60/40
nationality rule may apply to sea freight forwarding
THE 60/40 nationality
requirement under the 1987 Constitution may also apply
to international seafreight forwarding companies,
according to a Philippine Shippers' Bureau (PSB) source.
The source who requested
anonymity said the sector may also adopt the policy
even if an earlier Department of Justice opinion identified
only international airfreight forwarding companies
- not seafreight firms - as being under the 60/40
rule. "We can follow by means of acquiescence," the
PSB source said. The DOJ opined that international
airfreight forwarding companies are public utilities
which, the 1987 Constitution says, must be majority
owned by Filipinos.
The decision has left
many sea freight forwarders - most of whom also offer
air freight services - wondering whether the nationality
requirement applies to their sector. The PSB source
admitted there are companies with more than 40% foreign
equity seeking PSB's authorization to operate. At
present, 2-3% of the total number of accredited international
sea freight forwarding firms have foreign ownership
of more than 40%, the source added. The source clarified,
however, these companies will not be affected once
the nationality requirement is enforced.
"This is because there
was a prior mandate from the Board of Investments
that they can operate even if majority of their stocks
are owned by foreigners provided they have a $200,000
capitalization," he said.
The Philippine Ports
Authority (PPA) said plans for the construction of
second generation roll-on/roll-off (ro-ro) ramps are
on the way for major ports throughout the country.
In a press briefing,
PPA general manager Alfonso Cusi said putting in place
movable or adjustable ro-ro ramps will help enhance
the services and efficiencies in moving people and
cargoes through the Strong Republic Nautical Highway
(SRNH).
The adjustable ramps
are also in response to the problem of varying draft
requirements and tidal ranges. Cusi disclosed the
first movable or adjustable ro-ro ramp will be put
in place in Batangas, where the bulk of both domestic
and foreign shipments pass through. PPA aims to complete
the Batangas Port Development Phase II next year.
He said the port agency
will be conducting talks with the Cebu Ports Authority
(CPA) management for the acquisition of the same for
the port of Cebu. "We cannot put in place just one
adjustable ro-ro ramp. There has to be a connecting
port. We will ask the CPA if they can provide the
equipment," he said. He added PPA aims to develop
initially the Batangas-Cebu link, two of the major
ports of call in the country, with the construction
of second generation ro-ro ramps.
Cusi said the port agency
is also planning to construct movable ramps at the
port of Manila. There was no talk of whether the private
port and terminal operators will be required to contribute
for the project. He said PPA is considering constructing
one movable ramp in the nearly complete Marine Slipway
at the North Harbor. Cusi said the port agency will
have to discuss with ship operators regarding the
specific requirements for vessels to fit in with the
new movable ramps.
"We will coordinate with
ship owners so they may know what type of vessels
to acquire once the ramps are already in place," he
said.
THE joint
petition of Philippine Airlines (PAL) and Cebu Pacific
for a US$6 increase in their overseas fare per one-way
trip has been approved by the Civil Aeronautics Board
(CAB).
The increase
is due to take effect immediately and will cover the
additional cost of fuel incurred by the airlines caused
by the continuing increases in oil prices. According
to PAL, the increase in jet fuel prices raised its
operating cost per passenger by US$20.84, while Cebu
Pacific claim its cost went up by $9 per passenger.
Jet fuel price has increased to $45.71 per barrel
from $28.25 in May 2003.
The CAB
said the fuel surcharge will be in effect for as long
as prices of aviation fuel remain high, but will have
to be reduced or removed once prices drop.PAL
and Cebu Pacific have not yet decided on whether they
will ask for a similar increase in domestic fares.
Meanwhile,
14 foreign airlines have also asked CAB for fare hikes
on one-way trips: US carrier Northwest Airlines ($20),
South Korea's Asiana Airlines ($7), Papua New Guinea's
Air Niugini ($10.50), British Airways ($4), China
Airlines ($7), Hong Kong's Cathay Pacific ($5- US$14,
depending on the route), Taiwan's Eva Air ($6), Malaysian
Airlines ($6), Australia's Qantas Airways ($10.70),
Singapore Airlines ($5), Vietnam Airlines ($5), Royal
Brunei and Saudi Airlines ($5), and Qatar Airways
($2.50).
Shippers'
councils have once again called for the elimination
of surcharges imposed by shipping lines, claiming
these are imposed without consultation and transparency.
During
the recently concluded 1st Asian Shippers' Meeting
held in Busan, Korea, shippers objected to the imposition
of surcharges, including the peak season surcharge,
documentation dee, automated manifest system surcharge,
war risk surcharge, and convoy charges. Present during
the meeting were the Korean Shippers' Council, China
Shippers' Association, Hong Kong Shippers' Council,
Japan Shippers' Council, Philippine Shippers' Bureau
and the Thai National Shippers' Council.
