 3Q 2013 % Change USD 268.9 USD 211.0 27% 113.9 97.3 17% Net Income 36.8 48.3 -24% Net Income Attributable to Equity Holders 34.1 45.9 -26% (in million USD except Earnings per share data) Earnings per share Basic 0.056 0.054 4% Basic 0.013 0.019 -32% Diluted 0.056 0.054 4% Diluted 0.013 0.019 -32% 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 Te r m i n a l S e r v i c e s , I n c . 9 PORTFOLIO INTERNATIONAL EDITION ICTSI NEWSBREAK ICTSI in ‘ASEAN all-stars’ of Nikkei Asian Review International Container Terminal Services, Inc. (ICTSI) was cited as among the leading publicly listed companies in the ASEAN region in a recent issue of Japanese business publication Nikkei Asian Review. In the 24 – 30 November 2014 issue of the publication, ICTSI was included in the roster of top corporations in Southeast Asia: ASEAN 100 The Nikkei Asian Review released an index of companies where the publication, through its website asia.nikkei.com, monitors news and developments of over 100 publicly traded companies of ASEAN member states. Twenty companies from the Philippines, which included ICTSI, made it to the list. “ASEAN companies have the chance to become future pioneers. By enhancing and extending our coverage on corporate activities, we aim to follow the very front line and provide deeper insight into the region’s economy and businesses,” the publication said. ICTSI’s inclusion highlights the Company’s expanding role in the Philippine economic scene as well as in the greater ASEAN region. Ranked 12th in the Top 100 ASEAN companies by market value growth According to the Nikkei Asian Review, as Southeast Asian economies rise and consumption surges, more ASEAN stocks are crossing the USD 10 billion value threshold. ICTSI, one of the 11 Philippine companies in the list, experienced a 183.7 percent market value growth, which placed the Company in the 12th spot in the top 100 list of ASEAN companies by market value growth. The publication says: “On the marine transport front, International Container Terminal Services, Inc., a major Philippine port operator, stands out. With trade volumes swelling, the company’s board in October approved a USD 35 million investment to expand a container yard and inland depot at the Manila International Container Terminal.” Ranked 98th in the Top 100 ASEAN companies by market capitalization With an estimated market value of USD 5.26 billion and net profit of USD 143 million based on FactSet data 31 October closing price, ICTSI ranked 98th in the top 100 ASEAN companies by market capitalization. Thirteen other companies from the Philippines also made it to this list. The Nikkei Asian Review is an English language business journal of Nikkei Inc., one of the largest media corporations in Japan. Nikkei specializes in publishing financial, business and industry news. 10 “On the marine transport front, International Container Terminal Services, Inc., a major Philippine port operator, stands out. With trade volumes swelling, the company’s board in October approved a USD 35 million investment to expand a container yard and inland depot at the Manila International Container Terminal.” — Nikkei Asian Review Cover of the Nikkei Asian Review 24 – 30 November 2014 issue 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 Te r m i n a l S e r v i c e s , I n c . International Container Terminal Services, Inc. JANUARY 2015 ICTSI wins platinum in The Asset Corporate Awards 2014 International Container Terminal Services, Inc. (ICTSI) was among 58 Asian companies recognized in The Asset Corporate Awards for 2014. ICTSI received the Platinum Award in financial performance, corporate governance, social responsibility, environmental responsibility and investor relations. Photo shows Arthur R. Tabuena, ICTSI Treasury Director and Head of Investor Relations, accepting the award on behalf of the Company during The Asset Asia Corporate Excellence Awards 2014 gala held last 11 December 2014 at the Four Seasons Hotel in Hong Kong. ICTSI ranks 12th among the top 50 ASEAN companies in terms of market value growth. 