PortCalls

Portcall goes online with portcall.com

STARTING November 6, 2003, PortCalls may be accessed 24 hours a day through its website, www.portcalls.com.

To be launched at the Hyatt Regency, the site contains all information from the print edition such as the latest Industry News, Opinion (DMAP Perspective, Across Borders, ITinerary, PISFA at Work, Narrow Channel, The Next Wave, In Their View and Did You Know) International Shipping Schedules, Air and Sea Consolidation Services, and Classifieds, plus more - a schedule of Industry Events, Directory of Cargo Service Providers in the Philippines (directory entries from the annual Philippine Cargo Transport Directory), and an Online Poll.

Readers may also ask questions related to the Philippine transport and logistics business through the "Contact Us" section.

"Rates & Specs" contains information on advertising rates as well as ad specifications for the print and online editions.

Finally, there's "About Us", a narrative on the publication's beginnings and vision.

The website allows PortCalls to supply the most up-to-date information to our subscribers faster and to reach beyond our 15,000 base - all these in keeping with our desire to constantly raise the bar of service for our readers.

Containerized shipments up 5.6% in 1st nine months

CONTAINERIZED shipments in ports throughout the country grew 5.60% from January to September, according to statistics from the Philippine Ports Authority (PPA).

Containerized cargoes leaped from 2,493,348 twenty-foot equivalent units (TEUs) to 2,632,857 TEUs
(see table). Domestic-bound containers reached 1,225,003 TEUs, an increase of 1.78% from 1,203,612 TEUs.

For the period in review, foreign traffic continued to register positive growth for both imports and exports, totaling 1,407,854 TEUs. This was 9.16% higher than last year's 1,289,736 TEUs. Imported containerized shipments went up 8.38% while exports rose 9.95% during the period.

But for September alone, PPA data showed domestic containers sinking 4.32% to 136,266 TEUs from 142,415 TEUs in the same month last year.

Cargo throughput in September also went down 0.78% from 12.570 million MT to 12.472 million MT. Interisland shipments and exports posted growth of 1.47% and 1.05%, respectively.

Total cargo throughput registered a 3.1% increase during the nine-month period, or from 107.964 million metric tons (MT) to 111.315 million MT. Of these, domestic cargoes accounted for 60.425 million MT, up 4.97% from 57.566 million MT registered during the same period in 2002. Foreign cargo throughput managed to inch up 1% with 50.890 million MT.

PPA said export volume rose 6.43% to 14.787 million MT from 13.894 million MT while imports fell 1.10% to 36.103 million MT from 36.504 million MT during the period.

Total shipping traffic from January to September was 215,794, up 3.66% from last year's 208,174. Domestic shipping operators calling at PPA ports grew 3.78% from 201,087 to 208,697. Foreign shipcalls posted a slight increase of 0.14% from 7,087 to 7,097.

Ports and terminals under PPA's jurisdiction were utilized by about 38.332 million passengers, 10.99% higher than last year's 34.538 million. Foreign travelers, on the other hand, totaled 0.033 million.

PPA net earnings register 12.85% decline in Jan-Sept

THE Philippine Ports Authority (PPA) reported a 12.85% drop in net income for the first nine months of the year to P1,822.06 million from P2,090.66 million in the same period last year (see table).

The decline was due to expenses related to measures supporting government's drive to reduce business costs as well as non-recurring expenditures.

"PPA has more expenses this year in terms of dredging, repairs and maintenance, depreciation as well as court-approved payments to TEFASCO and Blue Crown which were not regular expenses," it explained.

Still, the port authority expressed confidence it will exceed its net income target by a little over 10% this year.
Instead of the committed P1.23 billion net income by year end, PPA is now expecting an income of P1.361 billion or an excess of P125.85 million for 2003 based on actual performance from January to September.

Net income for September totaled P225.82 million, down 6.76% compared with P242.18 million earned in the same month last year.

Generated gross revenue for the nine-month period was P3,975.55 million, slightly higher by P36.36 million or 0.92% compared with the same period in 2002. The positive performance was attributed to the 4.11% increase in port revenue occasioned by growth in traffic, and the impact of foreign exchange rates on dollar-denominated tariff items.

The revenue might have been a little more, PPA noted, were it not for the 36.87% or P112.94 million reduction in the Fund Management Income (FMI) resulting from the decline in interest income yields from an average 8.22% to 5.34%.

"Further, the increased cash requirements to fund various engineering projects have lowered the level of investible funds and, consequently, the level of FMI during the period under review," PPA said.

Overall gross revenue for the month of September consisting of port revenue and FMI also saw a 1.11% increase despite the 22.57% slip in FMI.

The port agency's port revenue managed to grow 2.76% from P417.55 million in September last year to P429.07 million this year.

Total expenses surged 16.50% to P2,153.49 million in January to September 2003 from P1,848.53 million last year. The increase, PPA noted, was brought about by higher personal services expenditure due to increased monetization of leave credits, additional number of employees, adjustment in allowance of personnel, increased payment for taxes and the payment of awards and indemnities per court ruling.

Guidelines for setup of ICBWs out

THE Bureau of Customs (BOC) recently outlined rules in the establishment of industry-specific customs bonded warehouses (ICBW) servicing the semiconductor and electronics industry.

"The new policies aim to rationalize and simplify existing procedures to enhance the competitiveness of the industry in the global market," BOC said.

Under the new provision, a written certification from an industry group must accompany any application to establish and operate an ICBW.

Also required is a list of materials and supplies to be imported; projected semi-annual volume/quantity of materials to be imported; and list of customers belonging to the semiconductor and electronics industry with corresponding certification from the Philippine Economic Zone Authority.

ICBWs established to service the semicon industry are allowed to operate for a period of three years, renewable three months prior to expiration of the license.

Expansion is allowed following approval from the Customs district collector. The expansion is exempt from payment of the annual warehouse supervision fee.

Imported warehousing articles may be stored at the ICBW for a period of nine months. Such commodities must be withdrawn within the period but may be extended for another three months.

Prohibited warehousing shipments include fibers, yarns and accessories for the manufacture of garments, finished articles and articles not included in the approved list of importable materials and supplies.

ATI net income slides 34% in first nine months

ASIAN Terminals Inc.'s (ATI) net income for the first nine months dropped 34% to P296.4 million from P446.1 million in the same period last year.

ATI, which operates four of the country's major international marine terminals, handled less non-containerized cargoes during the period but saw steady growth in containerized cargoes - up 7.2% at the South Harbor in the Port of Manila, and 64.2% at the Port of Batangas.

