THE Maritime Industry Authority (MARINA) and the
Philippine Ports Authority (PPA) both expect an increase
in rates imposed by shipping and port operators with
the nearing implemen-tation of the International Ship
and Port Facility Security (ISPS) Code.
Evangeline Aquino, MARINA officer-in-charge for
Overseas Shipping, said the need for additional security
equipment will translate to greater costs for shipping
operators that could, in turn, result in fare or freight
rate increases. Eventually, costs will be shouldered
by end-consumers, she added.
PPA assistant general manager Benjamin Cecilio said
port operators will also incur added costs due to
the requirement for additional equipment. "Additional
port security equipment must be deployed immediately
so the possibility of increased port charges is really
unavoidable," he said.
He said, however, that the PPA will see to it that
the effects to end consumers are minimal. "We will
not allow a significant rise in port charges," Cecilio
noted.
Earlier, the port agency has directed domestic shipping
operators to install walk-through x-ray machines and
metal detectors at terminal buildings to ensure security
within the port. This kind of equipment costs from
P3 million, depending on the brand and quality, Cecilio
noted.
For ships, the ISPS Code requires port operators
to have the automatic identification system that costs
more than P500,000 and the Ship Security Alert System,
which costs close to P500,000.
Hike
in capitalization for freight forwarders still up
in the air
THE Philippine International Seafreight Forwarders
Association (PISFA) is sending its members this week
a questionnaire on proposals to increase the minimum
capital requirement for freight forwarding businesses.
Put forward by the Philippine Shippers Bureau (PSB),
the proposal stems from the industry's desire to make
the capitalization requirements more reflective of
the economic times. Although comprising only about
25% of the total number of freight forwarders in the
Philippines, PISFA members control the bulk of the
business.
It is also the only association recognized by the
bureau. The PISFA results will be tabulated and presented
during a membership forum this month, said association
president Erich Lingad.
The forum aims to revisit details of the draft administrative
order (AO) and deliberate whether its contents still
apply to the present situation. PISFA is also expecting
the PSB to conduct its own public hearing on the subject.
"Some major questions would have to be answered.
Does the majority want an increase in the minimum
required capitalization for forwarders?
If so, how much? What would be the phasing period
for the existing companies to achieve the required
minimum capitalization?" Lingad pointed out.
The draft AO proposes raising the minimum capitalization
to P5 million for both non-vessel operating common
carriers (NVOCCs) [from the current P500,000] and
cargo consolidators (from P400,000). PSB is also planning
to collapse into one category the currently separate
categories of International Freight Forwarder and
Breakbulk Agent.
Under the proposal, the new category will have a
minimum paid-up of P3 million. Current requirements
are P300,000 and P250,000, respectively. Domestic
freight forwarding firms, on the other hand, would
still be required a minimum paid-up of P250,000.
Stockholders must also be 100% Filipino citizens.
The proposed minimum amount of insurance coverage
is: P5 million for NVOCCs, P3 million for international
freight forwarders, and P250,000 for domestic freight
forwarders.
The draft AO also contains amended requirements for
new applicants and penalties and fines for non-compliance
with PSB rules.
Lingad said the draft was actually prepared years
ago and was already presented at a public hearing
but no decision came of it. - Maritess R. Mesias
KOREAN shipping line Sinokor Merchant Marine Co.,
Ltd. (Sinokor) will launch a weekly service on the
Manila-Korea route starting this month.
A joint venture with Dongnama, Heung-A and Hanjin,
the Malacca Strait Service (MSS) will service the
ports of Manila, Inchon, Kwangyang, Pusan, Keelung,
Hong Kong, Port Klang, Medan, Penang, and Singapore.
Edmund S. Co, senior manager for Marketing and Business
Development of Fair Shipping & Agency, Inc., the exclusive
Philippine agent of Sinokor, said the principal decided
to deploy a dedicated vessel to service the route
due to improved trade between Manila and Korea in
the past two years.
For the period, a 21% growth in trade was experienced.
"Sinokor started its service to Manila in 2000.
But the carrier was only buying slots from consortium
lines and later decided to halt the service due to
the small profit being made on the service," he explained.
"Competition for the service will be exciting especially
among Korean vessel operators.
I'm looking forward to a very tight race to the
top in capturing the Manila/Korea market this year.
Sinokor will be a major contributor to this trade,"
he added.
Four vessels will be deployed for the joint operation.
Sinokor is committed to booking 300 twenty-foot equivalent
units (TEU) per vessel, north and south bound.
Sinokor Seoul will undertake the maiden voyage to
Manila commencing on June 24. She will call at the
South Harbor.
The vessel has a capacity of 1,608 TEUs and deadweight
of 25,868 metric tons. Co said Sinokor is also planning
to venture into another joint service with Dongnama,
Heung-A and Hanjin.
"The plan is under study and we will reveal the service
in due time," he said.
Sinokor has an established network of services in
China and other areas such as Japan, Hong Kong, Vietnam,
Malaysia, Indonesia, Singapore and India.
DEBT-SADDLED shipping firm Negros Navigation
Company (NENACO) said it is implementing measures
that would gradually turn the tide and bring the company
back to stability by year end.
NENACO deputy general manager Jose
Manuel Mapa said the company is looking at strategies
to boost its freight and passage divisions. Earlier,
NENACO president Conrado Carballo expressed optimism
that the company will be able to recover by 2011.
The shipping line is under a rehabilitation
program. Total actual and opportunity losses excluding
exemplary damages from February 9 to May 5 is estimated
at P76.4 million, NENACO noted.
Among the strategies to boost revenue
is the launch of the second wave of Express Cargo
On-board. Initially launched middle of last year,
the program aims to add cargo capacity by converting
unused passenger spaces.
"This is one of our priority projects
for the freight side of the business. The first time
we launched it, the result was very substantial,"
he noted.
Another measure, he said, is the continued
focus on high-paying cargoes, or improving the cargo
mix of the company. On the passenger side, the company
launched this week its "Sulit Tipid" promo, which
offers an almost 50% discount on selected routes.
For a limited period, the economy rate
for Manila-Bacolod is only P999, for example. Also
under the promo, the economy rate from Bacolod or
Iloilo to any destination in Northern Mindanao is
only P777 from the previous rate of P1,505.
"Sakay Ulit", another promo to boost
passenger traffic, meanwhile entitles NENACO patrons
to a 20% discount.
"If you show your old ticket, which
does not exceed a maximum of two weeks, you will get
the discount," Mapa said.