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 Te r m i n a l S e r v i c e s , I n c . 11 PORTFOLIO INTERNATIONAL EDITION DO GOOD ICTSI Foundation brings Real Madrid youth football clinic to Manila With reports from Marie Bernadette C. de Guzman Participants of the five-day football clinic conducted by the Real Madrid Fundacion The Makati Football Club (MFC), in partnership with the ICTSI Foundation Inc. and the Spanish Embassy in Manila, brought to Manila the youth football clinic of Real Madrid, dubbed as the world’s best club of the 20th century. Held last 12 – 17 December at the Alabang Country Club in Muntinlupa City, the Real Madrid football clinic brought in two youth coaches from Fundacion Real Madrid. The coaches were assisted by 15 local and professional MFC coaches. The clinic held daily sixhour sessions for young footballers ages seven to 17 years old. Some 150 players participated in the clinic, 80 of whom are from the marginalized youth sector. With the assistance of the Department of Social Welfare and Development, the selected participants are from Nayon ng Kabataan, Tuloy Foundation, Gawad Kalinga and Unang Hakbang Foundation, and youth players from Pangasinan and Camarines Sur. Of the 80, 30 participants were from the Nayon ng Kabataan football team. “We are excited to partner with the Makati Football Club and the Spanish Embassy to bring to Manila the youth football camp of the best football club of our generation. Real Madrid’s heart for the marginalized youth is synonymous with the focus of the ICTSI Foundation,” says Christian R. Gonzalez, ICTSI head of Asia-Pacific region and Foundation Board Director and Trustee. “The youth is ICTSI’s core advocacy with sports as one of three pillars, and football is one sport that we want to help develop in the country,” he adds. Aside from teaching the methodology and techniques of the Real Madrid FC, the football clinic held experiential activities aimed at inculcating the values conveyed by the Real Madrid brand— respect, leadership, hard work, self-control and teamwork—values integral to the holistic development of children and young athletes. Both the Foundation and MFC value the importance of constantly contributing to local communities. This partnership is a way of supporting the youth, particularly underprivileged young athletes. “We aim to provide all participants particularly the underprivileged and orphaned kids a fun and valuable learning experience where they can feel a sense of belonging, self-worth and personal satisfaction through participation and peer interaction with the hope of bringing about a positive difference in these children’s lives,” says Tomas Lozano, MFC founding president. “The Real Madrid Football clinic is an experience of a lifetime especially for the youth, and to give this opportunity to the underprivileged children will be a milestone for the Makati Football Club. We hope to do this again next year and to invite more kids from the marginal sector,” Mr. Lozano adds. The participants received certificates, souvenir pins and key chains from Real Madrid and MFC during the closing ceremony. A coach from the Makati Football Club teaching kids various football drills and techniques. Coaches and representatives from Real Madrid Fundacion and Makati Football Club pose with 80 kids from the DSWD-Nayon ng Kabataan, Don Bosco Foundation, Gawad Kalinga, Unang Hakbang Foundation, and street children from Pangasinan and Camarines Sur. 