Lower
prices seen with completion of infra projects
THE Philippine Ports Authority (PPA) reported
an increase in port revenues for the first seven months of
the year boosted by all revenue sources except collection
from International Container Terminal Services, Inc. (ICTSI),
wharfage and usage fees.
PPA raked in P3.24 billion from January to July this year
or 1.12% higher compared to the P3.21 billion posted in the
same period last year.
The figure, however, was lower by 18% from the P3.28-billion
target due to higher foreign exchange rate used in the projection
which affected dollar-denominated revenue items such wharfage
dues and ICTSI fees.
The report also showed that income from fund management for
the period grew 9% from P143.28 million to P156.30 million.
Average investment for the period went up to P2.97 billion
from last year's P2.94 billion or an increase of P32.32 million.
Total expenses grew 13.28% to P1.58 billion from P1.39 billion
last year. Operating expenses amounting to P1.37 billion was
10.28% higher than last year's figure due largely to higher
dredging costs.
Non-operating expenses increased P11.43 million or 58.23%
as a result of higher interest charges on foreign loans, amortization
of deferred charges and extraordinary losses.
For July, port revenues decreased 3.96% compared to the P471.93
million posted last year due to the unfavorable outcome of
collection from wharfage dues and usage fees.
Fund management income for the month increased 27.49% due
to higher average investment recorded for July.
Total expenses also increased by P104.19 million compared
to the same month last year. The PPA attributed the rise to
higher depreciation charges, interest charges, dredging costs
and other administrative expenses.
Net income for the month nosedived 40% or P176.77 million
compared to the P295.08 million posted for the same period
in 2005. The figure is also 8.71% lower than the P193.64 target
for July.
For the seven-month period, net income also dwindled 7.11%
from P1.95 billion last year. Target-wise, the amount is higher
by 29.78% than the projected figure for the period.
2nd
Philippine Seafreight Forwarders Awards set on Oct 12
THE Philippine Shippers' Bureau (PSB) of the Department of
Trade and Industry (DTI) in cooperation with <i>PortCalls</i>,
a twice-a-week newspaper on the transport and logistics industry,
is organizing the 2nd Philippine Seafreight Forwarders Awards
(PSFA) on October 12, 2006 at the ballroom of the Hyatt Hotel
and Casino Manila.
The event gives recognition to the world-class performance
of freight forwarding companies which have efficiently facilitated
the transport of the country's export goods to the global
market while offering and maintaining reasonable freight rates.
Winners were chosen based on the following criteria: 1) the
seafreight forwarder should have been accredited by the DTI-PSB
at the time of the awards; 2) the forwarder must have completely
submitted the quarterly cargo statistics for 2004 and 2005
on or before January 2006; and 3) the forwarder must be in
the Top 50 to be eligible for the awards.
Nominees will vie for the title of Freight Forwarder of the
Year, Overall winner of the three major routes, Overall winner
for Asia, Overall winner for the USA, Overall winner for Europe,
Best in Export Award, Best in Import Award, Best in Export-Asia,
Best in Export-USA, and Best in Import-Europe.
During the first PSFA, Maersk Logistics Filipinas Inc. bagged
the Seafreight Forwarder of the Year Award, including Best
in Export-USA and Overall Winner - Major Trade Routes. The
Best Import Award went to Fritz Logistics Philippines Inc.
while Transcontainer (TCL) Phils. Inc won the Best Export-Asia,
Geologistics Inc. the Best in Export- Europe, Direct Container
Lines Inc. the best Import-USA and Danzas AEI the Best in
Import-Europe Award.
At present there are about 633 seafreight forwarders accredited
by the DTI-PSB.
For more information on the 2nd Philippine Seafreight Forwarders
Awards, call PortCalls at tel. nos. 832-9791, 832-9794, 551-1775
or email port_calls@pacific.net.ph
.
THE Bureau of Customs (BOC) is reportedly prepared to defer
implementation of Customs Administrative Order (CAO) No 3-20006-A
to study new proposals on how to settle hot-button issues
on the order.
The BOC is set to meet with port users and other stakeholders
this week to discuss, among other things, the use of the tax
identification number (TIN) by individual customs brokers
for entries filed by freight forwarders instead of the corporate
TIN, and the accreditation of international freight forwarders
with the BOC.
Which TIN to use in import entries appears the most contentious
issue in the agenda.
