THE Philippine Ports Authority (PPA) reported
a June net income of P338.2 million, almost double its target
for the period, on the back of lower expenses, the agency
said in a report. The figure was higher than the previous
year's P201.2 million. Port revenues grew 0.03% to P537.21
million, mainly due to higher arrastre fees and stevedoring
income contributed by International Container Terminal Services,
Inc. that operates the Manila International Container Terminal,
the top contributor to PPA's coffers. The higher net income
was achieved despite a 14% decrease in PPA's fund management
income due to lower investments for the period. "Total
expenses for the month was lower than the targeted amount
by P93.71 million as a result of the unincurred projected
expenses," the PPA said, referring to the postponement
of some of its projects. The agency did not specify which
projects were postponed. For the first half of the year, PPA,
which operates 114 terminals all over the country, was supposed
to have spent P1.66 billion, but the report showed it only
had P1.28 billion in expenses, even less than last year's
expenditures of P1.29 billion. This pushed net income for
the period to P1.64 billion, 5% higher than last year's P1.56
billion. Since January, PPA's expenses have been much larger
as it started paying off loans incurred for the P5.5-billion
phase 2 Batangas Port development.
THE Philippine Ports Authority (PPA) had awarded a long-term
management contract to Zamboanga City Integrated Port Services,
Inc. (ZCIPI), a consortium of former port operators in the
area, for cargo-handling services to the Zamboanga baseport
until February 23, 2016. Zamboanga port is one the country's
top 10 terminals that will be modernized by 2010 to be at
par with world standards. The facility handles mainly mixed
cargo like bulk, breakbulk, and containerized. It has four
major areas: the finger pier, the T-head pier, marginal wharf,
and the ferry pier. The terms of the 10-year contract include
the maintenance of the working capital, collection of all
authorized fees, set-up of performance bond, full compliance
to the business plan that was earlier submitted by the firm,
deployment of equipment, establishment of the labor trust
fund, and regular submission of list of workers for evaluation
purposes. ZCIPI comprises three firms previously operating
the same services in Zamboanga port: PTC Mindanao Port Services,
Inc., United Stevedoring and Arrastre Corp., and Zamboanga
Arrastre and Stevedoring Corp. A few years ago, PPA asked
the firms to merge for greater efficiency. After two years
of deliberation, the firms agreed to merge in 2005.
THE North Harbor privatization could drag further to next
year if the National Economic and Development Authority-Investment
Coordination Committee (NEDA-ICC) fails to hand its decision
on the privatization Terms of Reference (TOR) this month,
according to Philippine Ports Authority (PPA). PPA assistant
general manager for corporate affairs and special projects
Raul Santos told PortCalls the remaining three months of the
year will not be enough to start the process if the NEDA-ICC
gives its decision in September. He added additional time
will be needed particularly if there are some provisions of
the TOR that need fine tuning. "August will be very critical.
If the ICC hands down its decision within the month, then
we will still be on target. If not, then the privatization
will be pushed further back to next year," Santos said.
The PPA Board in May approved the TOR for the privatization
of the country's premier port but still has to seek the nod
of the NEDA-ICC. The PPA submitted the TOR in June and approval
should have been given last month since the NEDA-ICC usually
hands down a decision within 30 days. Under the TOR, the PPA
will bid out the terminal to a single operator. The PPA board
believes one operator for a single terminal is the most feasible
since competition is already being provided by Pier 15 (South
Harbor) and Harbour Centre. Earlier, the plan was to divide
the facility into four terminals-two main cargo terminals
competing with each other, a passenger terminal, and terminal
for trampers. Each of these terminals will have an operator
that will undergo the government's bidding process. This time,
the North Harbor privatization will still have those components
it will be all under a single operator that would market the
facilities to other concessionaires. The board also increased
participation limit of ship-ping lines to 20% each from the
earlier-approved 5%.
