Connecting Philippine Exports to Global Markets PhilExport General Membership Meeting 30 Oct 2008

1. Connecting Philippine Exports to Global Markets PhilExport General Membership Meeting 30 Oct 2008

2. AGENDA • ATI – Brief Overview • Initiatives for Exporters • 2012 Safe Port Act • Introduction • Screening & Scanning • DPW Accreditations • Pilot Port Overview • Megaports in ATI

3. WHO WE ARE • Publicly-listed firm under the Philippine Stock Exchange • Specializes in handling of containerized, general cargo, bulk/break-bulk cargoes and passenger services • 1,800-strong workforce in our sites • Partner in global port network of DP World • ISO 14001 and OHSAS 18001 certified • Among top 20 firms in corporate governance • ATI aims to be the country’s premier port and logistics investor, developer and operator.

4. ATI ANNUAL THROUGHPUT

5. z Inland Clearance Depot Calamba, Laguna Mariveles Grain Terminal Mariveles, Bataan Port of Batangas Manila South Harbor Port of Gen. Santos South Cotabato ATI FACILITIES

6. MANILA SOUTH HARBOR 60 hectare facility with five piers for containerized, general cargo and domestic shipping operations International Container Terminal • Provides arrastre, stevedoring, warehousing and other services for international shipping lines • Annual Capacity of 825,000 TEUs General Stevedoring • Handles steel, heavy lifts, lumber, motor vehicles, bulk grains and project cargoes • Provides offshore conventional cargo at 18 anchorage berths inside Manila Bay breakwater Domestic Terminal • Most modern Passenger Terminal in the Philippines. • Suitable for roll-on/roll-off, load-on/load-off operations

7. PORT OF BATANGAS • Phase 1: Passenger & Ro-Ro Terminal • Transit point for passenger and inter-island shipping lines • 5.0 million passengers served in 2007 • Preferred entry-point for imported cars (CBUs) • Phase 2: International Container Terminal • Now operational with 2 quay cranes, RTGs, reefer stations, automated gates, others • 300,000 TEU annual capacity • Supply base operations • Provides logistics support to offshore gas and oil exploration companies

8. INLAND CLEARANCE DEPOT • 4.4-hectare all-weather concrete paved container yard which also serves as a customs-bonded warehouse • Strategically located along South Expressway – ideal supply chain link to industrial and economic zones in CALABARZON

9. MANILA MARIVELES 50 km CALAMBA 50 km BATANGAS CITY LINK BETWEEN FACILITIES M a n I l a B a y SHIPPING LANES

10. PORT OF BATAAN Mariveles Grain Terminal • Pioneer and most advanced land-based multi-user bulk grains terminal • Preferred bulk handling terminal of traders, feeds processors and flour millers

11. PORT OF GENERAL SANTOS South Cotabato Integrated Port Services Inc • Strategic gateway for Brunei, Indonesia, Malaysia Philippines – East Asia Growth Area (BIMP-EAGA) • Handles containerized and non- containerized cargoes • Joint venture

12. INITIATIVES FOR EXPORTERS • BOC-Related Initiatives • One on one coordination between BOC and Export clients. • Deferred implementation of 100% x-ray examination of Export boxes. • Export Declaration - online lodgment will allow online immediate transfer of export data to ATI, providing the following benefits: • Faster processing specifically with ATI Billing. • More accurate export data

13. INITIATIVES FOR EXPORTERS • BOC-Related Initiatives • e-Payment • BDO : currently on-going testing; to go live mid-November • Security Bank : modifications were required from ATI due to system changes with Security Bank; estimated to go live mid-December due • UCPB & Unionbank negotiations are currently on-going. • Shuttle Service for Customers • Continuous maintenance & upgrade of shuttle service to ensure high availability for customers shuttling to/from BOC, CFS and SHOC. • Provision of service units during repairs and preventive maintenance.

14. INITIATIVES FOR EXPORTERS 2. Gate Automation • Phase 1 : Pre-Advise System • Implemented in April 2008 • Improved data accuracy and processing time at the In Gates • Phase 2 : Call Up System • Estimated implementation in Q1 2009 • Expected to improve queuing time and scheduling of work inside the yard • Removal of trucks from public road. • Phase 3 : Man-less Gate System • Estimated implementation in Q3 2009 • Expected to automate damage inspection and allow man-less gate implementation thru Optical Character Recognition System

15. INITIATIVES FOR EXPORTERS • Empty Container Depot • Allocation of Empty Container Depot at the Domestic Container Terminal is now open for Container Operators. • Initial Customers that signified interest are: GSL and Evergreen • 4. Inland Clearance Depot (ICD) Logistics • ICD Logistics is a customs-bonded warehouse presenting a superior alternative for import/export customers with the direct operational link to South Harbor Container Terminal

16. INITIATIVES FOR EXPORTERS • Yard Expansion • NIA Development is now 99% complete • This will allow 100,000 TEUs additional yard space per year, providing more dedicated space for Export containers • Two Brand New Units of Quay Cranes • Estimated to be available for Operations within 2010. • This will allow faster handling of containers to/from vessels.

17. 2012 SAFE PORT ACT Introduction to the “Security and Accountability for Every Port Act of 2006” or the SAFE PORT ACT. • The Safe Port Act is intended to improve maritime and cargo security through enhanced layered defenses, and for other purposes. • The US government is promoting and establishing international standards for the security of containers moving through the international supply chain with foreign governments and international organizations including the International Maritime Organization (IMO), the International Organization for Standardization (ISO), the International Labor Organization (ILO) and the World Customs Organization (WCO).

18. 2012 SAFE PORT ACT 1. Screening & Scanning SCREENING • The US Government is requiring 100% of cargo containers originating outside the United States and unloaded at a United States Seaport undergo screening to identify high-risk containers. • SCANNING • All screened cargo found to be of high-risk shall be subjected to 100% scanning. • 100% scanning may be done thru secondary and/or tertiary inspection, thru the X-ray machine or thru physical examination depending on the risks identified.

19. (OSC) (CSI) (C-TPAT) (SFI) (WCO) 2012 SAFE PORT ACT DPW ACCREDITATIONS DPW was selected for pilot implementation of the Security Initiatives in Pakistan and South Hampton.

20. 2012 SAFE PORT ACT Pilot Projects • DP World South Hampton • Over a period of 23 weeks (Sept – Feb) scanned a total of 120,000 containers • System raised 720 alarms • All of them resolved during secondary screening (ASP) in an average time of less than 2 minutes per container. • No operational or commercial impact. • Qasim International Container Terminal - Pakistan • Project commenced in April 2007 • Volume of container handled at QICT increased by 3%

21. 2012 SAFE PORT ACT MEGAPORTS in ATI • ATI-SH has 9 radiation portals strategically installed: • 4 portals at the IN Gate • 3 portals at the OUT Gate • 1 portal at CY01 • 1 portal at Gate 4 • 6 Handheld devices are provided for secondary inspection • Project commenced late September 2008. Over a period of 4 weeks, the portals scanned 43,625 containers • System raised 1,336 alarms which were all cleared for release • New equipments for secondary & tertiary inspection are expected to arrive Q1 2009.

22. 2012 SAFE PORT ACT DP World • We are involved in all current global security programmes and initiatives • We are committed to implementing the highest level of security standards, processes and technology in all our global ports. • We believe 100% scanning of containers is practical and viable globally. • We look forward to the development of a common security standard applicable universally across the supply chain.

23. Thank you.