THE Philippine Ports Authority (PPA) is extending International
Container Terminal Services, Inc.'s (ICTSI) cargo-handling
contract at the Manila International Container Port
(MICP) for another 25 years.
ICTSI's contract expires on 2013 still,
but this early the petition, which has already been
approved by the PPA Board, is with the Office of the
President for signing.
PPA general manager Oscar M. Sevilla
told reporters recently the port operator has committed
to pour in large amounts of investment to develop the
country's largest container gateway in the next few
years. He added the fresh investments will help the
port agency raise its revenues and direct income that
will be collected from ICTSI alone to new port development
initiatives.
"We could not turn down the proposal
since they have vowed to provide substantial investments
in their petition for extension," Sevilla said.
As part of the extended contract, ICTSI will invest
heavily in the next four years to further enhance its
grip on the increasing international containerized cargo
market.
Sevilla said there were also certain
conditions which PPA identified in the proposed contract,
including shouldering port dredging costs, extension
of the current berthing area, and procurement of additional
cargo handling facilities. He disclosed ICTSI even agreed
to pay PPA higher fees than what it pays now.
The bulk of revenues collected by
the PPA comes from ICTSI and South Harbor operator Asian
Terminals, Inc. Just recently, the port regulator allowed
the two firms to increase their rates for containerized
and non-containerized cargoes by 22% and 20%, respectively.
"With these conditions alone,
the PPA will reap huge benefits with the contract extension
and will be able to finance the development and expansion
of ports and terminals using only the fees collected
from ICTSI," Sevilla said.
THE Bureau of Customs (BOC) is enhancing
its cargo selectivity scheme in order to facilitate
clearance at the ports. At the recently concluded 3rd
Philippine Ports and Shipping at the Peninsula Manila,
Customs commissioner Alberto Lina said: "We are
going to conduct mandatory (physical) examination (red
lane) of just 20% of shipments from the present 80%,
documentary check (yellow), 20% of shipments and delivery
(green), 60% of shipments," adding that the back-end
will be reinforced by developing a strong Post-Entry
Audit (PEA) System.
The PEA system allows for a BOC audit
within three years of cargoes already cleared at the
ports. Valuation screens will also be strengthened by
making sure they also covers warehousing entries, Lina
said. A compilation of reference values is ongoing with
the goal of ridding the data warehouse of unrealistic
values.
The BOC will also conduct spot checks
on goods destined for Philippine Economic Zone Authority
locations and for transfers to customs bonded warehouses
(CBWs) to effectively monitor imports not subject to
payment of duties and taxes.
"To complement this measure, we
have ordered a moratorium on the establishment of new
CBWs except manufacturing bonded warehouses," he
noted. Meanwhile, Lina said the bureau has entered into
an agreement with the Bureau of Internal Revenue (BIR)
to jointly monitor imports of oil and oil products to
cap leaks in revenue collection.He said oil imports
account for more than 20% of revenues collected by BOC.
"From petro products, we expect to generate P25.723
billion or 17% and crude oil, P6.082 billion at 4%,"
Lina said. He explained the joint BOC and BIR effort
will strengthen capability of both revenue-generating
bodies to scrutinize all imports of oil and non-oil
commodities, which have always been subject to fraud
in the past.
Meanwhile, BIR and BOC have also created
a joint monitoring group for the importation of tiles
in view of the growing tile manufacturing industry in
the country.
A common vessel tariff agreement inked
recently by the Philippine Ports Authority (PPA) and
the Ports Department of Brunei Darussalam reduced by
at least 50% port tariff for foreign vessels plying
the Brunei-Indonesia-Malaysia-Philippines East ASEAN
Growth Area (BIMP-EAGA), particularly those serving
the Philippines-Brunei link.
For two years starting April 27, 2005,
vessels pay only $0.04 per gross registered tonnage
(GRT) for port dues and $0.02 per GRT per day for dockage.
PPA general manager Oscar Sevilla and Brunei Director
of Ports Haji Abd Rahman signed the arrangement in Manila
last week to "incentivize" their respective
flag vessels servicing the route.
Ships plying the route can only avail
of incentives if their last and next ports of call are
listed under the program. For the Philippines, it listed
12 ports mostly from Southern Mindanao: Davao, General
Santos, Polloc, Zamboanga, Jolo, Puerto Princesa, Cagayan
de Oro, Iligan, Bongao, Nasipit, Surigao and Ozamis.
Brunei listed two: Muara and Kuala Belait.
"The ports that we have initially
identified are those that are really strategically positioned
within the growth areas but there has been a clamor
to extend the program to other nearby ports," Sevilla
noted. The MOA specified vessels operating under the
program will be issued a certificate of accreditation/certification
by their respective authorized government agencies to
avail of the discounted rates.
The harmonization of the port tariff
and lowering of the charges are expected to assist in
the success of the BIMP-EAGA project. However, these
special rates are applicable only to countries where
the Philippines has signed bilateral arrangements.
The Philippines so far forged bilateral
agreements with Indonesia and now Brunei Darussalam
for the adoption of a common tariff for vessels operating
in the BIMP-EAGA. A similar proposal is pending with
Malaysia.
