THE Philippine Ports Authority (PPA)
has abandoned its plan to operate Phase 2 of Batangas
port prior to its privatization, instead giving its
nod to Asian Terminals, Inc. (ATI) to run the facility.In
an interview Raul Santos, PPA assistant general manager
for corporate and special projects, explained that ATI
temporarily operating the port is the practical choice
since the PPA does not have enough financial resources
to equip Batangas with facilities.
"While waiting for the privatization process to
start, the PPA will give ATI a temporary permit to operate
phase 2 in order to have enough activity at the port,"
Santos stressed.Phase 2 is designed primarily to accommodate
international traffic. However, due to the lack of facilities
and low cargo volume, several international shipping
lines and port locators have transferred to other ports.
Only two international vessels call at the port once
every two weeks.
ATI already operates Phase 1 of Batangas port, designed
for domestic traffic."We have to have activity
at the port to lure back shipping lines and businesses
to utilize the port and make it more attractive to investors
during privatization," Santos said.The PPA-ATI
temporary agreement will only involve cargo handling
chores. Santos said ATI would have to make use of its
current equipment in Batangas so as not to incur new
investment.
Santos said tapping the services of ATI for the time
being will not affect the privatization process. "The
PPA will see to it that ATI will not shell out a single
centavo while operating Phase 2 of Batangas in order
not to have any problem during privatization,"
he explained.The PPA plans to privatize operations of
the entire phase 2 of Batangas within six months after
it commenced commercial operations last month.
Apart from ATI, another prospective bidder is International
Container Terminal Services, Inc.The second phase occupies
an area of 128 hectares that cater to pure cargo operations
and can accommodate about 7,000 TEUs at any one time.The
port also serves as the transport hub of goods in the
Cavite-Laguna-Batangas-Rizal, Quezon (Calabarzon) area
and functions as a terminal for passengers traveling
to and from nearby provinces such as Mindoro, Marinduque,
Roblon and Palawan. Also, it is the jumpoff point of
the Strong Republic Nautical Highway for passenger and
rolling cargoes from Luzon.
THE Philippine Ports Authority (PPA)
plans to conduct a comprehensive study to revise the
charging base of ports nationwide that will result in
lower shipping costs and reforms in tariff.PPA assistant
general manager for corporate and special projects Raul
Santos said the study aims to change the charging base
of ports devised 30 years ago.
Philippine ports use the Tariff and Customs Code of
the Philippines as the charge base, preventing port
authorities from interfering with fees to make them
more competitive. Vessels are charged according to their
gross revenue tons (GRT).Among the proposals embodied
in the study is shifting GRT charging to the length
occupied by vessels when docked at Philippine ports
- already the global standard - as well as how long
vessels stay at a port.
CONTAINER traffic in the country increased
5% in the first five months of the year to 1.22 twenty-foot
equivalent units (TEUs) from 1.17 TEUs during the same
period a year earlier.Philippine Ports Authority (PPA)
attributed the increase to the favorable performance
of both domestic and foreign containerized cargoes that
registered a 3.6% and 6.78% growth, respectively.
Domestic boxes accounted for the bulk of cargoes with
a total of 436,286 TEUs for the period in review while
foreign boxes totaled 789,257 TEUs.Containerized import
volume increased almost 3% to 399,891 TEUs while boxed
export volume was also up 5% to 389,366 for the period.Total
cargo throughput, however, slowed down in the five-month
period decreasing 0.39% from 54.9 million metric tons
(MMT) a year ago to 54.77 MMT.
PPA assistant general manager for corporate and special
projects Raul Santos said the slowdown is due to the
slack in the global economy, not only in the Philippines.Santos
said the agency expects a further decrease in cargo
throughput in the next quarter since importers and exporters
are in a wait-and-see attitude, awaiting the outcome
of the political crisis.
"I think it's the slowdown in the global economy
that affected cargo traffic in the country and not the
current economic woes being experienced by the Philippines.
Still, I admit it had its (negative) effects,"
Santos said.The PPA also attributed the drop in total
cargo volume to lesser volume of cargoes ferried from
South Harbor and Manila International Container Terminal
anchorages; the slowdown in operations at Oilink and
private ports in Limay, Bataan; the low volume of imported
raw materials at the private port of PASAR; decrease
in shipment of flour and feeds to and from the baseport
as shippers opted to transport via land in Iligan; and
lesser shipment of coco products, fertilizers and cement
handled mostly at the baseport of Davao.
Total cargo throughput in May handled by all ports nationwide
declined 4%. Both domestic and foreign cargoes dipped
3.5%.PPA attributed the drop in domestic cargo volume
to the 48% decline in cargoes at the South Harbor; the
drop in volume of crude minerals, refined petroleum
products, bottled cargo, wheat and coal shipments in
Batangas; low volume of copra and feeds handled in Cagayan
de Oro; and decrease in shipment of coco products, fertilizer
and cement in Davao.
