PPA eyeing 20%
increase in port fees to boost revenue
TO improve service and help boost
revenue in Philippine ports, the Philippine Ports
Authority (PPA) is looking at a minimum 20% increase
in port charges, according to PPA general manager
Oscar M. Sevilla.
Sevilla admitted, however, that
the port agency may have a hard time convincing
President Gloria Macapagal-Arroyo to approve the
plan because this will run counter to the government's
aim to reduce logistics costs.
"Officials are always looking
at ways to increase revenues and improve port
efficiency. A 20% across-the-board increase would
lift PPA revenue by approximately P180 million,"
he noted.
Transportation Secretary Leandro
Mendoza, however, doubted if the plan to increase
port charges will be pursued, noting that the
government is even eyeing the further reduction
of PPA fees to bring down the cost of goods from
the provinces.
Meanwhile, a PPA source said it
will be better if the agency focuses on pursuing
the implementation of the previously approved
increases in 2002, whose imposition was suspended
by the government.
The port agency initially received
approval to hike port fees two years ago, but
President Arroyo directed PPA to maintain the
rates as part of her commitment to reduce transport
costs, one of the seven-point agenda she outlined
for the ports and shipping industry.
Last February, the PPA was supposed
to implement a 5% increase on all stevedoring
tariff at the South Harbor and at the Manila International
Container Terminal. A 9% increase on the same
charges was also set to be implemented in February
2005.
"There is a possibility of
a rate increase should the government allow the
suspended increases to be implemented. After all,
those were approved," the source noted.
Sevilla said PPA has been profitable,
despite not being able to increase port charges
last year. He said the agency had adjusted its
revenue forecast for the year to P1.6 billion
from the initial P1.3 billion due to efficiency
in port services. Revenues are expected to reach
P5 billion.
The adjustment in target was made
after the port agency hit P1.22 billion in income
as of end-June, with gross revenues of P2.7 billion.
The PPA contributes 50% of its income to the national
treasury.
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PCG heightens
security measures
THE Philippine Coast Guard (PCG)
has heightened security in the country's ocean
gateways, following confirmation that the Superferry
14 was, after all, bombed by terrorists.
In a press briefing last week,
PCG National Capital Region (NCR) chief Wilfredo
Tamayo said the government has come up with additional
measures such as the deployment of sea marshalls
aboard all vessels to secure Philippine waters
against terrorist threats.
"The deployment of sea marshalls
aboard the ships is the first of its kind in the
world," he said, adding the coast guard was
also directed to strictly observe its functions
round-the-clock to prevent further attacks.
The final report of the Special
Board of Marine Inquiry (SBMI) submitted to the
Department of Transportation and Communications
identified two members of the notorious Abu Sayyaf
gang as responsible for the Superferry 14 bombing
that claimed 63 lives and wounded several passengers
and crew.
The report revealed the management
of Aboitiz Transport System Corp. (formerly WG&A)
received an extortion letter signed by Abu Sayyaf
leader Abu Bakar Janjalani demanding payment of
$1 million for the unhampered use of the waters
of Mindanao.
Tamayo said PCG is closely coordi-nating
with other concerned agencies such as the Armed
Forces of the Philippines, the Philippine National
Police-Maritime Group as well as with the private
sector to carry out stricter security policies.
He said screening of passengers
prior to entry at the terminal, for instance,
is now "multi-layered'. "The screening
starts at the Philippine Ports Authority gate,
then upon passing through the shipping line's
gate, then at the terminal where the major screening
occurs, and lastly, at the gangplank where a number
of sea marshals are in place," he explained.
Meanwhile, PCG chief-of-staff Ramon
Liwag said automation in ports would be a big
boost to security. He urged the Philippine Ports
Authority to further work on the modernization
of the current port interface system.
"The increasing threat to
security gives us more reason to automate. With
automation, inspection of baggage and the passengers
will be faster and more effective. Also it will
reduce queueing," he said.