SUBIC Bay Freeport saw the highest upsurge in investments
from January to June this year as it received commitments
of $1.35 billion for the period. Korean shipbuilder Hanjin
with a $1-billion commitment and Chinese glass manufacturer
Hebei Jingniu with $312 million represented the bulk of the
investments, Subic Bay Metropolitan Authority (SBMA) chairman
Feliciano Salonga said. A total of 68 new projects was approved
by the Board of Directors during the first semester compared
to last year's 17 worth $9.2 million. During the first quarter
of the year, the SBMA bested three other investment promotion
agencies in the country, posting $1.013 billion which accounted
for 70.8% of the total $1.4 billion, according to the periodical
report by the National Statistical Coordination Board. During
the same period this year, the SBMA remitted P2.2 billion
to the national coffers from combined cash collection of the
Bureau of Internal Revenue and the Bureau of Customs, which
rose 23% compared to last year's P1.8 billion. A total of
686 locators currently operates in the Subic Bay Freeport.
PHILIPPINE and foreign airlines are seeking another increase
in fuel surcharges to offset operational losses following
record-high increases in oil prices last month. In a letter
to the Civil Aeronautics Board, Inez F. Jose, Cebu Pacific
manager for external affairs, asked the regulator for an increase
in the fuel surcharge to defray the higher cost of fuel. A
fuel surcharge is a temporary relief granted to airlines to
help them recover losses incurred from higher jet fuel prices.
"Unlike other airlines that are able to increase the
regional surcharges to the level that these can partially
subsidize the domestic sector, Cebu Pacific's regional operations
only comprise a small part of its operations," Jose said.
She said the airline's low-fare offerings for domestic travel
leave it with an insufficient buffer to accommodate higher
fuel prices. The Gokongwei family-led airline wants to increase
the fuel surcharge imposed on Luzon-to-Mindanao flights by
P140 to P990; on Luzon-to-Visayas flights by P620 to P720;
Visayas-to-Mindanao flights to P610; within Luzon to P550;
within Visayas to P460; and within Mindanao to P610. Flag
carrier Philippine Airlines also sought an increase in the
fuel surcharge for international flights, particularly the
Manila-to-Guam haul, from $11 to $22. Joining the two Philippine
carriers was China Airlines Ltd., which is seeking to raise
the fuel surcharge from $34 to $54 a passenger for international
flights, particularly the Taipei-US-Canada haul. Fuel, which
accounts for a third of an airline's operating cost per passenger,
is the second-highest expense next to labor. Jet fuel started
going up in 2002 but local and foreign airlines began asking
for increases in fuel surcharge only in 2004.
New
company Barwil Unitor Ships offers extensive global reach
BARWIL and Unitor, two leaders in maritime services, have
merged to form the world's leading maritime services network.
The new organization, Barwil Unitor Ships Service, is capable
of providing service in more than 2,200 ports and 116 countries
worldwide. Barwil Unitor Ships Service is part of Wilhelmsen
Maritime Services AS, a Wilh. Wilhelmsen group company in
Oslo, Norway. Prior to merging, Barwil was a leading worldwide
supplier of port and marine services, ranging from regular
ship agency tasks to complex outsourcing activities. It was
a wholly owned subsidiary of Wilh. Wilhelmsen ASA. Barwil
first came to the Philippines in 1995 when it bought 50% equity
in Smith Bell (Subic), Inc. In 2004, it entered into a joint
venture with Smith Bell Shipping, Inc. Both Smith Bell (Subic)
and Smith Bell Shipping, Inc are subsidiaries of 160-year
old Smith Bell Group of Companies. Unitor, on the other hand,
has been in the Philippines since the early '80s and is now
the world's leading service provider to the international
merchant fleet and shipbuilding industry. The company offers
marine quality services and products as well as equipment
and systems for fire protection, safety, incineration and
insulation that are standardized for distribution throughout
the world. Its network comprises 70 Unitor offices and 154
agents in 75 countries.