The decline in foreign cargoes for May was due to the
recorded slide in the importation of iron and steel
products; slowdown in importation of cargoes such as
refined petroleum products, logs and chemicals in Batangas;
and drop in importation of cement and decrease in exportation
of banana and its by-products in Davao.Santos said the
PPA expects traffic to pick up toward the last quarter
of the year.
CUSTOMS officials from the Association
of South East Asian Nations (ASEAN) have approved the
implementation of the single-window transaction concept
to speed up disposition of shipments from customs zones
in line with trade liberalization.In the 5th Single
Window Conference held in the Philippines last week,
the ASEAN and the Philippine Bureau of Customs (BOC)
formalized in a joint resolution the adoption of the
concept and the designation of the Philippines as the
model for implementation of the idea.
The single-window transaction will link all government
agencies to the BOC where importers would no longer
have to secure documentation from one government agency
to another for their import and export shipments, cutting
processing time considerably.Under the present practice,
importers are required to secure documents from one
government agency to another - anywhere from five to
15 agencies just for a single transaction - to facilitate
the release of their shipment or for export purposes.
"Under the concept, importers need not have to
go to a number of government agencies for certification
for their imports or exports. The BOC will do it for
them with a push of a button from a master computer
of the agency that would be linked up with the other
government agencies for the said purposes," Customs
commissioner Alexander Arevalo said at the conference.The
ASEAN-wide use of the single-window model is expected
to start next year.
Arevalo said the BOC would recommend to the President
the issuance of an executive order requiring government
agencies to connect to the BOC master computer.The ASEAN
customs officials, meanwhile, will also take a hard
look into the operations of the Philippine BOC to study
and make recommendations to improve its operations in
line with the trade liberalization program as mandated
by the World Trade Organization.
THE Philippine Ports Authority (PPA)
and the Bureau of Customs (BOC) will install gamma ray
scanners or non-intrusive detection devices in four
major ports in the country to ensure that outbound and
inbound cargoes are risk-free.The machines are also
needed in order to comply with the newest security requirement
of the United States that all cargoes bound for the
US are scanned and free from any radiation used for
weapons of mass destruction.
The scanners will be initially installed at the Ninoy
Aquino International Airport, Manila International Container
Port, Batangas Port and the Cebu Port.The BOC is now
coordinating with the Chinese government for the machines
after the latter agreed to grant the Philippines a tied
loan to purchase the equipment. Each scanner is estimated
to cost approximately $20 million.
The BOC has submitted to the National Economic and Development
Authority (NEDA) its proposal for the loan and NEDA
is expected to issue within the month its supply agreement
with China.Both the PPA and the BOC anticipate the machines
to be in place by October or November this year.The
equipment will provide the country's premier international
ports with the capability to detect and apprehend persons
or organizations trying to sneak in nuclear materials
into the country.
The PPA and the BOC are planning to acquire more scanners
to secure all of the country's major ports against fissionable
materials.The US and most of Western Europe have started
installing radiation-sensing devices in most of their
major ports after intelligence services of these countries
raised the possibility of terrorist groups smuggling
in quantities of fissionable material to create a nuclear
bomb which would then be detonated in selected targets.
THE Bureau of Customs (BOC), customs
brokers and the Congress will have another round of
discussion to settle once and for all issues clouding
Republic Act 9280 or the Customs Brokers Act of 2004.Customs
commissioner Alexander Arevalo told PortCalls the agency
has scheduled a meeting this month after the first summit
on the issue bogged down in July.
"We will be meeting in Congress again this month
to resolve controversial issues affecting the implementation
of the law," Arevalo added.Issues that need clarification
are the definition of a customs broker, and prohibition
of corporations to offer brokerage services, the latter
vehemently opposed by the logistics sector.Arevalo added
he expects the law will be on as early as next month
or by October at the latest if negotiations on the issues
go smoothly since it is being fast track not only by
the BOC but also by the brokers themselves.
Baltic
Container Terminal eyes regional hub status
INTERNATIONAL CONTAINER TERMINAL SERVICES
INC. subsidiary Baltic Container Terminal (BCT) in Gdynia,
Poland is set to purchase new container handling equipment
as it eyes regional hub status in Eastern Europe."BCT
is one of the leading container terminals in the Baltic,
and with this recent investment, it has positioned itself
as a prime candidate for regional hub status,"
said Thomas Falknor, BCT president, in a statement.
BCT's latest orders - two quay cranes and four rubber-tired
gantries - are part of a $100-million phased investment
plan to increase the terminal's capacity to one million
TEUs.BCT has tapped two leading container handling equipment
manufacturers, Kone of Finland and Kalmar of Sweden.
BCT recently signed two separate contracts for the equipment
acquisitions with the two suppliers.BCT will purchase
two post-Panamax quay cranes from Kone with lifting
capacities of 50 tons under the spreader and an outreach
of 46 meters. The cranes are capable of reaching across
a row of 17 containers in working vessels of up to 6,000
TEUs. They are scheduled for delivery in November 2006.
