Ro-ro cargoes
in SRNH exempt from 15% rate hike
THE Philippine Ports Authority (PPA)
has exempted all cargoes passing through the nautical
highways from the 15% across-the-board interim increase
in arrastre and stevedoring services for domestic cargoes
that took effect last November 8, 2005. PPA general
manager Atty. Oscar Sevilla said the increase does not
include the roll on-roll off (ro-ro) tariff rates used
in the Strong Republic Nautical Highway (SRNH) ferry
ports. "This is to ensure that the operation and
realization of the SRNH would continue and thereby bolster
inter-island trade and promote tourism," Sevilla
said. Vehicles loaded as full ro-ro units such as the
motorcycles, tricycles, scooter, cars, minivans, SUVs,
AUVs, owner jeeps, public utility jeepneys (up to 16
pax), light delivery vans, pick-up trucks, PUJs (more
than 16 pax), stake trucks, heavy delivery trucks, passenger/tourist
buses, prime movers/tractor heads (with or without trailer/chassis)
using the SRNH are exempt from the increase. The 15%
increase, however, applies to other modes of handling
rolling cargoes such as CHA-RO (chassis or trailers,
empty or loaded with cargo), whether breakbulk, unitized,
palletized or in containers, towed or wheeled into or
out of the ro-ro vessel by means of prime mover, tractor
or tow motor, without cargo rehandling, shifting, or
grounding on vessel and where no other cargo handling
is rendered except lashing or unslashing. Also included
in the increase is the STO-RO type of cargo handling
(stowed into ro-ro such as conventional, utilized, palletized
cargoes or containers which are carried from the apron
and stowed into ro-ro vessel or out of the ro-ro vessel
to apron or waiting truck, by means of a forklift or
similar wheeled equipment).
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Hanjin
to build 8,000-TEU ships in Subic
SOUTH KOREAN shipbuilder Hanjin Heavy
Industries will inject some $8 billion over the next
10 years to set up a shipyard at the Subic Bay Freeport.
The facility can build 8,000-TEU ships and is expected
to generate some 20,000 more jobs for Filipinos starting
this month. The agreement is expected to be signed between
Hanjin and the Subic Bay Metropolitan Authority (SBMA)
on December 16, also the date for the project's ground
breaking. Hanjin reportedly wants certain conditions
met before proceeding with the project, including an
access road to a beach area as a supporting part of
the master development plan of the SBMA Redondo area;
and an eight-year income-tax holiday for each phase
of the project. Negotiation for the facility is said
to have started early this year. Hanjin reportedly tried
looking for a facility in China and Vietnam but chose
Subic because of its natural deep draught. SBMA said
it will allot a 269-hectare area for the shipyard. SBMA
is now trying to solve the problem of informal settlers
along the Redondo area to be affected by the project.
There are some 350 structures occupying the property.
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PSB
eyes dialogue with carriers on
THC THE Philippine Shippers' Bureau
(PSB) is seeking a dialogue with international shipping
lines to discuss a cut in the terminal handling charge
(THC). The bureau has already written the Association
of International Shipping Lines for such a meeting.
"As part of our effort to reduce THC, we want to
continue to seek for an open dialogue with the carriers
directly or through a government intervention on the
issue," PSB chief Atty. Pedro Vicente Mendoza in
an earlier discussion said. The PSB said the continuous
enforcement of the THC makes the Philippines uncompetitive.
The THC is unilaterally imposed by international shipping
lines on both export and import containerized cargoes
purportedly to recover costs incurred at container terminals.
Shippers claim the THC is a double charge, however.
Based on PSB records, the THC has cost Philippine shippers
approximately $130 to $200 million per year. The THC
has increased at an annual average rate of 8% (as imposed
by the Transpacific Stabilization Agreement), 10%-12%
(Far Eastern Freight Conference) and 24% (Intra-Asia
Discussion Agreement), the latest of which was in May
2004 at 5% with no formal notice to shippers. THC accounts
for 30%-50% of the shipping cost of RP-ASEAN and East
Asian container trade, the PSB said. Recently, the Indonesian
government cut THC by some 20%.
