PPA to prioritize
development of six ro-ro links in 2005
NEWLY-INSTALLED Philippine Ports
Authority (PPA) general manager Oscar M. Sevilla
recently identified six roll-on/roll-off (ro-ro)
links whose development will be prioritized next
year to improve efficiencies provided by the Strong
Republic Nautical Highway (SRNH).
The new links will cover the ports
of Mambajao in Camiguin, Placer, Aroroy, Naval,
Biliran and Cataingan in Masbate, and Donsol in
Sorsogon.
Sevilla said the new links were
along the three main components of the SRNH that
the PPA committed to the Department of Transportation
and Communications as its priority port development.
The port agency is conducting a
feasibility study on the socio-economic viability
of the ports and the hinterlands they are expected
to serve. The development of the new links will
commence early 2005.
At present, there exist a total
of 71 ro-ro links distributed in six ro-ro phases.
The six are the Pan-Philippine Highway Ferry Terminals
or the Eastern Seaboard Link; the Western Seaboard
Link; the Mindoro-Marinduque-Romblon-Palawan Ro-ro
System; Trans-Visayas Ro-Ro System; Southwestern
Ro-Ro System; and the Northeastern Ro-Ro Transport
System.
The three main component routes
under the SRNH, on the other hand, are the Eastern
Nautical Highway, Central Nautical Highway and
the Western Nautical Highway.
"These ro-ro links will enable
the benefits of the major gateway developments
to cascade to the communities served by the outlying
ports," Sevilla added.
After 2005, the PPA is also expected
to provide ro-ro facilities in two different ports
in Bataan, Mariveles, Bataan and Bonifacio, Mariveles,
and make all major ports ro-ro capable.
Sevilla said the port agency is
continuously scouting for essential links considered
vital to economic development.
In a related development, President
Gloria Macapagal-Arroyo inaugurated last week
in Western Visayas several projects under the
SRNH. These include the Tampi Ro-ro port in San
Jose, Negros Oriental and the Cebu South Road
project connecting Santander, Cebu via Barili-Carcar.
The 122.988-kilometer road project
involved the rehabilitation and improvement of
roads with funding from the Asian Development
Bank and the Japan Bank for International Cooperation.
The president also facilitated
the ground-breaking of the Toledo-Naga road project,
a 34.8-kilometer arterial road of the SRNH linking
Cebu's western seaboard to Metro Cebu and the
Cebu South Road.
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Strong private
sector participation urged in Domestic Shipping
Act implementation
THE Philippine Interisland Shipping
Association (PISA) is pressing the Maritime Industry
Authority (MARINA) to involve the private sector
in the implementation of Republic Act No. 9295
or the Domestic Shipping Development Act (DSDA)
of 2004.
In a letter to MARINA deputy administrator
for Planning Gloria Victoria J. Bañas,
the association reiterated the maritime agency
should include the private sector's propositions
in the final draft of the law's implementing rules
and regulations (IRR).
The maritime agency is on the eighth
draft of the proposed IRR.
In its position paper, PISA said
since the law's intention is to promote development
in domestic shipping, the IRR should not impose
new or additional burden on shipowners and ship
operators in terms of cost and bureaucratic requirements.
"Minimizing bureaucratic imposition
and ensuring transparency with private sector
participation in the process of evaluating applications
should be provided for in the IRR," it noted,
adding this would prevent abuse and graft in the
government's fiscal incentives for the private
sector.
The association also said there
should not be any provision that would defy the
mandate on full deregulation of the industry.
PISA stressed national shipping
associations should be tasked to help in the accreditation
of ship operators applying to avail of the incentives.
"The IRR can require operators
to affiliate themselves with the concerned national
shipping associations to enable the association
to police the ranks of their members and assist
the government in enforcing higher safety and
operating standards," it pointed out.
The model proposed is that of Japan,
where the Japan Coastal Shipping Association is
officially mandated to perform certain industry-regulation
functions.
PISA included in its position paper
the proposed amendments submitted by its subordinate
associations, including the Philippine Liner Shipping
Association (PLSA) and the Lighterage Association
of the Philippines (LAP).
