ICTSI’s Portland unit affected by work stoppages

MANILA, Philippines - A unit of International Container Terminal Services Inc. (ICTSI) of gaming and port mogul Enrique Razon has been affected by work stoppages and slowdowns in Portland, Oregon.

A company statement said operations of ICTSI Oregon Inc. at the Port of Portland’s Terminal 6 has been hampered by work stoppages and slowdowns by members of the International Longshore and Warehouse Union (ILWU).

 “The ILWU has escalated its efforts against ICTSI Oregon Inc. as of late, far beyond what other West Coast ports are experiencing,” the company said.

ICTSI said ILWU engaged in approximately 36 work stoppages and slowdowns of various types and for varying durations during the Christmas holidays.

It added that similar efforts, along with intentional labor shortages, have continued into the first month of 2015. 

Last week, ILWU ordered a 12-hour work stoppage commencing at 7 a.m. and some members worked during the morning but walked off the job without notice at 1:15 p.m. 

 “Work stoppages like this cause serious hardship to truckers, shippers, and the general public,” ICTSI added.

The port operator pointed out that productivity at Terminal 6 continued to fall well below acceptable historical levels. 

ILWU labor was producing approximately 24.8 moves per hour prior to the labor dispute that started in June 2012.

However, ILWU labor productivity fell 47 percent to 13.2 moves per hour in the last quarter of 2014.

 “This level of production is far below industry as well as Terminal 6 standards,” ICTSI said. 

Terminal 6 is the only international shipping container terminal in Oregon and is a powerful economic engine to the region that offers significant benefits to thousands of businesses, workers and consumers.

The port operator warned that ILWU’s deliberate and continuous work delays since June 2012 threaten the terminal’s future viability as a critical hub of regional economic activity.  

“For the sake of the state’s long-term economic well-being, ICTSI Oregon Inc. strongly encourages the ILWU to end its work stoppages, slowdowns and labor shortages, and increase port productivity to historical levels,” the company said.

ICTSI is the largest port operator in the Philippines and has a portfolio of 29 container terminal operations in 21 countries across six continents.

Earnings of ICTSI climbed five percent to $142.3 million in the first nine months of last year from $135.7 million in the same period in 2013 on the back of higher volume handled by its domestic and international ports.

Gross revenues from port operations jumped 25 percent to $779.2 million from $624.7 million amid the 17 percent increase in handled consolidated volume to 5.41 million twenty foot equivalent units (TEUs) from 4.63 million TEUs in the same period the previous year with the launching of new terminals in Manzanillo, Mexico (CMSA) and Puerto Cortes, Honduras (OPC).