THE Philippine Shippers' Bureau (PSB)
is challenging the Bureau of Customs (BOC) decision
to accredit freight forwarders first before they are
issued customs passes. Based on existing laws, orders
and issuances, PSB said it is mandated to register and
accredit freight forwarders, non-vessel operating common
carriers, cargo consolidators and breakbulk agents.
It said even the BOC has several issuances, among them
Customs Memorandum Circular 289-92 and Customs Memorandum
Order No. 50-92, that further strengthen PSB's mandate
as the sole government agency empowered by law to register
and accredit all seafreight forwarders. "To do
the same work may mean additional administrative requirement
thus creating another layer in the government bureaucracy
and will definitely cause additional burdenÉ
to entities concerned," the PSB said in a paper
given to the BOC last week. The BOC earlier said it
will require separate accreditation for freight forwarders
in relation to the implementation of Republic Act 9280
or the Customs Brokers Act of 2004. Under RA 9280, only
customs brokers will be allowed to transact business
with the bureau. A freight forwarders' group earlier
petitioned for the issuance of customs passes for freight
forwarders, claiming its members may no longer be allowed
to transact business with the BOC precisely because
of RA 9280. The BOC said a separate accreditation for
forwarders is needed as the PSB's accreditation process
is different from that of BOC's. "Freight forwarders
should secure their accreditation first with the BOC
before they are issued passes that will allow them and
their representatives to transact with the BOC right
after the deadline (for the implemen-tation of RA 9280),"
BOC said. The 60-day extension period for implementation
of Customs Administra-tive Order 3-2006, which operationalizes
RA 9280, ends July 21. The BOC and PSB will meet later
this month to settle their differences on the issue.
COLD storage operators are training
their eyes on the south, particularly Mindanao, as they
see little growth in Luzon, specifically Metro Manila.
"Overall, the growth rate in Luzon will be lower.
Growth will be more in the Mindanao area as existing
capacity is expected to grow by 50%," Cold Chain
Association of the Philippines (CCAP) president Anthony
Dizon told PortCalls. The area is attractive
because of its unsaturated market and the relatively
lower cost of power. Dizon said cold storage facilities
costing about P600 million will rise in Davao City,
General Santos and Cagayan de Oro City in the next few
years while the only one expected in Luzon, in Batangas
specifically, will open this year. Two of the cold chain
facilities are owned by Jentec Storage Corp., which
plans to spend P400 million for a 2,000-metric ton (MT)
capacity facility in Davao City and a 4,000 to 5,000
MT rated capacity in General Santos. The firm wants
to meet demand of the tuna canning industry. Current
facilities are capable of handling only 30,000 MT against
the demand of 50,000 MT. Tuna canning is a growing industry
with estimates of $280 million in annual exports and
400,000 MT total annual landing. Another CCAP member,
Polar Bear Freezing Co., plans to spend P200 million
to build a similar facility in Cagayan de Oro, Misamis
Oriental which will be used for the livestock processing
sector and the marine industry in the region. Dizon
said the new investments indicate Mindanao's growing
importance in the food supply chain in the country.
"Mindanao is a growing source of food inputs for
food exports. A reliable cold chain system will help
local stakeholders to increase the viability of their
produce abroad and even to mainstream markets such as
Metro Manila," Dizon said. He said while such infrastructure
has been increasing in years, there was still a huge
gap between supply and demand. Dizon said CCAP is exerting
all efforts to help push infrastructure improvement
and help Mindanao develop a thriving food exchange.
"Studies showed that cold storage facilities contribute
significantly to the government's food security program.
We believe there is much room for growth in Mindanao
with its largely untapped resources," he noted.
- Chris C. Paringit
DTI:
Cargo pooling the way to go for small shippers
THE Department of Trade and Industry
(DTI) is pushing small and medium-sized shippers and
exporters to adopt cargo pooling when transporting goods
to a common destination. "Cargo pooling helps reduce
the high domestic shipping cost for small firms. It
increases their productivity and provides more room
to expand their businesses for the domestic and overseas
markets," said Trade Secretary Peter Favila. Small
shippers often produce loose or less than-container-load
(LCL) cargo, forcing shipping lines to wait for more
cargoes or to send the container half empty. "These
lead to greater freight costs for the LCL shippers and
delay in the movement of goods," Trade Undersec-retary
Zenaida Cuison Maglaya explained. She said other shippers
transship to Manila where their cargoes are consolidated,
but the practice incurs additional expenses plus a higher
risk of cargo pilferage, damage or loss. To assist shippers
and exporters, the Philippine Shippers Bureau (PSB)
is implementing a program called Cargo Consolidation
Networking (CARCONET). CARCONET involves coordinating
with LCL shippers; linking them up with PSB-accredited
non-vessel operating common carriers, cargo consolidators
or international freight forwarders; and identifying
international and domestic shipping lines offering competitive
rates within a specific regional area.
PSB executive director Atty Pedro Vicente Mendoza said
that through CARCONET, shippers are able to create volume
and avail of discounted freight rates, reducing their
shipping cost by about 20%. It also enables shippers
to deal with a single provider issuing a single document
throughout the entire transport chain. "This results
in the efficient transport of goods and a simplified
shipment process," Mendoza added. Cargo consolidation
is already being done in Baguio, Cebu, General Santos,
Cagayan de Oro, Subic, Davao and Zamboanga. The Northern
Mindanao Shippers' Association, Inc. (NORMINSA) will
soon embark on cargo pooling as well with the help of
a P1-million grant from the World Bank. The project,
which starts in June, will consolidate cargo of around
300 small shippers in Mindanao to help them access the
bigger markets in Manila and Southern Luzon. "We
fully support the cargo pooling initiative of NORMINSA,
and hope that this would be successfully implemented
so that it can be replicated by other regional shipping
associations in various parts of the country,"
Mendoza said.
METRO Pacific Corp. (MPC), operator
of the country's oldest shipping line Negros Navigation
(Nenaco), said it is conducting preliminary talks
with several groups interested in investing in its
shipping subsidiary. In a disclosure to the Philippine
Stock Exchange, MPC said the talks with domestic and
foreign investors involved MPC's $10-million refleeting
program for Nenaco.
The company earlier said it was planning to replace
two of its ships with more efficient models to make
them more competitive. Nenaco has seven passenger
and cargo vessels and two pure cargo container vessels
servicing 14 port of calls, namely Manila, Palawan,
Bacolod, Iloilo, Cebu, Tagbilaran, Roxas, Dumaguit,
Estancia, General Santos, Cagayan de Oro, Zamboanga,
Iligan and Ozamis. Nenaco chairman and chief executive
officer Sulficio Tagud said the company would focus
on transporting high-value cargo goods, such as processed
foods and electronic products, instead of agricultural
commodities, to generate more revenues. He added that
cargo volume has remained steady while passenger traffic
continues to decline. Earlier, MPC president Jose
Ma. Lim said the company was initially considering
taking in new investors to finance Nenaco's refleeting
program. But at the right price Metro Pacific may
consider selling the whole company to an investor,
he said. Lim declined to name the interested parties
but hinted it was also engaged in the shipping industry.