The PLSA said the IRR should consider
strengthening provisions on the classing of vessels
and the retirement of substandard ships to ensure
safe, reliable and efficient service to the public
at all times.
LAP suggested tug and barge operations
should continue to be exempt from the Certificate
of Public Convenience (CPC) requirement and be
required to operate under a different certificate
of authority. The CPC is a product of the Public
Service Act for public utilities.
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Cold chain sector
seeks energy efficiency amid spiraling fuel costs
COLD storage companies are worried
over the continuously increasing cost of fuel
in the world market, forcing them to seek means
to cut operating costs particularly on energy
expenses.
During the recently concluded 3rd
Quarter Cold Chain Association of the Philippines
(CCAP) Roundtable Discussion held at the Old Swiss
Inn Restaurant in Makati, CCAP president Anthony
Dizon said the volatility of fuel prices is becoming
a burden to cold chain companies.
Approximately 30% of cold chain
facilities' operating cost goes to energy since
refrigeration requires a maximum supply of electricity.
Last week, the price of fuel has
reached $50 per barrel from only $45 in May.
Dizon noted as a result, the sector
is anticipating further increases in power rates
in the coming months. This year, the country's
biggest power supplier Manila Electric Company
has increased electricity charges by as much as
P1.20 in Luzon alone.
Amid the impending power rate increases,
he said companies should focus on the improvement
of energy efficiencies.
During the meeting, the sector
expressed interest in collaborating with energy
performance contracting firm Davies Energy System,
Inc. (DES), a contractor for cost-effective energy
savings products, equipment and services.
DES assistant vice president Alfred
V. Villa-Real said the company offers a program
which can reduce electricity bills by 5-15% on
average.
"We use our skills to dramatically
improve the operating efficiency of a business'
electrical system by balancing and tuning the
entire facility's system," he explained.
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Customs awards
computerization project consultancy
THE Bureau of Customs (BOC) recently
awarded the consultancy job for its P500-million
computerization project to Pacific Consultants
International Philippines, Inc.
The bureau signed the contract
last week, BOC deputy commissioner for Management
Information System Alexander Arevalo said in an
interview.
"The budget for computerization
was approved as early as March. We are hoping
that the project will be on track after this.
The consultant will help us avail of the P500
million, hopefully, by end of the year,"
he said.
Arevalo explained the project,
which will start January 2005 until third quarter
of the same year, comprises four components, including
the upgrade and expansion of the bureau's existing
import system and the automation of the export
system.
It will improve the existing Automated
Export Documentation System, resulting in the
seamless integration of import and export processes.
"The proposed automated export processing
will allow for raw materials liquidation,"
he said.
Also part of the computerization
project is the Single Window System that will
facilitate inter-agency linkage. Through this
system, Arevalo said there will be single submission
of all the documents required and synchronized
decision-making in the processing of customs clearance.
The single window system will link
all the concerned government agencies to BOC such
as the Philippine Ports Authority, Maritime Industry
Authority, National Food Authority, Philippine
Coast Guard, Department of Transportation and
Communications and the Department of Trade and
Industry.
Arevalo is currently the chairman
of the Association of South East Asian Nations
Single Window Project Committee. "We are
hoping to develop the model by end of 2005,"
he noted.
The last component of the computerization
project is office automation or the internal systems
mprovement. - Maritess R. Mesias
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Air talks with
Myanmar set for end October
THE Civil Aeronautics Board (CAB)
said the Philippine air panel will meet its counterpart
in Myanmar by the third week of October to discuss
the renewal of the existing air service agreement
(ASA) after the original schedule was cancelled
in April.
CAB Economic Planning and Research
chief Porvenir P. Porciuncula said the air negotiations
are part of the plan to strengthen cooperation
among member countries of the Association of South
East sian Nations (ASEAN).
"The aim is to update the
bilateral agreements between the ASEAN countries
to facilitate trade and stronger ties," he
noted.
