PortCalls

PPA: No new ports in Manila for now

NEW ports in Manila will not be allowed in a bid to decongest the country's capital, according to Philippine Ports Authority (PPA) general manager Alfonso Cusi.

The statement is in response to President Gloria Macapagal-Arroyo's directive to stop any further expansion or new ports development at the Port of Manila. Mrs. Arroyo's directive also covers development or applications for construction of commercial private ports.

Cusi's statement now puts in question the Harbor Center Port Terminal, Inc.'s (HCPTI) request to be granted a commercial permit allowing it to cater to both domestic and international cargoes.

In reviewing the HCPTI contract, Cusi said the PPA board of directors must take into consideration Mrs. Arroyo's directive plus the fact that Asian Terminals, Inc. and International Container Terminal Services, Inc. have exclusive rights to engage in cargo handling and terminal opeartions at the Port of Manila.

PPA disclosed there is a possibility that a moratorium will be called on additional port development within the area. No target date for the issuance was, however, given.

Still, port development outside Manila will continue. Among the port agency's priority projects is the development of ports and terminals in the outports, especially in far-flung areas covered by the Road Roll-on/Roll-off Terminal System.

Recently, it announced the inclusion of the development and expansion of the ports of Masao and Zamboanga into its priority projects. It also disclosed plans to build bigger terminals in Cagayan de Oro and General Santos City.
The nearing completion of the Batangas Port Phase II Development project is likewise anticipated as a large chunk of cargoes is expected to be diverted to the southern port, helping decongest Manila.

The port of Manila (North and South Harbors) currently handles 31.57 million metric tons of cargoes. Volume is expected to grow at double-digit rates in the coming years.

Philippine air traffic down in first nine months

PHILIPPINE air traffic fell 9.13% for the first nine months of the year, according to preliminary data gathered by the Civil Aeronautics Board (CAB).

From 216,209,274 kilograms (kg), the total air cargo throughput and mail delivered into and out of the Philippines slipped to 196,476,109 kg (see table). Incoming cargoes reached 88,915,413 kg and outgoing cargoes, 107,560,696 kg.

International Cargo and Mail Statistics

By airline (January to September 2003 vs 2002)	2003 JAN TO SEPT		January to September	2002 JAN TO SEPT		January to September
	Incoming	Outgoing	TOTAL	Incoming	Outgoing	TOTAL
1 Philippine Airlines	10,671,649	15,156,578	25,828,227	17,183,114	24,906,454	42,089,568
2 United Parcel Servic	7,507,356	13,155,871	20,663,227	3,493,281	4,799,966	8,293,247
3 Cathay Pacific	10,019,775	9,666,586	19,686,361	11,498,292	11,268,339	22,766,631
4 Korean Air	5,995,665	8,752,145	14,747,810	5,296,164	9,659,832	14,955,996
5 Singapore Airlines	7,135,738	6,583,796	13,719,534	8,411,333	6,536,018	14,947,351
6 Nippon Cargo	3,468,221	6,511,302	9,979,523	5,013,990	8,137,650	13,151,640
7 Northwest Orient	3,976,734	5,769,653	9,746,387	3,408,015	5,323,327	8,731,342
8 Eva Air	4,296,815	4,520,748	8,817,563	5,724,156	4,947,379	10,671,535
9 Japan Airlines	1,848,927	5,482,737	7,331,664	1,731,027	5,856,705	7,587,732
10 Asiana Airlines	2,214,284	5,029,152	7,243,436	2,341,376	5,501,920	7,843,296
11 Federal express	4,756,462	2,196,954	6,953,416	5,585,911	1,962,730	7,548,641
12 KLM	3,748,835	2,396,676	6,145,511	3,728,058	2,129,527	5,857,585
13 Thai Airways Int'l	5,221,835	504,980	5,726,815	5,482,718	3,748,935	9,231,653
14 Pacific East Asia Cargo	2,289,251	3,261,509	5,550,760	4,164,958	4,270,227	8,435,185
15 China Airlines	4,575,085	959,082	5,534,167	4,058,404	1,373,580	5,431,984
16 Lufthansa	1,822,959	3,175,224	4,998,183	1,915,022	3,394,821	5,309,843
17 Gulf Air*	719,717	2,798,839	3,518,556	994,662	2,671,212	3,665,874
18 Cargolux	952,594	2,112,802	3,065,396	No Report	No Report	No Report
19 Polar Air Cargo	83,011	2,934,714	3,017,725	No Report	No Report	No Report
20 Malaysian Airlines	1,165,606	935,682	2,101,288	1,143,203	3,041,160	4,184,363
21 Egypt Air	470,100	1,087,095	1,557,195	545,742	876,318	1,422,060
22 Emirates Air	1,213,762	287,805	1,501,567	1,197,240	2,564,213	3,761,453
23 Qantas Airways	671,133	802,208	1,473,341	850,369	773,682	1,624,051
24 Air France	622,158	712,379	1,334,537	653,299	1,628,888	2,282,187
25 Qatar Airways	696,353	455,165	1,151,518	301,029	248,546	549,575
26 Kuwait Airways*	684,052	279,120	963,172	1,002,856	542,671	1,545,527
27 Saudi Arabia Airlines	773,190	117,903	891,093	682,177	185,766	867,943
28 Royal Brunei	449,293	397,628	846,921	532,237	373,438	905,675
29 Silkair (CEB)	325,062	366,835	691,897	567,005	326,302	893,307
30 Continental Micronesia *	23,609	657,041	680,650	29,142	830,899	860,041
31 Swiss Int'l Airlines	215,026	289,599	504,625	212,196	369,801	369,801
32 China Southern***	125,941	161,531	287,472	67,502	9,140	76,642
33 Air Niugini	175,215	17,222	192,437	57,395	12,551	69,946
34 Air Macau (No Inbound)		24,135		24,135		65,404

