THE cost of fuel in the world market
has prompted flag carrier Philippine Airlines (PAL)
to seek its third fuel surcharge in three months, documents
from the Civil Aeronautics Board (CAB) showed. PAL wants
to impose higher fuel surcharges on passenger fares
to its international destinations particularly for the
United States and Canada routes. If approved, international
roundtrip fares will increase by $49. Rates for checked-in
baggages will remain the same. In July, CAB gave PAL
the green light to hike fuel surcharge to $37 from $22
for international passengers. The Lucio Tan-owned airline
is also petitioning for an increase in cargo rates to
$0.45 per kilo from $0.35 per kilo.
ABOITIZ TRANSPORT SYSTEM (ATS) will
maintain its rates and try to hold off increases despite
the upswing in fuel prices on the world market, said
2GO president Sabin Aboitiz. Fuel is nearly $70 per
barrel (bbl) from $58/bbl in the last two months. As
a result, local fuel prices have increased by about
P2.50 per liter last month. The price of diesel, which
is used by vessel operators, has increased by about
the same amount from P28 per liter in July to about
P30.50 per liter.
The Philippine Interisland Shipping
Association welcomed 2GO's plan not to increase rates
even if it can readily do so under Republic Act (RA)
9295 or the Domestic Shipping Development Act of 2004.
RA 9295 deregulated the shipping industry, authorizing
shipping lines to kick up rates - particularly when
there is an upswing in fuel prices - without passing
through the Maritime Industry Authority (Marina). Before,
vessel operators had to first obtain the nod of Marina
before they could increase their rates.
The 2GO Road Ro-Ro Terminal System
rate from Manila-Visayas is P2,780 per lane meter; Manila-Northern
Mindanao, P3,107 per lane meter; and Manila to Southern
Mindanao, P4,306 per lane meter; Within the Visayas
region, the rate is P1,744; Visayas to Northern Mindanao,
P2,017; Visayas to Southern Mindanao, P3,434; areas
within Northern Mindanao, P1,090; and areas in Southern
Mindanao, P2,344 per lane meter.
Aboitiz said 2GO will also continue
to offer the 15% tariff discount to agricultural products
being shipped to Manila as part of its commitment to
the Department of Agriculture's "Huwarang Palengke"
program, which aims to reduce the prices of basic produce
such as pork, vegetables and fish nationwide. Earlier,
Aboitiz simplified the nine-phase transportation process
into a three-step process where goods are delivered
at the fastest time possible reducing transport time
from Mindanao to Luzon by almost 40%.
ASIAN TERMINALS, INC. (ATI) at the
start of the month implemented a new scheme designed
to more effectively monitor vessel performance and productivity.
The new system, Electronic Ship Working Log (e-SWL),
is expected to avoid unnecessary billing disputes. Under
the scheme, ship agents, shipping line representatives
are required to sign and confirm the e-SWL to the container
terminal division planning department at the end of
every shift or upon vessel completion and before vessel
departure.
In the event the ship agent fails to
sign and confirm the SWL before vessel departure, the
agent is given 24 hours after vessel departure to sign
and confirm the SWL and to submit any SWL disputes.
Otherwise, the SWL will be considered correct and final.
Any subsequent disputes filed after the 24-hr period
will no longer be entertained. "We strongly advise ship
agents and shipping lines to timely sign and confirm
the SWL to provide a fast, accurate and hassle-free
billing presentment," ATI said.
SHIPYARD operator Keppel Philippines Marine, Inc. (KPMI)
expects to have strong sales from the international
market for the rest of the year. The international shipping
market represented the bulk of KPMI's revenues during
the second quarter of the year. "The outlook for the
international shipping market remains good, and the
demand for our services will continue to be strong,"
KPMI said in its report to the Philippine Stock Exchange.
For the domestic market, KMPI said it continues to
remain a prospect. The shipyard operator posted an 11%
hike in sales revenues for the second quarter of the
year to P353.3 million compared with the same period
a year earlier. KPMI attributed the increase to higher
shipbuil-ding revenues for the second quarter. Ship
repair activities contributed the bulk of the sales
revenues with 89% total revenues while shipbuilding
activities contributed 11% of total revenues. Foreign
vessels accounted for 46% of the shiprepair revenue.
Operating profit for the quarter of P48 million was
up 43% compared with the 2004 figure due to the improved
profit margin. Net interest income grew from P0.06 million
in 2004 to P2.8 million in 2005 due to higher interest
income from short-term placements and lower interest
expense for the period. The share of results from associated
companies during the quarter showed an increase of P5.6
million due to higher contributions from Subic Shipyard
and Consort Land during the period.