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 Te r m i n a l S e r v i c e s , I n c . International Container Terminal Services, Inc. JANUARY 2015 Sharing Christmas with indigenous communities By Francis J G. Bartolome The ICTSI Foundation shared the spirit of Christmas with 650 Aeta families, indigenous people (IP) who live in the mountain regions of the Philippines. The activity is part of the Foundation’s annual gift giving Christmas program, which benefitted IPs in the province of Pampanga. In Planas, Porac, 350 families of Aeta children studying in Katutubo Village Elementary School were given Christmas food packs. A warm welcome through cultural and modern dances greeted ICTSI Foundation staff and CSR coordinators from Mindanao. Grades 1 to 6 pupils participated in the program organized by school principal Baby Enriquez. Some students also showcased their traditional dance depicting Aeta healing rites and thanksgiving offering to their god ‘Apung Mallari’ for the bountiful harvest. In Marcos Village, Mabalacat, 300 families from Sitio Calapi were given 15 boxes of assorted medicines including antibiotics, antihypertensive, anti-asthma, cough and cold preparations, multivitamins and other medical supplies. The medical supplies were distributed through a free medical clinic organized by Kabataan Para sa Tribung Pilipino or KATRIBU, a youth organization advocating for indigenous peoples’ rights. The joy of Christmas continues for Parola day care kids By Marie Bernadette C. de Guzman Now on its fourth year, the ICTSI Foundation continued its tradition of bringing joy to more than 1,500 day care pupils, day care workers and parent-volunteers of 10 day care centers in two Barangays (translation: boroughs) 20 and 275 in Parola, and two Rosauro Almario Elementary School annexes in Tondo, Manila. Managed by the Manila Development and Social Welfare, children and parents joined together to celebrate a day of giftgiving with food packs and tokens. The project is a Christmas gift-giving initiative that began in 2011, focusing on the day care children of Parola community aged three to five. Parola is the immediate community of ICTSI’s flagship Manila International Container Terminal. An Aeta mother (extreme left) gives the peace sign alongside Bernadette De Guzman of the Foundation, Chiara Mae Atis of DIPSSCOR and Noralyn Escalante of SCIPSI. Top left: Marie Bernadette De Guzman (extreme right) of the ICTSI Foundation and (from left) Mar Gaton and Pinky De Leon of KATRIBU present to an Aeta community representative medicine donations. Joy Lapuz, ICTSI Foundation Senior Program Head, supervising the distribution of meal packs to children. Top right: Filipina C. Laurena, ICTSI Deputy Executive Director, together with project assistants Nap Balajadia and Ben Gamba, led the gift-giving activities. Left: An Aeta mother receives goods and medical supplies from the ICTSI Foundation. Above photo shows day care children from one of the day care centers in Parola. 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 Te r m i n a l S e r v i c e s , I n c . 13 PORTFOLIO INTERNATIONAL EDITION ICTSI NEWSBREAK ICTSI, SBMA hold Subic golf tournament International Container Terminal Services, Inc. (ICTSI), through its subsidiaries Subic Bay International Terminal Corp. (SBITC) and ICTSI Subic, Inc., held last 18 November the annual Subic Bay International Container Terminal Golf Invitational at the Anvaya Golf and Country Club in Morong, Bataan. Co-hosted by Subic Bay Metropolitan Authority (SBMA), the Philippine government agency managing the Subic Bay Freeport and Special Economic Zone (SBFZ), the tournament brought together over 130 clients and business partners of ICTSI’s Subic operations, and locators at the SBFZ for a game of golf at Anvaya Cove, the latest premiere nature resort and leisure complex in Subic Bay. Gelli Victor hosted the awarding ceremony, while Banda Filipinas and Glamarama provided entertainment. Tournament winners Ladies Champion Runner Up Linda De Leon of Nakano Tonye Lourdes Mapalad of Transglobal Class C Champion 1st Runner Up 2nd Runner Up Ferdinand Tongson of Royal Cold Storage Noli Mendoza of Uni Ship / Sinotrans Carlo Delgado of K Line Class B Champion 1st Runner Up 2nd Runner Up Class A Champion 1st Runner Up 2nd Runner Up Jose Manuel M. De Jesus, ICTSI Vice President for Business Development – Asia, delivers his message. James Bandong of Marine Support Shipping Richard Ng of Asia Cargo Qing Quan of SITC Rodel Mangulabnan of Silicon Computer & Telecoms Kenneth Lachica of TMS Shipping Agencies Taylor Lee of HMM Low Gross Champion Justin Limjap of TMS Shipping