Integrated logistics
system for oil products being eyed
AN integrated logistics system that would
reduce the cost of oil products in the country is being
developed through a government-private sector partnership.
The Development Bank of the Philippines (DBP), Department
of Energy, Petron Corporation and Pilipinas Shell Petroleum
Corporation recently signed a memorandum of understanding
(MOU) to facilitate the construction of common facilities
for the distribution of petroleum and other gas products.
The program takes off from the Sustainable Logistics
Development Program (SLDP) meant to cut the cost of
materials and purchases in the country.
Under the MOU, DBP will make available its financing
programs to qualified oil companies for the acquisition,
purchase and construction of common facilities to be
used in the efficient and fast movement of petroleum
and other gas products.
"At the bottom of the initiative is to try and
see if we can improve the logistics cost - or make it
less - of bringing petroleum products to the consumer,"
DBP chairman Vitaliano N. Nañagas said.
Both Petron and Shell have pledged to identify common
facilities where joint and maximum use could achieve
the desired efficient operations and reduction of petroleum
distribution costs.
These common facilities include common oil depots, tanker
ship and trucks service, storage facilities, and stockpiling
sites.
The energy department, meanwhile, will encourage and
coordinate with companies in the identification of the
location of the common facilities in line with its Petroleum
Storage Rationalization program.
It will also assist in the evaluation of technical and
financial data relating to the acquisition, purchase,
and construction of the common facilities.
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PISM:
Upgrading Philippine supply chain managers' skills to
international standards
THE Philippine Institute for Supply Management
(PISM) intends to develop among its members world-class
supply management standards through continuous collaboration
with associations and educational institutions, said
PISM president Mina Bato in an interview with PortCalls.
The association - which holds its annual conference
and exhibit at the EDSA Shangri-la on March 3-4, 2005
- recently signed a memorandum of agreement with the
Personnel Management Association of the Philippines
for the creation of training programs for supply chain
managers.
It also has a joint training program with Bayantrade,
and is looking for areas of collaboration with the Philippine
Institute of Industrial Engineers.
It maintains its association with the University of
Makati even as it renewed a partnership with the De
La Salle-College of St. Benilde on the joint offering
of the Post Baccalaureate Diploma Program in Purchasing
and Supply Chain Management through the School of Professional
and Continuing Education.
The six-module, 22-day post-graduate program is intended
for both professionals and fresh college graduates.
"The diploma course promotes the highest levels
of professionalism, integrity and competency in the
area of purchasing and supply management," Bato
explained.
This year, PISM will also offer three more Modular Learning
Systems modules on international purchasing and supply
chain management: reverse purchasing, auditing the purchasing
function, and the environmental procurement/green purchasing.
On the overseas front, Bato said PISM is an active ally
of international organizations including the Institute
for Supply Management based in Arizona, and the International
Federation of Purchasing and Supply Management (IFPSM)
based in the Netherlands, and the International Trade
Center-United Nations.
She said the association takes pride in the recent appointment
of former PISM president Imelda S. Carrillo, C.P.M.,
DSM as the regional vice president for 2005-2006 of
IFPSM Asia Pacific Region.
Locally, Bato said PISM is working on the activation
of its chapters in various parts of the country, including
Bacolod, Cebu, Subic, Davao, Sorsogon and the Calabarzon
area.
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EU
to require stricter safety rules on food imports
THE country's food processors and exporters
face tougher food safety rules this year with the European
Union's (EU) plan to require the registration of the
chemical content of their products before these are
allowed entry in the EU market.
The new policy is seen to have an effect on coconut-based
exports like fatty acids, fatty alcohol and gylcerine,
including other agricultural commodities.
The new regulatory framework for chemicals, REACH (Registration,
Evaluation and Authorization of Chemicals), seeks to
overhaul the EUís chemical substances policy.
Under the proposed new system, enterprises that manufacture
or import more than a ton of a chemical substance annually
will be required to register it in a central database.
The cost of its implementation will be $6.5 billion
in the next 15 years, but that $60 billion will be saved
on chemical-related health costs, the European Commission
said, adding business costs will be offset by profits
from new, safer alternative substances.
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PSB
backs overseas shipping operators on FOB promotion
THE Philippine Shippers Bureau (PSB)
is supporting overseas shipping operators' drive to
encourage Philippine government agencies to use local
carriers in their imports.
PSB deputy director Rene Cruzada told PortCalls that
even before this campaign of the Filipino Shipowners
Association (FSA) and the Maritime Industry Authority
(MARINA) started, PSB has already been pushing for the
practice.
"We have been urging various agencies to shift
to Free-On-Board (FOB) from Cost-and Freight (C&F)
when importing their cargoes. That way, they will have
control over the contract of carriage," he pointed
out, adding local carriers will be given chance to participate.