TOTAL

88,915,413

107,560,696

196,476,109

97,871,873

118,337,401

216,209,274

Notes:

* No September Data
** No Q3 data
*** No 2002 first-half report

Source: Civil Aeronautics Board

In the third quarter alone, air shipments totaled 60,068,132 kg, of which 32,294,717 kg were outgoing and 27,773,415 incoming.

Despite the absence of its third-quarter data, the country's flag carrier Philippine Airlines remained the leading international cargo carrier for the period delivering first-half results of 25,828,227 kg. Last year - from January to September - it carried 42,089,568 kg.

United Parcel Services (UPS) leaped into second place handling 20,663,227 kg for the nine-month period. This was 149.16% more than the 8,293,247 kg it carried during the same period in 2002. The express carrier's total inbound shipments carried was 7,507,356 kg, up 115% from last year's 3,493,281 kg. Outbound cargoes, on the other hand, jumped 174% from 4,799,966 kg to 13,155,871 kg.

Cathay Pacific ranked third as shipments totaled 19,686,361 kg for the three-quarter period. The figure is, however, 13.52% lower than the 22,766,631 kg it carried in the comparable period in 2002. The Hong Kong-based carrier saw both inbound and outbound shipments dip 12.86% and 14.21%, respectively.

Korean Air posted a 1.4% decline in shipments carried from 14,955,996 kg to 14,747,810 kg. Despite the negative variance, the company kept its fourth ranking. Incoming cargoes increased 13.20% although outbound cargoes slid 9.40%.

The fifth-leading carrier for the nine-month period was Singapore Airlines. It carried a total of 13,719,534 kg, down 8.21% from last year's 14,947,351 kg.

Nippon Cargo Airlines came in sixth with 9,979,523 kg. The figure is however, lower by 24.12% compared with last year's 14,947,351 kg.

Completing the top ten were: Northwest Orient which carried 9,746,387 kg, up 11.63% from last year; Eva Air with 8,817,563 kg; Japan Airlines which replaced Thai Airways in the ninth spot with 7,331,664 kg; and Asiana Airlines which transported 7,243,436 kg during the period.

Filipino shipowners group hosts 29th FASA general meet

THE Filipino Shipowners Association (FSA) will host the 29th Federation of ASEAN Shipowners Association Annual General Meeting (FASA AGM) on December 1-3 at the Mandarin Oriental Hotel, Makati.

