40%
jump in RP maritime cargo traffic seen in 10 years
PHILIPPINE maritime cargo traffic
is projected to soar more than 40% in the next 10 years
from 47.5 million metric tons (MMT) in 2003 to 70 MMT
in 2015.A document sourced by <i>PortCalls</i>
from the Japanese International Cooperation Agency (JICA)
shows sea traffic for the period increasing at an annual
rate of 3.4%.
According to the JICA data, commodities expected to
post high growth rates are mineral fuel, wheat and general
cargoes while those with negative growth will be corn,
rice, iron and steel.General cargo is forecast to rise
to 3,000 MMT per year starting 2015 and to about 6,000
MMT per year in 2030. Wheat is seen growing to 3,000
MMT per year in 2015 to 5,000 MMT per year in 2030,
and mineral fuel to more than 2,000 MMT in 2015 to 4,000
MMT per year in 2030.
On the negative growth path are palay and rice, corn,
and iron and steel, expected to decrease 10% in 2015
and 20% in 2030.Sea passenger traffic, on the other
hand, is projected to increase from 32.3 million in
2003 to 52.6 million in 2015, reflecting a 4.2% growth
rate.The JICA projections are based on the target gross
domestic product growth (GDP) and population growth
rate stipulated in the 2004-2010 Medium-Term Philippine
Development Plan. Under that plan, the GDP is programmed
to grow annually by 5.3%-6.3% this year; 6.3%-7.3% by
2006; 6.5%-7.5% by 2007; 6.8%-7.8% by 2008; and 7.0%-8.0%
thereafter. The population growth rate targets are 2.11%
by 2005; 1.93% by 2010; and maintained in the future.
THE Bureau of Customs (BOC) and the
Bankers Association of the Philippines will soon forge
an agreement to facilitate day-to-day trade in the country.Customs
commissioner Alexander Arevalo said the agreement will
involve extended daily banking hours as well as a separate
arrangement during holidays.
He said the arrangement will not only enable exporters
and importers to enjoy longer transaction time with
the agency during regular days and holidays but boost
collection of the BOC, which loses approximately P600
million during holidays.The agreement involves extension
of banking hours at the BOC from 9am to 3pm to 7am to
7pm Monday to Saturday, including holidays. This will
apply to four major ports, the Manila International
Container Port, Batangas Port, Cebu and the Ninoy Aquino
International Airport.
Under the current practice, the BOC still needs to request
banks to render extra service during holidays, a plea
oftentimes not accommodated especially during unprogrammed
holidays.Earlier, the business sector lambasted the
government's "holiday economics", arguing
it was not conducive to business and resulted in the
adoption of additional measures to mitigate its negative
effects.The BOC expects that with the impending signing
of a memorandum of agreement with banks, importers and
exporters will skirt the negative effects of holiday
economics.
THE Philippine Ports Authority is
set to equip with harbor cranes the Port of Davao to
increase its productivity and cargo turnaround time.The
cranes will also enable the port to accommodate the
increasing international and domestic cargo traffic
passing through it. Since 2002, annual traffic has grown
at a rate of 204,000 twenty-foot equivalent units (TEUs).
"It is due time to push for the eventual mechanization
of the port just like Singapore, Hong Kong and Brunei,"
said Southern Mindanao port district manager Abdussabor
Sawadjaan.Sawadjaan said the new 144-outlet reefer rack
structures at the port which started operating last
year are already reaching 100% utilization and the installation
of harbor cranes will significantly boost the port's
efficiency.
PPA is studying the proposal of Gottwald crane to install
inexpensive second-hand cranes still in good condition,
and invite technical experts to assess retrofitting
based on berthing vessels' needs and actual cargo volume.The
port's cargo handlers, Filipinas Port Services and Davao
Integrated Port and Stevedoring Services Corp., have
also pledged to procure cranes to modernize their operations
at the port to cope with increasing container volume.
The port is also embarking on an infrastructure rationalization
program to further meet growing market demands, both
for containerized and conventional cargoes.Port authorities
are awaiting the completion of a transit shed to address
the need for an extensive protection and storage facility
for incoming and outgoing loose cargoes.Davao is able
to hold or dispatch 1 million metric tons (MMT) of conventional
cargoes since 2002 or an average of 340 MMT per year.Davao's
current major trading partners for its booming fresh
banana production and exports include Japan, China,
the Middle East and the United Kingdom.
Shipyard
equipment may soon need Marina registration
THE Maritime Industry Authority (Marina)
is looking at requiring shipyards to register all their
heavy equipment in an effort to flush out clandestine
ship fitters and maintenance men.Marina NCR chief Roberto
Arceo said after registration, shipyard owners may be
given a serial number per equipment and required to
stamp that number on a repair job. Penalties await ship
operators caught using the services of unauthorized
ship repairers.
"Some ship owners go to illegal shipyards when
looking for a cheap way to maintain their vessels as
these shipyards charge 40-50% lower than accredited
yards," he explained.Arceo said illegal shipyards
normally cater to small ship operators and offer hull
and engine repairs. They also do not submit their repair
proposals to Marina, conducting the job without approval
from authorities.
Maintenance work done in clandestine shipyards are unreliable
and pose a threat to passengers and cargo as vessels
could become "unglued" while at sea.Arceo
said appropriate charges may be filed against owners
of illegal shipyards, their establishments shut down,
and equipment confiscated to prevent them from doing
business again.Marina earlier said it would crack down
on illegal repair yards after licensed ship repairers
filed a complaint, claiming lower repair fees of clandestine
shipyards are putting them out of business.
THE Philippine Ports Authority (PPA)
has turned down the recommendation of the Philippine
Chamber of Commerce and Industry (PCCI) to change the
terms of reference (TOR) for the modernization and privatization
of North Harbor (NH), saying this will delay the project."Based
on their (PCCI) recommendation, there will be redundancy
or duplication of operations, the very reason the PPA
Board denied their request and instead adopted the proposal
of the PCI (Philippine Consultants Inc., PPA's consultant
on the North Harbor modernization project)," said
PPA assistant general manager for corporate and special
projects Raul Santos.
The PCCI is proposing that all three NH terminals host
multi-purpose berths to accommodate both conventional
and non-conventional vessels. This stand, however, is
a complete reversal of its earlier recommendation to
have a terminal solely for roll-on roll-off operations,
another for lift-on lift-off operations, and another
dedicated solely for trampers.Earlier, the PPA had already
agreed to PCCI's second proposal.
PCCI claimed it abandoned its earlier stand since it
wants the market to decide based on competition and
to shoulder its cost.For its part, PPA consultant PCI
is proposing that the three terminals compete with each
other, allowing operators to market their resources."The
Board said this set-up is enough and viable in order
not to jeopardize the development of the port,"
Santos said.The port agency tapped the services of PCI
in order to have an independent body to study the viability
of the NH during privatization.
The TOR has gone through several revisions to accommodate
requests of PCCI since majority of port users are its
members.With the decision, Santos said, the agency expects
privatization of the port to commence in the next few
months. - Christopher C. Paringit
