Stephanie Mae I.

Puyawan

12- ICT

A CASE STUDY: THE INTERNATIONAL CONTAINER TERMINAL SERVICE INC.

COMPANY INFORMATION

I. The International container terminal services Inc. - Company Information

II. Established in December 1987 in the Philippines, ICTSI has become a leading operator, innovator and
pioneer in its field. Soon after consolidating and strengthening our flagship operations at the Manila
International Container Terminal, we launched an international and domestic expansion program and
today, we operate in many countries across the world, employing more than 7,000 people. Along our
journey, we developed the world’s first fully automated international container handling facility at
Victoria International Container Terminal (Melbourne, Australia).Throughout our history we have set out
to achieve excellence and have established new standards in our field. We have an unparalleled track
record in acquiring terminals and adding substantial value by enhancing their efficiency. Our knowledge,
skills and expertise also enables us to navigate and operate in different political and economic
environments.We take pride in our partnerships and work closely alongside governments and local
authorities who are divesting themselves of maritime port assets through privatisation or sale. The
support of our stakeholders is a key element of our prosperity and we always strive to exceed their
expectations of us. International Container Terminal Services, Inc. (ICTSI) (PSE: ICT) is a global port
management company headquartered in Manila, Philippines. Established on December 24, 1987, ICTSI is
the Philippines' largest multinational and transnational company, having established operations in both
developed and emerging market economies in Asia Pacific, the Americas, and Europe, the Middle East
and Africa. The company is ranked the eighth largest container terminal operator, according to TEU
equity volume.[1] International Container Terminal Services, Inc. (ICT) was incorporated on December
24, 1987 to operate, manage and develop the Manila International Container Terminal (MICT), which
handles international container cargo at the Port of Manila. In May 1988, the Philippine Ports Authority
awarded to ICT a concession to be the exclusive operator of MICT for a period of 25 years. ICT started
operating MICT on June 12, 1988. ICT's concession contract for MICT was extended for another 25 years
up to May 18, 2038.The principal business of ICT is the operation, management, development, and
acquisition of container terminals. The primary mechanism for the operation of these terminals is long-
term concession agreements with local port authorities and governments through ICT and its
subsidiaries.The ICT Group handles international containerized cargoes, which include cargoes shipped
in containers for international import or export. ICT and its subsidiaries also provide ancillary services
such as storage, container stripping and stuffing, inspection, weighing and services for refrigerated
containers or reefers, as well as roll-on/roll-off and anchorage services to non-containerized cargoes or
general cargoes on a limited basis.

Currently, the ICT Group is involved in 32 terminal concessions and port development projects in 19
countries worldwide. There are 10 terminal operations in the Philippines - including an inland container
terminal, a barge terminal, and combined terminal operations in Subic - two each in Indonesia, Papua
New Guinea, and Brazil; and one each in China, Ecuador, Poland, Georgia, Madagascar, Croatia, Pakistan,
Honduras, Mexico, Iraq, Argentina, Democratic Republic of Congo, Colombia, Australia, and Cameroon.
ICT also has an existing concession to construct, develop and operate a port in Tuxpan, Mexico.

III. International Container Terminal Services, Inc. (ICTSI) develops, manages, and operates container
ports and terminals. The Company offers container packing, weighing, storage, inspection, cargo
management, and other related services. ICTSI serves customers worldwide.

IV. At ICTSI, we work tirelessly to develop and operate efficient and sustainable port facilities and deliver
the highest possible benefits to our customers, partners, people, shareholders, and to the communities
we serve. Our terminals extend across six continents and are gateways to international trade,
foundations for local economic growth, and drivers of community development.

V. RATING SCALES ON ICTSI SERVICES

5%
19%
16%

20%

41%

Strongly agree Agree Not sure Disagree

VI. . The User shall provide all the documents and information, as may be required by the Terminal
Operator, before the estimated time of arrival of the Container Ship. At all times when a Container
Shipis berthed at the Container Terminal, the User shall ensure that the Container Ship:furnishes
adequate lighting and safe ingress and egress (for the Terminal Operator's personnel); maintains
appropriately qualified and experienced officers and crew aboard in order to maintain an alert watch
and respond to emergencies and to enable the Terminal Operator to provide the Services; maintains
engines in a state of readiness to respond to emergency situations and to avoid delays in vacating the
berth; and its crew members adhere at all times to all Health and Safety Rules; andcomplies with all
applicable laws and legal requirements relating to them, the Cargo, the Containers, their activities and
the use of the Container Terminal. shall not drift away from the Container Terminal while berthing or
otherwise; and should this occur, it shall be the sole responsibility of the master of the ship and the
User.The User and the master of the ship shall be in sole charge of the ship while using any of the berths
or wharves in the Container Terminal, and her safety shall be the sole responsibility of the User. The
User shall be held responsible for any loss and/or damage that may arise from faulty navigation, or by
reason of her breaking adrift from her moorings. No instruction or direction given, or act performed by
the Terminal Operator or its officers, employees or sub-contractors shall place any responsibility upon
the Terminal Operator, with respect to the security or safety of such ship.The User will be solely
responsible for complying with all formalities, procedures and regulations prescribed by the relevant
customs authority and any governmental authority or other agency having legal jurisdiction over the
relevant matter and which arises in connection with the Cargo, Containers and/or the Container Ship
and for obtaining all necessary licenses, and authorizations required for the transportation, exportation
or importation of the Cargo.The User shall: take out and maintain adequate hull and machinery and
protection and indemnity (P&I) Insurance in respect of its Container Ship/s, the latter from a Club being
a member of the International Group of P& I Clubs, together with insurances adequate to cover its
liabilities under this Standard Conditions. If so requested, provide the Terminal Operator with a copy of
the certificate of insurance confirming that these insurance requirements have been complied with.
Such request or absence of such a request shall in no way be construed as waiving the User's obligations
to obtain insurance required by law or under this Standard Conditions. The Terminal Operator reserves
the right to not allow those vessels to berth, which have not complied with the insurance requirements
herein.The User warrants and represents thatit is authorized to contract with the Terminal Operator on
the terms of these Standard Conditions in respect of the Container Ship, the Cargo and the Containers,
and that it is accepting these Standard Conditions not only for itself, but also as agent for and on behalf
of the owners of the Container Ship (if it is chartered by the User), Cargo and Containers or any other
person who is or may become interested in the Cargo;all the documentation and information provided
by the User or its representatives in relation to any Cargo and/or Containers is full and accurate. In
respect of all Cargo and Containers, the User warrants and represents that they are properly and
sufficiently prepared, packed, stowed, labelled and/or marked, and that the preparation, packing,
stowage, labelling and marking are appropriate to any operations or transactions affecting the Cargo
and the Containers are liable to give off any injurious dust, gas, fumes, liquid or radiation; are not
infested, verminous, rotten or subject to fungal attack and not liable to become so while at the
Container Terminal; are not over-heated or under-heated or liable to become so while at the Container
Terminal;will not contaminate or cause danger, injury or pollution or damage to any person, the
Container Terminal, any other cargo, equipment or ship or the environment adjacent thereto or
generally;

