Solon: Fiscal
crisis not over; forwarders battle ready for '05
THE country's fiscal crisis may have ebbed
a little, but this does not mean the Philippines is
off the hook from a financial jam in the future, said
Rep. Jose Sarte Salceda, House chairman for Economic
Affairs during the recent Prosperity Talks on the Fiscal
Outlook for 2005 hosted by Sun Life Asset Management
Company, Inc.
"The Philippines is definitely out of the bottom
but we are still in the hole," Salceda stressed,
noting the country has approximately P6 trillion in
public debt as of September last year.
He said the constitution is partly to blame because
of its very restrictive nature relative to a globalizing
market. "If the government wants to make policies
that work, it must amend the present constitution,"
he pointed out.
Salceda said the national government badly needed a
strong finish in 2004, including the realization of
plans such as the takeover of the NAIA Terminal 3 and
the reduction in pork barrel. These issues are still
hanging to date.
The solon warned exports may slow down this year, probably
growing by only 10% vis-a-vis 13% in 2004. The foreign
exchange outlook of P54-P56 to a dollar is also fundamentally
undervalued, he noted.
The forwarding industry is taking the news of a possible
protracted fiscal crisis in stride. Industry personnel
informally surveyed by PortCalls say they are battle-ready
for a tough 2005.
In an earlier interview, Philippine International Seafreight
Forwarders Association president Erich Lingad said business
this year is expected to be tough but "there is
nothing else we can do but hope for the better."
He said the gloomy outlook may yet turn bright with
the possible entry of tourists and foreign investors,
especially after the tsunami that devastated South Asia.
Also with the elections behind us, Lingad hopes the
national government will have time to focus on more
important issues such as balancing the budget.
Mercury Freight Group Marketing manager April Lim said
she was not surprised to hear that the fiscal crisis
is far from over. "It's not that we are not bothered
by this news anymore. It's just that in our group, we
see it as a matter of planning it all well," she
explained.
The company has allotted a bigger budget for 2005 and
the management is optimistic this will be reached, if
not, surpassed.
Bobit C. Aquino, vice president-external affairs of
Transmodal International, said the fiscal crisis should
serve as encouragement for businesses to perform better.
While he acknowledges this will have a dampening effect
on business, current indicators point to the shipping
industry putting in a positive performance in 2005.
"We are improving compared with the last two years.
We are beginning to gain ground, particularly in the
intra-Asian market," he said.
The growth in the number of freight forwarding companies
in the country and the employment they bring are also
strong indications that the forwarding business is doing
well. - M.R. Mesias.
Global Steelworks International,
Inc. Port Facility
Cagayan De Oro Oil Company, Inc.
Port Facility
Pryce Gases, Inc-Balingasag, Misamis
Oriental
Mirant Pagbilao Port Facility
Taiheiyo Cement Philippines, Inc.
Bulk Handlers, Inc.
Batangas Union Industrial Park
PNOC-EC/Batangas Coal terminal
Pryce Gases, Inc.-Bgy. Astorga,
Sta. Cruz, Davao Del Sur
Port of Polloc
Petron Batangas TerminalPNOC-EC/Energy
Supply Base
AS of January 18, 2005, 75 ports in the country
servicing ships engaged in international trade have
complied with the International Ship and Port Facility
Security (ISPS) code, Office for Transportation Security
(OTS) undersecretary Cecilio R. Penilla said in a report
to Transportation Secretary Leandro R. Mendoza.
The 75 (see list below) were issued a Statement of Compliance
of a Port Facility (SCPF) valid for a maximum of two
years.
Penilla said the OTS Verification Teams are still conducting
assessment and onsite verification on other international
ports in the country. "There are still ports that
submitted to OTS their Port Facility Security Assessment
(PFSAs) and Port Facility Security Plans (PFSPs) that
are being verified and assessed by the OTS teams,"
he noted.
Penilla reiterated the OTS will only issue a statement
of compliance to ports whose PFSA and PFSP were assessed,
reviewed and verified and subsequently found to be ISPS
complaint.
Meanwhile, 169 of the 170 Philippine-registered ships
engaged in international trade have been issued the
International Ship Security Certficates.
Assessment and verification of port security assessments
and plans are being conducted by OTS Teams comprising
experts from the OTS, Philippine Ports Authority, Maritime
Industry Authority and Philippine Coast Guard.