According to a PortCalls source, using the individual broker's
TIN in entries will ensure compliance to the soon-to-be implemented
AsycudaWorld and with provisions of the Customs Brokers Act
of 2004 (Republic Act 9280).
Under ASYCUDAWorld, the BOC will require biometric signatures
for uniform electronic messages based on a global, harmonized
standard data, otherwise known as the WCO Customs Data Model.
The shift to ASYCUDAWorld is in line with the ongoing P500-million
customs modernization program which will enhance current day-to-day
operations of the BoC involving import entry lodgement, the
Valuation Reference Information System, selectivity, bank
payment transactions, electronic manifest system assessment
process, and online releasing.
In the case of accreditation of freight forwarders, the source
explained a separate accreditation from the bureau is needed
to allow forwarders to undertake customs clearance. The accreditation
being issued by the Philippine Shippers' Bureau (for Seafreight
forwarders) and the Civil Aeronautics Board (for airfreight
forwarders), he said, is not a license to customs clear.
Based on CAO 3-2006-A, BOC accreditation of freight forwarders
is not needed as long as forwarders are accredited by either
the PSB or CAB.
CAO 3-2006-A authorizes customs brokerage corporations and
freight forwarding firms to lodge customs entries and/or use
their employee-customs representatives to transact business
at the BOC, an activity strongly opposed by the Chamber of
Customs Brokers, Inc. and the Philippine Regulatory Board
for Customs Brokers. The two said this is a clear and blatant
violation of the law and tantamount to amending RA 9280.
MAGSAYSAY Maritime Corp. (MMC) is expanding locally in the
next few months and will likely offer a roll on-roll off service.
The company recently expanded to Atimonan and Alabat, in Quezon
province.
This is not the first time the firm has targeted local communities.
Early this year, the company offered to spend P150 million
for the deployment of four new steel-hulled vessels to ser-vice
the Boracay-Caticlan route. The plan was shelved after local
boatmen opposed the service, saying it would take jobs away
from them.
Magsaysay said the MMC would only supply the vessel; the local
boatmen will operate and manage the service.
SINGAPORE-BASED shipping line EP Carriers Pte. Ltd. and Korea's
Sinokor Merchant Marine Co. Ltd. (SKR) are the newest shipping
line clients of International Container Terminal Services
Inc.'s (ICTSI) flagship Manila International Container Terminal
(MICT) after the two carriers jointly launched a new intra-Asia
service, with Manila as a major port of call.
The joint service, BMX, has a three-country port rotation
covering the ports of Manila, Bangkok and Laemchabang in Thailand,
and Singapore. EP Carriers and SKR vessels will alternately
call at the MICT once a week to provide efficient and cost
effective services to the Philippines' import-export industry.
EP Carriers' new vessel, the 700 TEU-capacity Dongtai Pearl,
had its maiden voyage last August from its port of origin,
Singapore, to MICT. After MICT, the vessel sailed to Bangkok.
SKR's vessel, the 1,004-TEU capacity Golden Gate, on the other
hand, had its maiden call in the same month.
EP Carriers is a regional container shipping line servicing
East and Southeast Asia and the Indian subcontinent. Its Intra-Asia
port destinations include Singapore, Philippines, Thailand,
Malaysia, Indonesia, Korea, China, Cambodia, Bangladesh, India,
Sri Lanka, Vietnam, and Myanmar. Oceanmart Shipping Agencies
Inc. is EP Carriers' Philippine agent.
SKR started operations in 1989 pioneering the Korea-China
container transport line. Currently, its transport route cover
ports in Japan, Indonesia, Thailand, Vietnam, India, Russia,
Malaysia and Singapore. In July 2006, it launched Sinokor
Merchant Marine Phils., Inc., a wholly owned local subsidiary.
William Gutierrez (third from left), ICTSI Customer Relations
Manager, presents commemorative plaques to Arthur P. Tugade
(fifth from left), Founder of Perry's Group of Companies,
and Lu Jian (sixth from left), Vessel Master. Also present
during the ceremony were officers of EP Carriers Pte. Ltd.,
Trans Global Consolidators, and OceanMart Shipping Agencies,
Inc.