Net profit for the quarter, on the other hand, went
up 51.6% to P62.3 million compared with the same period
in the previous year due to higher sales, bigger equity
share in the net profit of associates, higher interest
and other income and lower operating costs due to stringent
cost control. Consolidated assets were higher by 1%
or P29.6 million. This was attributed to the increase
in cash by 86% to P451 million, directly traced to higher
collections of receivables, and increase in inventories
of 7.3% or P8.6 million because of higher work-in-process
and stock inventory.
THE Philippine government will repair all 21 airports
that flag carrier Philippine Airlines (PAL) said would
have to be rehabilitated if it were to continue improving
domestic operations from 2006-2011. The Department of
Transportation and Communication (DOTC) will earmark
over P3 billion next year to repair trunkline, regional
and international airports, including all those endorsed
by PAL in June 2005. Transport assistant secretary Roberto
Casta–ares said the additional budget would have
to be sourced from future general appropriation to fully
modernize air transport infrastructure.
PAL earlier requested the government to put up control
towers, widen airstrips, construct perimeter fences,
expand terminal buildings, and haul refueling and night
landing facilities in airports. Immediate upgrade was
specifically called for the air stations in Butuan,
Cotabato, Legazpi, Tagbilaran, Tuguegarao, Baguio, Zamboanga,
and Laoag. PAL also asked DOTC to complete the improvement
of airports in Dumaguete, Dipolog, Virac, San Jose,
Surigao, Bacolod, and Iloilo, Naga, Antique, Pagadian,
Basco, Cagayan de Oro, and Kalibo between 2007 and 2011.
The P3-billion budget, however, will only be used for
minor runway overlay, terminal expansion, installation
of landing lights and x-ray equipment, apron extension,
and air-conditioning of facilities. Documents from DOTC
show that the fund will go to airports in Baguio, Laoag,
Vigan, Lingayen, Tugeugarao, Bagabag, Intbayat, Cauayan
Palanan, Basco, Iba, Plaridel, Puerto Princesa, Marinduque,
Busuanga, Calapan, Legaspi, Romblon, Culion, Baler,
Pinamalayan, San Jose, Naga, Masbate, Bulan, and Daet,
in Luzon. For Visayas, repairs of airports in Virac,
Iloilo, Kalibo, Antique, Roxas, Dumaguete, Suquijor,
Tagbilaran, Bantayan, Mactan, Tacloban, Ormoc, Maasin,
Calbayog, Hilongog, Catarman, and Borongan will be funded.
For Mindanao, airports in Zamboanga, Dipolog, Ipil,
Pagadian, Ozamis, Cagayan de Oro, Camigiun, General
Santos, Mati, Cotabato, Siargao, Bislig, Butuan, Tandag,
Jolo, Cagayan de Sulu, Manlabang, Sao, Sanga-Sanga,
and Malabang will be improved.
Last week, PAL said it will allot $65 million to modernize
its domestic fleet. It uses 30 planes such as A330,
A320, and B737 to fly to 18 domestic routes daily. The
carrier has been pressed on improving its domestic operation
after Cebu Pacific of the Gokongweis ventured into a
$670-million domestic refleeting program. PAL and its
affiliate Air Philippines hold 60% of the market for
domestic flights while rival Cebu Pacific Air has 40%.
THE Manila Economic and Cultural Office
(MECO) is pushing for the establishment of an RP-Taiwan
economic corridor so that the Philippines can take a
share in Taiwan's booming economy. The proposed corridor
will be from Subic and Clark in the Philippines to Kaohsiung
in Taiwan. "The proposed super economic corridor, which
is a seamless trade scheme, will enable the Philippines
to tap expanding Taiwanese investments in the growing
high-technology industries," MECO chairman Antonio Basilio
said. He added this would make the Philippines part
of Taiwan's global supply chain in sectors such as semiconductors,
optometrics (for liquid crystal display and plasma),
polymers and electronic manufacturing service to third
markets like Japan, China and the US.
Basilio said the creation of a super
economic corridor could potentially double the Philippines'
trade with Taiwan which stood at just $2.2 billion last
year. Under the scheme whose formal negotiations are
set to be launched at the joint economic commission
in November in Subic, Taiwanese investors would automatically
get registered for incentives with the Subic Bay Metropolitan
Authority and the Clark Development Corp., and avail
of free movement of goods and persons and customs facilitation.
Filipinos locating in Kaohsiung, Asia's second largest
port and one of Taiwan's eight major economic zones,
will get the same perks as the Taiwanese get. Basilio
expects the scheme to be implemented by 2006.
"Taiwan is running out of land where
they can put their investments and we have that to offer,"
Basilio said. Citing proximity as the biggest advantage
of putting up the corridor, Kaohsiung is 24 hours away
from Subic or Clark by sea and a few hours by plane.