Porciuncula said aside from Myanmar,
talks with other member states are also eyed,
including Nepal, Turkmenistan, Cambodia and Laos.
Earlier, CAB came up with a new
set of ASA, which aims to improve privileges and
entitlements with Myanmar.
"We have to update some of
the entitlements to meet the terms of certain
provisions set in the International Civil Aviation
Organization such as the policies on multiple
designations," Porciuncula said.
He disclosed the CAB, through the
Philippine air panel, will request for additional
destinations since Philippine-flagged carriers
are currently enjoying limited rights to one specific
destination. "At present, we are only allowed
to fly Yangon," he noted.
Porciuncula expressed optimism
that Myanmar will grant the request since the
country is heavily promoting historical and tourist
sites.
In turn, the Philippines will offer
additional service destinations to the country's
prime cities including Cebu, Davao and Subic.
Porciuncula said the Philippines
may also have a separate cargo entitlement agreement
with Myanmar.
"We are not yet done with
the specific requirements from the airlines. We
are yet to study the benefits that we can get
from [Myanmar] in terms of cargo capacity,"
he pointed out.
However, Porciuncula noted the
CAB will integrate in the potential ASA the promotion
of Clark and Subic in view of the existing open
skies for cargo policy in these areas.
"We have to prepare in case
the cargo trade between Philippines and Myanmar
suddenly takes off so we can have easy connections,"
he said.
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NENACO sees positive
court ruling on rehab plan
NEGROS NAVIGATION COMPANY (NENACO)
said it anticipates a favorable response from
the court on the company's corporate rehabilitation
plan.
The court's verdict on the rehabilitation
program is expected to come out in a week or two,
disclosed NENACO deputy general manager Jose Manuel
Mapa.
Despite earlier reports that the
rehabilitation plan is non-viable, NENACO said
there are more indications that the program is
doable. However, the company noted, nothing is
final until the court's decision is out.
Once approved, the rehabilitation
plan will give the company breathing space to
accrue the funds needed to pay its debts and regain
financial stability.
The plan, submitted to presiding
Judge Artemio Tipon's office last September 1,
was designed to uplift the company's current market
share, on top of clearing out all its debts and
existing obligations. "The principal goal
of the business plan should go beyond debt settlement;
rather it should be to transform petitioner into
a uniquely competitive inter-island roll-on /
roll-off leader in the domestic shipping industry,"
said NENANCO rehabilitation receiver Monico Jacob
in his report.
The plan consists of three phases.
During the first phase covering 2004 pre-rehabilitation
year up to 2006, the company is expected to "turn
the tide", enabling it to meet daily operational
expenses and settle debts on time.
The second phase (2007-2010) will
focus on route expansion. Jacob said NENACO must
break the monotony on its usual service routes
such as the Manila-Bacolod-Manila so as to establish
steady clientele for its other routes.
Finally, the third phase of the
rehabilitation program is eyed at accomplishing
NENACO's complete debt settlement and the "birth"
of a "uniquely competitive leader in the
shipping industry." Jacob said from 2011
to 2015, the firm should have captured at least
50% of the total passenger market and 35% of the
total freight market in the inter-island trade.
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APL.com one of
ten "great websites": B2B magazine
APL's Web site has been judged by
BtoB magazine to be one of its top ten "Great
Web Sites".
In the past, B2B magazine has ranked its top 100
business-to-business (B2B) Web sites with a point
system, and APL's position has risen steadily
over the past four years. Today, APL is the only
ocean carrier to make BtoB's list of ten "Great
Web Sites", which includes Alcoa, Xerox,
AT&T Corp., and Hewlett-Packard Company.
This is the first year B2B has
selected Web sites in this way.
"APL.com is a comprehensive
set of customer-centric applications that simply
get down to business," wrote reviewer Shane
Ginsberg, a San Francisco-based Web site marketing
specialist. "APL has smartly and elegantly
focused on critical shipping information and services."
One of the "easiest and most
intuitive" e-commerce options available on
APL.com, the magazine says, is the EBL Print feature,
which lets customers print their bills-of-lading
(key shipping documents) from anywhere in the
world, speeding up the release of their cargo.
