Suspended MCT operations
mean P108M in gov't losses
THE Phividec Industrial Authority
(PIA) said the government has been deprived of
approximately P108 million in revenues for the
past five months that the Mindanao Container Terminal's
(MCT) operation has been suspended.
PIA Port Revenue Division officer-in-charge
Jose Mari Fernandez told PortCalls the MCT, through
a preliminary injunction, is enjoined from catering
to container cargoes that are not owned or consigned
to PIA locator firms until the case is resolved.
This, he noted, has resulted in
revenue loss from port charges and cargo handling.
Fernandez said the injunction,
however, did not adversely affect the number of
locators within the industrial estate. In fact,
the number increased 41% since 1998 to the present,
he noted.
The full operation of the terminal
was halted by a Temporary Restraining Order (TRO)
issued by Judge Downey Valdevilla of the Regional
Trial Court Branch 39 of Misamis Oriental on April
27, 2004 upon complaint for injunction and damages
by Oroport Cargohandling Services Inc.
The cargo handler cited unfair
competition and PIA's lack of legal authority
to operate the port.
"The TRO should have been effective within
20 working days but then prior to the expiration
of the 20-day period, a preliminary injunction
was issued by the same court,î" Fernandez
noted.
He said PIA has already filed a
Petition for Review on Certiorari with Prohibition
before the Court of Appeals (CA) challenging the
order of Judge Valdevilla in issuing the preliminary
injunction. "It has been pending before the
CA for more than four months now," he said.
Fernandez added an administrative
complaint against the presiding judge was filed
before the Supreme Court (SC) by reason of gross
ignorance of the law, specifically Republic Act
No. 8975.
The act ensures the expeditious implementation
and completion of government infrastructure projects
by prohibiting lower courts from issuing TROs,
preliminary injunctions or preliminary mandatory
injunctions. PIA is still waiting for the SC decision
on the complaint.
Fernandez disclosed PIA will pursue
its plans to allow a private entity operate the
MCT. After the failure of two biddings, he noted,
the authority is now allowed to directly negotiate
with port operators, he added.
He said PIA has already received
proposals from operators such as International
Container Terminal Services, Inc., Asian Terminals
Inc., Cebu Arrastre and Stevedoring Services Corp.
AustralAsian Group of Companies Pty Ltd., Amerisian
Port Management and a few local companies.
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Only 11 of more
than 40 international conventions ratified: IMO
THE Philippines has only ratified
or fully implemented 11 of the more than 40 IMO
conventions that govern the shipping industry
today, the International Maritime Organization
(IMO) recently disclosed.
"The organization acknowledges
that not all member governments are able to give
full and complete effect to IMO instruments,"
noted IMO Regional coordinator in East Asia Brenda
Pimentel during the Annual General Membership
Meeting of the Filipino Association for Mariner's
Employment, Inc.
"In some instance, conventions
that a country may have ratified have not been
implemented or enforced due to the government's
failure to translate them into national rules
and regulations," she noted.
Some of the major international
conventions formulated by the IMO are the Safety
of Life at Seas, 1974; Maritime Pollution, 1978;
Collision Regulations 1972; the International
Tonnage Convention of 1969; and the Standards
of Training, Certification and Watchkeeping for
Seafarers, 1978.
Pimentel said the Philippines has
only been able to make it to the maritime organization's
"white list" through a series of technical
assistance under the Integrated Technical Co-operation
Program (ITCP) of the IMO.
The ITCP assists developing countries
build up their human and institutional capacities
to comply with IMO regulations and standards.
It involves assessment, training, assistance in
drafting legislations and advisory missions.
In recent years, the ITCP has contributed
to the improvement of maritime training standards,
establishment of the maritime safety management
systems, development of oil contingency plans
and increased number of trained personnel in the
maritime sector.
A total of 4,700 nationals in Asia
were trained through the ITCP. Prior to 1996,
the number of Asian acceptance of the IMO instruments
totaled 280. By July 31 last year, this rose to
425 or an increase of 52%.
Pimentel said most countries need
technical cooperation and external assistance
due to the lack of: cooperation between national
agencies; clear responsibility between the public
and private sector; funding for infrastructure;
adequate training; and qualified human resources.