Consolidated revenues for the first nine months grew 3.1% from P2.61 million to P2.69 million over the same period last year.

The South Harbor Container Terminal handled 455,785 twenty equivalent units (TEUs) mainly because of the increasing shift to containerized trade and new accounts.

The Port of Batangas, exclusively operated by subsidiary ATI Batangas Inc., handled 10,236 TEUs from 6,236 TEUs over the first nine months last year. The increase was attributed to growth of Calabarzon-based industries.
Poor demand and importation of construction materials, a drop in grain importations and a slowdown in the movement of the livestock market slowed the volume of non-containerized cargoes handled at ATI-operated marine terminals.

The South Harbor General Stevedoring Terminal handled 20.4% less shipments, from 3.3 million metric tons (MMT) to 2.6 MMT, due to the limited importation of steel.

Mariveles Grain Terminal, on the other hand, handled 1.2 MMT over the first nine months from the 1.5 MMT for the same period last year.

The company's newest investment, the South Harbor Domestic Terminal, has yet to improve its contribution as a revenue source having commenced full commercial operations only in September this year.

ATI chairman and president Richard D. Barclay remains confident the company will take advantage of the downturn. "Year 2003 would be a year to consolidate resources and establish the necessary facilities for a better business prospect in 2004," he said.

Consolidated operating expenses increased 12.6% to P2,014.9 million in the first nine months of 2003 from P1,789.5 million in the same period last year.

In addition to volume factor and higher depreciation from additions to fixed assets, the increase was due to rate increases in salaries, electricity, fuel, insurance and other items of expenses.

Consolidated net other charges, which mainly consisted of interest, increased 5% to P256.7 million in the first nine months of 2003 from P244.4 million in the same period last year.

Consolidated total assets decreased 3.5% to P8,833.3 million as of September 30, 2003 from P9,149.4 million as of December 31, 2002.

Consolidated cash and cash equivalents decreased to P350 million as of September 30, 2003 from P1,199.0 million on December 31, 2002 due to payments of borrowings and of capital expenditures.

PLSA: Interisland shipping still cheaper than international

INTERNATIONAL freight rates remain much higher than freight rates for the domestic transport of containerized cargoes, according to the Philippine Liner Shipping Association (PLSA), formerly the Domestic Shipping Association.
PLSA president Atty. Josephine Uranza said the figures presented by the Davao Chamber of Commerce and Industries, Inc. (DCCCII) during the 3rd Mindanao Shippers' Conference held in Cagayan de Oro City are inaccurate.
DCCCII president Romeo J. Serra claimed domestic shipping cost is not competitive with international shipping cost.
According to him, the freight rate for vessels travelling from Manila to Singapore is $300 or $0.55 per nautical mile. This, he noted, is 31% cheaper than domestic freight rate per nautical mile.
"Similarly, shipping cargoes from Manila to Hong Kong is 85% a lot cheaper than shipping cargo from Davao, which was computed at $0.72 per nautical mile."
Uranza said Serra's presentation is not reflective of the true cost of freight rates as it did not incorporate several factors. "If you're going to compare these freight rates, have them 'meet apples to apples'. Meaning, you must include all costs, all factors in computing the rate for both destinations," she said.
These include costs for terminal handling charge (both origin and destination) totaling $166.55, administrative expenses ($20), and the bunker adjustment factor ($30), she explained.
In all, the Manila-Singapore rate should be $516.55 for 547 nautical miles or $0.94 per nautical mile. Thus, the domestic freight cost on the Manila to Davao route is cheaper, she noted.

BOC works to improve warehousing system

THE Bureau of Customs (BOC) is carrying out an inventory of bonded warehouses to improve collections of long overdue debts.

"Over the years, the system has been prone to abuse by unscrupulous importers and corrupt government officials," according to the Department of Finance (DOF).

The BOC accepts surety bonds as protection for a company's undertaking to export certain articles previously imported into the country duty and tax-free. These products are meant to be used as raw materials in the manufacture of goods for export.

The bonds become due and demandable when an importer withdraws the article from the customs bonded warehouse for domestic sale instead of exporting them. This way, the government can forfeit and convert the bonds to cash.

Bonds also become due when conditions are violated such as not exporting the articles within the specified time.
DOF said the department, through the BOC, will fast track the resolution of this fraud by pursuing the reform measures.

The BOC has also imposed a new mandate which blacklists delinquent bonding firms, the finance department added. "BOC has been conducting consultations with the Insurance Commission to cancel these surety companies' licenses," it said.

It was earlier reported that at least P50 billion in collectibles remain unpaid and the finance department was urged to monitor the growing number of these unsettled obligations, which it admitted to be existing for a long time.

Cebu Pacific sees growth in domestic market with e-ticketing

CEBU Pacific Air, Inc. sees an improvement in its domestic market operations with the advent of electronic ticketing. The airline presently holds a 37% market share.

Danilo Mojica, Cebu Pacific general manager, said e-ticketing is currently being offered on the Cebu-Manila route and will be implemented for Davao and another destination before Christmas. Next year, it hopes to offer the service on all its domestic destinations.

"(e-Ticketing)Éwill benefit passengers by making booking and flying more convenient; it will (also) benefit Cebu Pacific by reducing our paper work and making our ticketing procedure more efficient," Mojica said.

To get an e-ticket, passengers should call the reservation office at 636-4938 to book and pay with a credit card or through Equitable-PCI Fastphone, Fastnet and Fasteller facilities. Customers may also make reservations through the internet and use a credit card to pay.

Once booked, a transaction receipt containing flight details will be issued.

The company said it did not shell out additional investment for the service, but used what has been available for years.

Meanwhile, Mojica said even if the company's focus is the domestic market it is still interested in pushing international services.

It is eyeing to fly back to Singapore where it had a short stint. "We want to make sure we will be there for a longer time. We are crafting a good model before we go. We want a total regional sector plan," he said.

Regular flights to Guangzhou and Xiamen in China are also targeted.

In addition, Cebu Pacific is pushing for flight entitlements to Japan as that country hosts a big number of overseas Filipino workers.

Locally, Mojica disclosed plans to pour in more investments in Cebu, including the construction of a hangar. "We're looking at Cebu as the hub of Cebu Pacific. We will make sure our infrastructure in Cebu is fit for an operation that is going to expand in the future, whether domestically or internationally," he said.

ICTSI's Jan-Sept consolidated net profit registers decline

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) reported a drop in consolidated net profits for the third quarter this year to P98 million from last year's third-quarter profits of P137 million. The lower earnings were due to higher interest charges from additional long-term borrowings, the company said.