"Our goal for all of our systems
- including our Web sites - is that they provide
business value in real terms," said Cindy
Stoddard, Chief Information Officer of APL's parent,
Neptune Orient Lines (NOL). "The ease of
use of our Web site is reflected in our customers'
high acceptance rate."
When APL launched its suite of e-commerce
services in 1999, fewer than 8% of the company's
customers used them, explained APL's Webmaster,
Hank Moreira.
"Today it's close to 50%, and
more than 45% of all customer transactions with
APL are now made through these e-channels,"
said Moreira. "The high volume of Web-based
transactions allows us - and our customers - to
operate more conveniently and cost effectively."
The review of APL.com also notes
that APL follows the "show, don't tell"
approach, using plenty of demos and multimedia
to get its point across and educate customers.
"This is a strategy that helps
customers across all industries and in all countries
easily understand and begin benefiting from the
company's e-commerce services," said Phillip
Chin, APL's Vice President, Customer Support and
E-Commerce.
The editors of BtoB said the ten
sites were selected for the high quality of product
and company information, presented in a compelling
way; ease of navigation; clean design that reflects
the company's brand; and the ability of customers
to purchase or transact business online. They
also said a great Web site "displays its
power in seemingly small ways."
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Escalating Costs
This year's logistics conference
held on Sept. 16-17, was quite successful, judging
from the overall evaluation made by both parti-cipants
and sponsors.
Nevertheless there were still the
usual complaints, although these seemed to be
fewer. From the participants, incomplete handouts
was again the major complaint. There is really
nothing DMAP can do about speakers who do not
give copies of their handout materials.
One of the irritants for DMAP in
conference sub-activities has always been obtaining
the handouts on time. There are always speakers
that do not like to give handouts, and there are
those who give their handouts very late, even
during the conference itself.
For the sponsors, a chief complaint
has always been the ingress conditions, specifically
the time, which they find inconvenient. A suggestion
to have the ingress on the day before would result
in a situation where everybody loses. DMAP might
have to pay extra for this "empty booths"
day, or the hotel would lose income on this day.
The sponsors themselves might have to assign people
to keep an eye on their exhibit.
Perhaps a major reason for the
success of the conference this year is the speakers'
lineup. This year there was only one foreigner
speaker. Before, foreigners tended to comprise
half of the speakers.
Over the years it has been shown
that Filipino audiences have consistently preferred
Filipino speakers to foreigners. At least one
participant made this specific comment this year.
This preference can be attributed to:
1. The diction of foreigners, whether Caucasian
or Asian, is often faster and more difficult
to understand.
2. Participants can identify better with the
content of Filipino speakers' talks as they
are closer to home.
As such, DMAP's annual logistics
conference is a bargain, costing a mere P10,000
(P8,000 for DMAP member companies). In contrast,
seminars/conferences in other Southeast Asian
sites typically charge US$1,000 or higher. Some
of these Southeast Asian seminars make use of
Filipino speakers also.
Meanwhile, we wish to mention the
upcoming 2004 CLM Conference and the Agrilink/Foodlink
2004 this October. By the way, in keeping up with
the times, the CLM (Council of Logistics Management)
has recently been renamed the CSCMP, or the Council
of Supply Chain Management Professionals.
On the logistics front, cargo owners
are faced with further increases in logistics
costs, as fuel prices continued to rise. This
obviously affects all modes of transportation.
In sea transport, another round of freight rate
increases is facing cargo owners. Some shipping
lines have already given notice of their intention
to increase rates.
Over at the NLEX, Manila North
Tollways Corp. is peddling what it calls "a
world-class expressway" to justify the large
increases in toll fees. MNTC is making use of
some politicians and some columnists to tone down
the anger of affected transport providers and
cargo owners, and the motoring public.
To be directly affected by the
huge toll fee increases are vegetable shipments
from the Cordilleras to Metro Manila, and shipments
of consumer goods from Metro Manila to Central
and Northern Luzon.
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