The event is highlighted by a Seminar on Maritime Security: Countdown to the ISPS Code Deadline on December 3, 2003. Among the speakers are Capt. Glenn A. Wiltshire of the US Coast Guard; Stephen Borthwick, director of Maritime Security, Australian Department of Transportation and Regional Services; and Delia Domingo-Albert , Undersecretary, Department of Foreign Affairs.

The International Ship and Port Facility Security Code (ISPS code) will take effect in July 2004 and outlines the measures to prevent acts of terrorism which threaten passengers, crew and cargoes.

Also part of the event is the 10th Interim Meeting of the Asian Shipowners Forum Safe Navigation and Environment Committee on December 2, 2003, and a dinner in honor of all FASA and ASF delegates and guests on December 3.

Keppel income up 51% in first nine months

KEPPEL Philippines Marine, Inc., the country's largest shipyard operator, reported turning in P40.102 million for the first nine months of the year, up 51% from P26.625 million in 2002.

For the third quarter alone, net earnings grew 36% to P12.944 million, a turnaround from the previous loss of P9.463 million. Production revenues for the period leaped 17.8% from P600.089 million to P706.920 million. For the third quarter, the total revenue generated was P210.321 million or 31.97% above the P159.365 generated during the same period last year.

From January to September, operating profit jumped 127.39% from P17.056 million to P38.783 million.
The third-quarter results were better than expected as the quarter is traditionally considered off-peak season due to harsh weather conditions, Keppel Marine said.

Keppel Marine said it is optimistic targets will be reached by year-end. However, no commitments for capital expenditures, except for the routinary repairs of existing assets, were disclosed.

EU-ASEAN Customs officials exchange notes on stopping fake goods

MORE than 80 customs officials from ASEAN and Europe met in Manila last week to talk about best practices and learn new techniques in combating the spread of counterfeit goods and piracy.

The seminar was within the framework of the EU-ASEAN Intellectual Property Rights Cooperation Program which aims to establish a modern and enforceable system for the protection of intellectual property rights while fostering trade.

The trade in counterfeit goods is a major concern in globalization. According to the Organization for Economic Cooperation and Development (OECD), pirated goods comprise 5-7% of the global trade volume five years ago or an equivalent of 460 billion euro.

Christophe Zimmerman, a customs expert from the European Commission, said the internationalization of fraud calls for a harmonized approach in customs operations.

"The techniques applied in Europe have brought about more efficient and effective seizure of counterfeit goods at the borders of Europe, resulting in an increase of seized articles from 10 million in 1998 to 87 million in 2002," he said.

Zimmerman disclosed a significant percentage of counterfeit goods originates from the Asian region, with Thailand manufacturing the most number at 43%, followed by China at 15%.

He said the EC has come upon 7,000 cases of counterfeits in the Asian region in 2002. Of these, 8% were from Turkey, 5% from Hong Kong, and 3% from Malaysia. Only 2% came from the United States.

ASEAN governments equally share the concern over continuing trade in counterfeit goods. "We make fighting piracy and counterfeiting our serious business," said Intellectial Property Office (IPO) deputy director general Pacifico Avenido, Jr.

Apart from depriving government of revenue, the sale of counterfeit "has also become a lucrative route for organized crime syndicates and has been a major source to finance terroristic activities," Avenido noted.
Among the measures adopted by the IPO is the establishment or creation of an IP Enforcement Section to boost the fight against IPR violations.

Guy Platton, an EC delegate in the seminar, said the economic cost of fakes is rising. A study conducted by the European Chamber of Commerce of the Philippines revealed that aggregate sales of products of 11 multinational corporations being copied stood at over P3 billion in 2001. This translates into an estimated government tax revenue loss of over P1 billion.

He also expressed concern over the health and safety of consumers who are ultimately affected.

Counterfeit and pirated goods now include a wide range of consumer products ranging from pharmaceuticals, foodstuffs / beverages, personal care items to electronics, tools and autoparts. Luxury goods account for less than 1% of these articles.

Sept imports down 4.5 %

TOTAL merchandise trade for September 2003 declined 1.1% to $6.309 billion from $6.381 billion during the same period a year ago.