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DOTC
orders finalization of NH terms of reference
THE Department of Transportation and
Communications (DOTC) has ordered the Philippine Ports
Authority (PPA) to finalize the terms of reference (TOR)
for the North Harbor and to start its priva-tization
process immediately. The order came after several delays
in the TOR rollout brought about by contradicting views
from the PPA, the Philippine Chamber of Commerce and
Industry , the Build-Operate-Transfer (BOT) Center and
the consultant for the project, Pro-Consult. To be incorporated
in the TOR is the provision to equip the three North
Harbor ports with the same facilities so they will directly
compete. Once the TOR is complete, the PPA said it could
start the privatization process within the year or early
next year at the latest. The PPA is privatizing the
operation and management of the North Harbor to pave
the way for much-needed rehabilitation of the port which
has been bugged by inefficiency since the 1970s. The
port is one of 10 being groomed by the PPA to have world
standards by 2010, the others being Batangas, Iloilo,
General Santos, South Harbor, Davao, Zamboanga, Cagayan
de Oro, Cotabato and Ozamis. Together, the 10 ports
handle about 70% of the country's foreign and local
trade. To date, only terminal 1 of the North Harbor
has been built and the remaining two will be built by
the winning bidder.
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ICTSI
guards against bird flu
INTERNATIONAL CONTAINER TERMINAL SERVICES,
INC. (ICTSI) has beefed up safety measures to protect
the Manila International Container Terminal (MICT) from
the global outbreak of the avian influenza virus or
bird flu. "We are closely coordinating with the
health department's Bureau of Quarantine to ensure that
the MICT is safe from bird flu," said Francis Andrews,
ICTSI Senior Vice President and MICT general manager,
in a statement. "Since the MICT is an international
transit point, we have to be sure that our terminal
is safe and clear from transmission," he added.
Quarantine officials have provided ICTSI implementing
guidelines on how to prevent the spread of the virus
as well as standard procedures in case of an outbreak.
Similar with the preventive measures when SARS hit the
region two years ago, no foreign vessels coming from
or which passed through countries with reported outbreaks
are allowed to berth at the MICT until health officials
declare the vessel and its crew bird flu-free. Vessels
coming from these countries are only allowed up to the
Manila Bay basin area. A quarantine team is then ferried
to the vessel and conducts medical examinations onboard.
MICT's Safety Unit is tasked to strictly implement the
quarantine procedures as well as to monitor the occupational
health situation in the terminal. Only suspected and
isolated cases of bird flu have so far been reported
in the Philippines. The country, according to the Department
of Health, is still safe from bird flu.
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LSC inks ship management deal with
Magsaysay
LOCAL cargo carrier Lorenzo Shipping
Corp. (LSC) has entered into a ship management agreement
with local operator Magsaysay Lines, Inc. (MLI) for
their seven vessels. LSC corporate information officer
Arsenio Cabrera, Jr. said LSC has appointed MLI as manager
of its vessels used in hauling goods and cargo within
the Philippine domestic waters. "As manager, MLI
shall maintain and preserve LSC's seven vessels in seaworthy
condition in accordance with the standards set forth
by LSC," Cabrera explained. He said MLI will also
manage its crew for a period of 24 months effective
the start of next year until the end of 2007. MLI has
been interested in getting majority shares of LSC through
a tender offer which it entered into two months ago.
Just last month, LSC transferred some 9.6% in total
shares to National Marine Corp. (NMC) that increased
NMC's share in LSC to 41.36% The additional common shares
of 28.86 million is equivalent to 51.32% shares out
of the total 154.35 million shares NMC intends to get
from LSC. NMC, a Magsaysay Lines subsidiary, is planning
to increase its stake in Lorenzo to 79.68% after it
offered to buy from stockholders a maximum of 154.35
million common shares equivalent to a 51% stake in LSC
at P1.20 per share last month. Earlier this year, LSC
transferred 29% stake to NMC from Singapore-listed Neptune
Orient Lines at an estimated P350 million.
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