Agencies Fun Holes Nearest to the Pin Most Accurate Drive Longest Drive Jong Castaneda of NYK Ricky Tangan of Subictrak Jeff Geary of Fairway Ramblers Golf Club Jose Manuel M. De Jesus of ICTSI; Ricky Sandoval of Watercraft Ventures; Jun Avecilla of Selma Shipping; and Roberto Garcia, SBMA Chairman Players pose for a group photo before the shotgun tee off. 14 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 Te r m i n a l S e r v i c e s , I n c . International Container Terminal Services, Inc. JANUARY 2015 Tony E. Ramos (left), SBITC Finance and Administration Manager, together with Jun Bella of Harbor Star Reimond B. Silvestre, former head of ICTSI Subic operations and now General Manager of New Muara Container Terminal Services Sdn. Bhd. in Brunei Darussalam, together with Gemma Sadiaua of Citadel Jay A. Valdez, ICTSI Operations Director, during a light moment with clients. Top photo: Daniel Ventanilla of NYK gives his thumbs up. Bottom photo: Mr. Silvestre (right) congratulates Gil Angeles of COSCO after winning a major raffle prize. Julien C. Domingo, head of ICTSI operations in Davao, gives his best shot. 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 Te r m i n a l S e r v i c e s , I n c . 15 PORTFOLIO INTERNATIONAL EDITION ICTSI NEWSBREAK Clients’ Christmas Party 2014 International Container Terminal Services, Inc. (ICTSI) and clients of Manila International Container Terminal (MICT) celebrated another good year of partnership during the annual clients’ party held last 5 December at the Eclipse Entertainment Lounge of Solaire Resort and Casino. In attendance were shipping line executives and ICTSI officers led by Christian R. Gonzalez, Vice President and Head of Asia Pacific Region. Everyone was treated to a night of fun and entertainment courtesy of celebrity party host Rhian Ramos and the Highway 54 band. Christian R. Gonzalez, ICTSI Vice President and Head of Asia Pacific Region welcomes guests Ben Gorospe, Wilhelmer Pumarada and Joel Sebastian of ICTSI Joy Singueo and Ning Butcon of ICTSI Liway Escano of KMTC with Michelle Rodriguez and Bobby Mendoza of Sky International / Yang Ming Erry Hardianto of Maersk-MCC Transport, Miguel Pertierra of Soriamont NGPL China Navigation, and Glenn McCartney and Carlo Ilao of Maersk-MCC Transport 16 ICTSI’s Commercial and Risk Management staff Joey Ilagan of TMS Ship Agencies ACL PIL and JR Dayco and Lurick Lee of Maersk MCC-Transport Atchie Sotto of Wan Hai Philippines, Billy Gutierrez of ICTSI and Egay Sales of Evergreen Ares Fan of Ben Line TS Lines, Jesus Sedano of RCL Feeders, River Wang of Sky International, Gil Angeles of OOCL, Owen Huang of SITC Logistics Pendulum Express, Benson Liu of Evergreen and Ben Qing of SITC Leo Singueo, Arthur Valdez, Marlon Manansala, Renato Mamaril and Billy Gutierrez of ICTSI 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 Te r m i n a l S e r v i c e s , I n c . Christian L. Lozano, ICTSI Commercial and Risk Management Director, greets clients. International Container Terminal Services, Inc. JANUARY 2015 Rhian Ramos, Michelle Rodriguez of Sky International / Yang Ming, John Largo of Maersk-MCC Transport, Liway Escano of KMTC, Manny Salgado of Standard Liner, a guest, Lurich Lee of MCC Transport, and Nestor Gimenez of OOCL Cecilia Bejoc of Maersk-MCC Transport, Carmela Navales of NYK, Dino Navarra and Nanding Navarra of Southern Star Agencies Namsung, Michelle Rodriguez of Sky International / Yang Ming, Liway Escano and Nestor Gimenez of KMTC and John Largo of Maersk-MCC Transport. Gregorio Cayabyab of China Shipping-CSCL, Rhian Ramos and Christian Lozano of ICTSI Michel Azrak of CMA-CGM, Mathias Drost of CNC / CMA, Jay Valdez and Voltaire Wycoco of ICTSI, Fidem Sigaya of CMA-CGM and Leo Singueo of ICTSI Renato Mamaril of ICTSI and Froilan Barcala of Citadel Hyundai Fernando Gaspar of ICTSI, Nestor Gimenez of OOCL and Rhian Ramos Leah Ramos and Joel Zarate of OOCL Jun Lacson of MOL, Joey Ilagan of TMS Shipping Agencies ACL PIL, Christian Lozano of ICTSI, JM Ilagan of TMS Ship Agencies ACL PIL and