"The problem with the public
and private sector became most pronounced in a
way when the International Ship and Port Facility
Security (ISPS) code was adopted. Up to now we
ask, does everybody know why the Office of Transportation
Security exists and its role in the implementation
of the code," she stressed.
She added insufficient priority
to maritime issues, appreciation of the benefits
of shipping and appreciation of the impact of
global maritime standards also add to the rationale
for the ITCP.
Pimentel said also an obstacle is the lack of
updated national maritime legislation not only
to those promulgated by Congress but also by maritime
agencies. IMO conventions required the translation
of its regulations into detailed circulars, instructions
and advisories, she explained.
"MARPOL, which we have ratified
in 2001, became effective for the Philippines
after one year. Up to now, there is no law that
translates the convention into national regulations
although there are several agency issuances by
the Maritime Industry Authority, Philippine Coast
Guard, Philippine Ports Authority and the Depart-ment
of Environment and Natural Resources," she
said.
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NENACO launches
new processing system
NEGROS NAVIGATION COMPANY (NENACO)
recently launched a new processing and booking
system to simplify and lessen paperwork involving
cargo booking and delivery.
Called StarFreight, the system
was developed by the NENACO Freight Division in
partnership with the company's Information and
Communications Technology Department. Prior to
its launch, NENACO was using StarNet, a locally
developed system meant to simplify and speed up
ticketing.
StarFreight is an integrated browser-based
cargo system that covers every function in the
freight business cycle from acceptance up to delivery
of shipments. It was designed as a primary software
support for NENACO's freight business and covers
freight aspects such as sales and marketing, documentation,
logistics, operational accounting, customer management
and service, as well as less cargo load consolidation.
"With StarFreight, the company
wishes to make cargo booking a hassle-free activity,
both to its passengers and to the frontline employees,"
it said.
It provides an integrated end-to-end
solution from cargo acceptance up to the time
when the cargo reaches its destination and delivered
to the client. The new system also introduces
an online pro-forma bill of lading and has a direct
interface with the E-Port system of Philippine
Ports Authority.
Shippers and consignees will also receive up-to-the-minute
text alerts and notices courtesy of StarFreight.
Corporate clients can also check the status of
their shipments via the web.
"The launch of StarFreight
cements the company's foray into E-commerce. With
this system, we aim to further stabilize our shipping
and booking process - making it easier and more
convenient to our clients," said NENACO deputy
general manager Jose Manuel Mapa.
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RP should boost
ICT to facilitate maritime development: DOTC
THE Philippines should focus on
the development of information and communications
technology (ICT) to further facilitate the development
and modernization of the maritime industry.
This was the gist of the message
delivered by Transportation and Communications
Office of Information Technology and Communications
undersecretary Virgilio Peña during the
recently concluded Philippine Maritime Conference
held at the Century Park Hotel.
According to him, the idea is to
develop and integrate the best solutions in maritime
transactions to gain competitive advantage through
efficiencies and security. Compared with its neighbors,
he noted, the Philippines has been lagging in
terms of ICT utilization in maritime operations.
Kjell Sundberg, president and chief
executive officer of Spectral Technologies, Inc.
noted the development of software solutions in
the country, as well as the adoption of ICT, is
sluggish.
He said 90% of Internet users are still using
dial-up systems; other countries are already using
fiber optics for faster connection.
Peña identified several
ICT opportunities in the maritime industry. These
include more efficiency in clearing of shipments;
enhanced shipboard communication; automated cargo
handing systems; online reservation and ticketing
systems; supply chain management systems; prevention
maintenance; and developing new business opportunities.
He said the Department of Transportation
and Communications has a partnership with the
Bureau of Customs in the development of an integrated
system to facilitate faster processing of clearances
and other documents at Customs.
The system would connect the bureau
to other concerned agencies such as the Central
Bank, export regulatory bodies and brokerage companies
to eliminate manual processing and promote paperless
transactions.
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ASEAN eyes ocean
peacekeeping activities
MEMBER countries of the Association
of South East Asian Nations (ASEAN) are looking
at establishing regional cooperation at sea through
ocean peacekeeping activities.
The proposal to include peacekeeping
as part of the activities of the ASEAN security
community was prompted by ever-increasing threats
at sea and their possible repercussions for security
on land.
