FOR the first 11 months of 2005, the
Philippine Ports Authority (PPA) reported a 14.29% decrease
in net income to P2.006 billion from P2.34 billion registered
in the same period in 2004. The income is, however,
16% more than the P1.732-billion target for the period.Port
revenues grew P266.53 million or 5.48% higher than a
year earlier due to increased income from arrastre/stevedoring
charges, storage, pilotage, and other non-traditional
revenues as well as higher remittances from International
Container Terminal Services, Inc (ICTSI).Income from
Fund Management grew 0.01% from P237.30 million to P237.33
million. Interest from savings and time deposit placements
and restricted cash deposits with the Bureau of Treasury
boosted FMI account during the period.Total expenses
for the period which amounted to P3.363 billion were
22% higher than 2004's P2.76 billion. In particular,
operating expenses amounting to P2.8 billion was P609.85
million or 28% more than the 2004 figure due to increased
expenses incurred on personal services, cost of utilities,
security services, taxes and licenses and depreciation
charges. Non-operating expenses slightly decreased 1.55%
as a result of lower adjustments for losses on foreign
loan revaluation.For the month of November alone, port
revenues amounted to P472.56 million or P18.95 million
higher than a year earlier. The 4.18% increase can be
attributed to higher fees collected from ICTSI, cargo-handling
fees and increased revenues from non-traditional sources.Net
income for November was at P136.18 million or 69.72%
higher than the figure registered a year earlier.
THE Philippine Shippers' Bureau (PSB)
expects a reduction in the terminal handling charge
(THC) levied by international shipping lines by the
second quarter of the year."We are anticipating
a possible reduction in the THC within the second quarter
of the year. We are still in the process of ironing
some of the details of the reduction," PSB executive
director Atty. Pedro Vicente Mendoza told PortCalls.For
the last few years, the PSB has been lobbying to cut,
if not eliminate, the THC arguing it is a form of double
charging which makes Philippine products uncompetitive."As
part of our efforts to reduce the THC, we will continue
to seek for an open dialogue with the carriers directly
or through government intervention," Mendoza in
an earlier interview said.The THC is unilaterally imposed
by international shipping lines on both export and import
containerized cargoes purportedly to recover costs incurred
at container terminals.Based on PSB records, the THC
has cost Philippine shippers approximately $130 to $200
million per year. It has increased at an annual average
rate of 8% (as levied by member carriers of the Transpacific
Stabilization Agreement), 10%-12% (Far Eastern Freight
Conference) and 24% (Intra-Asia Discussion Agreement).THC
accounts for 30%-50% of the shipping cost in the RP-ASEAN
and East Asian container trade.Recently, the Indonesian
government unilaterally cut THC by about 20%.
DISTRIBUTION managers have no plans
to increase prices just yet despite the imposition of
the additional 2% value-added tax (VAT) earlier this
month, the continuing volatility in fuel prices, and
the impending increase in trucking rates.Distribution
Management Association of the Philippines (DMAP) vice
president John Guillermo told PortCalls that
association members will continue to hold off any price
increase as long as they can."There are no planned
price increases as of yet. We are still okay despite
shouldering the additional cost brought about by the
VAT," Guillermo said.He added that the measure
has had minimal effects so far on business save for
fuel spending brought about not only by Republic Act
9337 (VAT law) but also by the volatility of oil prices
in the world market.However, Guillermo does not discount
a price increase particularly now that trucking rates
are set to increase by 30% as early as this month."These
are pass-through costs. We have no choice but to pass
them on to consumers. But we still have to evaluate
the effects of this impending increase in trucking rates
on our business," Guillermo said.Earlier, DMAP
anticipated the additional VAT will render a major blow
to members' businesses, triggering price increases due
to higher fuel and shipping costs.
Shipping
lines can't bid for North Harbor operations, management
- PPA
THE Philippine Ports Authority (PPA)
is dropping an earlier plan to allow shipping lines
to bid for the management and operations of the North
Harbor once the privatization process goes on high
gear starting this month.Aida Dizon, PPA assistant
general manager for finance and administration, said
the decision will ensure that the port facility will
be open to all ship owners and not be used as a tool
to harass competitors.She added that the PPA will
thoroughly screen prospective bidders to guarantee
that these organizations are not dummies of shipping
lines.PPA is privatizing the North Harbor to pave
the way for its modernization to make the port at
par with world standards.The PPA earlier said it is
optimistic the terms of reference (TOR) for the North
Harbor bidding will be finalized in March for review
and approval before the Investment Coordination Committee
of the National Economic and Development Authority.
A decision is expected in 30 days.Among revisions
in the TOR was the shift to the Philippine Chamber
of Commerce and Industry proposal to equip North Harbor
with two cargo and one passenger terminals from the
earlier approved three cargo and one passenger terminals
as well as inclusion of a clause that will give priority
to current port workers once a new concessionaire
takes over.The TOR also provides a generic clause
for the entry of at least two operators to foster
competition and keep port fees low.
2GO, the logistics arm of Aboitiz
Transport System (ATS), said it will enter the cold
chain business within the year.2GO said the proposed
cold chain venture aims to serve small businesses
in the country particularly those engaged in agriculture
and fishery.To start with, 2GO will temporarily operate
reefer vans in strategic areas prior to the installation
of the cold chain facility itself which it expects
to be operational in 2007.The areas eyed for the cold
chain facilities include Palawan, Cagayan de Oro,
Iloilo, Davao, General Santos and Cebu in the South
and Pangasinan and Benguet in the North.
LOCAL cargo carrier Lorenzo Shipping
Corporation (LSC), is increasing its capital stocks
from P700 million to P1 billion from its present capitalization
of P700 million.In a disclosure to the Philippine
Stock Exchange, LSC said this will be financed through
a declaration of 25% stock dividend to common shareholders
on a to-be-determined date, paid through the unrestricted
retained earnings at the end of last year.LSC said
the new capital will be divided into 700 million common
shares and 300 million preferred shares, with a par
value of P1 a share.The present capital stocks are
divided into 400 million common shares and 300 million
preferred shares.LSC said it will submit its plan
to shareholders during its annual general meeting
on June 6.LSC earlier transferred some 9.6% of its
total shares to National Marine Corp. (NMC) increasing
NMC's holding at LSC to 41.3%.The additional common
shares of 28.86 million is equivalent to 51.32% of
the total 154.25 million shares NMC intends to acquire
from LSC.NMC, a Magsaysay Lines subisidiary, 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 which is equivalent to a 51%
stake in LSC for P1.20 per share last November 2005.