Ricky Sanchez of OOCL River Wang and Tanie Lacsamana of Sky International / Yang Ming; Roberto Locsin of ICTSI; Ben Qing of SITC; Rhian Ramos; and Charlie Capistrano of Standard Liner Clients gearing up for ‘Trip to Jerusalem’ game Leo Singueo of ICTSI with Mathias Drost of Hapag Lloyd. Roger Teberio of PTC Group, Mel Francisco of Wan Hai Philippines, Wallace Lin of Wan Hai, Fernando Gaspar of ICTSI, Shen Frang, Egay Sales of Evergreen, and Rhian Ramos The band Highway 54 provided entertainment for the party guests. Ricky Sanchez, Joel Zarate and Leah Ramos of OOCL; Joey Ilagan of TMS Ship Agencies ACL PIL; Gregorio Cayabyab of China Shipping Manila Agency; Rhian Ramos; a guest; Bobby Chua of Ben Line-TS Lines; JR Dayco and Faith Manay of Maersk-MCC Transport; Dado Pena of MOF Hanjin; Ermalyn Echavez of Hapag Lloyd; and Mr. Christian Lozano of ICTSI 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 Te r m i n a l S e r v i c e s , I n c . 17 PORTFOLIO INTERNATIONAL EDITION ICTSI NEWSBREAK ICTSI, NMPI-NAFLU first joint Christmas celebration International Container Terminal Services, Inc. (ICTSI) and the labor union of its flagship Manila International Container Terminal (MICT), the Nagkakaisang Manggawa sa Pantalan ng ICTSI (translation: United Port Workers of ICTSI) – National Federation of Labor Unions (NMPI-NAFLU), celebrated Christmas last 19 December 2014 at the Engineering Department grounds. This was the first time that ICTSI and NMPINAFLU celebrated Christmas. Employees from various departments showcased their talents in a group presentation contest won by the Engineering Department. Raffle prizes were also given away. The celebration was highly anticipated by employees. Last year, the Company decided to forego of Christmas parties to empathize with the survivors of Typhoon Haiyan. The funds for the parties were instead donated to relief efforts in the typhoon ravaged areas through the ICTSI Foundation. Top prize winners for the group presentation from the Engineering Department Sherwin Y. Sanchez (left), ICTSI-MICT HR Assistant Manager, hosted the party together with Atty. Michael Rainer L. Alcazar, ICTSI Industrial Relations Officer. Leonardo Escala, NMPI-NAFLU President addressed ICTSI employees and union members in his Chrismtas message. A celebration of the Holy Eucharist marked the start of the joint Christmas party of ICTSI and NMPI-NAFLU. Fr. Jess Malit (right) presided over the mass. With him were Melody Rebudiao (left), Assistant Manager – MICT Accounting, and Ike Bancoleta of Administrative Services. Raffle time: Michael Z. Villarin (left), ICTSI Human Resources Supervisor assists Rodrigo G. Lachica, MICT Controller and Accounting Director in picking the first batch of raffle winners. 18 Marlon Besa, NMPI-NAFLU Secretary, also delivered a Christmas message before the start of the party. Noel M. Monzon, MICT Operations Manager, delivered the opening remarks on behalf of ICTSI management and thanked everyone for their dedication to ICTSI. Hosts Michael Alcazar (left) and Sherwin Sanchez (right) assist Narlene A. Soriano, ICTSI Head of Public Relations, in selecting another batch of raffle winners. 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 Te r m i n a l S e r v i c e s , I n c . International Container Terminal Services, Inc. JANUARY 2015 SPOTLIGHT AGCT at CEE Futurail Conference 2014 AGCT in annual Slovakian freight forwarders meet By Iva Roman By Iva Roman Adriatic Gate Container Terminal (AGCT) participated in the CEE Futurail Conference 2014 last 23 – 24 November at the Hotel Aquincum Budapest in Hungary. Organized by the Hungarian Rail Association, the conference was attended by key stakeholders in the transport sector of the Eastern European nation specifically railway operators, shipping lines, port operators and freight forwarders. Phillip Marsham (right), AGCT Chief Executive Officer, was a panelist at a round table discussion on “Rail freight development in the Adriatic Region.” Aside from Mr. Marsham, AGCT representatives were Žarko Acinger (left), Commercial