NEGROS Navigation Co.
(NENACO) has filed a petition with the Manila Regional
Trial Court to enter into a corporate rehabilitation
program for an immediate suspension of debt payments.
The petition was triggered by actions of Cebu-based
Tsuneishi Heavy Industries Inc. (THI), a joint venture
company with Aboitiz & Company, the privately held
company of the Aboitiz family.
THI on March 20, 2004
seized a NENACO vessel for repayment of past drydocking
and shiprepair services totaling P130 million on the
basis of an order of attachment from the Cebu Regional
Trial Court. Approval for the filing of the petition
for rehabilitation was unanimously given by Nenaco's
Board of Directors at a special meeting held last
Monday. Metro Pacific Corp., which holds 97.6% of
all the shares outstanding in NENACO, also gave its
approval to the filing of the petition in a subsequent
meeting held also last Monday by its Board of Directors.
NENACO's management stressed
the filing "was undertaken in the best interest of
the company, its creditors and other stakeholders."
"Under a court-approved corporate rehabilitation program,
NENACO intends to implement an equitable and orderly
debt reduction and restructuring program, addressing
its consolidated debts and trade payables of approximately
P2.5 billion, while preserving its assets for cash
generation and future growth," the shipping firm said
in a statement.
In line with the filing,
the NENACO Board of Directors also announced the formation
of a Rehabilitation Committee, to be comprised of
Chairman of the Board Daniel L. Lacson, Board of Directors
members Manuel V. Pangilinan and Edward S. Go, Metro
Pacific president and CEO Jose Ma. Lim, and NENACO
president and CEO Conrado A. Carballo. The Rehabilitation
Committee will oversee the efficient administration
of the company's debt rehabilitation program, consistent
with both the Board of Directors. The shipping operator
likewise announced the appointment of Lim as a member
of its Board of Directors, replacing Eric G. Filamor.
Additionally, Seumas
Gallacher, chief advisor to NENACO since 2000, has
retired from service effective last Monday. The creation
of the Rehabilitation Committee, and further Board
of Directors and senior management changes, reflect
the ongoing commitment by Metro Pacific to improve
NENACO's financial and business foundation for future
growth, the company said. Metro Pacific acquired a
majority equity stake in Nenaco in 1998 and during
the period since, has infused both equity and assumed
NENACO debt in exchange for equity, in the aggregate
amount of approximately P5 billion over the past six
years. NENACO stressed all ship schedules remain unaffected
despite today's filing; all passenger and freight
cargo traffic continues on schedule, and day-to-day
operational supplier and vendor contracts remain in
effect. The company likewise announced it has no immediate
intention to effect any significant reduction in workforce
levels.
Ship seizure. Meanwhile,
NENACO ship M/V St. Peter the Apostle, which was the
subject of a writ of attachment issued by the Cebu
Regional Trial Court Branch 5, remains grounded at
Pier 2 in North Harbor, Manila. The writ was served
by two Sheriffs of the CRTC last March 19 for failure
of the shipping firm to settle its debts with Tsuneishi
for drydocking services running to millions of pesos.
THI claimed aside from the P36 million arrears of
the M/V St. Peter the Apostle, NENACO owes Tsuneishi
another P84 million for similar works rendered on
its vessels the M/V Sao Paolo, M/V Señora Fatima,
M/V Princess of Negros, M/V San Sebastian and M/V
Sta. Ana.
Responding to the claim
by NENACO president and general manager Conrado A.
Carballo that the shipping firm's payments to Tsuneishi
were withheld pending a previously scheduled renegotiation,
THI legal counsel Serafin Rivera said that the negotiations
broke down a long time ago. "There is no ongoing renegotiation
on the payment of their debts. These talks broke down
a long time ago. The matter is now with the courts.
Agreements were previously
made but not lived up to by Negros Navigation. Negros
Navigation in short has not been paying it debts to
Tsuneishi," Rivera said. Rivera also said that they
have gathered information through sources that Negros
Navigation moved to Tsuneishi for their drydocking
requirements after failing to address its arrears
with its previous contractor, Keppel Shipyard. After
Tsuneishi refused to serve Negros Navigation, the
shipping firm has reportedly moved to a shipyard in
Bataan which has agreed to take them in but on "cash
basis".