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DOTC pushes amendment
to BOT law
THE Department of Transportation
and Communications (DOTC) is looking at making
some changes to the implementing rules and regulations
of the Built-Operate-Transfer (BOT) Law to promote
wider private sector participation in infrastructure
projects.
Transport Secretary Leandro Mendoza
said the department's policy will be geared toward
improving the quality and adequacy of strategic
infrastructure through the setting of quality
and price standards for major infrastructure agencies.
"Private sector participation
will be encouraged through commercialization of
the operations and maintenance as well as the
expansion of roads, railways, ports and airports,"
he noted.
Mendoza said that to encourage
the private sector to participate in infrastructure
projects, regulatory and legal forms would be
undertaken to clearly delineate the operator and
regulator functions.
He added institutional reforms
will be implemented to ensure transparency and
accountability and to mitigate, if not eradicate,
administrative impropriety of government agencies.
Mendoza said infrastructure developments
would focus on connecting the country by providing
efficient linkages between land, water, rail and
air transportation systems, in support of agricultural
modernization, tourism development, improvement
of peace and order and decongestion of major urban
centers.
The DOTC has prioritized critical
projects to stimulate trade and investment. Some
of the projects are the roll-on/roll-off (ro-ro)
ports and the highways connecting them, the roads
and rail systems intended to decongest Metro Manila,
the Clark-Subic Highway, roads and highways that
would promote development in Luzon, Visayas and
Mindanao and links to tourism hubs and special
economic zones.
Mendoza said the cost of these
projects is enormous. "We will tap local
government units and the private sector to be
our partner in the development and implementation
of infrastructure projects," Mendoza stressed.
In air transportation, he said,
the DOTC would work toward strengthening the country's
international gateways to facilitate integration
with global markets. The commercial viability
of airports will be enhanced through full cost
recovery of air services, including airport investment.
The DOTC will also encourage more
private sector investment in domestic and international
shipping through reduction of regulations and
the grant of investment incentives, especially
in shipbuilding and ship repair activities.
Maritime, air, and land transportation
security will also be enhanced. Mendoza said the
United States Coast Guard has already given 167
of 170 Philippine-flagged international-going
vessels a clean bill of health by exempting them
from boarding on suspicion of failure to adopt
measures against terrorism.
"The department is working
hard to provide a policy environment encouraging
competition, public-private sector partnership,
and strategic alliance with foreign investors,
balance investments, upgrade facilities to internationally
accepted standards and practices, and public-oriented
delivery of frontline services," Mendoza
said.
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BOC expects grants
of P1.2 to P1.4 billion in three years
THE Bureau of Customs (BOC) expects
P1.2 to P1.4 billion in grants for the overhaul
of its computer systems in the next two to three
years.
In an interview, BOC deputy commissioner
for Management and Information System Alexander
Arevalo said the bureau is in negotiations with
different international agencies to help finance
various computerization projects within the next
three years.
"What we have in mind for
the existing BOC computer systems is a total phase
out and a major leapfrogging into a whole new
modern system," he said.
Among the major financial assistance
the bureau is expecting is a P10-million grant
from the Japan International Cooperation Agency
to finance BOC's data warehousing program.
"This is to more intelligently
collate all the data or information involved in
customs processing to expedite the clearance of
cargoes and also enhance revenue collection,"
Arevalo said.
The BOC is also expecting a grant
amounting to 1.3 million euros from the European
Commission/Union to finance improvement of the
customs valuation database and risk management
system, including acquisition of training materials.
"The EU office here has already
endorsed our request to their main office. A group
of consultants will be coming over in January
next year to assess the project," he said,
adding that the BOC is hoping discussions will
be finalized early next year.
Also, the United States Trade Development
Agency has been tapped for a P0.5-million grant
to fund a viability study for the computerization
project while the Australian government is being
looked at to help finance the Association of Southeast
Asian Nations' Single Window project.
