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::Industry News::

December | November | October

October 29 l October 27 l October 22 l October 20 l October 15


RP air cargo traffic down 4.53% in first eight months

INTERNATIONAL cargo and mail traffic in the Philippines dropped 4.53% in the first eight months of the year, according to latest statistics from the Civil Aeronautics Board (CAB).

Inbound and outbound cargoes from January to August totaled 180,645,964 kilograms, slightly lower than last year's 189,225,058 kg.

Even if it did not submit cargo figures for July and August, Philippine Airlines' (PAL) total for the first half of the year was still higher than other airlines' total for the first eight months, making it the leading international cargo carrier for the period. The flag carrier moved 25,828,227 kg for the first half of the year, lower than the 28,340,464 kg it handled in 2002.

Second top cargo carrier was United Parcel Services (UPS) which reported handling 18,497,184 kg, a whopping 168.67% increase from last year's 6,884,643 kg. UPS, whose hub is located in Clark, Pampanga, is currently lobbying for the granting of the Seventh Freedom right to strengthen its domestic operations in the country.

Hong Kong carrier woes

Cathay Pacific ranked third for the January-to-August period, handling a total of 15,186,884 kg. The figure is 21.76% lower than the total load last year of 19,101,010 kg. The Hong Kong-based carrier saw its cargo traffic slide in August to 1,823,764 - a 38.83% dip from 2,981,406 kg handled in August 2002. The drop resulted from significant cuts in flight services as a direct result of the SARS outbreak.

Korean Air's cargo and mail traffic saw a 1.87% uptick - from 13,111,334 kg to 13,356,896 kg, placing it in fourth spot for the eight-month period. August figures, however, saw a 9.5% decline to 1,702,125 kg vis-a-vis the 1,880,870 kg recorded in the same month last year.

In fifth place was Singapore Airlines which handled 12,042,790 kg, down 8.25% from last year's 13,125,052 kg. August shipments also fell 2.83% to 1,735,554 kg compared to August 2002's 1,786,036 kg.

Thai Airways came in sixth with 9,227,986 kg, down 6.5% from 9,869,872 kg moved in 2002's first eight months. It saw shipments slide 18.26% in August to 1,063,126 kg from 1,300,683 recorded in the same month last year.

Also in the top ten were Northwest Orient, which carried 8,896,994 kg from January to August, up 13.72% from last year; Nippon Cargo, which moved 8,536,354 kg, down 26.33%; Eva Air, with a total of 7,064,849 kg, also down 21.36%; and Asiana Airlines, with 6,485,323 kg, down 5.93% from last year.

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Economists, cargo experts to speak at Cargo Economics Conference

IN this week's PortCalls-organized Cargo Economics Conference, experts on the economy and the cargo industry will help Philippine cargo industry players identify areas of opportunities and avoid pitfalls for 2004.

The October 23, 2003 event at the Hyatt Regency Manila gathers conference speakers who will detail the latest trends and strategies that will help companies increase profitability in the face of uncertain economic times. They will also provide statistics specific to the needs of the cargo industry.

Participants are CEOs and other key managers of international shipping lines, freight forwarding, customs brokerage, and other third-party logistics service providers.

Asian Development Bank lead economist Dr. Ernesto Pernia will discuss the outlook for the global economy, and National Economic and Development Authority assistant director for National Planning and Policy Staff Scolastica Cororaton, the local economy.

Other speakers are Dr. Hussein Lidasan, transport expert from the University of the Philippines (topic: The Philippine transportation sector); Edgar Milla, regional sales director for global shipping line APL (key trends in international container shipping); Atty. Agaton Teodoro O. Uvero, partner in The Law Firm of David Leabres Uvero Gaticales Sto. Tomas and PortCalls columnist (World Trade: The Changing Landscape); Charles Brewer, DHL Express country manager (prospects for international air cargo); Angelito Colona, ASEAN Federation of Freight Forwarder Associations president (the future of logistics in the Philippines); Sean Perez, Asian Terminals, Inc. vice president for marketing and commercial (terminal operations); Atty. Romeo Sto. Tomas, Philippine International Seafreight Forwarders Association director (seafreight forwarding); Eduardo de Guzman II, Aircargo Forwarders of the Phils. Inc. president (airfreight forwarding); Civil Aeronautics Board (CAB) deputy executive director Atty. Carmelo Arcilla (CAB directions for 2004); and Philippine Ports Authority Port District Manager-Port District Office Manila Leopoldo Bungubung (investment opportunities in ports.)

After every presentation, a panel of private and public sector cargo industry experts will field questions to the speakers.

