PPA:
E-procurement system pilot rollout faces delay
THE e-procurement system involving
port transactions may not be rolled out as initially
targeted due to delays in the development and
testing of some of its components.
The Philippine Ports Authority (PPA)
said the target schedule of the nationwide rollout
was from July to November 2004.
However, there has been prolonged
negotiation for the signing of the memorandum
of agreement for the Data Transfer Specifications
(DTS) between the port regulator and port operators
Asian Terminals, Inc. (ATI) and International
Container Terminal Services, Inc. (ICTSI).
The port agency said this has resulted
in delays in the development and testing of certain
components and modules of the port operations
management system.
"ATI has expressed willingness
to sign the MOA but PPA is expecting a tripartite
agreement involving the two terminal operators.
Even without the MOA, however, ATI directed its
technical staff to start the development of the
data transfer programs," the PPA said, while
ICTSI is still resolving some legal issues on
the DTS.
The PPA said besides application-related
issues, the project is still trying to resolve
other issues including the installation of wide
area network (WAN) to cover additional sites;
procurement of additional equipment; and issuance
of a PPA e-procurement policy (requisite for the
rollout).
Other issues include the issuance of support operations
policies involving submission by shipping lines
of electronic documents in lieu of accomplished
forms; enforcement of early submission of manifest
by shipping lines if not electronic document is
submitted; creation of site transition teams involving
key personnel from various functional groups.
PPA said a very optimistic target
for the nationwide rollout is January 2005.
"The nationwide rollout originally
programmed for ten months was compressed into
three. This means that the target rollout will
be completed by March 2005, with three more months
remaining to monitor stability of systems before
the Unisys contract ends by June 2005," PPA
pointed out.
As of end-September, the application development
and pilot testing was about 88% and 35% complete,
respectively. The whole project is between 50
and 55% complete.
The E-procurement system is an application
that computerizes the procurement process of the
PPA. It is is expected to facilitate transparency
and efficiency by utilizing information and communications
technology. This also streamlines the procurement
process by eliminating redundancy and enforcing
uniformity.
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Logistics sector seeks tax perks
THE freight and logistics sector is seeking
similar incentives granted by the national government
to the inter-island and overseas shipping industries.
This year, the amendment to the Overseas Shipping
Development Act and the Domestic Shipping Development
Act were both signed into law by President Gloria
Macapagal Arroyo. Both laws, for a limited period
of time, provide tax incentives to shipping operators
who will import raw materials and equipment.
In an interview at the sidelines of the recent
PortCalls Cargo Economics Conference 2004,
Port Users Confederation acting president Dominador
de Guzman said the logistics sector needs assistance
from the government. "The freight forwarding
and the logistics sector are in the same business
as domestic and overseas shipping companies. We
move cargoes and we play an important role in
trade," he said.
De Guzman said the assistance may come in the
form of granting tax holidays or incentives in
the importation of certain equipment used in logistics
operations, particularly in the heavylift or project
cargo sectors.
"This will be a big help to total logistics
providers offering this kind of service since
the importation of heavylift equipment such as
cranes and stackers cost so much these days,"
he said.
Philippine International Seafreight Forwarders
Association vice president for Internal Affairs
Nelson Mendoza said such a development would aid
in the modernization of logistics equipment in
the country. "Even if the present situation
does not really call for the grant of these incentives,
the government must take an initiative to help
the industry because we play a very crucial role
in the movement of commodities in and out of the
country," he noted.
However, he said, this would not necessarily
translate to lower freight costs, except for total
logistics providers that may avail of bigger incentives
in the importation of their heavylift equipment.
Virtual Logistics, Inc. president Bobit C. Aquino,
on the other hand, believes it takes more than
tax incentives to bring the sector forward.
"This is good, especially for those companies
which are really struggling to survive in the
market. However, not everybody will benefit from
it," he said.
He fears of a congested freight forwarding industry
once tax perks are granted. "Since everybody
can import [equipment] at lower rates, anybody
can start building their freight forwarding companies
and just hop right into the business," he
said.
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BOC intensifies campaign to
bust entry of ozone-depleting substances
THE Bureau of Customs (BOC) recently identified
the guidelines for the proper use of refrigerant
identifier/analyzer in examining suspicious shipments
of ozone-depleting substances (ODS) in the country.