On a nine-month basis, net profits totaled P320 million, compared to P3.6 billion profits in the same period last year. In 2002, ICTSI reported extraordinary income of P3.7 billion from the completion of the sale of an ICTSI subsidiary, IIHC, to a subsidiary of Hutchison Port Holdings Ltd.

On a recurring basis, this year's nine-month profits declined 6%.

Despite the plunge in consolidated net profits, the teminal operator reported robust collections for the third quarter and the first nine months of the year due to increasing group-wide volumes and new revenues from a new container.

Nine-month consolidated revenues grew 33%, from P4 billion in 2002 to P5.3 billion as of September 30. During the third quarter, consolidated revenues totaled P1.9 billion, up 24% over the same period last year.

The strong revenue growth was attributed mainly to the consolidation of new revenues from the Baltic Container Terminal (BCT) of P952 million. ICTSI took over operations of the terminal at the Port of Gdynia in June this year.

Group-wide volume for the third quarter of the year increased 22% from 349,128 twenty-foot equivalent units (TEUs) to 426,774 TEUs. ICTSI volumes were boosted by new throughput from BCT of 78,933 TEUs which reflected a 25% growth from last year's volume for the same period.

On the year-to-date basis, group volume grew 28% from 938,042 TEUs to 1,202,479 TEUs. MICT handled 823,909 TEUs, up 8% from 764,791 TEUs for the first nine months of the year. BCT reported a 21% growth in its year-to-date volume of 218,743 TEUs.

Third-quarter EBITDA improved 13%, from P509 million to P576 million. Nine-month EBITDA amounted to P1.5 billion, a 21% improvement over last year's P1.3 billion.

TNWA expands fleet on NY Express Service

THE New World Alliance (TNWA), which consists of APL, Hyundai Merchant Marine (HMM) and MOL, is deploying larger, faster vessels on its fixed-day, weekly, all-water, New York Express (NYX) service, which was launched earlier this year. The fleet expansion will increase capacity on TNWA's NYX service, as well as shorten transit times between key destinations in Asia, Panama, and the US East Coast.

TNWA will rotate eight 4,000-TEU (twenty-foot equivalent units) vessels to replace the nine 3,000-TEU vessels currently deployed.

The new deployment commenced with the sailing of the MOL Expeditor, voyage #004 E, from Shanghai on November 15, 2003. The NYX fleet enhancement will provide TNWA customers with some of the market's fastest transit times, both eastbound and westbound.

On the NYX eastbound leg, cargo sailing from Kaohsiung or Hong Kong to New York will take just 21 and 22 days, respectively. The transit time from Shanghai to New York will be an equally rapid 26 days. On the westbound leg, cargo will sail from New York to Yokohama in only 24 days and to Busan in 26 days.

The NYX port rotation is: Shanghai, Yantian, Hong Kong, Kaoshiung, Manzanillo (Panama), New York, Norfolk, Savannah, Manzanillo (Panama), Yokohama, Busan, and back to Shanghai.

TNWA's North American service profile will now include nine fixed-day, weekly services in the Trans-Pacific trade. Seven will call at the North American West Coast and the other two, the Atlantic Pacific Express (APX) and the NYX, will provide all-water transit between Asia, Panama, and the US East Coast.

TNWA also operates three fixed-day services in the Asia-Europe trade and three fixed-day services in the trans-Atlantic trade.

The TNWA member carriers control a combined fleet of approximately 100 containerships.

Conversion facility for right-hand drive vehicles approved

THE Bureau of Customs (BOC) implemented recently the rules and regulations governing the establishment, operation and control of a Special Customs Bonded Conversion Facility (SCBCF) for forfeited right-hand drive vehicles (RHDs).

The establishment of such a facility will promote the commercial value of seized or forfeited RHDs in possession of the bureau, and help speed up their transfer after their sale at public auctions.

BOC said the SCBCF will serve as a Department of Trade and Industry- and Land Transportation Office (LTO)-accredited motor vehicle repair shop that will convert RHDs into left-hand drive vehicles.

To be accredited as an SCBCF, the facility operator must pay an annual registration fee of P25,000 to the bureau, and post a general bond of P300,000.

BOC said bureau personnel may be assigned to monitor the operation of the facility.

RHDs for transfer from the port to the SCBCF must first be examined by the BOC's Chief Auction and Cargo Disposal Division with a representative from the owner.

Operators will be required to settle a Customs performance bond amounting to P200,000.

Converted vehicles may be pulled out from the SCBCF upon the issuance of a Certificate of Conversion, LTO-Motor Vehicle Inspection Service, an examination report by the Customs examiner, and clearance from the district collector.

Change in Harbor Center permit to mean P32M loss for PPA

AN annual revenue loss of P32 million is expected by the Philippine Ports Authority (PPA) if it grants Harbor Center Port Terminals, Inc.'s (HCPTI) request to amend its permit to operate as a private commercial port.

PPA assistant general manager for Operations Benjamin Cecilio said the estimated loss is primarily due to the imposition of discounted port charges of up to 50% of the corresponding charge at a government port and an annual privilege fee of P20,000 in lieu of the 10% government share.

The deficiency, according to Cecilio, is based on the assumption that there is only one berth (246.1 meters) available for non-locators at R-II with an average stay time of seven days, and an estimated berth capacity of four foreign vessels in one month or 48 vessels in a year.

The annual estimated revenue loss from cargo handling of the government contractor, on the other hand, is computed at P97,075,200 for non-containerized/non-palletized cargoes and P20,334,816 for containerized cargoes.

Cecilio also noted there were restrictions in both the International Container Terminal Services, Inc. (ICTSI) and Asian Terminals, Inc. (ATI) contracts which give exclusive rights to both parties to engage in terminal and cargo handling operations over their respective areas of operations.

In a letter to the PPA, ICTSI executive vice president Edgardo Abesamis said, "If the PPA will allow a third player for international container cargo in the Port of Manila, the basic premise for ICTSI's fee commitment would be breached."

ICTSI won the bid for the Manila International Container Terminal (MICT) contract based on its bid to pay PPA $313,756,000 in fixed fee plus a variable fee equivalent to 20% of its gross revenue over the life of the contract.
Abesamis said ICTSI would not have submitted such an "agressive" bid had it been informed that a third player would be allowed to operate in the Port of Manila for international cargo at the time of the bid.