With the super corridor, Basilio said, the Philippines
would be able to lure more investments from Taiwan,
which has been increasingly shifting money to China
where it now has $100 billion in capital on the ground
since 1997. In comparison, Taiwanese investments in
the Philippines from 1997 to the present totaled only
$1.5 billion.
THE National Economic and Development
Authority (NEDA) Board recently approved P25.6 billion
worth of projects on social and support services, transportation,
energy, water resources and lending. In a presentation
before the NEDA Board, Socioeconomic Planning Secretary
Augusto Santos said the P20-billion Industry Support
Loan Program (ISLP), a credit facility proposed by the
Development Bank of the Philippines (DBP), got the lion's
share. "The program aims to finance projects in information
technology and telecommunications, manufacturing, utilities,
construction, tourism, health care and transportation,"
he said, adding it is DBP's sixth lending program to
be financed by the Japan Bank for International Cooperation.
Earlier, the interagency Investment
Coordination Committee (ICC) noted that the small and
medium enterprise (SME) receivables facility under the
ISLP would supplement the DBP's existing SME receivables
program. The second project, the P1.56-billion Widening
of the Gapan-San Fernando-Olongapo Road and Emergency
Pilot Dredging Project, addresses the flood and traffic
congestion problems in Pampanga. The project covers
the widening of the GSO road, particularly the Sta.
Barbara-Sta. Cruz section, raising of Sta. Cruz Bridge
and dredging of the Porac-Gumain River. Santos said
the Economic Develop-ment Cooperation Fund of the Korean
Government will finance around one third of the project
cost while the remaining 50% will be covered by local
counterpart funds.
The project is targeted to be implemen-ted
for 48 months between 2005 and 2008. The third project,
the P1.48 billion Solar Power Techno-logy Support Project
(SPOTS) Phase 2, com-bines agricultural, agribusiness,
social and community development efforts in improving
the socioeconomic conditions of agrarian reform beneficiaries
in off-grid agrarian reform communities and areas where
electricity is not yet available. Its four major components
are solar electrification, agriculture and rural enterprise
development institutional development and project management.
Project documents show that Phase 1 of the project originally
covered 40 ARCs in 12 provinces in Regions 9, 10, 11,
12 and CARAGA. This time, Phase 2 will cover 44 ARCs
in 11 provinces in the same regions plus 4 provinces
in Region 6.
The SPOTS project will be financed
through the Spanish Mixed Credit Facility Assistance,
and will be implemented for two years from September
2005 to August 20, 2007. According to Santos, the fourth
project, the P1.3-billion Umiray-Angat Transbasin Tunnel
Rehabilitation Works of the Metropolitan Waterworks
and Sewerage System (MWSS) aims to fully operate the
transbasin tunnel through short and long-term restoration
works. "The project will enhance the capacity of the
structures to withstand flood and secure water supply
for Metro Manila," he said. Project funding is sought
through the Emergency Assistance Program of the Asian
Development Bank, which will allow MWSS to avail of
a retroactive financing scheme that will cover expenses
already incurred from immediate post-disaster works
on the tunnel.
The same project, which the government
expects to be completed in June 2007, will be implemented
by MWSS with the assistance of its two concessionaires,
the Manila Water Company Inc. and the Maynilad Water
Services. The last project, the P1.28-billion Local
Government Units (LGUs) Investment Program of the Land
Bank of the Philippines (LBP), is a lending program
to finance the investment programs of the LGUs. "Project
documents show that with the long-term nature of the
Kreditanstalft fur Wiederaufbau (KfW) loan, LBP will
be able to promote LGUs access to long-term funds, easing
up their debt-servicing requirement," the NEDA chief
said. The ICC noted that the LGU projects eligible for
financing under the program are local roads and bridges,
ports, sanitation, drainage and flood control, water
supply, telecommunication and information technology,
public markets and other income-generating public facilities.
ASIAN TERMINALS INC. (ATI) recently
acquired two brand-new container handling equipment:
a 40-ton Hyster toploader (photo below, left) and a
32-ton Hyster forklift (right). The modernization of
equipment fleet is part of ATI's program to further
improve its service speed and reliability on trucks
and ships at the Port of Manila, particularly the South
Harbor Container Terminal and at the Eva Macapagal Super
Terminal. ATI, the exclu-sive operator of both terminals,
is affiliated with P&O Ports, a leader in cargo
handling services and port manage-ment throughout Europe,
the US, South America, Asia, Africa and Australasia
with 27 box terminals and logistics opera-tions in over
100 ports in 18 countries.