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Air, sea port projects
in Bohol
A new link to the Strong Republic
Nautical Highway connecting Bohol to the islands
of Camiguin and Northern Mindanao is being developed
while the Panglao airport is up for improvement,
according to the Department of Transportation
and Communications (DOTC).
The upgrade in the province's water
and air transport infrastructure is part of the
administration's 2004-2010 Medium-Term Philippine
Development Plan.
The new roll-on/roll-off (ro-ro)
link in Cebu-Bohol-Camiguin is expected to boost
the island's tourism industry. It will also open
the local ports to other areas in the Visayas
and Mindanao as well as link Bohol to Maasin in
Leyte, then to Matnog in Sorsogon and the entire
of Luzon.
The link is in the priority list
of ro-ro ports, expected to be launched in September
next year.
Meanwhile, the Panglao airport's
modernization is one of four regional airport
projects being prioritized by the DOTC, the other
three being Coron Airport in Palawan, San Fernando
Airport in La Union, and Clark International Airport
in Pampanga.
Once upgraded, the Panglao airport
may serve as an alternative to the Mactan International
Airport in Cebu. Budget for the project is estimated
at P2.7 billion to be funded by the Philippine
Tourism Authority.
The project includes a passenger
terminal, control tower and facilities for nighttime
operations as well as a three-kilometer runway
to accommodate a 747 aircraft.
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SEIPI lauds removal
of cross subsidy on power rates
THE electronics manufacturing sector,
through the Semiconductor and Electronics Industries
in the Philippines Inc. (SEIPI), recently lauded
the government for the removal of cross subsidies
to the Energy Regulatory Commission (ERC).
According to the group, this measure
would strengthen the competitiveness of the power
sector as well as the electronics manufacturing
industry, the biggest contributing driver to the
Philippine economy.
It accounted for $24.6 billion
or 68% of the total Philippine exports last year,
directly employs more than 346,000 engineers,
technicians and operators, and provides the transfer
of best global practices on high technology manufacturing
to Filipino workers.
"Also, the effort to correct
distortions of the true cost of power is a major
boost to investor confidence as the government
initially meets targets with the Electric Power
Industry Reform Act or the EPIRA law," SEIPI
said.
The association filed a petition
for the removal of the cross-subsidy to ERC last
May 2004. It said cross subsidies provide for
cheaper residential electricity rate at the expense
of the industrial/commercial electricity rate.
As a result, electricity rates of industrial users
are high compared to China, Vietnam, Taiwan and
Korea, which only charges a third of the Philippines'
electricity rates. This has led many factories
and businesses to close shop.
"The removal in part of cross
subsidies will give the industry's competitiveness
a facelift by making Philippine industrial electricity
rates at par with the rest of the world,"
the association added.
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MIAA introduces
new procedures at NAIA
THE Manila International Airport
Authority (MIAA) recently implemented a new set
of measures at the Ninoy Aquino International
Airport (NAIA) to further enhance passenger safety
and comfort at the terminal.
With the Bureau of Customs (BOC)
and the Bureau of Immigration and Deportation
(BID), the airport regulator has implemented the
looping method for queueing of passengers at the
departure areas. "Other areas of improvement
are currently being assessed jointly by the MIAA,
BOC, and the BID and we will be pleased to announce
to the public these new procedures that will improve
the services at the NAIA as soon as we have finalized
these plans," MIAA general manager Alfonso
Cusi said.
In addition, MIAA implemented measures
to provide greater convenience and privileges
to arriving and departing overseas Filipino workers
(OFWs).
Arriving OFWs can now be serviced
at special or fast lanes at both the immigration
and customs areas. The center isle at the immigration
arrival area and as much as eight express lanes
at the customs areas have been dedicated for the
returning Filipino workers.
"It is but fitting and proper
that we in government take some concrete steps
in making our overseas workers feel important
considering the great help that they have been
extending to the country, through their industry
and sacrifice abroad," Cusi said.
MIAA started implementing the service
lanes for OFWs last week.
Last week, MIAA also ordered the
reduction of concessions within the international
airport to better ensure order, security and safety.
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