*RP air traffic up 6.36% in first three quarters

*Ro-ro slashes PPA revenues by 30%

*Nationality rule does not apply to airfreight firms

*CAB kicks off computerization project

 

RP air traffic up 6.36% in first three quarters

TOTAL cargo and mail traffic to and from the Philippines posted a 6.36% growth in the first nine months of year to 215,984,840 kilograms (kg) from 203,077,017 kg (see table).

Preliminary data from the Civil Aeronautics Board (CAB) showed inbound cargoes growing 15.55% to 102,737,828 kilograms from 88,915,413 kilograms during the same period last year. Outbound cargo traffic, on the other hand, fell 0.80% to 113,247,012 kilograms from 114,161,604 kilograms.

Despite the absence of its September report to the CAB, Philippine Airlines remained in the top spot with 39,294,127 kg. The figure is nearly 50% over the cargo and mail delivered by the airline in the same period last year. Inbound cargoes totaled 19,0114,000 kilograms, and outbound, 20,283,127 kg.

Cathay Pacific saw volumes grow 9.24% to 21,504,870 kg from the previous year's 19,686,361 kg. This pushed the Hong Kong-based carrier one notch higher to second place from its third spot in the first semester. The company carried 12,030,648 kg in import cargoes and 9,474,222 kg outbound.

From being second place in the previous quarter, United Parcel Services went down one notch as total shipments fell 9.31% from January to September this year. From 20,663,227 kg, the airline handled 18,740,380 kg this year.

Still in fourth place was Singapore Airlines, which handled 14,683,304 kg during the period. This was 7.02% more than last year's 13,719,534 kg. Inbound and outbound cargoes totaled 8,095,950 kg and 6,587,354 kg, respectively.

Despite a 13.67% reduction in total shipments, Korean Air ranked fifth with 12,731,068 kg from 14,747,810 kg. The airline carried 4,635,734 kg in imports and 8,095,334 kg exports.
Eva Air is in sixth spot with 11,705,706 kg, up 32.75% from 8,817,563 kg. Imports reached 5,759,789 kg and exports, 5,945,917 kg.

Also included in the top ten were Thai Airways with 9,771,898 kg, down 4.86% from 10,271,315 kg; Northwest Orient, 8,779,073 kg, down 9.92% from 9,746,387 kg; Pacific East Asia Cargo, 8,283,060 kg, up 49.22% from 5,550,760 kg; and Nippon Cargo, 8,251,940 kg, down 17.31% from 9,979,523 kg.

- Maritess R. Mesias

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Ro-ro slashes PPA revenues by 30%

REVENUES of the Philippine Ports Authority (PPA) have declined an average of 30% due to the roll-on/roll-off (ro-ro) system.

This development is, however, not surprising considering the port agency had earlier assured port users of lower rates with the advent of the Strong Republic Nautical Highway (SRNH), said PPA general manager Oscar M. Sevilla.

In August 2003, the PPA slashed tariff rates for ro-ro transport by as much as 60%. As a result, shippers now have a choice of either paying considerably lower transport fees via roro or the high transport fees using direct long-haul routes.

Sevilla stressed the elimination of certain fees such as wharfage, port dues and terminal fees significantly affected revenues generated by the port agency. He said PPA is offsetting the decline by providing more efficient ports to facilitate faster turnaround as this will translate into increased revenues.

"What is important to note is that the government has provided the means to open new markets in trade and tourism and move goods and services faster particularly from Mindanao to the consumer markets in Luzon," he said.

Still, Sevilla noted the port agency is looking at appealing to President Gloria Macapagal-Arroyo to allow PPA to collect minimum port dues to recover lost revenue.

Meanwhile, the agency is continuously looking for other areas viable for ro-ro operations. In addition, it is pursuing the modernization of major gateways and the construction of ro-ro facilities in various ports across the archipelago.

To date, the port agency has made available 114 ro-ro ramps in different ports throughout the country. There are seven each in Manila South Harbor and Calapan, six in Batangas, five in Nasipit, three each in Iligan and Masbate and two each at the ports of Abra de Ilog, San Jose, Culasi, Dumaguete, Tagbilaran, Tubigon, Zamboanga, Ozamis, Lipata and Virac.