Dollar-inflow generated by exports amounted to $3.264 billion, or 2.3% higher than last year's $3.191 billion.
On the other hand, expenditures for imported goods fell 4.5% to $3.046 billion from $3.190 billion.

Accounting for 47% of the total aggregate import bill, payments for electronic products amounted to $1.431 billion or 5.9% lower than last year's $1.521 billion. Compared to the previous month, dollar-outflow dropped by 3.2% from $1.478 billion.

Purchases of mineral fuels, lubricants and related materials ranked second with 9.8% share. Expenditures incurred at $297.23 million, registered a 0.5% increase over the previous level which stood at $295.85 million.
Industrial machinery and equipment, the third top import reported purchases worth $136.24 million, or a 0.6% decline from $137.12 million last year.

Transport equipment accounting for 3.8% of the total imports, ranked fourth as foreign bill amounted to $116.29 million, up 13.2% from last year's $102.72 million.

Iron and steel, contributing 2.4% to the total bill, was thw Philippines' fifth top import for the month with payments placed at $73.89 million or 27.1% lower than last year's $101.37 million.

Expenditures for telecommunication equipment and electrical machinery, with a 2.4% share to the aggregate bill, grew 19.2 % to $72.11 million from $60.48 million in September 2002.

Rounding up the list of the top imports for September 2003 were: textile yarn, fabrics, made-up articles and related products, $68.71 million; cereals and cereal preparation, $63.03 million; plastics in primary and non-primary forms, $60.11 million; and feeding stuff for animals (not including unmilled cereals), $50.11 million.
Aggregate payment for the country's top ten imports for September 2003 amounted to $2.369 billion or 77.8% of the total bill.

Capital goods comprising 42.6% of the aggregate bill went up by 6.6% year-on-year to $1.298 billion from $1.217 billion. The biggest share went to telecommunication equipment and electrical machinery with a 23.3% share of the total and valued at $708.81 million.

Payments for raw materials and intermediate goods consisting of unprocessed raw materials and semi-processed raw materials accounted for 36.8% of the aggregate bill, as importation declined by 13.8% to $1.122 billion from last year's reported figure at $1.302 billion.

Expenditures for mineral fuels, lubricants and related materials inched up 0.5% to $297.23 million from $295.85 million during the same period of 2002.

Purchases of consumer goods valued at $221.12 million, dipped 17.2% from $267.18 million in September 2002, while special transactions went down 0.7% to $107 million from $107.76 million.

Imports from Japan accounting for 21.5% of the total import bill, climbed 0.8% to $653.79 million from $648.30 million during the same period last year. Exports to Japan amounted to $489.88 million yielding a two-way trade value of $1.144 billion and a trade deficit for the Philippines placed at $163.92 million.

The US, the country's second biggest source of imports with a 19% share, reported shipments valued at $579.99 million against exports amounting to $630 million. Total trade amounted to $1.210 billion, with a trade surplus for the Philippines at $50.01 million.

Customs amends rules on Super Green Lane use

THE Bureau of Customs (BOC) recently amended rules governing use of the Super Green Lane (SGL) import processing facility.

Under Customs Administrative Order 6-2003, the importer may apply for SGL accreditation provided it has been transacting with the bureau for at least one year and is willing to undergo compliance audit.

SGL provides for advance processing and clearance of shipments through electronic data interchange of qualified importers. According to the BOC, around 4% of daily transactions are covered by the SGL facility.

While importers enjoy certain privileges under the program, they will also be subject to certain conditions, including a random or spot check of the covered shipments at the importer's premises while the goods are being unloaded or stripped.

Any violation of the terms of conditions of the Certificate of Accreditation (CA) will be ground for its suspension, revocation or cancellation. The bureau has the right to review the CA issued annually, it said.

The new provision also changed the existing service fee to a service fee for every entry filed based on freight on board (FOB) value of the imports. The new fees are in accordance with the following schedule: below $5,000, P500; $5,001 to $100,000, P1000; $100,001 to $200,000, P1,500; $200,001 to $500,000, P2,000; and above $500,000, P2,500.

December | November | October

November 26 | November 24 | November 18 | November 5 l November 3