PORT authorities have decided to strike out
foreigners from the list of potential bidders for Batangas
port’s privatization next year.
Philippine Ports Authority (PPA) assistant general manager
Claro Maranan told PortCalls the agency will bar foreign entities
from bidding for the management of cargo-handling operations
at the port, noting that PPA will follow existing citizenship
requirements even if the bidding is conducted internationally.
The approval of the Terms of Reference (TOR) for the port
privatization has been tabled for this month. Also in the
agenda is approval of the rollout of P1 billion worth of cargo-handling
equipment earlier given the go-ahead by the PPA board for
procurement.
ÒIf the PPA Board approves the TOR, we will have a
bidding and the rollout of equipment simultaneously,Ó
Maranan said.
The PPA board has already procured the cargo-handling equipment,
including two quay cranes and four rubber-tired gantries imported
from ZPMC of China.
However, Maranan said, the equipment still needs approval
from the National Economic and Development Authority-Investment
Coordination Committee, the same agency which has yet to act
on the North Harbor privatization papers.
ÒWe want to award the contract first before we install
all the necessary cargo-handling equipment which are already
on stand-by,Ó he said.
At the moment, only Asian Terminals, Inc., operator of the
Manila South Harbor and the company that holds the temporary
cargo handling permit at the Batangas Port, is interested
in the privatization. PPA hired ATI to kick start operations
at the port when the facility was commissioned on September
2, 2005.
Batangas Port, eyed as an alternative facility to the congested
terminals in Manila, has so far not recorded any significant
increase in cargo volume. International shipping lines and
shippers are unhappy over infrastructure leading up to the
port. International calls are down to once every two weeks
from weekly a year ago.
Only imported cars are being shipped through Batangas Port.
Phase II of the port container terminal features a container
yard covering 15 hectares, berth depth of up to 13.5 meters,
berth length of 470 meters, handling capacity of 400,000 TEUs,
and access to service road of about four kilometers.
The Japan Bank for International Cooperation loaned out P5.5
billion for the construction of the terminal.
THE implementation of Republic Act 9280
or the Customs Brokers Act of 2004 will increase logistics
costs further, according to DHL Express.
Speaking before reporters at the postponed Asean Business
Summit in Cebu last week, DHL Asia-Pacific chief executive
Scott Price explained the brokers’ act, although a good
law, will add to logistics costs as it involves subcontracting
brokerage services.
He added the higher cost could have been passed on to shippers
as early as May this year if not for the series of postponements
issued by the Bureau of Customs (BOC) triggered by complaints
from the logistics industry.
ÒDHL with other industry players managed to stall the
implementation of RA 9280,Ó Price explained.
He declined to estimate the increase in logistics cost when
the act is fully implemented.
The practice of the customs broker profession is presently
at a status quo by virtue of a court order issued in September.
DHL Express Philippine country manager Lawrence Llamzon, in
a separate interview at the sidelines of the same event, reiterated
DHL is pushing for an amendment to make the law more business
friendly.
ÒRA 9280 is a good law as it intends to professionalize
customs brokerage, however, several provisions are not favorable
to business and these will tend to make firms uncompetitive
and bump costs higher,Ó Llamzon said.
One of these provisions is the bar on corporate practice of
customs brokerage, particularly Sections 28 and 29 of RA 9280.
Enacted on March 30, 2004, RA 9280 regulates the practice
of the customs broker profession. Section 29 specifically
provides that the customs broker practice is a professional
service and as such, Òno firm, company, or association
may be registered or licensed as such for the practice of
customs broker professionÓ.
In addition, Section 28 provides that no person shall practice
or offer to practice the profession, or use the title unless
one is a registered licensed customs broker.
PPA
revenues up 1.5%, but income down in first nine months
THE Philippine Ports Authority (PPA) reported
a P61.72 million or 1.47% increase in port revenues for the
first nine months of the year to P4.253 billion from P4.191
biliion last year.
PPA attributed the hike to improved income from arrastre and
stevedoring operations as well as pilotage, storage, dockage
and other income.
Income from fund management also grew 2.77% from P188.77 million
to P194 million due to an increase in average rate to 5.28%
from 5.18%. Average investment for the period, however, slipped
P145.3 million to P3.038 billion from last year’s P3.183
billion.
Total expenses reached P2.060 billion, 13.78% more than last
year’s. Operating expenses amounting to P1.810 billion
was P207.22 million or 12.90% higher than last year’s
P1.605 billion due largely to increased repair and maintenance
costs, dredging costs, depreciation charges and other administrative
expenses. Likewise, non-operating expenses grew P42.29 million
or 20.68% as a result of the payment of interest starting
this year of the Japan Bank for International Cooperation
loan for the Batangas Port Development Project Phase II.
PPA posted a net income of P2.387 billion during the nine-month
period or 7% lower than the figure posted a year earlier.
Total revenue for the period was 0.96% lower than the P4.294-billion
target due to higher exchange rate used in projections. Net
income, meanwhile, increased 25% or P477.79 million more than
the projected figure for the period.
For the month of September alone, PPA posted port revenues
of P508.07 million or P26 million higher than last year’s.
The 5.4% increase was attributed to higher arrastre and stevedoring
income. The net income of P295.20 million was 2.28% lower
than the figure in 2005. Against the target, the income was,
however, 4.06% higher.