Cruzada explained the problem lies with the dearth of
Philippine vessels carrying government imports. "Most
local carriers are deployed somewhere else - and this
is usually not where most of our imports come from,"
he noted.
This, he explained, is a result of uncompetitive freight
costs in certain trade areas, particularly Vietnam and
Bangkok, where majority of the country's rice and coal
imports come from.
"Philippine-flagged vessels are, most of the time,
empty on their way to these areas. They will only be
loaded upon coming back so the profit is just one way.
It is not really viable," he said.
He noted the only way to make freight viable is to secure
at least a year's contract [through the FOB] so that
overseas carriers can program the movement of their
vessels and secure carriage of these cargoes.
Cruzada said the PSB has had dialogues with agencies
such as the National Power Corporation and the National
Food Authority regarding the matter.
Earlier, FSA president Carlos C. Salinas proposed that
importing government agencies should bid on an FOB basis
rather than C&F.
FSA stressed carriage of government cargo will result
in foreign exchange savings as freight payments will
now be made to Philippine overseas shipping companies.
Meanwhile, the Department of Transportation and Communications
said the desire of shipowners to participate in the
carriage of government cargo will help boost the department's
efforts to help modernize the Philippine overseas merchant
fleet and stimulate private sector investment in the
overseas shipping industry.
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PISFA's
1st Port Familiarization Tour
The Philippine International Seafreight
Forwarders Association last week conducted its 1st Port
Familiarization Tour at the South and North Harbors.
The project was supported by Asian Terminals, Inc. and
International Container Terminal Services, Inc. The
tour gave 58 professionals from different freight forwarding
companies an insight into the different procedures at
the ports.
Photo shows PISFA president Erich Lingad
(far left) with tour participants.
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CTSI
comes to typhoon victims' aid
Presenting the dummy check to ABS-CBN
Sagip Kababayan project manager Jocelyn So is CTSI Logistics
general manager Lito Austria. With them are CTSI Logistics
corporate finance manager Elmer Relente (left) and Asialink
assistant general manager Bob Maravillas (right).
CTSI LOGISTICS' Philippines station and
Corporate Office donated P100,000 to the ABS-CBN Foundation
office for victims of last year's typhoons.
The donation, which included boxes of food and canned
goods and sacks of rice, was a collective effort from
the employees of CTSI Logistics. "Humanity is best
defined during times of great need as we have seen in
the actions of those who rushed to help our stricken
brothers and sisters," said CTSI general manager
Lito Austria.
"We want to do our share, not just in the name
of corporate social responsibility, but simply in the
name of compassion. As such, we have called upon all
our fellow employees to share what they have and put
together this donation."
CTSI Logistics is an integrated logistics service provider
that combines industry knowledge and expertise with
information technology solutions to offer complete end-to-end
supply chain visibility to global customers.
It has a strong network of operational and synchronized
support composed of several stations strategically positioned
worldwide.
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500GRT
RP-made ships by end-2006?
THE Maritime Industry Authority (MARINA)
predicts that new Philippine-made vessels will be afloat
by end-2006.
"We are thinking of the 500-gross ton roll-on/roll-off
types with a capacity of approximately 25-30 vehicles
or 300 persons," said MARINA administrator Vicente
T. Suazo, Jr.
The country's ability to manufacture vessels is being
boosted by the priority being given to the development
of the shipbuilding and ship repair (SBSR) sector by
MARINA and other sectoral associations.
Suazo said that under the Integrated Adjusted Philippine
Maritime Industry Strategic Action Plan for 2005-2010,
the first year will be allotted to the improvement of
shipyard capability to make local building of vessels
viable.
"The current situation is that shipping operators
opt to buy second-hand vessels because of the much higher
price of locally-made ships. So, that is the challenge;
local shipbuilders need incentives to have more competitive
rates," he pointed out.
Suazo said the improvement of shipyard capabilities
involve the development of standard boat/ship design
vis-à-vis Philippine ports/trade requirements
and sea conditions; and the enhancement of tax incentive
systems for SBSR.
He noted the Cebu group of shipyard operators has already
committed to submitting a prototype and costing of an
ideal Philippine ship by middle of next month. "We
are going to sell this idea to prospective buyers and
see if it is competitive enough," he said.
Suazo also noted MARINA is planning to separate ship
repair activities from shipbuilding to prevent the continuous
patronage of second-hand vessels. He is quick to add,
however, that ship repairers will not be phased out
as conversion of fleet to more modern vessels would
still go on.
Bataan Association of Shipyards Engineers Company vice
chairman Fil Salonga, in an interview, said that with
initiatives, the SBSR is expected to be "twice
better than before."
He said the private sector is very upbeat about the
future plans for shipyard operators. "At present,
there are so many barriers in the development of the
sector.
There are loose ends to be tied, particularly in terms
of finance and education. Now we are starting to set
them in motion," he noted. - Maritess R. Mesias
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