Manager, and Iva Roman, Commercial Coordinator. AGCT joins MEDNET for seamless operations in the Mediterranean By Iva Roman Adriatic Gate Container Terminal (AGCT) was among the invited presenters in the annual meeting of the Maritime Club members of the Freight Forwarders Association of Slovakia last 19 November 2014 in Šamorin-Čilistov, Slovakia. Photo shows Iva Roman (left), AGCT Commercial Coordinator, presenting the Port of Rejika, specifically the AGCT, as the ideal trading gateway in the Adriatic Region. Also represented in the conference were the Port of Hamburg, Port of Rotterdam, Port of Koper, and Metrans, the largest railway operator in Slovakia. Adriatic Gate Container Terminal (AGCT) supports MEDNET, a European project, co-financed by the MED Program, aimed at simplifying and harmonizing maritime, port and customs procedures within the Mediterranean region. MEDNET held last 29 October a regional conference with the theme “Towards Facilitated Trade and Sea Transport in the Mediterranean” at the Interncontinental Hotel in Malta. Attended by over 100 stakeholders, the conference had three plenaries. The last plenary, a round table discussion titled “Towards the Ideal Port: the MEDNET Port Operations Observatory in the Mediterranean,” included Ognjen Ružić (right), AGCT Operations Manager, as one of the panelists. He is joined by representatives from the Croatian Customs and Rijeka Port. CRG at port users meet CRG in Asia Logistics Summit International Container Terminal Services, Inc. (ICTSI) participated in “The Ports Summit: A Public-Private Dialogue for Effective Action” organized by the Port Users Confederation (PUC). Held last 17 November 2014 at the Manila Hotel in collaboration with the Center for Strategy, Enterprise & Intelligence, the port users meet was attended by government agencies, industry groups, business leaders and other stakeholders in the logistics and transport sector to address issues in the Port of Manila affecting trade and competitiveness, including the Philippines’ economic performance. Photo shows Christian R. Gonzalez (second from right), ICTSI Vice President and Head of the Asia Pacific Region, together with PUC officials (from left) Bienvenido Basco and Godofredo Mozo, PUC Directors; Noemi Saludo, PUC Chairman and Emeritus; and Dominador de Guzman, PUC Director. Mr. Gonzalez was among the speakers in the Summit’s Session 6 on Cargo Terminal Handling. Aside from discussing issues on productivity, equipment and space, and safety in the terminals, Mr. Gonzalez underscored the use of best practices in technology across the supply chain to make the country’s logistics sector at par with world standards. ICTSI was among the presenters at the 2014 Asia Logistics Summit held last 25 November 2014 at the Raffles & Fairmont Hotel in Makati City. Organized by the Asian CEO Forum, the Summit brought together 10 of the Philippines’ key influencers and experts from the logistics sector to discuss pressing issues affecting the supply chain. Photo shows Christian R. Gonzalez (extreme right), ICTSI Vice President and Head of the Asia Pacific Region, during an open forum. He explained the state of the Port of Manila. With him are fellow speakers (from left) Dennis Nixon, Procurement & Supply Institute of Asia Executive Director; Edward Chang, Asia Pacific Express Corp. President and CEO; Lope Doromal, IBM Philippines Chief Technology Officer; and Jack Madrid, LCC eCommerce Solutions CEO. During the Summit, Mr. Gonzalez highlighted ICTSI’s plans to help boost the country’s facilitation of trade. The plans include the expansion of ICTSI’s flagship Manila International Container Terminal; establishment of an inland container depot south of Metro Manila, the Laguna Gateway Container Terminal; and the upgrade of its Subic container handling operations. 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 Te r m i n a l S e r v i c e s , I n c . 