A total of 19 international airline companies
increased their rates since last year following incorporation
of the fuel surcharge, according to the Civil Aeronautics
Board (CAB).
Many airlines petitioned for the imposition of a fuel
surcharge following record increases in the price of
aviation fuel, which now averages $61.05 per barrel.
Fuel accounts for 38% of an airline's cost per passenger,
its second-highest operating expense next to labor.
CAB is still deliberating on Japan Airlines' petition
to impose fuel surcharge on passenger tickets of $10
per sector on international flights. The company earlier
applied for a fare increase but this was denied.
Air Macau has a pending application for a cargo fuel
surcharge of $30 per kilogram of actual weight based
on the fuel price index.
Domestic carrier Interisland Airlines is applying for
fuel surcharge of P300 per passenger for the Manila-Caticlan
route and P100 per passenger for Manila-Subic sector.
Last year, CAB approved the petitions of Gulf Air ($5
per sector on international flights, effective September
22, 2004); Emirates Air ($10 per sector on international
flights, effective September 15, 2004); and Thai Airways
International Co. Ltd. ($7 per sector for regional/Middle
East and $15 on international including Australia and
New Zealand).
The petition of five others were also approved last
year: KLM Dutch Airlines ($10 per sector, effective
August 5); Silk Air ($5 per sector on international
flights, effective August 18); Air Niugini ($10.50 per
sector, effective August 30); Korean Air ($7 per sector,
effective September 9); and Eva Airways ($6.40 per sector
on international flights, effective July 12).
In addition, SilkAir was granted $7 per sector on South
East Asian routes such as Indonesia, Malaysia, Thailand,
Cambodia and Yangon and $12 per sector on flights to
Macau, China and India.
Airline Exchange Resources Online, Inc.
(AERO) was recently appointed Philippine agent of Scandinavian
Airlines System (SAS) Cargo.
AERO president Darryl Modelo said the development augurs
well for the airfreight business in the Philippines
as this goes against the trend of less and less European
carriers operating in the country.
SAS Cargo manager for Thailand and the Philippines Teerasak
Kachipornwadee believes the airline's provision of efficient
logistics solutions to local enterprises will help spur
business growth.
SAS Cargo is the leading air cargo carrier to, from
and within Scandinavia. It deploys approximately 1,000
passenger and cargo flights to over a hundred destinations
worldwide everyday.
"Our superior frequency, comprehensive network,
extensive capacity and outstanding reliability ensure
your shipments arrive as agreed. That is airfreight
the Scandinavian way," Kachipornwadee noted.
In the Philippines, SAS Cargo offers Priority Cargo,
Cargo Cool, General Cargo and freighter operations.
AERO said SAS Cargo will be bringing all its services
in the country in the coming months, including Cargo
XL Express, Cargo Valuable and Cargo Extra Care
.
SAS Cargo is a member of WOW Alliance, giving customers
the advantage of time-definite service to another 70
destinations in the world.
AERO is also the general sales agent of Lufthansa Cargo
in the Philippines.
CTSI LOGISTICS CEO Jerry Tan was chosen
to be 2004's Employer of the Year by the Society of
Human Resource Manage ment (SHRM), Saipan Chapter. The
awarding took place last December 16 at Charley's Bar
in the Pacific Islands Club of Saipan where he gave
an acceptance speech, acknowledging the importance of
good human resources (HR) work and the performance of
his Corporate HR team.
"I could not have won the award on my own and I
must especially give a lot of credit to the Corporate
Human Resource for implementing many good HR programs
and systems at all stations," he said.
Among the many HR programs of Tan, the most significant
is his "We Care" philosophy. We Care promotes
equality and respect among team members (not employees
or staff); it is best summed up with the catchphrase
"Our business is people!"
Tan vows to continue leading CTSI Logistics to more
growth by nurturing his team members. "I can assure
you I will continue to give my support to do more for
our people as I know there is still a lot of work ahead
of us."
Key officials of Transmodal International,
led by chairman Irene M. Manguiat, recently trooped
to Taipei for a business meeting. Photo shows (L to
R) Monet G. Cuenca, VP Internal Affairs; Denirene Mendoza,
VP Finance; Manguiat; Bobbit C. Aquino, VP -External
Affairs; Digzylou Mendoza, VP- External Admin/Promotions;
Barbie B.Rivadeneira-VP-Foreign Relations; and Elma
Simbahan-VP Marketing/Sales.