Given increasing threats at sea,
it is vital that the region of South East Asia,
in particular, initiate multilateral arrangements
that specifically address common maritime problems
- in the form of ocean peacekeeping," earlier
reports said.
Such problems include environmental
protection, smuggling, safety navigation, maritime
piracy and, most importantly, terrorism.
The same strategy is already in
place in the BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines-East
Asia Growth Area) - only a small portion of the
Asian region.
Ocean peacekeeping involves international
cooperation between regional navies and maritime
enforcers to conduct surveillance activities to
protect the sea from becoming fertile ground for
attacks.
The proposed ocean keeping activities
of the ASEAN countries may be accomplished through
regional arrangements or a memorandum of understanding.
In the Philippines, the Maritime
and Ocean Affairs Center (MOAC) of the Department
of Foreign Affairs, has already sought the input
of concerned agencies and private organizations
on the proposal. These include the Philippine
Coast Guard, Philippine Navy, Maritime Industry
Authority (MARINA), Philippine Ports Authority,
Department of Justice, Philippine Center in Transnational
Crime, Maritime Training Council, Filipino Shipowners
Association, National Security Council, Philippine
National Police-Maritime Group, National Defense
College of the Philippines, Office of the Special
Envoy on Transnational Crime and Department of
Transportation and Communications.
In a letter to MOAC secretary general
Alberto Encomienda, MARINA expressed support for
the endeavor. The agency said the proposal is
especially necessary now that the International
Ship and Port Facility Security code is in place.
The maritime agency said it will
closely coordinate with the DOTC-Office of Transportation
Security to make the Philippines visible in this
regional initiative.
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New container handling
equipment to double Suape Container Terminal's
crane capacity
TECON SUAPE, S.A. (TSSA), International
Container Terminal Services, Inc.'s (ICTSI) Brazilian
unit operating the Suape Container Terminal (SCT)
in Pernambuco, Brazil, recently awarded a contract
to winning bidder, Shanghai Zhenhua Port Machinery
Co., Ltd. (ZPMC), of China for the purchase new
container handling equipment.
"The order for two post-Panamax
quay cranes (QCs) and two rubber-tired gantries
(RTGs) is a major investment, which will strengthen
our position as one of Brazil's leading container
terminals," said Sergio Kano, TSSA chief
executive officer. "The new container handling
equipment will boost SCT's crane capacity twofold,"
he added.
The cranes will be fully erected
and tested in China before making the journey
to Suape. The contract consolidates QCs and RTGs
in a single package to minimize transportation
and administrative costs.
"The fully erect delivery was
an important consideration in the selection process.
The SCT is experiencing massive growth, and every
portion of our terminal is utilized for container
operation with little space for erecting cranes,"
Kano explained.
The post-Panamax QCs are capable
of servicing the world's largest vessels, having
an outreach of 47.5 meters up to 18 containers
wide with a lift height of 36 meters above the
quay. High speed, state-of-the-art AC drive systems
are provided for each of the main motions to reduce
maintenance and increase productivity.
Special features, such as remote
crane condition monitoring, will provide real-time
feedback of the crane system status, and enable
port technicians to diagnose potential faults
from a computer monitor in the maintenance office.
SCT is already equipped with an
advanced communication network, which permits
use of this technology through a fiber optic and
high-speed radio signal infrastructure.
The cranes also have a high lifting
capacity of 65 metric tons to reduce overall cycle
times, enabling the lifting of two fully loaded
containers simultaneously.
The RTGs use similar technology,
and have the capability to increase yard capacity
through one-over-five-high stacking and six containers
wide plus a roadway. TSSA worked closely with
ZPMC to introduce advanced diesel engine condition
monitoring, extended oil change intervals and
lower exhaust emissions.
The new equipment is expected to
be operational by the last quarter of 2005.
To date, SCT has two Panamax QCs
and two RTGs.
New tax incentives introduced by
the Brazilian government and closer trade partnerships
with Chinese companies have given TSSA the confidence
to move forward with this long-term investment.
Export trade from Brazil has also surged during
the past year.
The SCT was the first Brazilian
port to be compliant with the UN International
Maritime Organization's International Ship and
Port Facility Security Code, and has already achieved
ISO 9001 certification.
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