Further, Rivera said
NENACO has an allegedly "ballooning" payables with
its suppliers over the past years. "These include
Negros Navigation's payables to Petron which runs
to P110 million and P200 million with Shell Philippines
for bunker fuel and various oils used in the operation
of its fleet," it claimed.
THE port of Cebu should
be 100% compliant with the International Ship and
Port Facility Security (ISPS) Code by end of April,
said Transport Secretary Leandro R. Mendoza.
The Cebu Ports Authority
(CPA) has "promulgated guidelines and identified,
trained and assisted security officers of ports in
conducting security assessments and developing security
plans… based on the provisions of the ISPS," he said.
The Code, an International Maritime Organization initiative,
will be implemented worldwide starting July 1.
In a recent visit to
the port of Cebu, Mendoza and the CPA identified concerns
that may hamper full compliance to the code, one of
which is the presence of informal settlers in the
area. Mendoza suggested that the port authority provide
fencing or some form of barricade to prevent entry
of unauthorized entities within the port and the terminal
as this poses a threat to security. Other concerns
are the separation of domestic and international berthing
areas and the presence of ships impounded by the Bureau
of Customs (BOC). Sec. Mendoza noted the CPA is already
constructing a new berth for domestic trade. The P260-million
facility will be completed by April 15, he added.
On the issue of BOC-impounded
ships, Mendoza said the CPA has already transferred
the impounding area away from the international berthing
area/port.
THE Bureau of Customs
(BOC) recently outlined the governing rules and regulations
for the ASEAN Harmonized Tariff Nomenclature (AHTN)
in accordance with the protocol for its adoption among
ASEAN member countries.
The AHTN scheme was signed
by the ASEAN Ministers/Secretaries of Finance last
August. The latest amendment took effect in January.
The scheme incorporates the Common Effective Preferential
Tariff (CEPT) rates updated with the recently issued
Executive Orders 262, 263, 264 and 268 among countries
included in the CEPT concession. The BOC said the
adoption of the AHTN, through Customs Memorandum Order
No. 6-2004, calls for updating of the Customs' tariff
database or ASYCUDA (Automated System for Customs
Data) files for automated processing.
The AHTN replaces each
ASEAN member country's current six-digit tariff nomenclature
with a common eight-digit nomenclature. "The first
six digits are based on the Harmonized Commodity Description
and Coding System (HS) 2000 amendments. The last two
digits, which used to refer to national headings/subheadings
under the Tariff and Customs Code of the Philippines,
have given way to the regional headings for harmonization
ASEAN-wide," the bureau explained. The new tariff
scheme indicates both the Most Favored Nation (MFN)
and CEPT-ASEAN Free Trade Agreement (AFTA) rates,
including information as to what ASEAN country the
CEPT-AFTA rates are applicable.
The BOC noted the AHTN
is applicable in both intra-ASEAN and extra-ASEAN
trade. "The AHTN will be used by all ASEAN countries
not just when trading between or among themselves,
but also when trading with the rest of the world,"
it said. Also, in order for the AHTN to be recognized
by the bureau's ACOS, alphabetic characters or letters
tagged on to the eight-digit nomenclature/code will
be converted into their corresponding number.
The Philippine Tariff
Commission said the adoption of the AHTN will bring
about greater flow of goods between ASEAN and the
world. - Maritess R. Mesias
THE Maritime Industry
Authority (MARINA) recently issued a show-cause order
against all striking crew of domestic shipping operator
Sulpicio Lines, Inc. for failure to return to work
despite an order from the Department of Labor and
Employment (DOLE).
MARINA Legal Office
director Ma. Hiyasmin Delos Santos said the maritime
agency is currently hearing arguments of both Sulpicio
Lines management and the striking employees. "They
should explain to us why their Seaman's Identification
Record Book (SIRB) or seaman's books should not be
cancelled despite the return-to-work order from the
DOLE," Delos Santos said. Delos Santos pointed out
the refusal of the striking crew to return to work
amounts to insubordination and misconduct per Memorandum
Circular No. 163.
