INTERNATIONAL Container Terminal Services,
Inc. (ICTSI) officials are optimistic of the outcome
of a meeting with Port Authority of Guam (PAG) officials
for the privatization of Guam's Jose D. Guerero Commercial
Port. Francis Andrews, ICTSI senior vice president,
said there are some kinks in the bid that needs fine
tuning before ICTSI can restart negotiations with PAG.
Among Guam's new demands is for ICTSI, and not its subsidiary,
to operate the port, a proposal which Andrews said is
not feasible. He explained ICTSI cannot transfer to
Guam to operate the facility, the very reason it created
a subsidiary. In addition, it is also the firm's practice
to create a subsidiary to operate every port it takes
over. "We are going to challenge this position.
Nonetheless, we are going to pursue our plans to bid
for the port," Andrews stressed. In April, PAG
port general manager Joseph Mesa terminated negotiations
with ICTSI, which emerged late last year as the top
bidder for privatization of the terminal. According
to the bid documents, if the port authority is unable
to reach a contract agreement with ICTSI, it has the
option to negotiate with the next highest bidder or
to cancel the proposal altogether. Jose D. Leon Guerrero
Commercial port is the only terminal in the US territory
which also serves as transshipment point for the entire
Western Pacific region. The port is currently the largest
US deepwater port in the region. For three consecutive
years, it handled 2 million revenue tons of cargo. For
fiscal year 2005, however, revenue tons dropped 1% to
2.042 million from the same figure in 2004. The number
of containers processed grew 7% to 83,867 TEUs from
78,224 in fiscal year 2004. The total vessel calls decreased
almost 20% to 1,327 from 1,648 in 2004 vessels, due
to increased vessel regulations in US ports and decreasing
fishing vessels.
The port has an average annual revenue of $26 million.
Lorenzo sees
higher revenues even with lower volumes
CARGO carrier Lorenzo Shipping Corp.
(LSC) reported a net revenue performance of P324.6 million
in 2005, up 11.54% from the year-ago figure of P291
million. LSC said the increase in net revenue can be
attributed to the full implementation of a 6.99% Automatic
Fuel Rate adjustment in June 2005, the bunker surcharge
increase which took effect in October 2005 and a series
of freight increases in foreign cargoes. Lower volume
contribution from various customer segments of domestic
cargoes (forwarders, manufacturing companies and shipper-owned
container shippers) however, pulled down by 7% container
volume handled in 2005 compared to the volume recorded
a year earlier. Rice shipments from Manila dropped significantly
due to stiff competition on freight rates. Volume of
agricultural products such as sugar and corn also declined
during the first quarter of the year, as did livestock
volume which was down 6% from last year due to a shortage
in special container vans. Operating expenses, meanwhile,
increased P25 million or 9.6% due to fuel price increases,
the amortization of drydocking charges, manpower and
repairs and maintenance costs.
Interest and financial charges grew 0.2%, attributed
to the accrual of interest expense and discounting (interest
factor) on redeemable preferred shares. Otherwise there
would have been a decrease of P3.3 million or 20% as
a result of repayment of loans. Miscellaneous income
registered a P7 million or 52% reduction due to slower
disposal of scrapped assets and less door-to-door shipments.
Marina
seeks collection of Nenaco's P21.15M unpaid supervision
fees
THE Maritime Industry Authority (Marina)
has asked a Manila court for authority to collect millions
of unpaid supervision feesof Negros Navigation Company
(Nenaco) even if the firm is under rehabilitation. Marina
administrator Vicente Suazo Jr., in a letter to the
Regional Trial Court in Manila, said the agency intends
to collect P21.15 million from debt-saddled Nenaco.
The amount represents the firm's unpaid supervision
fees incurred from 1998 to 2001, including surcharges
and monthly interests. "In a long line of decisions
by the Supreme Court, it was clearly established that
supervision fees are considered taxes and the collection
thereof is not subject to a restraining order or injunction
order," Suazo argued in his letter. In October
2004, a local court approved Nenaco's petition for rehabilitation
which allowed it to restructure P2.4 billion in debts
over a 10-year period. The court also allowed the company
to put off interest payments until the first half of
the year and to suspend principal debt payments until
2008. Based on the Nenaco rehabilitation plan, debt
payments will be divided into two groups: the first
includes unpaid taxes; and the second, outstanding obligations,
both secured and unsecured. Marina said Nenaco's total
unpaid supervision fee during the period was at P31.86
million. The firm promised to pay five in installments
starting September 30, 2003 until September 30, 2007.
It was able to pay the first installment worth P6.37
million, but failed to pay the next two installments
due 2004 and 2005, Marina said. It said the agency has
levied a 50% surcharge on the debt as penalty and interest.
The shipping firm reported a net loss of P29.2 million
for the first quarter of the year, narrower than its
net loss of P57.77 million in 2005. The company said
it cut losses as a result of "significant improvements
in the operations," including limiting the number
of vessels that ply its routes to only six from nine
last year.
KEPPEL Philippines Marine, Inc, (KPMI)
and its subsidiaries turned in higher revenue at P385.4
million for the first quarter of 2006, 42.33% higher
compared to the same period last year. KPMI attributed
the increase to higher revenue from shipbuilding and
five more high-value shiprepair jobs in 2006. Foreign
vessels accounted for 66.35% of the shiprepair revenue.