Last May, Kone delivered a Panamax quay crane, which
completed the first phase of BCT's long-term development
plan and raised its capacity from the original 400,000
TEUs to 600,000 TEUs.Kalmar, on the other hand, will
supply four rubber-tired gantries for its yard operations.
These are the E-1 Type RTG, with an all-electrical drive
system. Commissioning of this equipment is in May or
June next year.Last year, Kalmar supplied BCT with eight
terminal tractors with standard lifting capacities of
25 tons each, and four rubber-tired gantries.
The phased equipment purchases are seen to consolidate
and firmly establish BCT's position as Poland's leading
container gateway, and put it in a pole position to
cater to any increase in the size of container vessels
deployed in the Baltic as well as cater to new direct
service or hub initiatives. BCT is also committed to
provide Poland's exporters and importers with ample
capacity for the efficient handling, storage and stevedoring
of containers for the long term.
LOCAL carrier Cebu Pacific (CEB) and
BAX Global Inc., a US-based logistics company, have
signed a twin phase, five-year logistics and materials
management contract to support CEB's growing fleet of
Airbus A320 aircraft.Phase one of the agreement with
BAX covers the materials management, airworthiness inspection
and warehousing of aircraft parts and components in
accordance with local and international aviation standards.
Phase two authorizes BAX to handle inventory manage-ment
for orders, and liaise with aircraft parts vendors to
speed up delivery and dispatch components for repair/overhaul
to aircraft parts suppliers.
CEB president and CEO Lance Gokongwei said BAX has demonstrated
expertise in the demanding aerospace sector. "We
are glad to have them on board with us as we beef up
our fleet with the most modern aircraft. The partnership
will boost our already-strong presence in the domestic
sector, and support us as we delve further into the
region," he said.BAX Global has nearly 500 offices
in 133 countries worldwide and arranges the transport
of freight overseas and by chartered aircraft and acts
as a broker to clear items through customs. It also
maintains warehouses and distribution points worldwide.
Steve Dearnly, BAX Global's President for Asia Pacific,
said the company is pleased to be working with Cebu
Pacific to support its domestic and international route
expansion plans.Cebu Pacific recently took delivery
of its two brand-new A320 aircraft from Airbus Industries
in Toulouse, France. It is also scheduled to take delivery
of a brand-new A319 in September 2005, the first of
12 it has purchased for its complete refleeting program
aimed at expanding domestic and regional operations.
APL
Logistics announces site for Dell's Winston-Salem Logistics
Center
APL LOGISTICS announced last week that
it has agreed to lease a 315,000-square-foot facility
at Union Cross Business Park, in the Winston-Salem,
North Carolina region to operate a Supplier Logistics
Center (SLC) for Dell Inc. APL Logistics, a provider
of international, end-to-end logistics services, will
occupy the building as of September 2005. The building
is currently under construction by Spartanburg, South
Carolina developer Johnson Development.
The SLC operation, which is within three miles of the
new Dell factory, will handle the inventory for suppliers
that provide parts to Dell. The center will warehouse
and manage computer peripherals such as monitors, speakers
and computer chassis from 50 different suppliers.APL
Logistics will initially occupy 75,000 square feet of
the facility and plans to ramp up to full capacity within
a year. The Dell factory will produce Dell's award-winning
desktop computers.
"APL Logistics is excited about the opportunity
to grow with Dell in North Carolina," said David
Vernon, Vice President of Supply Chain Solutions for
APL Logistics and parent company NOL Group. "This
facility, similar to the 12 others we manage for Dell
in the US, will manage the inbound flow of supplier
parts into Dell's new manufacturing facility from suppliers
across the globe. We are pleased to be able to create
opportunities for our new associates in North Carolina,
make it easier for companies to do business with Dell,
and to support Dell in delivering a superior customer
experience."
"While Dell's North Carolina employees and facility
will be contributing to Dell's global leadership and
delivering a superior customer experience, we are delighted
that our investment in North Carolina is generating
additional economic opportunities with other companies
choosing to grow in North Carolina," said Travis
Simpson, Dell's Vice President of North Carolina Operations.
APL Logistics will hire up to 50 full-time employees
over the course of the next three years. Additional
labor of up to 100 seasonal and temporary staff is also
anticipated. A local temporary agency will be appointed
to manage recruitment from the local Winston-Salem area.
Employment opportunities will also be posted at www.apllogistics.com.
Inquiries about providing services to APL Logistics
should be sent to: NCDELL@apllogistics.com
APL Logistics established warehouse operations in the
Winston-Salem region during the 1980s and was assisted
in its real estate search by local economic development
agency Winston-Salem Business Inc. (www.wsbi.net) to
identify the Union Cross Business Park location. APL
Logistics provides SLC warehousing services, inbound
ocean management for production parts and operates a
small package hub for Dell in other North American locations.
APL Logistics provides international, end-to-end logistics
services for global customers employing the latest IT
and data connectivity for maximum supply-chain visibility
and control. Based in Oakland, California, APL Logistics
is a unit of Singapore-based Neptune Orient Lines.