"Every container diverted from the MICT to the Manila Harbour Center would be a loss to ICTSI, not only for the share in the variable fee, but also for the contribution toward the payment of the fixed fee and its investments. It is not fair for PPA to change the rules of the game after the bid because the existing operator is put at a disadvantage and will be gravely prejudiced," he stressed.

ATI, on the other hand, asked PPA to "stand firm on its commitment to support the company in its revenue-generating activities". To grant HCPTI a permit to operate as a private commercial port will radically reduce the volume of cargo at the South Harbor, it added. "If and when ATI loses revenue to HCPTI, the PPA and [therefore the government] will likewise suffer a considerable decrease in revenue. Any revenue that may be generated by HCPTI, no matter how substantial, will not be of any significance as it will not be getting any share" it noted.

Customs helps stop flow of fake goods

THE Bureau of Customs (BOC) is doing its share in lessening the flow of counterfeit goods in the country.

In the recently concluded Seminar on Preventing Entry/Exit of Counterfeits Thru Stronger Border Controls held at the Manila Hotel, BOC Intellectual Property (IP) head Anju Nereo Castigador said the bureau, through Customs Administrative Order 6-2002, is ensuring the strict implementation of the IP Code.

"While CAO 6-2002 is limited to the entry of counterfeit products, the bureau is also open to exporters and manufacturers who complain about the possible release of fake products imitating their own outside of the country," he explained.

CAO 6-2002 was imposed September last year in conformity with international standards defined in the Trade Related Aspects of Intellectual Property Rights Agreement.

Castigador pointed out the order specifically identified IPR as consisting of copyright and related rights, trademarks and service marks, geographic indication, patents for invention, utility model and industrial design, lay-out designs of integrated circuits and protection of undisclosed information.

Under the provision, BOC maintains an IPR Registry where IP holders may record their IPR and other relevant information about their products through the Customs Commissioner. This requires a payment of P2,000 per product which shall be valid for two years. "On the basis of the recordation, BOC shall monitor and inspect on its own initiative suspect imports to determine whether such products are liable for seizure and forfeiture..." the bureau said.

Are you ready for any emergency on board?
By VICTOR O. HONTIVEROS, Biophil Sales Manager

BEING an archipelago, the Philippines relies heavily on maritime transport to bring people and goods from island to island. But are our vessels sufficiently ready for any emergency that may arise on the high seas? Are they ready for more serious emergencies such as electrocution, drowning and other accidents that cause respiratory and cardiac arrest?

A first line of defense is Cardio-Pulmonary Resuscitation (CPR). For the uninitiated, CPR is the manual resuscitation of the heart aided by artificial respiration to revive a victim with no signs of circulation and no breathing. The need for CPR is more pronounced in Philippine maritime conditions, because sudden changes in weather make life for the seafarer prone to accidents. With no 117 or 911 emergency response service to call, CPR may be the only means to keep a victim alive long enough until advanced life support services arrive.

To make CPR even more efficient, Dr. Andrew Davaris, a General Practitioner in Australia, invented CPREzy. This new interactive aid is the world's first complete CPR assistance kit designed to help rescuers administer safe and effective CPR in the event of a medical emergency.

CPREzy comes in a handy carrying case that can be mounted on the wall next to fire extinguishers and first aid cabinets. This portability is crucial because in emergency situations, every second counts: it takes only four minutes for a victim with no signs of breathing and circulation to develop brain damage. CPREzy raises the standard for onboard medical emergency equipment by providing the crew with a means to deliver life-saving CPR as soon as it is needed, without fear or hesitation.

For the safety of its passengers and crew, all ships need to have CPREzy. Ideally, MARINA and the POEA should prescribe CPREzy as a part of the compulsory first-aid equipment on board to protect local travelers and Filipino seamen.

(For more information on the CPREzy kit, contact their exclusive distributor, Biofield Diagnostic Systems, Inc. at telephone numbers 683-0343, 683-0344 or 631-3037, fax them at 631-3039 or e-mail at biophil@i-manila.com.ph)

PPA to construct more passenger terminals

THE Philippine Ports Authority (PPA) is eyeing the construction of more passenger terminals, and is already planning to award consultancy for three passenger terminal buildings in Cagayan de Oro, General Santos City and Manila North Harbor.

The move follows a directive from President Gloria Macapagal-Arroyo to expedite the construction of passenger terminals which will complement the Strong Republic Nautical Highway project of the government.

"The President gave instructions to the Water Transport Cluster that passenger terminals should be given some priority," PPA noted.

Maritime Industry Authority administrator Atty. Oscar Sevilla said the port agency should give high importance to such projects, especially since it was PPA general manager Alfonso Cusi who proposed that unmanifested passengers should not be covered by the insurance.

"By having an efficient passenger terminal, passengers will be assured of having their names listed in the manifest before boarding the vessel," he noted.

PPA assistant general manager for Corporate Affairs and Special Projects Raul T. Santos said the construction of passenger terminals is one of PPA's priorities in the 2004 infrastructure program.

Also part of PPA's priority projects is the Zamboanga Port Expansion and Masao Port Development.
The P213.5-million expansion project calls for the construction of additional berth of 121.5 meters and reclamation for a back-up area of around 8,670 square meters.

The Masao port, on the other hand, requires construction of a wharf with a length of 120 meters and reclamation for the 2,336-square meter back-up area. The port agency approved a budget of P180 million for the contract.
PPA further reported it has already completed 10 projects while four others are 95% or more complete.

NOL moves to reduce gearing, position for future growth

NEPTUNE Orient Lines Ltd (NOL) has moved to further strengthen its balance sheet through a share placement of 236 million shares on the back of strong third quarter results.

NOL suspended trading in its shares last November 10.

Releasing third-quarter results that showed a net profit of US$206 million for the third quarter and $294.6 million for the year to date, Chairman Cheng Wai Keung said, "In view of our improved performance and with the industry poised for further growth, we believed that it would be timely to raise capital to reduce our debt levels and prepare for future growth."

Group CEO of the global container transportation and logistics company, David Lim, said, "The placement will strengthen our balance sheet even further, reducing our debt equity ratio, and giving us the flexibility to be able to move quickly to make the most of opportunities that may arise in the future.

"Our industry is growing and we intend to grow with it," Lim said.

He said reducing the company's debt levels also cut NOL's vulnerability to the fluctuations historically common in the shipping industry, allowing the company to ride any future troughs more easily.

Group Chief Financial Officer Lim How Teck said the Group expects the share placement will be completed overnight and aims to raise around US$300 million, which would reduce NOL's net gearing to about one. Lim expects that, going forward, this will further improve through operational gains and divestment of non-core assets.
Institutional investors in Asia, Europe and the United States are being targeted.