Net profit for the quarter jumped 33.77% to P53 million
from the same period in 2005 due to higher sales and
improved margins. The operating profit of P51.1 million
was also up 55.64% from the 2005 figure. Investment
and net interest income went down from P4.5 million
in 2005 to P1 million in 2006 due to losses on foreign
exchange transactions recorded during the period as
a result of the strengthening of the Philippine peso
against the US dollar. The share of results from associated
companies during the quarter grew P1.4 million due
to better results of Subic Shipyard and Consort Land
during the period.
LACK of budget and technical constraints
have forced the Philippine Ports Authority (PPA) to
slash funds earmarked for the upgrade of Cotabato
ports. For the port management office in Cotabato,
the agency is allotting P3.48 million from the P35
million originally sought. The P35 million was to
have funded a P20-million wharf improvement and construction
of a transit shed at the base port in Cotabato; construction
of a P6 million two-story terminal operations office
and port police division building; P7-million reclamation
and concrete paving of the shore area; and P2 million
construction of a terminal management port building.
For the base port in Cotabato, PPA allotted P707,500,
mainly for the acquisition of a new baggage x-ray
machine and for repairs. The PPA is also setting aside
P833,000 for the general maintenance of Kalamansig
Port and P340,000 for the repair of its passenger
terminal and steel gate. Some P1.6 million will go
to the dredging of the Rio Grande de Mindanao channel
between Bucana and the City Wharf. The PPA said dredging
was important to stem the departure of ferry operators,
including some roll-on-roll-off operators, who complain
of depth problems as a result of siltation. It said
the river port has a depth of 1.5 to 2.5 meters, way
short of the minimum 4-meter draft requirement of
larger barges. The river port is an essential artery
to deliver goods and remains the lone gateway for
passengers and cargo bound for inter-island destinations
such as Kalamansig and Pagadian.
Don't
hold trucks too long, truckers' group appeals to BOC
THE Confederation of Truckers Association
of the Philippines (CTAP) wants the Bureau of Customs
to show more prudence in apprehending and impounding
trucks particularly those allegedly involving the
carriage of misdeclared cargoes. CTAP said the current
practice deprives truck owners and their drivers of
their daily income, especially if the trucks have
to stay for months at the BOC while the case is being
investigated. CTAP president Rodolfo De Ocampo told
PortCalls cargo trucks are not importers but mere
instruments of their clients. "While admittedly,
misdeclaration of imported goods is a violation of
the Tariff and Customs Code of the Philippines (TCCP),
the violator is the importer of the goods and not
the cargo truck. The situation may be otherwise if,
through concrete proof, the cargo driver or trucker
is a party to said misdeclaration. In such a case
the trucker or driver, along with the importer may
be prosecuted for violating the TCCP," he explained.
De Ocampo stressed that trucks should not be held
too long because it only takes a day or two to extract
particulars needed in the prosecution if the case
involves the goods in transit and not the truck itself.
The current practice keeps trucks at the BOC for days,
even months, toge-ther with the cargo while the cargo
misdeclaration case is being investigated. CTAP wants
the BOC to immediately issue an order releasing all
impounded cargo trucks from BOC custody and likewise
order its officers that no truck should be ordered
impounded unless there is a clear and concrete proof
that the driver or owner is part of an alleged cargo
misdeclaration or a conspirator to any TCCP violation.
The association also wants to put a limit on the holding
period for trucks under investigation. - Christopher
C. Paringit
BOC
requires written clearance for transhipment at freeport
zones
TRANSSHIPMENT cargoes and bonded
articles subject of a constructive exportation and
bond liquidation now need a written clearance from
the Bureau of Customs resident collector at any freeport
zone, the BOC said. Customs commissioner Napoleon
Morales said he issued the order to protect the interest
of government against abuses in the transshipment
of goods. It also guards against the use of freeport
zones as conduits for smuggling of bonded articles
transferred from customs bonded warehouses. "To
prevent this practice, all application for authority
to transfer of these nature shall be processed, subject,
however to prior submission of a duly notarized certification
from the Customs collector assigned at the particular
Freeport Zone as the port of destination, to serve
as basis for cargo clearance and to prove that the
consignee is existing and actively operational,"
Morales explained. Aside from this, Morales also ordered
that liquidation of entry and subsequent cancellation
of bonds will also not be allowed without the duly
notarized clearance from the resident collector of
Customs of the port of destination. The measure will
prove that the transactions are legitimate and provide
as conclusive proof that the duty and tax-free materials
were received and accounted for the consignees' export
requirements. It is also expected to prevent circumvention
of customs laws, rules and regulation through the
anomalous scheme of manipulating exportations of finished
products or diversion of bonded materials and ensure
appropriate documentation control, monitoring and
accounting of goods transferred under constructive
exportation to locators within the zone as provided
under Customs Memoran-dum Order No. 39-91. The Port
Users Confederation (PUC) said the order will only
add to the red tape that port users face and the confusion
as too many entries will be filed before the Customs
collector to secure clearance. "The industry
does not need this kind of regulation. It will only
burden the company," the PUC said. - Christopher
C. Paringit
