ATI, ICTSI to
bid for second phase of Batangas Port
PORTS and logistics service providers
International Container Terminal Services, Inc. (ICTSI)
and Asian Terminals, Inc. (ATI) will bid for the operation
and management of the P3-billion Phase 2 of the Batangas
Port, said Philippine Ports Authority (PPA) assistant
general manager for Operations Benjamin Cecilio.
The PPA is waiting for the completion of a study being
conducted by Philippines Consultancy, Inc. on the viability
of privatizing both operations and management of the
port. The study is due at month's end."In the meantime,
the PPA will operate it," PPA general manager Oscar
Sevilla said.ATI already operates Phase 1 of the port.
ICTSI also wants a presence in the area.
Bidding will be conducted within six months after the
port's inauguration today (July 18).Occupying an area
of 128 hectares, the second phase will cater to pure
cargo operations and can accommodate about 7,000 TEU.The
port serves as the transport hub for goods in the Cavite-Laguna-Batangas-Rizal,
Quezon (Calabarzon) area. It also functions as a terminal
for passengers traveling to and from nearby provinces
such as Mindoro, Marinduque, Roblon and Palawan, and
a jump-off point for the Strong Republic Nautical Highway
for passenger and rolling cargoes from Luzon.
The port of Batangas is one of 10 ports being improved
by the PPA in order to compete with world standards
by 2010. Its facilities include a foreign cargo berth,
a multi-berthing area, three domestic general cargo
berths, one ferry berth, four roll on-roll-off (ro-ro)
berthing area (pier type), two ro-oo berths (wharf type),
six ro-ro ramps, and three passenger terminal buildings
designed for cruise ships, ro-ro operations and fast
craft.
In the first six months of the year, Batangas port registered
a total cargo throughput of 1.4 million metric tons
wherein 446,000 were domestic cargoes and 96,000 foreign
cargoes.Batangas port said these figures, particularly
those for foreign cargoes, plunged when compared to
last year mainly due to the pull out of shipping lines
utilizing the port. The figures are expected to recover
as soon as the second phase becomes fully operational.
THE Cebu Port Authority (CPA) increased
by 30% its tariff rates for domestic wharfage fees at
the start of the month.The petition for an increase
has been pending in the last four years, said CPA general
manager Mariano C.J. Martinez. In 2001, the CPA Board
approved memorandum circular 12-2001 to increase tariff
rates, but there was no action on the plea until July
1, 2005.
For non-containerized cargoes, CPA now charges wharfage
fees as cargoes enter or leave a government-owned port
facility based on total revenue or metric tonnage rounded
off to the nearest ton.Cargoes in sacks/bags/bulks as
well as steel products and heavy lift are being charged
an additional P1.50 per metric ton (MT) on top of the
existing rate of P5.50 per MT while logs/uncrated lumber
and other wood products are levied P12 per 1,000 board
feet from P9.50.
Live crated animals/crated lumber are charged P6.50
per revenue ton from the previous P5 per revenue ton
rate; uncrated pigs/goats, P2.50 per head - a 50-centavo
increase; and carabaos and horses, P11.50 per head,
a P2.50 hike.From P75 prior to July 1, rattan poles
per pile of 2,000 poles are levied P97.50.
Provided no stuffing and/or stripping are done inside
the port, containerized cargoes (FCL or LCL containers)
are now charged on a per box basis. For a 10 footer,
the new rate is P47 per box; 20 footer, P96; 35 footers,
P120; 40 footer, P146; and 45 footer, P169.CPA will
also charge domestic cargoes, containerized or not,
loaded or discharged from a vessel at anchor without
using any government port facility or at an officially
registered private port, one-half of the rate of the
government port.
INTERNATIONAL CONTAINER TERMINAL SERVICES,
INC. (ICTSI) is aggressively looking at the People's
Republic of China to get a chunk of the booming container
market.ICTSI expects to secure three to five container
terminal projects in China in the 500,000- to 1.5 million-TEU
capacity per year range.
The Razon-owned company is actively looking at three
projects but is bound by strict confidentiality clauses
not to reveal the locations and other details.Over the
last two years, ICTSI has committed approximately $130
million in capital expenditures on its two foreign subsidiaries,
the Baltic Container Terminal in Gdynia, Poland and
Tecon Suape Container Terminal in Brazil.
ICTSI said it is comfortable committing a similar level
of funds over a similar period to realize its ambitions
in China subject to the usual proviso that the right
opportunities emerge from current future discussions.Investment
will be targeted at ports that are established gateways
for a specific city or region and which may also act
as trade outlets for markets that have not yet fully
matured.