The panelists include PortCalls columnist Leo Morada, an expert on information technology and its application to transport and the ports; Francis Lopez, managing director of InterCommerce Network Services and an expert on B2B and B2C applications; Erich Lingad, president of the Philippine International Seafreight Forwarders Association and president of International Consolidated Phils. Inc.; Rene Cruzada, Philippine Shippers Bureau deputy executive director; Modesto Ramos, senior vice president of Hanjin Shipping; Cecille Reyes, Transport and Communications assistant secretary; Herman Tuguigui, acting manager of the Port Marketing Division, Philippine Ports Authority; and Col. Leonardo Odo–o, executive director of the Philippine Liner Shipping Association.

The conference is sponsored by Asian Terminals, Inc., International Container Terminal Services, Inc., Pilipinas Shell, WG&A Philippines, Air 21, DHL Express Phils., Negros Navigation, and Smart Communications, and endorsed by the Aircargo Forwarders of the Phils., Inc., Association of International Shipping Lines, Global Cargo Carriers, Inc., and Philippine International Seafreight Forwarders Association.

To secure a place in the conference, call 551-1775, 551-3871, 834-2416, fax 551-3207 or email lalmonte@bworldonline.com.

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ICTSI calls for tenders for Gdynia terminal expansion

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) will press ahead with the US$100-million expansion plan for its Baltic Container Terminal (BCT) in Gdynia, Poland.

ICTSI secured ownership of BCT this year via one of Poland's privatization initiatives, which saw it pay some US$42 million for BCT.
Container traffic at BCT up until the end of September has recorded a double-digit increase over the same period last year. By year-end, the terminal is expected to handle a volume substantially in excess of 247,907 TEUs handled in 2002. Further strong traffic growth is anticipated over the short to medium term with Poland's accession to the European Union, likely to take place as early as next year, expected to play a major part in this. BCT is the primary export/import gateway for container cargo moving between Poland and all other countries around the world with regular liner services connecting to the north European, UK and Baltic ports as well as the growing prospect of a select number of direct services to key world areas.

In its current configuration, BCT possesses four Panamax dimensioned quay cranes and 11 rubber tired gantries (RTGs), and offers an annual capacity of 400,000TEU. ICTSI intends to call for tenders immediately for one additional new quay crane, four 4 RTGs and for the "giraffing" of eight of its existing fleet of RTGs to offer a one over five stacking capacity as opposed to the current one over three stacking capacity. New mobile cargo handling equipment will also be acquired to expedite internal yard movements, and a comprehensive new generation container terminal management and operations system will be installed. The initial tender will include the new and replacement equipment acquisitions projected for the first 10 years of operations. Overall, this first phase US$50 million investment is intended to raise annual throughput capacity at the terminal to approximately 900,000 TEUs a year, and is expected to be completed by no later than 2007.

BCT, with input from its parent ICTSI, is proceeding to call for tenders immediately for all the new equipment and management systems to be introduced under this first-phase expansion. A second tender, primarily relating to the replacement of existing equipment, will be forthcoming after the first eight years of operations. It is estimated that an additional US$50 million will be expended in this second phase.

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10 Ports for Development as World-Class Terminals

THE Philippine Ports Authority (PPA) has identified 10 ports to be developed into world-class terminals. These are the Manila North Harbor, South Harbor, Manila International Container Terminal, and the Ports of Batangas, Iloilo, Cagayan de Oro, Davao, Ozamiz, General Santos, and Zamboanga.

"Over the years, these ports have witnessed the concentration of trading activities, accounting for 92% of the total cargo traffic of base ports and about 80% of cargo traffic of government ports," PPA General Manager Alfonso Cusi said.

According to him, while other ports are emerging as equally important cargo distribution centers, the 10 remain as the major gateways, with their level of operation regularly used as a barometer of port and economic activities.
Cusi noted after these ports have met international standards before the 2010 goal, the development of others with equally high potential will immediately follow. - Maritess R. Mesias

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Hanjin Shipping receives Ocean Carrier Excellence Award

HANJIN SHIPPING recently received the Ocean Carrier Excellence Award from Global Shippers Association (GSA).

A shipper's association headquarted in Atlanta, Georgia, GSA is composed of over 20 internationally recognized companies, including General Electric and its affiliates, Thomson Multimedia, and PPG Industries.

GSA presents the award annually to logistics-related companies judged to have provided excellent and trustworthy service. GSA for the first time this year named an ocean carrier as a recipient of the award.
On October 7, GSA president Ron Painter presented the award to President Won-Pyo Choi of Hanjin Shipping at Hanjin's world headquarters located in Seoul, Korea.

At the awards ceremony, GSA expressed its appreciation to Hanjin Shipping for providing ten years of excellent service.

In a statement, Hanjin Shipping said it is honored to receive the award. "It is a recognition of our dedication to providing the most competitive and reliable services to our customers worldwide," it said.

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BOC adopts New Technologies to ease Shipment Declarations

THE Bureau of Customs (BOC) is adopting new technologies from New Zealand and Singapore to enable importers and brokers to electronically transact business with the bureau via the internet.