The petition was filed
specifically against a certain Generoso Sasis, Edo
Elmedorial and all striking members of the Unyon ng
mga Mandaragat ng Sulpicio Lines, Inc and the Solid
Towage and Lighterage Co. Inc.-Alliance of Nationalist
and Genuine Labor Organizations-Kilusang Mayo Uno.
The respondents filed a motion to dismiss the show-cause
order but Sulpicio lawyers countered it and filed
an opposition.
Earlier, Sulpicio Lines
president for Passanger Service Salvacion W. Buaron
said the company's lawyers were preparing criminal
and civil charges against the striking workers. Buaron
said negotiations between management and the union
failed as the company rejected the strikers' request
that they not be slapped with retaliatory action.
The shipping line was estimated to have lost P50 million
when some of its workers went on strike from March
9 to March 13. "It is as if they held hostage the
ship because they did not allow us to release the
cargo from the ship and even the non-striking crew
were held hostage. They were not allowed to get off,"
Buaron said.
Possible cases to be
filed against the strikers could be based on the clear
defiance of the DOLE's return-to-work order, the apparent
capture of the vessels and its crew, and the damages
caused to the company, shippers and passengers.
MEMBERS of the Ecozone
Federation of Forwarders/Brokers & Truckers, Phils.
(EFFORT) recently elected their 2004-2006 board of
directors.
Voted into office were:
Engineer Virgilio Veneracion, president; Augustus
Caezar Gan, executive vice president; Rolando Ruedas,
vice president - Internal Affairs; Dominador de Guzman,
vice president - External Affairs; Mario Migallos,
director - Treasurer; Eduardo de Guzman, director;
Dolores Guiamano, director - Brokerage Affairs; Rodrigo
Anabu, director - Airfreight Forwarding; Julio Roxas,
Jr., director - Seafreight Forwarding; Panfilo Castro,
Jr., director - Trucking; Irene Manguiat, director
- PEZA Affairs; and Ailene Torres, secretary.
The officers will be
inducted on April 23, 6pm at the Heritage Ballroom,
Heritage Hotel. Atty. Lilia de Lima, PEZA director
general, will be the guest of honor.
CONSTRUCTION of the
new container port in Subic will start in May, said
Subic Bay Metropolitan Authority (SBMA) senior deputy
administrator for Operations Victor L. Mamon.
In a telephone interview
with PortCalls, Mamon said the $185-million project
will involve construction of two new berths and acquisition
of four new gantry cranes worth $5 million each from
Japan. The project will be funded through a concessional
loan package worth $158 million from the Japan Bank
for International Cooperation (JBIC) and the Japan
International Cooperation Agency (JICA). SBMA will
fork out the remaining 15% of project expense costing
or $27 million.
The Penta Ocean-led
joint venture between Shimitzu Corp. and TOA Corp.
won bidding for the project. "We are targeting around
300,000-600,000 TEUs [twenty-foot equivalent units]
in about five years after the new port becomes operational,"
Mamon said. The two berths will measure 560 meters
in total, including back-up area. They can accommodate
vessels with a capacity of up to 3,000 TEU. "These
berths can service even the post-panamax types," he
noted. At present, Subic port operates a naval supply
and a conventional container port with only one gantry
crane that can handle 120,000 TEUs per year. It handles
an average 30,000 TEUs every year.
Complementing the port
modernization project is the 47km Subic-Clark Toll
Road Project by the Bases Conversion Development Authority
which is seen to provide producers and exporters from
Central and Northern Luzon easier access to Subic
port. The road will also serve as an alternative route
to the lahar-threatened Gapan-San Fernando-Olongapo
Road. It will later connect to Tarlac, benefiting
not only Subic Bay Freeport Zone, Clark Special Economic
Zone, and Luisita Industrial Park but also Basa Airbase,
Hermosa Ecozone, the Limay Petrochemical cluster of
industries, Mariveles and Morong Technopark.
Mamon said SBMA is considering
International Container Terminal Services Inc. affiliate
Subic Bay International Terminal Corp., Subic Bay's
present cargo handler, to operate the first berth
of the new container port. The remaining berth will
be bidded out, he added.