To spearhead its new China initiative, ICTSI appointed
Paul Lo Po-Lau as its top executive in China with offices
in Hong Kong. Lo is experienced in China port activities,
having previously worked with Hutchison at Yantian,
China and with Maersk Sealand.Recently, ICTSI formally
signed the 20-year container terminal operating concession
for the Port of Toamasina, Madagascar, which handles
over 90% of Madagascar's container traffic. ICTSI will
introduce its container handling facility, management
and operating expertise to Toamasina as well as undertake
key investments in order to substantially upgrade container-handling
service in Madagascar.
ICTSI's first venture in northeast Asia, the Naha International
Container Terminal Inc. in Japan, on the other hand,
is expected to start operations in June next year.TEU
traffic in China is expected to increase by more than
50% in the next five years, to 6.1 billion tons in 2010.Last
year, box traffic in China posted a 21% rise from 61.5
million TEUs making it the number one cargo handling
country with 380 million tons of goods.
NEWLY-INSTALLED Customs (BOC) commissioner
Alexander Arevalo vowed to meet collection targets for
the bureau.Taking over the position vacated by Alberto
Lina who resigned two weeks ago, Arevalo said though
the task is hard, the agency is determined to work harder
to meet it."The BOC will have a hard time now to
meet its targets, but it is still doable," Arevalo
said, during the turnover ceremony held at the BOC Social
Hall Wednesday last week.
Arevalo also vowed to curtail smuggling as well as penalize
those who are involved.The BOC was given a collection
target of P151 billion for 2005, P20 billion higher
than its 2004 target.For the first six months of the
year, the BOC fell short of its collection target by
6% registering P68 billion. Its first-half target is
pegged at P72.5 billion.
Based on this data, the BOC must generate approximately
P83.1 billion in revenues for the remainder of the year
to meet its 2005 collection target.BOC collections accounted
for about 18% of government revenues last year that
reached P699.7 billion.Arevalo served as Deputy Commissioner
of the Monitoring and Information TechnologyGroup before
he was tapped to become Customs chief.
PHILIPPINE export growth slowed sharply
in May, as overseas demand for the country's key electronics
goods slipped, official figures showed.Exports in May
rose 1.1% from a year earlier to $3.3 billion, after
growth of 8.8% to $3.23 billion last April.
The National Statistics Office said exports were up
4% to $16.05 billion in the five months to May.
For May alone, electronic exports products fell 3.8%
year-on-year to $2.1 billion, accounting for 63.2% of
total shipments.
FEDEX EXPRESS has announced plans to
build a new Asia Pacific hub at the Guangzhou Baiyun
International Airport in Southern China. The existing
hub in Subic Bay, Philippines, will close when the new
hub begins operations in December 2008.The Guangzhou
facility - representing a $150-million capital investment
by FedEx - will have a total floor space of 82,000 m2
located on 63 hectares (155 acres). The hub will provide
employment for 1,200 people at start-up and be capable
of sorting up to 24,000 packages per hour, double the
capacity of the current facility in Subic Bay.
The National Economic and Development Authority (NEDA)
and the Department of Transportation and Communications
(DOTC) described the decision of FedEx as "unfortunate".
DOTC said it is hoping FedEx would reconsider."It
is a sad development considering that all the needed
access for service is in place here," NEDA said,
adding that the government already started projects
such the Northrail, the Subic-Clark-Tarlac road to complement
FedEx operations.
The Philippines is grooming both Subic and Clark as
the central logistics hub in the Asia-Pacific region
and the FedEx pullout is considered a big blow to this
dream. The pullout leaves United Parcel Service as the
only express carrier with a hub in the country.FedEx
based its plan to develop the new hub on several factors,
including an exhaustive series of feasibility studies
which forecasted manufacturing and trading trends, both
within Asia and internationally, for the next 30 years.
A joint study by China's Development Research Commission
and Campbell-Hill Aviation Group of the United States
estimated that the direct output impact of a FedEx hub
on China's economy is $11 billion in 2010, increasing
to $63 billion by 2020 with the majority resulting from
industrial expansion.
According to forecasts, transportation within Asia remains
the world's fastest-growing regional airfreight market,
and is expected to grow each year at 8.5% until 2023.
China will remain a key factor in that growth due in
large part to increasing traffic in semi-finished manufactured
goods and steadily rising consumption within China.
Airfreight from China to the US is expected to grow
at an average 9.6% a year over the next 20 years, while
traffic to Europe is predicted to grow almost as quickly
at 9.3% over the same period.
This announcement follows just a week after rival UPS
announced plans to establish an international air hub
in Shanghai."More than two decades ago, we envisioned
China as a nexus of global supply and demand and as
a result became the first express carrier to enter the
market," said Frederick Smith, chairman & CEO
of FedEx Corporation.
FedEx will continue to maintain its presence in the
Philippines, where Manila and Cebu will remain integral
parts of the FedEx AsiaOne network. The company is currently
in the process of developing a regional center and expanding
an operations gateway in Manila.