The placement is being facilitated through a scrip lending arrangement with NOL's majority shareholder, Temasek Holdings.

Trading in NOL shares resumed November 11.

Credit Suisse First Boston has been appointed as the sole bookrunner for the placement.

MARINA calls for streamlined process in availing RORO project incentives

THE Maritime Industry Authority (MARINA) recently urged the Development Bank of the Philippines (DBP) to come up with more streamlined and rationalized procedures in the availment of incentives through the Sustainable Logistics Development Plan (SLDP).

Many shipping operators are showing interest to invest in the government's flagship program, the Strong Republic Nautical Highway (SRNH) or Road Ro-Ro Terminal System (RRTS), but were said to have been turned off by the slow approval process, MARINA reported.

"Right now, existing roll-on/roll-off (ro-ro) ships have been tapped by our agency to service the major SRNH-RRTS pending approval or entry of ships acquired through SLDP," said MARINA Deputy Administrator for Planning/OIC Gloria J. Victoria-Ba-as.

The DBP, through the SLDP, has made available funds for long-term financing to borrowers who intend to invest in the construction, development and operation of RRTS facilities, including ro-ro terminal facilities and acquisition of ro-ro vessels.

WG&A recently applied for a P1-billion loan used to launch SuperFerries 17 and 18 last month as ro-ro ships.
Aside from WG&A, no other shipping operator has pledged service to the SRNH routes.

According to Ba-as, the SRNH-Technical Working Group (TWG), under the leadership of Secretary Marita Jimenez of the Priority Programs and the Official Development Assistance Affairs Office, has also seen the need to conduct a feasibility study on routes identified by the DBP.

For the RRTS toll, MARINA said the RRTS shipping and terminal operators must ensure the existence of a single toll booth for the collection of the roro fee.

The agency said to ensure proper and efficient flow of information on RRTS, the group must also come up with a database to ease information sharing.

The database would contain trip schedules, tourism areas, condition of the road, available communications, amenities on the way and other relevant information.

Accord Logistics inaugurates 3,600-sqm warehouse

ACCORD Logistics Phils. Inc. (Accord) inaugurated its warehouse last week to coincide with sister company Accord CSA Shipping Phils. Inc.'s 14th founding year.

The 3,600-square meter facility in Para-aque was acquired in July 2002 to accommodate shipments of Samsung Appliances, one of Accord's major clients. The company handles an average of 4,000 TEUs a year for the appliance manufacturer.

General manager Joey P. Castro said Accord Logistics also earlier won the bid to service Cell Star Philippines, one of three leading distributors of mobile phones. "Hopefully, we'll get more big clients by year-end," he said.
Apart from allowing Accord to accommodate even more import and export shipments, the new warehouse is also a tangible proof that the company, from a mere freight forwarding concern, has ventured into the total logistics service business.

Among the company's aims next year is to fully utilize its domestic freight forwarding arm - especially since it has 70 gateways servicing 1,840 municipalities nationwide - and develop its airfreight services. Seafreight presently comprises 95% of the business.

Castro said the company is currently more focused on strengthening its total logistics provider brand. As a TPL, Accord offers a wide range of service solutions, including business consulting and management, 3PL services outsourcing, IT service, infrastructure and support, integrated supply chain management, vendor-managed inventory and regional distribution hub management.

"The good thing about being a 3PL provider is that you have better control and it directs services to lower cost," Castro said.

Recently, the Singapore-based mother company bagged the "Enterprise of the Year" award at the 2002 Singapore Business Awards, organized by The Business Times Singapore and DHL. The awards were given to recognize companies and entrepreneurs that can be held up as models for young entrepreneurs starting out on their own.
Founded in 1984, Accord today employs more than 1,000 staff worldwide and operates through an extensive network of over 30 own offices in the ASEAN, China, India-Subcontinent, and European countries. It also has partners in North America and other subcontinents.

More port investments needed to meet increase in container volumes

PORTS worldwide are expected to invest heavily to accommodate the rising volume of containerized cargoes.
According to a forecast made by the United Nations Economic and Social Commission for Asia and the Pacific, total maritime container movements have increased by about 160% in the last four years.

Investments will mainly go to expansion of container terminals and increased investment in container handling equipment, said Sean Perez, vice president for Marketing and Commercial of Asian Terminals, Inc. (ATI) at the recently concluded PortCalls Cargo Economics Conference.

"These equipment include taller cranes with longer outreach as larger vessels would require such and of course, they are more expensive," he noted.

For better handling performance and container management, terminals would also have to invest in more sophisticated information technology systems to prevent excessive time spent in ports, Perez said.

As it is, terminals operators are already extending the scope and scale of their activities to counter tight competition. "For instance, Hutchison Port Holdings has developed a wide range of investments in the Chinese mainland and has expanded terminal operations in 28 ports around the world. PSA Corporation, on the other hand, currently operates terminals in 10 different countries and continues to maintain its expansion strategy," he said.
P&O Ports, ATI's mother company based in London, has 27 container terminals and maintains logistics operations in over 100 ports. It operates in 18 countries.

Perez said there will also be a shift from traditional major container ports to new trade and industry centers. Main operators, he said, are now servicing the origin of cargoes where ports are being developed to become hubs.
"The most recent example is Maersk Line's transfer of its business to the new port of Tanjung Pelepas. This decision of a single shipping line cost Singapore approximately 15% of its total business," he said.

Perez also emphasized the need to invest in faster and more efficient intermodal connections. These demands for enhanced port performance and increased investments in port facilities have, in turn, led to changes in the port policy of many countries, he said.

Computers aid anti-smuggling campaign

ENHANCED computerized examination at the Bureau of Customs (BOC) has resulted in the apprehension of more smuggled goods.

Recently, 20 twenty-foot equivalent units (TEUs) containing imported rice worth P2.2 million were seized at the Manila International Container terminal.

Customs Commissioner Antonio M. Bernardo said the containers, declared as 330 bales of Texlan brand acrylic tow, was consigned to Indo Phils. Acrylic Manufacturing Corp.

"Computerized examination revealed that instead of acrylic tow, the vans contained 2,447 sacks of high-grade imported rice packed in 50-kilogram bags," Bernardo said.

The shipments originated from Bangkok and were carried onboard the TL Hermes III.

ICTSI appoints new operations manager, MIS assistant manager

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) recently announced the appointments of Romeo A. Salvador as its new operations manager for systems, and the hiring of Catherine P. Orellano as new assistant management information systems (MIS) manager.