Crimson Logic Philippines and Zeus Networks, Inc. recently signed an agreement with the BOC to develop and implement internet-based applications and solutions to allow importers and brokers to submit and apply for import and export entry declarations through the internet.

Crimson Logic, previously the Singapore Network Services, developed the internet-based E-government system for the Singapore government. Zeus, meanwhile, has a tie-up with Electronic Commerce of New Zealand which developed the automated Customs system for the New Zealand Customs.

Customs commissioner Antonio M. Bernardo said the project will allow importers and brokers to submit and receive confirmation on manifest, document, assessment, payment, tracking and online release of shipments.
The two companies will be accredited as non-exclusive service provider and offer their e-customs services directly to brokers and importers that will, in effect, empower the bureau's stakeholders to electronically transact business.

"Conceptually, BOC stakeholders, specially small-and-medium scale enterprises or one-time importers (balikbayans and OFWs) can outsource their IT needs on a pay-per-usage arrangement without having to invest or having access to expensive computer software connectivity," Bernardo said.
The companies will likewise explore and implement the use of wireless, mobile and cellular phone technologies in relation to the project which would allow importers and brokers to transact business with the bureau even on the move.

"They will also automate the electronic submission and acquisition of permits and clearances with other government agencies," Bernardo said.

The project, which is at no cost to the bureau, will also provide to the existing modes of documents for submission to the bureau, direct trade input electronic data interchange through value-added networks, and the entry encoding center.

Bernardo said the project will be carried out immediately following the signing of a memorandum of understanding. The bureau is now processing requirements for the release of a P500-million grant which will be used to replace aging computer equipment and upgrade software.

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PISFA offers new subjects at 11th Multimodal Transport Seminar

NEW modules will be tackled at the Philippine International Seafreight Forwarders Association (PISFA) 11th Advanced Multimodal Transport/Logistics Seminar on October 28-30 at the Skyland Hall.

One of the new subjects in the three-day seminar is Logistics and Supply Chain Management to be handled by Danilo Ang. Ang took the Training of Trainors course in Bangkok last year.

Jun Nonan will discuss the finer points of Project Cargo Logistics while Reymaldo M. Lacson will explain Warehousing and Distribution. Newly elected PISFA president Erich H. Lingad will talk about Marketing and Sales.
PISFA training director Romy Sto. Tomas will discuss International Conventions and Liability, Management and Organizational Structure of a Multimodal Transport operator.

Registration for the seminar is ongoing. Interested parties may get in touch with Julie Sudia at the PISFA Secretariat (tel. no. 816-0446). Non-PISFA members are also welcome. Deadline for submission of registration form is on October 23, 2003.

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PISFA elects new set of officers

THE Philippine International Seafreight Forwarders Association (PISFA) elected recently its new set of officers for the year 2003-2004, following the resignation of Monico David, Jr. from the presidency and Pinky Paner's permanent assignment to the US.

International Consolidator Philippines, Inc.'s (ICPI) Erich Lingad is now the new president, and Transmodal International, Inc.'s Irene Manguiat the executive vice president.

The other officers are: Eagle Express' Nelson M. Mendoza (VP, Internal); Target Airfreight Phils.' Alice Mayo (VP, External); Sea-Jet International Forwarders, Inc.'s Bienvenido C. Anunciacion (Treasurer); Awards Cargo's Tom De Vera (Auditor); and Pacific Shipping and Distribution, Inc.'s Jose Roberto Adriano (Corporate Secretary).
Anunciacion and Adriano are the newest board members.

David resigned following his promotion to a more senior position as member of the board of Aspac International. At the same time, he was assigned to manage Aspac Group's IT project company, Alpha Systems Technologies, Inc.
As the new president, Lingad said the plans and programs of the association remain intact and on track."I'd like to continue the project of Mr. David, one of which is the creation of our own website," he said.

The website would help ease business transactions among seafreight forwarders and create transparency in terms of basic information and finances. The association said the project should be carried out next year.
A major project for the term, Lingad said, is the transfer of jurisdiction over seafreight forwarders to the Maritime Industry Authority under the Department of Transportation and Communications from the Philippine Shippers' Bureau, an agency under the Department of Trade and Industry.

Another association thrust is attracting more members to be active. "At times like these, we need not bite each other's heads off. We need to hold hands to prove that the sector is competitive enough compared with other countries," Lingad noted.

Trhe association will also continue to hold sport activities including golf, bowling and billiards tournaments.
On October 23, 2003, PISFA will hold a general membership meeting at the Heritage Hotel to be keynoted by Ateneo Center for Continuing Education executive director Larry Marasigan. PISFA, together with the Aircargo Forwarders of the Philippines and other industry associations, is setting up an Institute for Logistics and Transportation with the Ateneo unit. - Maritess R. Mesias


December
| November | October

October 29 l October 27 l October 22 l October 20 l October 15

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