PPA:
Harbour Centre fees should be same as ATI, ICTI's
THE Philippine Ports Authority (PPA)
wants Harbour Centre Port Terminal (HCPT) to pay dues
similar to ATI and ICTSI before it can be issued a containerized
cargo permit.PPA general manager Oscar Sevilla said
the agency cannot allow HCPT to fully operate commercially
by paying only a minimal amount. "They have to
agree to pay the same amount as that of ATI and ICTSI
before they can get a permit otherwise they cannot accommodate
containerized cargoes," Sevilla stressed.
HCPT is only paying the PPA P20,000 annually compared
to Asian Terminals Inc. (ATI) and International Container
Terminal Services, Inc.'s (ICTSI) millions of pesos
plus their additional commitment to the PPA to improve
the ports."I think it is unfair if we allow Harbour
Centre to commence full commercial operations and only
paying us only P20,000. They have to pay more,"
Sevilla stressed.
THE National Government has started
rehabilitation and expansion programs in the South Luzon
Expresway (SLEX) to accommodate projected vehicle and
cargo traffic passing through the highway.The expansion
includes a nine-year program for the SLEX that links
it to Lucena City by 2014.The Department of Public Works
and Highways (DPWH) said the P14.567-billion project
includes four toll roads that can handle up to 379,960
vehicles a day.
The P510-million Toll Road 1 is due for completion in
2006 and involves the full rehabilitation, upgrading
and expansion of the 1.2-km Alabang Viaduct.Toll Road
2 costs P2.707 billion and is due for completion in
2008. It includes the full rehabilitation of the toll
road from Alabang to Calamba, Laguna, and its expansion
from four to six lanes.
The 7.78-km Toll Road 3 involves construction of a new
two-lane tollway from Calamba, Laguna to Sto. Tomas,
Batangas. It will cost around P550 million.The 56.6-km
Toll Road 4 costs P10.8 billion and involves the construction
of a four-lane tollway from Sto. Tomas, Batangas to
Lucena City.Funding for the project will come from MDT
Capitals of Malaysia which agreed to shoulder 70% of
the cost of the project or about P11 billion while the
remaining 30% will be shouldered by Philippine National
Construction Company from internally generated funds.
Land
transport sector seeks auto fare setting mechanism
TRANSPORT groups are urging the Department
of Energy (DOE) to come up with an automatic fare setting
mechanism or formula that will respond quickly to the
increases and decreases in fuel prices.
Alberto Suansing, secretary-general of the Confederation
of Land Transportation Organization of the Phils., called
on the DOE to address concerns of the transport sector
in the wake of the continued volatility of oil prices
in the world market.
"DOE should act on it immediately," Suansing
said, noting that the formula should be able to quickly
respond to both increases and decreases in fuel prices.Suansing
said sea transport is already a deregulated industry
following the issuance of Republic Act 9295 or the Domestic
Shipping Development Act of 2004. Under Sec. 8 of the
law, domestic ship operators were authorized to establish
their own domestic shipping rates provided that effective
competition is fostered and public interest served.
This means shipping firms can adjust prices without
filing for petitions for increase whereas land transport
is still very much regulated. Transport groups still
have to seek approval from the Land Transportation Franchising
and Regulatory Board (LTFRB) for any fare increase petition.Suansing,
who was a member of the six-man panel that reviewed
the Oil Deregulation Law of 1998, said the DOE should
immediately transmit the formula to the LTFRB and the
Department of Transportation and Communications for
action.
THE Northern Luzon Railways Corp. (Northrail)
is eyeing a $50-million loan from the Export-Import
Bank of China to pay for import taxes and consultancy
fees of the Manila-Clark railway system.Northrail President
Jose Cortes, Jr. said the loan will be used to import
construction supplies for the railway's two-kilometer
viaduct, eight connecting bridges, seven train stations
and maintenance depot. It will also cover the importation
costs of signaling, communication and e-ticketing equipment
from China.
The $50 million will be on top of the $420-million loan
already secured from the Chinese government for the
construction of the railway's first phase.When completed,
the 32.2 kilometer, dual-track transit system is expected
to carry passengers and cargoes from Caloocan City to
Malolos City in Bulacan.
Marina
to tap PITC to import products for local shipyards
THE Maritime Industry Authority (Marina)
will tap the Philippine International Trading Corp.
(PITC) to import steel products and ship spare parts
for the local shipbuilding and ship repair (SBSR) industries.Marina
Administrator Vicente Suazo, Jr. said this setup will
bring down business cost since builders and repairers
will no longer have to import separately that often
contribute to higher cost.
"All they (builders and repairers) have to do is
draw from the PITC customs bonded warehouse what they
need and pay in pesos. This will free the SBSR industries
from import duties and taxes," Suazo added.The
move is to further give the industries another incentive
to make it more competitive in terms of prices against
foreign shipyards and offer more alternatives for local
shipowners.