Salvador joined ICTSI in 1998 as assistant accounting manager. Before that, he was with Sycip Gorres Velayo & Co. for four years as a senior associate.

A certified public accountant, Salvador graduated from the De La Salle University with the degree of Bachelor of Science major in Political Science and Accountancy.

Prior to this appointment, he was the accounting manager of ICTSI Ltd., a subsidiary of ICTSI.
Meanwhile, Orellano brings to ICTSI 12 years of experience in information and communications technology, specifically in technical and systems planning.

She was with Subic Bay Metropolitan Authority as division chief of the MIS department. She also worked for Tridel Technologies, Inc. in 1998 as technical coordinator, Webscape Philippines, Inc. in 1996 as technical support and sales engineer, and Integrated Computer Systems, Inc. in 1990 as senior quality computer technician.
She was also a part-time instructor at the Asian Colleges of Science and Technology.

Orellano earned her Industrial Technology degree and Masters in Business Administration from Rizal Technological University (RTU). She also took technical courses at the Meralco Foundation Institute. She is working on her doctorate also at RTU.

NOL Group further improves profit at third-quarter mark

NEPTUNE Orient Lines Ltd (NOL) has reported net profit for the year to the end of the third quarter (3Q) of US$294.6 million, compared with a loss of US$184.2 million for the same period last year.

NOL's profit before exceptional items for 3Q was US$107 million, up from negative US$20 million for the same quarter last year, and up 30% on the US$82 million recorded for the first half of 2003.

Revenue was US$3.98 billion year-to-date, up 19% on revenues to the end of 3Q 2002 of US$3.34 billion. This was despite the sale of crude oil transportation company American Eagle Tankers (AET) completed during July, which therefore only contributed revenue to 22 July 2003.

NOL made a net profit for the 3Q of US$206 million compared with a loss for the same quarter last year of US$28 million. The company's 3Q results include the proceeds from the sale of AET, which contributed significantly to the US$99 million of exceptional items.

The strong performance reflects the successful implementation of the Group's strategy for its two core businesses, container transportation company APL and supply chain management company APL Logistics (APLL), to be more focused on the bottom line, Chairman Cheng Wai Keung said.

"The extent of the Group's turnaround has as much to do with our focus on yield management and cost containment as it does about rate recovery in the liner business," Cheng said. "This focus will continue into the future and help the Group achieve its goal of sustained profitability."

"We are determined to provide the quality, reliability and services our customers value while keeping a tight rein on costs," Group CEO David Lim said. "As a consequence we have seen our businesses grow. We anticipate that growth will continue," he said.

"The key has been responding promptly to customer needs. In the liner business, for example, we rebalanced the trades to meet our customers' demands for more equipment in the Trans-Pacific and Asia-Europe trade lanes and to maximise the use of our assets," Lim said.

"That flexibility is a strategy we will continue to pursue," he said.

"I am also pleased with APL Logistics' improved results," Lim added. "While there is some way to go yet, this unit has reorganized to better meet customer needs and reduce costs."

Group Chief Financial Officer, Lim How Teck said that the improved performance of the Group together with the sale of AET had resulted in a substantial reduction in debt levels and a much stronger balance sheet.

"Our borrowings have reduced," he said, "and net gearing was lowered to 1.58, down from 4.46 at the end of 2002. We will continue to reduce our debt levels and net gearing through operating profits and disposal of non-core assets as part of our on-going financial management," he said.

Lim How Teck said the Group was looking at divestment opportunities for non-core businesses, including the product tanker company Neptune Associated Shipping (NAS).

Barring unforeseen circumstances, Cheng said, the NOL Group maintained its positive outlook and expected to deliver a very good set of results for the full year 2003.

APL Liner

For the year to the end of the 3Q, APL's Core EBIT was US$227 million compared with a loss of US$64 million for the same period in 2002, representing to a turnaround of US$291 million.

APL's Core EBIT for 3Q improved 1900% from US$7 million on revenue of US$843 million in 3Q 2002 to US$140 million on revenue of US$1.06 billion for 2003.

Cost savings totalling US$112 million for the year had been achieved by the end of the 3Q, and the company is on target to achieve its goal of full year savings of between US$150 million to 200 million.

While volumes appeared to be flat, key trades grew strongly, reflected in core EBIT. Freight rates increased 37% in Asia-Europe and 20% in Trans-Pacific.

"We continued to respond to the strength of both the Asia-Europe (AEU) and Trans-Pacific (TP) trades in the third quarter," said APL's CEO Ron Widdows, "increasing market share in the headhaul (TP eastbound, AEU westbound) legs of these trades."

Volumes in the Trans-Pacific eastbound increased eight% and Asia-Europe westbound 10% year-on-year.
"At the same time, we saw healthy growth in the West Asia and Middle East market, which are both part of the Intra-Asia trade. The growth in the Middle East was largely unrelated to the rebuilding of Iraq," Widdows said.
"The Trans-Atlantic trade also grew in both volume and rates, and capacity remains tight. Latin America continued to feel the impact of the challenging economic situation in the region."

Overall, Widdows said vessel utilisation was high and forecast to remain so for the rest of this year and well into 2004.
APL is continuing to expand its capacity through upsizing vessels and partnership arrangements with other carriers. This will continue through 2004.

APL is on track to achieve significant profits in 2003.

APL Logistics

For the year to the end of the 3Q, APL Logistics moved from a core EBIT of negative US$11 million to positive US$5 million.

APLL's Core EBIT for 3Q 2003 was US$2 million, compared with zero core EBIT for the same period in 2002.
Revenue to the end of 3Q 2003 was US$689 million, up 20% on the US$573 million for 2002. More than half (56%) of the revenue growth for the year to date was in the Americas region.

There was strong growth in all regions in the 3Q: in the Americas centred around warehousing and transportation management; in Europe centred around forwarding; and in Asia, the consolidation business.

"With proven capabilities in consolidation at point of origin, as well as warehousing and transportation/freight management at destination, our priorities lie in integrating these origin and destination services while focusing on managing our operational cost down," said APLL CEO Hans Hickler. "This will further build on the gains we have made so far this year."

APL Logistics is on track to achieve operational profitability for full year 2003.

Chartering

With the sale of AET concluded towards the end of July, and AET being the largest contributor to the Chartering division's revenues, its 3Q revenue fell to US$39 million and core EBIT reduced by 33% to US$2 million compared with 3Q 2002.