19 PORTFOLIO INTERNATIONAL EDITION MEETS AND GREETS Australian, US Embassies visit MICT Representatives from the Australian Embassy in Manila visited last 23 October the Manila International Container Terminal to observe terminal operations and customs processes in the Port of Manila. Photo shows Andrew Hodges (third from left), First Secretary, and Daniel Featherston (fifth from left), Economic Counselor, with (from left) Zinno Gudez of ICTSI Public Relations Office, Christopher Paringit of the Philippine Ports Authority – Corporate Communications, Andrea Frago of the Bureau of Customs, and Christian Lozano, ICTSI Commercial and Risk Management Director. The United States government continues to tap Asian markets for the export of its key agricultural products such as potatoes. Last 29 October, representatives from the Oregon Department of Agriculture and Washington State Department of Agriculture, in coordination with the US Department of Agriculture and US Embassy in Manila, visited the Manila International Container Terminal (MICT) to observe ICTSI’s terminal operations. The visit to the MICT is part of the Philippine leg of a three-country road show in the region. In the US, ICTSI, through subsidiary ICTSI Oregon, Inc., operates Terminal 6 in the Port of Portland. ON-BOARD ICTSI names new CEO for Croatian unit By Iva Roman International Container Terminal Services, Inc. has announced the appointment of Alessandro Becce as Chief Executive Officer of its terminal at the Port of Rijeka, Croatia, the Adriatic Gate Container Terminal (AGCT) effective 15 February 2015. PortFolio is published by International Container Terminal Services, Inc. for its employees, clients, and friends. NARLENE A. SORIANO EDITOR-IN-CHIEF JUPITER L. KALAMBAKAL MANAGING EDITOR DENNIS T. SURIBA ASSOCIATE EDITOR RESEARCHERS ZINNO B. GUDEZ MARIE ANNALIE T. MARFIL PAOLO MIGUEL S. RACELIS JUSTINO RAMON L. TAYAG III RONNEL P. JAVIER PHOTOGRAPHERS DEXTER F. LANDICHO EDWARD R. MILAG JOHN PAOLO C. SIAT PHILIPPINE CORRESPONDENTS MANILA ALBERT JOSEPH R. CANCERAN MA. BERNADETTE C. DE GUZMAN MA. CONCEPCION M. DIZON ROSE A. LOBRIN RICARDO D. PAREDES PAULO CARLO C. PEÑALBA JESTONIE V. VINSON JOY E. LAPUZ FRANCIS J ALGERNON G. BARTOLOME DAVAO CITY CHIARA MAY C. ATIS GEN. SANTOS CITY REJAMNA S. PANDANGAN MISAMIS ORIENTAL ROGEL DENNIS MESIAS Mr. Becce replaces Phillip Marsham, who was posted in the Port of Umm Qasr, Iraq to head ICTSI’s operations at the Basra Gateway Terminal. “I am very pleased that Alessandro has decided to join the ICTSI Group. I am sure that he will be instrumental in the continuous development of AGCT,” says Hans-Ole Madsen, ICTSI Senior Vice President and Head of Europe and the Middle East Region. Alessandro Becce, AGCT CEO. Prior to ICTSI, Mr. Becce was Chief Operating Officer of DP World’s South Container Terminal (SCT) at the Jeddah Islamic Port in Saudi Arabia. Married with two children, the Italian port manager has 17 years of port experience including senior positions in terminal operating companies of the ports of La Spezia, Gioia Tauro and Cagliari. He was President of the Port Authority of Savona-Vado from 2000 to 2004. INTERNATIONAL CORRESPONDENTS ARGENTINA MAGDALENA RIANI BRAZIL FABIANA SOUZA CHINA SEAN XIE CROATIA IVA ROMAN ECUADOR KETEVAN ORAGVELIDZE GEORGIA KATTY OSSA BIANCHI JAPAN TAKETOSHI TOYAMA MEXICO LORENA VALERO PAKISTAN MOHAMMAD ATIQ POLAND MICHAL KUZAJCZYK USA DAVID TRZYZEWSKI LEVEL UP New MICT canteen opens The Manila International Container Terminal opened a new spacious canteen last 1 December 2014. The canteen is located on the ground floor of a newly constructed building beside the ICTSI Administration Building. Sporting company colors and a more comfortable environment, the new canteen replaces the 26-year old canteen formerly located at the ground floor of the Administration building. 20 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 Road Port of Manila, 1012 Manila, Philippines Telephone: +632 / 245 4101 E-mail: jkalambakal@ictsi.com URL: www.ictsi.com/media-center/newsletters/ 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 Te r m i n a l S e r v i c e s , I n c .
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