It is also further expected that it will generate more
jobs and support the 10-point agenda of the current
administration.Suazo is set to meet with PITC officials
this week to discuss his proposal and expect a positive
answer from the corporation.
THE National Government plans to realign
some P700-million loan to improve operations of other
regional airports nationwide.The funds will be used
to purchase x-ray machines, radar, and communications
equipment in tourism airports like Caticlan, Tagbilaran
and Cagayan de Oro.
The Japan Bank for International Cooperation (JBIC)
extended the loan to the Philippines specifically for
the improvement of the Iloilo and Silay airports. The
Bank has given the Philippines P6.2 billion for Iloilo
and P4.2 billion for Silay. The P700 million is part
of the loan for fuel farms.JBIC has yet to approve with
the plan.
"The money would be better spent elsewhere, in
this case, airports outside Iloilo that need improvement.
Once we upgrade, airports and carriers could start servicing
these areas and therefore pump up tourism," DOTC
Assistant Secretary Robert Casta–ares said.Among
the airports being eyed that needs rehabilitation are
Butuan, Cotabato, Legazpi, Tagbilaran, Tuguegarao, Baguio,
Zamboanga and Laoag.
THE National Food Authority (NFA) increased
its rice imports by 200,000 metric tons due to the expected
delay in the main harvest season this year.The imports
will boost the local rice production and fill in the
rice requirements of the country due to delay in the
planting of rice this season because of the El Ni–o
weather occurrence.
NFA has programmed this year to import some 1.6 million
metric tons (MMT) of rice and the additional rice import
bumped it to 1.8 million metric tons.The Department
of Agriculture said the initial estimate of 15.12 MMT
rice production this year cannot be met due mainly to
the El Ni–o, which is expected to delay the harvest
of the main cropping season. The number has been adjusted
to 14.75 MMT, however, even with the lower production
target, this year's production is still 2% higher than
the previous year's 14.49 MMT.
APL,
MOL service offers Seattle link as alternative US West
Coast gateway
APL and Mitsui O.S.K. (MOL) last week
announced the launch of a peak season service (PS5),
adding extra capacity and a Seattle connection option
to meet customer demand.APL's senior vice president
for the Trans-Pacific Trade, Robert Sappio, said the
PS5 service, beginning July 18, would be jointly operated
by APL and MOL, connecting the key Chinese ports of
Shanghai, Yantian and Hong Kong, along with the Taiwan
port of Kaohsiung, with the US West Coast through Seattle.
"This service provides our customers with additional
space through the busy peak season, and an alternative
entry point to the West Coast," Sappio said. "Customers
have been concerned about the impact of congestion on
their supply chains as volumes build and so we are offering
Seattle as another option to the southern California
ports in terms of a gateway and intermodal connectivity."MOL's
general manager for Strategic Planning & Asset Management,
Liner Division, Tsuyoshi Yoshida, said the service would
offer a regular weekly service call to Yantian, Hong
Kong and Kaohsiung, with the first sailing of the MOL
Discovery, voy. 044E, on July 18.
"We will expand the service to include a regular
weekly call at Shanghai as further tonnage becomes available,"
Yoshida said.The PS5 will complement The New World Alliance
peak season service enhancements announced recently,
aimed at providing additional space and improved service
levels over the peak season.
THE Maritime Industry Authority (Marina)
said double-hull tanker standards being implemented
in the collective waters of the European Union (EU)
are not really necessary in the Philippines.Marina administrator
Vicente Suazo, Jr. said this as tankers servicing the
Philippine oil trade are generally small (mostly 2,000
to 3,000 GRT) and their routes mostly coastal and short
in duration. Tankers servicing the European oil routes
are between 30,000 and 100,000 deadweight tons.
Suazo also said majority of tankers for local service
were acquired in the 1990's and generally new and sound.
These are also not exposed to hazardous weather and
seas experienced by ships traveling in the North Atlantic.The
EU batted for the use of double tankers in their waters
as these are stronger and more stable than single-hulled
ships. The compartmentalization of this class of ships
also minimizes oil spills in the event of collision
or grounding.
Single-hull tankers were banned from entering EU ports
last October 21, 2003.The regulation banning single
tankers from entering European ports followed the sinking
of the supertanker Prestige which foundered off the
coast of Galicia, Spain on November 13, 2002. The ship
eventually broke in half on November 19, 2002 spilling
an estimated 33,000 out of the 77,000 tons of heavy
oil being transported by the tanker.
The spill damaged the once pristine beaches of the Iberian
Peninsula aside from heavily damaging the varied marine
life in the region.Oil tankers aged 23 years old and
above were also effectively banned from entering all
EU ports.