require for their safekeeping no special protection (other than as may be agreed in writing between the
parties) arising from vulnerability to heat, cold, moisture, salt, pilferage or proximity to other cargo or
from inflammability but will remain safe if left standing in the open or in covered accommodation at the
Container Terminal if agreed in writing with the Terminal Operate shall not drift away from the
Container Terminal while berthing or otherwise; and should this occur, it shall be the sole responsibility
of the master of the ship and the User. The User and the master of the ship shall be in sole charge of the
ship while using any of the berths or wharves in the Container Terminal, and her safety shall be the sole
responsibility of the User. The User shall be held responsible for any loss and/or damage that may arise
from faulty navigation, or by reason of her breaking adrift from her moorings. No instruction or direction
given, or act performed by the Terminal Operator or its officers, employees or sub-contractors shall
place any responsibility upon the Terminal Operator, with respect to the security or safety of such
ship.The User will be solely responsible for complying with all formalities, procedures and regulations
prescribed by the relevant customs authority and any governmental authority or other agency having
legal jurisdiction over the relevant matter and which arises in connection with the Cargo, Containers
and/or the Container Ship and for obtaining all necessary licenses, and authorizations required for the
transportation, exportation or importation of the take out and maintain adequate hull and machinery
and protection and indemnity (P&I) Insurance in respect of its Container Ship/s, the latter from a Club
being a member of the International Group of P& I Clubs, together with insurances adequate to cover its
liabilities under this Standard Conditions.If so requested, provide the Terminal Operator with a copy of
the certificate of insurance confirming that these insurance requirements have been complied with.
Such request or absence of such a request shall in no way be construed as waiving the User's obligations
to obtain insurance required by law or under this Standard Conditions.The Terminal Operator reserves
the right to not allow those vessels to berth, which have not complied with the insurance requirements
herein.

VII-In the service industry, the regular assessment of service quality is considered as a means of
promoting the quality of services. Container market is no exception, and the quality of providing service
in a container terminal is of prime importance in attracting new customers and maintaining the existing
ones. The main aim of present research is to evaluate the quality of service being offered at Shahid
Rajaee Container Terminal (SRCT) in Bandar Abbas port. The evaluation process uses SERVQUAL model
which is an appropriate tool for measuring the service quality, identifying and analyzing available gaps
between service expectations and perceptions. Target population in this research includes customers of
SRCT. The standard and customized questionnaires were distributed among 165 samples, out of which
127 (77%) were returned. For the purpose of data analyses, initially the reliability of SERVQUAL model
was checked, and then paired sample t-test was performed to reveal any possible gap between
expectations and perceptions of respondents. Finally, TOPSIS was used to rank the 9 main container
service companies in the SRCT. The results indicated that there are significant gaps between customers’
expectations and perceptions in SRCT, in all five dimensions of services quality. Additionally, from
weighing point of view, ‘Tangibles’ was the most important dimension, followed by ‘Reliability’,
‘Assurance’, ‘Responsiveness’ and ‘Empathy’. In addition, ‘Tangibles’ dimension had maximum gap and
‘Empathy’ dimension had minimum gap between customers’ expectations and perceptions. Finally, after
ranking companies, BandarAbbas Aria Container Terminal (BACT) Company was ranked first among nine
companies in satisfying customers’ expectationstQuality elements that are important to terminal
customers are reliability, flexibility, availability, time, costs, control, and after sales support. Overall, it is
important for the terminal operator to provide services that deliver excellent quality and fit into the
value chain of its customers. From past and current research it follows that especially reliability and
costs (related to quality) are important quality dimensions for the overall quality. Theory shows that
structural measurement of quality is possible and this also holds for quality of container terminal
services. If measurement takes place, knowledge of the quality performance is the result. Probably, this
knowledge about the quality performance results in a need for improvement. This improvement of
terminal quality may result in a better price for the services provided. At this moment, it is not possible
to compare terminal service quality on this regular bases, as no data are available.