The sector
demanded transparency as well as justification and
simplification of the tariff system. They called the
charges "undesirable and unsupported."
Through the Federation of ASEAN Shippers Council (FASC),
the shippers said liner shipping conferences and agreements
tend to rapidly impose unilateral rate hikes.
"Ocean freight should be established through
free market principles rather than collective price
fixing by liner shipping conferences and agreements,"
the group said in a statement.
The shippers
upheld their position on the terminal handling charge
(THC), reiterating it should be part of ocean freight
and borne and paid for by the party who contracts
the shipping services. They pointed out the imposition
of the THC contradicts international trade practices
and relevant provisions of the United Nations Code
of Conduct for Liner Conferences.
On the
issue of security, the shippers concurred that global
safety is essential for effective operation of the
international freight transport system. They, however,
stressed security measures should not translate to
excessive costs.
They said they will
take part in the global move against security threats
by monitoring closely security initiatives on Radio
Frequency Identification and the recently-enforced
International Ship and Port Facility Security Code.
THE Civil
Aeronautics Board (CAB) said the Japanese government
has finally agreed to sit with the Philippine air
panel to discuss amendments to the two conutries'
Air Service Agreement (ASA) by September.
CAB Economic Planning
and Research chief Porvenir Porciuncula said Japan
is included in the CAB's list of priority countries
for air talks this year along with the US and Korea.
Prioritization of air talks is part of the board's
ten-point program for 2004. Porciuncula noted the
impending inauguration of the Nagoya Airport in February
2005 may have stirred up Japan's interest in discussing
amendments to the ASA."Japan wants to have more
and we want to have a more flexible air agreement
with any other country, in this case with them. We
are also pushing for liberalization in the aviation
industry," he said.
He noted CAB is hoping
to increase the Philippines' current flight co-efficient
to Japan by as much as 100%. At present, carriers
are only allowed to fly Narita, Osaka, Okinawa and
Fukuoka. A number of carriers, including Asia Overseas
Airlines, Cebu Pacific and Philippine Airlines, have
already expressed interest in servicing Japan or increasing
current flight services.
Porciuncula stressed
the need for a flexible ASA is also in line with the
nearing finalization of the Japan-Philippines Economic
Partnership Agreement (JPEPA), which will push for
free trade of goods and services between the two countries.JPEPA
is similar to the Common Effective Preferential Tariff
Scheme-ASEAN Free Trade Agreement (CEPT-AFTA) such
that it will give both countries better access at
lower duties for certain commodities.
Porciuncula said the
CAB is optimistic the third round of talks will finally
lead to a final agreement.
Transport
department prioritizes construction of major airports
THE Department
of Transportation and Communications (DOTC) will prioritize
the construction of transportation infrastructure
such as airports in major destinations given the department's
low budget allocation for this year.
In a
recent interview, DOTC Planning and Project Development
assistant secretary Robert R. Castañares said
the agency will be "forced to settle on what
was planned during the previous year." These
include the construction and completion of airports
in major destinations in the country under projects
such as the Selected Airports Development Project
(Phase I and II) and the New Iloilo Airport Development
Project (NIADP).
The Selected
Airports Development Project involves the construction
of a new airport at Silay City in Negros Occidental,
redevelopment of the existing Tacloban Airport, and
the immediate improvement of the existing Bacolod
and Tacloban airports.
The NIADP,
on the other hand, will involve the construction of
a new airport of international standard in Sta. Barbara
and Cabanatuan, Iloilo to replace the existing airport
at the Manduriao, Iloilo City, in response to the
operational safety requirements and effectively cope
with the increasing air traffic demand in the area.
Both projects will be financed through yen loan packages
from the Japan Bank for International Cooperation
(JBIC). The Silay airport project loan amounts to
¥5,728 million and the Bacolod and Tacloban airport,
¥11,743 million. The loan for the NIADP is ¥14.724
million.
Improvement
at the Bacolod airport commenced last April while
the Tacloban airport will start by end of the year.
The NIADP is scheduled by April 2005. Castañares
said the department was advised by National Economic
and Development Authority (NEDA) director general
Romulo Neri in a meeting last December to defer the
acquisition of vessels for the Coast Guard and give
priority to infrastructure projects.
Despite
its high revenue collection of P30 billion last year,
the DOTC was only given a budget ceiling of P2.2 billion.
Castañares said this translates to a shortfall
of about P4.1 billion since programs for the year
are estimated to reach around P6.3 billion.
"The
P4.1 billion will be supplemental, meaning it's subject
to collection of taxes," he said.
