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::Industry News::

Archives 2005 : Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec

Dec 5


*Ro-ro cargoes in SRNH exempt from 15% rate hike

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Hanjin to build 8,000-TEU ships in Subic

*PSB eyes dialogue with carriers on

*DOTC orders finalization of NH terms of reference

*ICTSI guards against bird flu

*LSC inks ship management deal with Magsaysay


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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Dec 5

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