NOL has now effectively exited the crude oil tanker chartering business. Demand for the largest remaining business within this division, product tanker operator Neptune Associated Shipping (NAS), is expected to remain firm for the balance of the year. As indicated earlier, NOL is looking at divestment opportunities for this business.

Exports up 0.4% in Sept

MERCHANDISE exports from January to September grew 0.4% from $26.158 billion to $26.267 billion, according to the latest statistics from the National Statistics Office (NSO).

Earnings for September grew 2.3% to $3.264 billion from $3.191 billion during the same month a year earlier.
Electronic products remained the top export commodity, accounting for 66.2% of the aggregate export revenue for the month. It registered an increase of 0.9% to $2.162 billion from $2.143 billion last year.

Among the major groups of electronic products, components/devices (semiconductors) dominated with a 48.1% share to total exports. The group earned $1.570 billion from $1.524 billion during the same period a year earlier.
Articles of apparel and clothing accessories remained the country's second top earner with a combined share of 6.5% and an aggregate receipt of $212.5 million or 18.1% lower than $259.4 million a year ago.

Other products manufactured from materials imported on consignments basis ranked third with total revenue of $62.55 million reflecting an 18.1% increase from $53 million during the same period of 2002.

Petroleum products ranked fourth with sales amounting to $46.56 million or a year-on-year increase of 49.4% from $31.16 million.

Revenue from ignition wiring set and other wiring sets used in vehicles, aircraft and ships (consisting only of electrical wiring harness for motor vehicles) increased 4.6% to $43.26 million from $41.35 million.

Rounding up the list of top exports for the month of September were: coconut oil, $37.40 million; cathodes and sections of cathodes, of refined copper, $36.50 million; woodcrafts and furniture, $32.60 million; bananas (fresh), $28.28 million; and metal components, $21.07 million.

Aggregate receipt for the top ten exports reached $2.683 billion, or 82.2% of the total exports.
Accounting for 88.2% of the total receipts, exports of manufactured goods accelerated by 1.2% as sales amounted to $2.878 billion from $2.842 billion during the same period last year.

Income from all agro-based products reached $144.02 million or 4.4% of the total export revenue. Compared to last year, the receipt for this commodity group dropped 3.7% from $149.56 million.

Accounting for 19.2% of the country's aggregate receipts for the month, exports to the US valued at $627.73 million fell 24.9% from last year's $835.38 million.

Japan followed with a 15% share. Valued at $490.02 million, shipments went up 12.2 % from $436.71 million.
Hong Kong accounted for 9.5 % of the total receipts, with $310.78 million reflecting a 20.4 % increase from $258.22 million during the same month a year earlier.

The People's Republic of China, emerged as the fourth biggest market for the month as shipments of local goods amounted to $278.63 million or 8.5 % of the total. Compared to the same period last year, receipts grew 71.8 % from $162.17 million.

Other top markets for September 2003 were: the Netherlands, $269.12 million; Singapore, $224.01 million; Malaysia, $213.35 million; Taiwan, $180.99 million; Republic of Korea, $118.42 million; and Thailand, $106.65 million.

Total export receipts from the Philippines" top ten markets for the month of September amounted to $2.820 billion or 86.4 % of the total.

September freight traffic recovers slightly

TOTAL freight ton kilometers (actual freight traffic) and available ton kilometers (available total capacity) in the international market were 2.9% better than in September 2002, according to statistics from the International Air Transport Association (IATA).

On a monthly basis, the September growth is, however, slower at 5.5% compared to 6% in August and 6.4% in July.

The Middle East region continues to show the highest freight growth at 15.2%.

International passenger traffic, on the other hand, rose significantly in September - the first time since February when SARS and Iraq radically impacted the industry, said IATA.

Overall revenue passenger kilometers (actual passenger traffic) for September 2003 showed a 1% improvement over results for same month of the previous year. Although small, this is a significant increment, as it confirms the steady traffic rise of the past three months, said IATA.

Robust growth in Europe (3.6%) and high growth in the Middle East (19.4%) contributed to this worldwide result. Although still reporting negative passenger figures in the Asia-Pacific (-1.6%) and North America (-3.6%), both regions have shown improvement over the previous month's results (-4.6% and -6.5%, respectively).

A comparison of industry growth today with the period prior to the effects of 9/11, Iraq and SARS provides another view of industry recovery, said IATA.

Passenger traffic growth for August 2003 over August 2001 is down 4.2% on the 2001 results, whereas freight is a strong 14% above the 2001 level.

Overall capacity was up by 0.7%, contributing to a drop in September passenger load factor to 75.5%, down from 79.5% in August 2003, but almost identical to September 2002 (75.6%).

Preliminary cumulative international passenger results for the first nine months of 2003 are 4.9% below the same period for 2002. These results confirm the slow but steady recovery rate, climbing from the lowest point registered in January to May (-7.7% compared to Jan-May 2002).

If stable conditions prevail, IATA expects overall international passenger traffic levels in 2003 to be approximately 1% lower than 2002.

6th Fore!!!warders Golf Tournament nets 71 players

BARELY a month after the last Fore!!!warders Golf Tournament, members of the forwarding industry were once more pitted against each other for the tournament's sixth instalment.

A total of 71 golfers paid no mind to the distance and the early morning rain and drove to the Mt. Malarayat Golf Club in Lipa City last October 29. Clear skies welcomed the participants by tee off time.
Sponsored by Mercury Freight, the event was hosted Mr. Chris Coching.

Low gross and low net honors went to Manny Salgado and Wooky Nam, respectively. Ding Kalinga took top honors in Class A, followed by Mon de Leon and Greg Sebastian. Johnny Hipolito, Vic del Rosario and James Rebote bested the field in Class B. Class C saw Nelson Jen, Ed Quimpo and Jimmy Go capturing the first, second and third places. Roy Laurenti was champion in the Guest Division with Dindo de Vera coming in second.
In the Ladies' Division, top honors went to Ruby Ann Neri and Lucy So.

No one aced the US$2,000 hole, but prize donor Bayani Coching was requested by old buddy Lito Colona to pledge the same amount as hole-in-one prize at next month's FEDFAP Golf Tournament.

The golfers were later treated to a sumptuous late afternoon lunch and great raffle prizes. The event ended a little past 5 pm.

Special thanks to Mr. Chris Coching and his group for a tournament well organized, well run and well attended.
See you all at the 7th Fore!!!warders Golf Tournament in the first quarter of 2004.

Meantime, remember to keep your balls in the short grass.

