Terminal operators: Better
times ahead after polls
THE country's leading terminal operators
see a brighter business environment after the national
elections scheduled on May 10. "Hopefully, after the
elections, business will do well.
By then, we can look at what needs to be done in the
area of port improvement and expansion," International
Container Terminal Services, Inc. (ICTSI) chairman and
president Enrique K. Razon, Jr. said at the sidelines
of the company's annual stockholders' meeting last week.
He said he expects the Manila International Container
Terminal, ICTSI's flagship project, to exhibit robust
growth this year just like other international ports
it operates - Tecon Suape, S.A. in Brazil and Baltic
Container Terminal in Poland. "We have allotted around
$16 million capex for Poland and $12 million for Brazil.
Here in the Philippines, (the capex) will depend on
the implementation of security measures required by
the United States such as Container Security Initiative
and the investment on two x-ray machines," he said.
ICTSI may soon operate another international port -
in Trinidad and Tobago, having emerged as the preferred
bidder for the project, Razon said.
The company is also hoping to qualify in the bid for
a terminal in Angola. Razon said the company will also
keep its General Santos port operations at the Makar
Wharf under its subsidiary, South Cotabato Integrated
Port Services, Inc. (SCIPSI), a statement in response
to speculations that ICTSI plans to give up its shares
in the southern terminal.
Near-term opportunities. Meanwhile, Asian Terminals,
Inc. (ATI) chairman Richard D. Barclay, in his address
last week to shareholders, said: "We are… poised to
take advantage, in the very near term, of opportunities
that are forthcoming in a better business environment
after the elections," said Asian Terminals, Inc. (ATI)
chairman Richard D. Barclay in his address last week
to shareholders.
The company reported a 7% growth in container traffic
last year at its flagship operation, South Harbor, and
a 33% hike at the port of Batangas. Barclay said ATI
has allotted P350 million for capital expenditures this
year for continued improvements at the South Harbor.
THE Philippine Ports Authority (PPA) last week unveiled
its electronic procurement service in a bid to promote
transparency in the bidding process for port projects.
"This is our way of eliminating corruption by removing
discretion in the evaluation of bid documents," said
PPA general manager Alfonso Cusi. PPA bids out around
P2 billion worth of projects every year.
The service promotes "transparency and efficiency by
utilizing information and communications technology"
even as it streamlines the procurement process by "eliminating
redundancy and enforcing uniformity", the agency said.
The web-based application will be delivered in two phases.
The first covers civil works features from registration
down to bid submission. The second phase covers the
rest of civil works features stated in the scope of
services as well as features for the procurement of
consultancy and goods or services.
PPA said security measures have been added to the
system, including firewall and encryption devices, electronic
signature, transacting via secure socket layer, electronic
bulletin board and external interfaces.
THE Philippine Ports Authority (PPA) recently reported
a 10.94% increase in its first quarter net income to
P1,300.32 million from P1,290.82 million in the same
period last year (see table).
For the full year, the port agency is eyeing a 60%
hike in income to P1,431.06 billion compared with P874.27
million realized in 2003. Net income, however, took
a 40% dive to P121.13 million in March from P183.81
million recorded in the same month last year.
For the first quarter, the agency's gross revenue amounted
to P1,300.32 million, up 0.74% from P1,290.82 million
earned during last year's comparable period. Gross revenues
in March alone grew 1.6% to P439.05 million from P432.43
million.
Port revenues, which accounted for roughly 90% of gross
earnings, hit P1,238.43 million, an increase of 0.31%
during this year's first quarter. The growth was attributed
to the impact of foreign exchange on dollar-denominated
tariffs; non-traditional accounts; and volume of traffic.
Fund Management Income or internally-generated funds
also jumped 10% to P61.89 million from P56.16 million.
Total expenses for the first quarter went down 6.58%
to P702.62 million from P752.08 million.
Operating expenses rose 14.84% to P596.50 million
from P519.41 million during the same period last year
while non-operating expenses dipped 54.38% to P106.12
million from last year's P232.60 million.
REPRESENTATIVES of the Japan Bank for International
Cooperation (JBIC) are arriving in Manila next month
to discuss plans for a technical study on the use of
wooden-hulled vessels.
Maritime Industry Authority (MARINA) administrator
Oscar M. Sevilla said the study aims to look at the
status of wooden-hulled vessels operating locally, as
well as the guidelines and procedures necessary in building
such a ship, including the materials to be used and
its required structure.
The maritime agency earlier deferred the scheduled
phase out of wooden-hulled ships, most of whom are involved
in maritime disasters. MARINA said most shipping operators
have shown resistance to the plan because of their inability
to finance a shift to steel-hulled vessels.
"Shipping operators said it is not viable to remove
the antiquated wooden hulled ships since 60% of the
domestic fleet is comprised of such vessels," the agency
said. Late last year, MARINA issued Memorandum Circular
No. 190 ordering the gradual phase out of wooden-hulled
vessels operating in the domestic trade following a
series of sea accidents involving such vessels.
Under the directive, wooden-hulled vessels with over
100-500 gross tonnage will only be allowed to operate
until 2006. Those with 35-100 GT will be allowed to
operate until 2008, and 3-35 GT until 2010.
Sevilla said the agency will also not allow entry of
wooden-hulled vessels until such time that the technical
study has been completed. This way, shipping operators
will be compelled to follow strict guidelines and requirements,
he noted.
IT'S business as usual for Negros Navigation
Company (NENACO) after the Maritime Industry Authority
(MARINA) last week lifted the suspension order on five
of its vessels.
MARINA earlier found NENACO to be "financially
unstable" based on financial statements as of December
31, 2003. The order was lifted after the shipping line
submitted revised audited financial statements reflecting
the reclassification of its current liabilities into
long-term liabilities.
Sulficio Tagud, Jr., the Court-appointed
rehabilitation receiver of NENACO, said the financial
statement "must be qualified by the fact that the Stay
Order, which the Regional Trial Court of Manila, Branch
46 issued on April 01, 2004, prohibits NENACO from making
any payments of its outstanding liabilities as of March
29, 2004; parenthetically, its creditors are proscribed
from collecting their claims against NENACO; and based
on the proposed rehabilitation plan, the obligations
of NENACO are stretched up to ten (10) years.
Thus for purposes of computing the capitalization
under the formula in Memorandum Circular No. 161, NENACO's
obligations should not be considered as CURRENT but
as LONG-TERM LIABILITIES." The shipping firm is under
a court-approved rehabilitation program which aims to
implement a debt reduction and restructuring program
to address consolidated debts and trade payables of
approximately P2.5 billion.
Based on audited financial statements
as of December 31, 2003, the shipping line had a positive
net cash of P470,629,038 and P306,037,726 for operating
activities in 2002 and 2003, respectively. NENACO's
passenger insurance requirement was also found to be
sufficient.
The M/S St. Peter the Apostle sailed to
Bacolod on Wednesday after receiving a 30-day special
permit from the maritime agency. Clearances to operate
were also given to St. Joseph the Worker, M/S San Lorenzo
Ruiz, and M/S Princess of Negros.
The M/S San Paolo received a provisional
authority until May 28. NENACO disclosed more than P75
million in potential revenue was lost from combined
freight and passage operations and an estimated 20,000
passengers affected by the temporary suspension.