The bureau said this is in compliance with its
commitment to the scheduled phase out of the ODS
as mandated by the Montreal Protocol signed in
1987 to protect the ozone layer.
The protocol on substances that exhaust the ozone
layer is an agreement among 129 countries, including
the Philippines, which limits the production,
application and use of such substances and eventually
phase out the consumption of those chemicals.
ODS are chemical substances that have the potential
to react with ozone molecules in the stratosphere
including Halons, carbon tetrachloride, methyl
chloroform, hydrobromoflourocarbons, bromochloromethane
and methyl bromide.
The BOC is also prohibiting the importation of
ODS-based product or equipment or those whose
function relies on the use of ODS.
The bureau disclosed the United Nations Environmental
protection through the Department of Environment
and National Resources (DENR), donated refrigerated
identifier/analyzer, which can identify four chemicals
among which include tetraflouroethane and hydrocarbon.
These equipment will be issued to each and every
collection districts.
The BOC said importation of ODS and its alternatives
are released from customs only upon presentation
of a pre-shipment importation clearance issued
by the Philippine Ozone Desk, Environmental Management
Bureau and DENR to accredited importers.
In case of a suspicious shipment, an alert or
hold order will be issued. During the spot checking
and examination, ramdom testing may be conducted
using the refrigerant identifier. If proven positive,
the product will be subject to seizure.
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PSB to conduct public hearing
on capital requirement
THE Philippine Shippers Bureau (PSB) will conduct
a public hearing today (December 1) on the amendment
to its administrative order (AO) involving the
minimum capital requirement for freight forwarding
companies. The hearing will be at the PPA Training
Center, Port Area, Manila from 1pm onwards.
Earlier, the Philippine International Seafreight
Forwarders Association and the Alliance of Concerned
Freight Forwarders consolidated their recommendations
on the issue and submitted these to the PSB in
the form of a position paper.
Under the draft AO, the minimum capitalization
will be raised to P5 million for both non-vessel
operating common carriers (from the current P500,000)
and cargo consolidators (from P400,000).
PSB is also planning to collapse into one category
the currently separate categories of international
freight forwarder and breakbulk agent. The draft
AO also contains amended requirments for new applicants
and penalties and fines for non-compliance with
PSB rules.
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NYK Logistics vessel at MICT
Brisk intra-Asian trade increases new vessel
calls at the MICT. Newly chartered vessels continue
to call at the Manila International Container
Terminal (MICT), International Container Terminal
Services, Inc.'s (ICTSI) flagship operation. One
of these is NYK Logistics and Megacarrier's MV
ACX Marguerite, which recently made its first
call at the MICT. The 1,350-TEU capacity vessel
arrived from Keelung, Taiwan, offloading 218 TEUs
and loading 216 TEUs. After the MICT, the vessel
sailed to Laem Chabang, Thailand. Marguerite is
one of four new vessels chartered for the Southern
Cross Service, which links major Southeast Asian
ports, including the MICT, with the ports of Taiwan
and Japan. The increasing deployment of new vessels
at the MICT is a response of global liners to
increasing regional trade. Rafael Nieto, ICTSI
operations manager (3rd from left), presented
a commemorative certificate to Capt. Edilberto
C. Nono, ACX Marguerite vessel master (4th from
l).
Also present were (l-r): Jam Loredo, NYK FilJapan
sales and marketing manager; Daniel Ventanilla,
NYK FilJapan general manager; Fidem Sigaya, NYK
FilJapan terminal manager; Rhoey Permalino, NYK
FilJapan operations manager; and William Gutierrez,
ICTSI customer relations manager.
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NOL sells stake in Lorenzo Shipping
Corp.
SINGAPORE'S Neptune Orient Lines will fully
divest its stake in Lorenzo Shipping Corp., the
local company said last week.
Lorenzo Shipping said NOL has signed a memorandum
of understanding with National Marine Corp. on
the proposed sale of all its shareholdings in
the Philippine-listed shipping company.
According to Dow Jones, NOL owns 28.68% of outstanding
common shares and 82.19% of the redeemable preferred
shares of Lorenzo Shipping. On the news of the
sale, Lorenzo Shipping shares closed at P1.28
last Wednesday, up 23%.
Lorenzo Shipping said that NOL and National Marine
Corp are finalizing the terms of the sale, but
did not disclose any financial details.
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