NENACO earns 73.6 M in first nine months

Negros Navigation Company (NENACO) reported recently an unaudited net profit of P73.6 million for the first nine months of 2003, up 9% over the P67.3 million for the same period in 2002.

The improvement is due mainly to gains resulting from successful debt reduction exercises, and strict cost management which helped operational revenues during the traditionally lean third-quarter passenger and freight shipping season, the company said.

Revenues for the first nine months stood at P 1.794 billion, a marginal reduction from the P1.829 billion in revenues for the same period in 2002, due mainly to lower passage and freight cargo traffic during the lean third-quarter.

Operating costs rose 5% to P1.527 billion in 2003 versus P1.457 billion in 2002, reflecting price increases in fuels and lubricants, increased costs for the expansion and improvement of terminal services, and introduction of new promotional and marketing programs.

Financing costs rose 10% to P86.6 million in 2003 compared with P78.6 million in 2002, the result of servicing various restructured liabilities, and costs associated with debt reduction and restructuring exercises.

Strict cost management, however, reduced general and administrative costs to P189.6 million for the first nine months of 2003 versus P200.5 million in the same period last year.

The freight division reported reduced revenues of P741.8 million for the period in review versus P765.3 million in 2002.

A total of 61,417 TEUs were carried in 2003 compared with 65,609 TEUs during the same period in 2002, the company said.

Customs exceeds Oct collection target by 2.09%

THE Bureau of Customs (BOC) reported recently a turnaround in collections for the month of October following two consecutive months when collections fell below targets.

Customs commissioner Antonio M. Bernardo said collections reached P9.25 billion last month, exceeding P9.061 billion target by 2.09% or P191 million. This is also 14.5% above the September collection of P8.3 billion.

The October collected resulted in total revenues of P87.55 billion for the period January to October 2003, 5.4% higher than the P87.085-billion target.

Bernardo expressed optimism the bureau will reach or even exceed its year-end target of P100 billion. "We are ahead by about P5 billion with only two months to go; there is a fair chance we will meet our target for the year," he said.

With impending tariff rate increases on about 500 product lines effective next week, BOC said it is likely to meet the goal.

In another development, the bureau said it is intensifying its campaign to abate smuggling through the implementation of stricter policies in the release of shipments at ports.

Recently, the BOC apprehended some P162 million worth of smuggled goods at the Manila International Container Port for misdeclaration and undervaluation.

ICTSI junks North Harbor project, cites poor economic conditions, low demand for berth

INTERNATIONAL Container Terminal Services, Inc. will no longer push through with its expansion project in the North Harbor due to poor economic conditions and low demand for an additional berth.

The Board of Investments, where the project was earlier filed, approved the cancellation of the registration.
ICTSI reported consolidated net profit of P222 million from January to June this year compared to the P3.4 billion reported in the same period in 2002. Last year's profit, howevere, included an extraordinary gain on the completion of the sale of subsidiary ICTSI International Holdings Corp. to a unit of Hutchison Port Holdings Ltd.

CTSI Logistics volunteers for 18th International Coastal Cleanup Day

FROM raising funds to help charitable organizations to organizing a group-wide bloodletting activity, CTSI Logistics has engaged again in another volunteer initiative.

Its teams in Taiwan, Saipan, Palau and in the Philippines simultaneously performed an act of volunteerism when they joined the recent 18th International Coastal Cleanup Day, by combing their beaches, shorelines and inland areas to pick up trash and debris.

Under the company's corporate social responsibility project, 'Caring to Make a Difference', the teams, together with their families, relatives and friends, were among the thousands of volunteers around the world who helped unclutter our shores and save endangered marine life.

Everything collected was logged on data cards. In the Philippines, there was a large quantity of consumer plastic wrappers and odd trash, volunteers reported. Volunteers in Palau together with Palau Community College students, Palau Visitors Authority and the Palau Conservation Society collected one ton of trash.

International Coastal Cleanup is the largest single-day volunteer event on behalf of the marine environment held simultaneously in 100 countries and 55 US states.

PUC, PCCI, ISIP sponsor seminar on IPR

THE Port Users Confederation (PUC), the Philippine Chamber of Commerce and Industry and the Institute for Studies on Intellectual Property Inc. are sponsoring a seminar on preventing the entry/exit of counterfeits in the country on November 12, 2003 from 8:30 am to 12:15 pm at the Mabuhay Palace of the Manila Hotel.

Entitled Preventing the Entry/Exit of Counterfeits thru Stronger Border Controls, the seminar aims to educate intellectual property right holders as well as those involved in bringing goods into the market for public consumption on the importance of protecting IP rights. In addition, it seeks to discuss deleterious effects of counterfeits on the public and the Philippine economy.

The seminar touches on Bureau of Customs (BOC) Administrative Order No. CAO-6-2002 and the role of government agencies such as Videogram Regulatory Board (VRB) and National Bureau of Investigation.

Speakers are Atty. Anju Nereo Castigador of the Bureau of Customs, Atty. Lualhati Buenafe of the VRB, Atty. Ramilo Quinto of the NBI, and Atty. Editha Hechanova of the law firm Del Rosario, Hechanova, Bagamasbad and Raboca.

Registration fee is P600 for PCCI members and P800 for non-members. For more details, call the PUC Secretariat Office at 404-1086, 528-4316 or 888-4292.

PPA vows no layoffs in Tagbilaran port takeover

THE Philippine Ports Authority (PPA) has assured workers rendering cargo handling services at the Port of Tagbilaran there will be no layoffs following the takeover of the port's cargo handling operations in Bohol province.
"This was the most viable option to ensure efficient and continuous operations in the so-called First Tourist Port in the country," PPA general manager Alfonso Cusi said.

He said the takeover, which took effect last week, would protect public interest while PPA awaits the final court ruling on the rightful operator of the port's cargo handling services. The ownership issue is pending after the port's previous cargo handling firm, Tagbilaran Maritime Services Inc., questioned the 1999 public bidding conducted by PPA.

Shipping operators jack up passage rates by 4.5%

FOLLOWING last month's 7.5% freight rate increase, major shipping operators recently announced a 4.5% average passage rate hike for all destinations.

Salvacion W. Buaron, Sulpicio Lines, Inc. vice president for Passenger Service, said shipping operators were compelled to increase rates due to the estimated 27% hike in insurance premium as well as increases in the cost of spare parts, food provisions, administrative and security (onboard and land-based) costs.

Sulpicio Lines will implement the new rates today (November 10) along with WG&A and Negros Navigation Company, Inc.

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