William Guttierez (extreme right), ICTSI Customer Relations
Manager, and Edmund Co (second from left), President and CEO
of Sinokor Merchant Marine Phils., Inc., present a commemorative
plaque to Hwang Chin Tae (third from left), Vessel Master
of Golden Gate, upon the vessel's arrival at the MICT. At
far left is Rafael Nieto, ICTSI Operations Manager
Exporters
want higher import fees to recover higher export costs
PHILIPPINE exporters continue to take a tough stance over
the export service surcharge being proposed by warehouse and
ground-handling providers. They want the surcharge taken out
from import fees which they want increased instead.
In hearings on the issue at the Export Development Council
(EDC), exporters said the export surcharge is untimely since
Philippine exports are struggling to survive in the international
market.
They said operators may recover the added export cost by increasing
import fees since Philippine imports have been subsidizing
the export sector for the past several years.
"You will be creating another monster. A monster in the
sense that (the situation) will give additional power to the
Bureau of Customs to regulate the industry more. The surcharge
is untimely and will make Philippine products uncompetitive
in the international market," Federation of Philippine
Industries president Meneleo Carlos told operators in a meeting
which he presided over last week.
The service providers, led by the People's Aircargo and Warehousing
Inc./GlobeGrounds PAGS (Pairpags), are against the proposal
saying it will take a while to implement.
Pairpags said it can no longer wait as increasing export costs
have been affecting its business for some time now. It noted
the additional import fee is also not feasible as import volumes
have on the decline since 2004.
The operators said the almost four-month moratorium on the
implementation of the surcharge is enough for exporters to
prepare for the added measure.
Originally, the surcharge should have been implemented by
operators last June 1 but was deferred to September 1 to give
freight forwarders ample time to inform their clients.
Pairpags wants to increase the export service charge by more
than 30% due to increasing export-related expenses.
For cargo above 100 kilos, an additional 33% export surcharge
is proposed to be added from the current P0.51 per kilo to
P0.68 per kilo. Air cargo below 100 kilos will be levied an
additional 35% from P0.34 per kilo to P0.46 per kilo.
Import fee is presently at P1.67 per kilo.
EDC is set to meet with Pairpags as well as airfreight forwarders
led by the Aircargo Forwarders of the Philippines, Inc. again
this week in a bid to come out with a win-win solution. A
decision is expected toward the end of the month.
THE Manila International Container Terminal (MICT) for the
13th straight month saw a downturn in traffic.
For July, MICT handled 1.18 million metric tons (mmt) of cargo
down almost 8% from last year's 1.28 mmt.
For the first seven months of the year, MICT-operated by International
Container Terminal Services, handled 8 million metric tons
of cargo, 6% lower than the previous year's 8.5 million metric
tons.
Container traffic was also down to 96,867 twenty-foot equivalent
units (TEUs) from the previous year's 98,216 TEUs. From January
to July, the terminal handled 656,126 TEUs, or 36,010 TEUs
less during the same period last year.
Ship calls also dropped for the seventh consecutive month
in July to 166 vessels from the previous year's 169.
MICT is one of the country's main ports, with a capacity of
1.5 million TEUs per year.
ICTSI reported a consolidated net income of P852 million for
the first half of the year, higher by 26% from last year's
P677 million.
The contribution of its foreign operations to its net income
increased to 39% for the second quarter this year, while revenues
from its local operations are shrinking, the company said.
"Container handling volumes in Manila continue to lag
behind the levels we experienced in the first half of 2005,"
company chairman and chief executive Enrique Razon said in
an earlier statement.
THE Maritime Industry Authority (Marina) is reviewing rules
on vessel safety measures to prevent another oil spill such
as the one in Guimaras. The review will be finished in October
and implemented by January next year, administrator Vicente
Suazo said.
Suazo said even before the tanker Solar 1 sinking, Marina
was already reviewing its rules and regulations.
Under the Domestic Shipping Development Act 2004, Marina is
mandated to inspect all vessels to enforce compliance by every
domestic ship operators with required vessel safety standards.
Suazo said the new mandate will be submitted to the Board
for consultation and revision.
The Department of Transportation and Communication earlier
ordered Marina and the Philippine Coast Guard (PCG) to review
and amend policies on maritime safety and to investigate personnel
duties to prevent another oil spill.
Last year, Marina and PCG signed a memorandum of agreement
on ship safety inspection service, issuance of special permit
to carry dangerous cargoes/goods, performance of ship safety
enforcement functions and marine casualty investigation for
Philippine-registered ships engaged in domestic operations.