PPA
to decide on Harbour Center plea for expanded services
next month
THE Philippine Ports Authority (PPA)
is set to issue its decision next month on whether it
would allow Harbour Centre Port Terminal, Inc. (HCPTI)
to handle commercial international containerized cargoes.
The port agency admitted the HCPTI
petition is still iffy due to legal issues. The existing
contract between PPA and International Container Terminal
Services, Inc. (ICTSI) allows for exclusivity in the
container operation at the Manila ports. HCPTI is only
allowed to handle breakbulk and containerized cargoes
for its locators.
PPA general manager Oscar M. Sevilla
realizes that allowing HCPTI to handle international
container cargoes for non-locators will most likely
end up in a heated legal case. The Office of the Government
Corporate Council (OGCC) has already issued an opinion,
stressing there exists an exclusivity clause in the
contract between PPA and ICTSI with regard to cargohandling
operations at Manila ports. "We cannot do anything
about that since the contract of ICTSI with the PPA
is guaranteed and protected by the Constitution,"
Sevilla told reporters in an interview.
Another factor, he added, is the current
fee being paid by HCPTI to PPA amounting to only P20,000
annually compared to payments of ICTSI and South Harbor
operator Asian Terminals, Inc. (ATI).
"The P20,000 annual for domestic
and imported cargoes would not be sufficient,"
Sevilla stressed, adding the R-II operator should adhere
to the same requirements and processes enforced on ICTSI
and ATI, including price benchmarks being used by the
two handlers before they were given their permits for
containerized cargoes.
HCPTI has been urging PPA to grant
it a permit to commence full commercial operations for
containerized cargoes to provide a cheaper alternative
to shippers. It claims it can offer rates 50% lower
than its competitors.
KEPPEL PHILIPPINES MARINE, INC. (KPMI)
has delivered harbor tugboat MV Salalah 23 days ahead
of schedule to its Omani owner, Salalah Port Services
Co. (SPSC), at Keppel Batangas Shipyard.
SPSC Harbor Master captain Ahmed Abdullah
Ba'Omar said the newbuilt will serve as the ambassador
of KPMI's shipbuilding capability not only in the Port
of Salalah but also in the other areas of Oman. "It
will be one of the best vessels providing towage service
in the area," he noted.
The twin screw azimuth stern drive
tugboat, which measures 28.90 meter long and 9 meter
wide, is built to LRS +100A1 +LMC Tug (Fire Fighting
Capability) classification standards. Powered by 2 x
1800 PS Niigata main engines driving a twin-screw Niigata
ZP-21 propulsion system, the tugboat is capable of a
bollard pull up to 45 tons and a service speed up to
12 knots.
Geerd Guenther, Marine manager of
SPSC, expressed satisfaction with the vessel. "We
have looked far and wide in the Far East region for
a shipyard to build our vessel and we found it at Keppel
Batangas Shipyard," he said.
ASIAN TERMINALS, INC. (ATI) wants
to renegotiate with the Philippine Ports Authority (PPA)
its existing supplemental contract on South Harbor.
"The assumptions made back then are now all wrong.
The focus of the business now is on
containerized operations," Jeremy J.L. Rickord,
president and chief executive officer of ATI, said at
the sidelines of the company's recent annual stockholders'
meeting. Projections in the original contract focused
on general cargo, the volume of which has been down
in past years, he said, adding that projections now
need to be based on actual volume handled at the South
Harbor.
Rickord said the shift in trade practice
to containerized cargoes from bulk or general cargoes
has been quite evident. Containerized cargoes comprise
about 80% of ATI's overall operations while general
cargoes' total market share declined to 67% from 88-90%
in the last five years.
Rickord said ATI's venture into the
domestic passenger terminal and cargo operations with
the opening of the Eva Macapagal Super Terminal in 2003
also needs to be considered. "Together with PPA,
we are conducting an exercise to identify and evaluate
future developments at the South Harbor," he noted.
The exercise will involve validation
of actual volume against projection and the creation
of technical plans to expand facilities for future developments.
ATI has hired French consultancy firm Maunsell to conduct
the evaluation. Rickord said ATI is set to meet with
PPA anytime now to discuss the issue.
ATI wants to spread out the balance
of its $300-million commitment to develop the South
Harbor to the next contract - an extension covering
another 25 years. The terminal operator entered into
a contract to develop the South Harbor in 1989. That
contract expires in 2013.
Coltrans Cargo was awarded Most Outstanding
Freight Forwarding Company at the recent Philippine
Marketing Excellence Awards (PMEA) at the Westin Philippine
Plaza. The award recognizes companies that have undertaken
"best marketing practices".
Winners were chosen via a combination
of surveys, focus group discussions with consumers and
marketing executives, and market research.The awarding
body comprised the PMEA Institute, Sales & Marketing
Magazine, and the Asian Institute of Marketing &
Entrepreneurship.
Photo shows (L to R): Dr. Felix M.
Lao, Jr., chair of the awards committee; Vener Brosas-Catacutan,
sales manager of Coltrans Cargo; and Prof. Jose Jesus
Roces, national president of the Philippine Marketing
Association.