The ro-ro ramps are also in place at the ports of Roxas, Coron, Puerto Princesa, Basilan (Isabela), Larena, Pulupandan, Iloilo, Dumangas, Cagayan De Oro, Surigao, Tacloban and Legaspi.

PPA also noted three ro-ro ramps are currently being constructed at the ports of Pulupandan, Palauan (Dapitan) and Maasin. Meanwhile, another 30 ro-ro ramps are lined up for construction.

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Nationality rule does not apply to airfreight firms

JUSTICE Secretary Raul M. Gonzalez has overturned a ruling that airfreight forwarders are public utilities and therefore governed by the nationality rule.

In a November 9 legal opinion, Gonzalez said "if a foreign air carrier is not operating or conducting its business in the country ... then it need not comply with the citizenship requirement of RA (Republic Act) 776."

According to the five-page legal opinion, "the citizenship requirement would come into operation only if such international airfreight forwarder would engage in domestic air commerce and/or air transportation."

Domestic air commerce is defined by RA 776 as "air commerce within the limits of the Philippine territory and domestic air transportation as air transportation within the limits of Philippine territory."
Gonzalez reversed an earlier legal opinion issued by former Justice Secretary and now Presidential Chief Legal Adviser Ma. Merceditas N. Gutierrez which classifies airfreight forwarders as public utilities.

The classification effectively prevented foreign-owned companies and companies with 60% foreign ownership to conduct business in the country.

Gonzalez's opinion effectively allows foreign-owned cargo planes to land at Clark Field, Pampanga and other international airports in the country.

According to Gonzalez, objections to the open skies policy for Clark Air Base is a retrograde movement. "How can you attract investors this way?" he asked. "The moment you prohibit that in Clark Field, we will never be a trade hub in Asia," he said.

In a press briefing at the Department of Justice last week, Gonzalez said he does not agree with the opinion of former Justice Secretary Gutierrez.

On May 25, Gutierrez issued a legal opinion saying that international airfreight forwarders are subject to the 60% citizenship requirement imposed by the 1987 Constitution for the operation of a public utility.

The opinion was issued upon request of Civil Aeronautics Board (CAB) Executive Director Tomas T. Manalac.

Manalac sought the opinion of the Justice department after his office received several applications for permit/authority to engage in international airfreight forwarding from firms whose shares of stocks were either wholly owned or more than 60% owned by foreign entities.

According to the 1987 Constitution, "no franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines at least sixty per centum of whose capital is owned by such citizens."

For the CAB, all airfreight forwarders, domestic or international, domestic or international, should comply with the citizenship requirement of the Constitution because they are air carriers and public utilities.

In the April opinion, Gutierrez said the department "agree(s) with your view that the nationality requirement stated in the 1987 Constitution applies to international airfreight forwarders since they, by the nature of the undertaking, will serve all those who wish to avail of their services and are, therefore, public utilities and should comply with ... constitutional and statutory provisions."

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CAB kicks off computerization project

The Civil Aeronautics Board (CAB) has embarked on the first part of its computerization project aimed at improving and standardizing processes and cycle times in all its transactions.

Initially conceptualized last year, the project is part of the CAB's transparency program under the Ten-Point Plan identified during its strategic planning workshop last March.

CAB administration chief Jesus F. Ibay, Jr. said the software needed for the project is being developed in collaboration with graduating information technology students of the Ateneo De Manila University.

The agency is expecting to save some P3.5 million in the initial software development through this partnership.

Key business processes and some portions of the hearing process at the CAB will be computerized in order to capture critical industry data for policy making, business planning and regulatory enforcement; radically improve customer service and satisfaction; heighten transparency in CAB transactions; and raise employee productivity.

Ibay said the Ateneo will be presenting three database applications with the CAB next month for review and approval. These include the database for updates and imports, air franchise information system, and route authorization management.

Target submission date for the final design is January 2005.

Ibay said the computerization project may take three years before it can fully take off. "But it will be a continuous development. We will continue to upgrade systems until we become at par with international standards," he noted.

At present, the CAB has already accomplished the structured cabling of the completed local area network and installation of servers and hubs for its network system.

The CAB is also anticipating the completion of a system wherein all offices and divisions will be given their own electronic mail addresses to better facilitate access to the agency.

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