CARGO throughput continued heading south,
registering a 4.21% cut to 113.953 million metric tons (mmt)
from January to September this year to 109.160 mmt in the
same period last year (see table on page 2), according to
latest data from the Philippine Ports Authority (PPA).
The PPA attributed the decrease to the 13.9% drop in domestic
cargo from 58.433 mmt last year to 50.782 mmt this year as
a result of the implementation of Memorandum Circular 02-2006
or the Ro-Ro Transport System (RRTS) policy. The circular
provides shippers with a viable option to transport their
cargoes through the RRTS.
Among the ports affected by the drop are the South Harbor,
Limay, Batangas, Tacloban, Tagbilaran, Iligan and Ozamis.
Foreign cargoes, on the other hand, increased 5.15% from 55.520
mmt last year to 58.378 mmt this year. Export cargoes grew
9.08% and imports, 3.27%.
Ports that registered positive figures for foreign cargoes
include Limay, Legazpi, Dumaguete, Iligan, Nasipit, Ormoc
and Surigao.
Container traffic improved 1.27% for the period from 2.71
million TEUs last year to 2.74 million TEUs this year.
Domestic container volume retreated 1.62% while foreign container
volume increased 3.72%. Containerized imports rose 3.72%,
boxed exported cargo, 3.73%.
Vessel traffic was also lower by 1.26%, with negative performance
seen in both domestic and foreign ship calls. There were 232,510
vessels that called on ports for the period from the previous
year’s 235,476 ships. Foreign vessels were down 1.68%
to 7,192 from 7,315 last year.
For September alone, cargo throughput grew 6.46% from 13.05
mmt to 13.89 mmt due in 2005 to the high volume of foreign
goods at the ports of Limay, Ormoc Cagayan, de Oro, Nasipit
and Surigao.
September box traffic also improved 4.18% due to the 7.88%
rise in foreign boxes from 310,535 TEUs last year to 323,512
TEUs this year. Domestic TEUs, however, posted decreases due
to slower movement of goods at the the South Harbor, North
Harbor, Iloilo and General Santos.
CURRENT logistics costs are higher by 25-30%
due to the inability of the Philippine Ports Authority (PPA)
to bolster competition in port operations particularly in
Manila, according to the National Economic and Development
Authority (NEDA).
In a recent presentation during the joint hearing of the Congress
committee on Economic Affairs, NEDA director general Romulo
Neri said current PPA regulations are ineffective and favor
several port operators, in the process discouraging investments
and competition.
ÒPPA should spur real competition by not favoring existing
operators. Such practice only adds about 25 to 30% in logistical
cost thus making doing business in the country higher,Ó
Neri stressed.
ÒPPA should change the way it regulates the industry
since it may discourage investment of competitors,Ó
Neri also emphasized, adding that PPA is prone to Òregulatory
captureÓ as it somehow favors existing players such
as the International Container Terminal Services, Inc. (ICTSI)
and the Asian Terminals, Inc. (ATI).
He said cargo handling rates are high at the moment since
only two operators are allowed in Manila.
One of the solutions to lower cost and foster competition
in Manila is to authorize private port operator Harbour Centre
Port Terminals, Inc. (HCPTI) to offer full international containerized
services which would directly compete with ICTSI and ATI,
Neri said.
HCPTI claims it can offer up to 50% less port charges and
up to a week of free storage which PPA-supervised private
ports ICTSI and ATI may find hard to match. ICTSI and ATI
pay PPA a 20% share in their revenue, a condition which HCPTI,
being a private port, is not subject to.
Earlier this year, the PPA shot down HCPTI’s request
to offer full international containerized services and even
threatened to revoke its permit to handle containerized cargoes
for its locators. HCPTI is a domestic port based on its application
with the PPA.
THE Japan Bank for International Cooperation
(JBIC) is set to issue a $1-billion loan for the rehabilitation
of the Philippine shipping industry.
The loan will be used to purchase new vessels for lease to
the private sector through the National Maritime Leasing Corp.
(NMEC), a paper from a joint congressional hearing last week
showed.
The loan is payable in 30 to 40 years at below-market interest
rates typical of official development assistance.
The Japan International Cooperation Agency has been urging
the Philippines to beef up its shipping sector to lower the
cost of transporting goods and boost interisland trade.
Early this year, the NMEC granted a P400-million financing
to a medium-sized firm for the acquisition of three roll on-roll
off vessels. This was NMEC’s first grant since it was
established early last year.
This year, NMEC expects to disburse P1 billion worth for projects.
IATA
counters AFPI petition on neutral airway bill
THE International Airline Transport Association
(IATA) recently filed a motion to counter the petition filed
by the Aircargo Forwarders of the Philippines, Inc., (AFPI)
against the use of the neutral airway bill (NAWB) by international
airline companies.
In a petition filed before the Civil Aeronautics Board (CAB)
last week, IATA said the AFPI complaint is moot considering
freight forwarders already had enough time to prepare for
the NAWB implementation in April since its introduction at
the start of the year.
The NAWB is available at IATA for P10 per booklet, P2.50 lower
than when it was first introduced after IATA eliminated the
P2.50 storage fee.
AFPI is against the use of the NAWB. In its argument, AFPI
said IATA should be stopped from requiring the use of the
NAWB as the airlines’ universal airway bill at the cost
of freight forwarders.
AFPI claimed the use of the NAWB is added cost. Previously,
airway bills were supplied by individual airlines for free.
The Subic Bay Metropolitan Authority (SBMA)
reported another batch of diverse businesses involving 18
companies that will pour in $12.3 million in investments at
the freeport.
SBMA chairman Feliciano Salonga said the locators include
industries in estate development, advertising, manufacturing,
trading, construction support, and manpower service. These
are in addition to a voice-over internet provider (VoIP),
builder of entertainment and amusement parks as well as restaurants,
and aviation school.
Among the 18 new companies, Korean builder MGfnd (Subic) Inc.,
which is committing $3.5 million to build a one-stop entertainment
and leisure facility, emerged as the highest in investment
pledge. MGfnd will invest $6.4 million for the construction
of the facility alone.
Aviation training school operator Subic Aeroflite Corp is
sinking in $3.2 million; amusement park developer Subic Family
Land Inc, $200,000; eco-tourism resort facility developer
Tree Top Adventure Philippines, Inc, $280,000; human photo-realistic
doll manufacturer Northon Subic Corp, $32,000; and VoIP service
Global Access (Subic) Communication, Inc., $38,216.
Among tourism-related businesses which signed up are restaurant
and KTV operator JNC Subic Corp ($600,000); condotel and amenities
developer S&S Global Corp ($900,000); and Australian coffee
shop and bakeshop operator ($250,000).
Three firms will complement construction of the Hanjin shipbuilding
facility -- construction service provider Windston Technology
which is investing $760,000; general construction service
provider Donghae Environment Co., Ltd. Corp, $860,000; and
Hanjin sub-contractor HW Industrial Machinery Corp $400,000.
Spectacle frames manufacturer Lindberg will also infuse $198,000
to go into distribution titanium spectacle frames.
Other new companies are vessel parts manufacturer KNCP Subic
Corp., which is investing $300,000; scuba diving equipment
importer Dive Supply Subic, Inc., $500,000; and Philippine
Subic Freeport International Trading Corporation, $200,000.
Nozomi (Fortune) Services, Inc will infuse $50,000 to provide
manpower services while New Advertising Dimensions, Subic
Bay (Phils.) Inc will put in $2,200 to offer advertising services
