THE country's oldest shipping firm Negros Navigation (Nenaco) has a new owner.
Metro Pacific Corp. (MPC) agreed to sell its 83.7% stake to Negros Holdings &
Management Corp for only P5 million, MPC said in a disclosure to the Philippine
Stock Exchange. MPC will retain the remaining 15.3%.
The sale has been widely anticipated after MPC expressed dissatisfaction over the
shipping line's operations which have been holding back growth of other MPC
businesses.
Under the agreement, MPC will be entitled to a 50% share when Nenaco achieves profitability.
The foregoing was a negotiated and mutually agreed consideration, which took into
account, among others, the fact that Nenaco is currently under corporate
rehabilitation, MPC vice president for communications David Nugent said in
the disclosure.
Negros Holdings is a newly-incorporated holding company, owned by members of
Nenaco's present management, led by chairman of the board Sulficio O. Tagud Jr.,
and president Augusto P. Palisoc Jr.
MPC had been blaming its shipping arm for sliding income. The company posted a net
loss of P477.9 million from January to September this year from the year-ago income
of P100.9 million.
Nenaco is under a 10-year rehabilitation plan that started in 2004 for its total
outstanding obligations estimated at P2.4 billion, including P1 billion in bank
loans.
MPC will remain one of Nenaco's major creditors with P119 million in current
receivables and P211 million in long-term receivables.
MPC said it will deconsolidate Nenaco from its accounts effective Dec. 31.
As you know, it's been on our agenda for a long while now to find a better
partner for Nenaco as shipping is not our activity. We think the present
management best understands that company and are in a good position to see
its restructuring is completed, Nugent explained.
Nenaco for the first six months of the year posted a net loss of P235.93 million,
much wider than the P54.55 million it registered in the previous year.
For the second quarter alone, it lost P206.73 million and missed revenue
projections by more than 28 million.
According to its rehabilitation plan, the shipping line will add new routes in
order to increase Nenaco's market and sell four of its non-profitable ships.
The firm, however, saw little success as the shipping industry continues to
be characterized by cutthroat competition especially with the entry of roll
on-roll off vessels.
None of Nenaco vessels up for sale were sold. They were instead recalibrated to become more fuel efficient.
PPA key player in government's anti-money laundering efforts
THE Philippine Ports Authority (PPA) last week signed a memorandum
of agreement (MOA) on anti-money laundering with several government agencies.
The agreement follows reports of local coins being smuggled to China where
they are melted then used in various industries.
PPA general manager Atty. Oscar Sevilla, in a press briefing, said the PPA
would now be a vital instrument in preventing money-laundering activities in
the country.
We have been on the lookout for money laundering a long time. But we cannot act
because there are no clear guidelines on what we will do, Sevilla said.
The agreement was signed with the Anti-Money Laundering Council, Bangko Sentral
ng Pilipinas (BSP), Bureau of Customs (BOC), Manila International Airport
Authority, Philippine National Police, Bureau of Immigration and Air
Transportation Office.
Under the guidelines, the PPA will immediately alert Customs port officials
upon detection of suspected launderers.
The importation and exportation of Philippine pesos in excess of P10,000
(not necessarily coins) have to be declared with the export or import division
of the BOC. For foreign currency, the amount should not exceed $10,000.
Earlier in July, smugglers tried to ship a 40-foot container loaded with 2
to 3 million coins, weighing 12.2-18.3 tons, bound for Japan.
According to the agreement, the BSP will provide signages and posters that
will be placed on all major airports and seaports of the country.
Other agencies that did not sign in the agreement shall be officially informed
for the proper implementation of the anti-money laundering efforts.
The port agencies that are not signatories to the agreement
include Subic Bay Metropolitan Authority, Clark Development
Corp., Mactan-Cebu International Airport Authority, and Cebu
Port Authority. - Christopher C. Paringit
Local agencies to enforce single-window transaction system by the first quarter
THE Bureau of Customs (BOC) is set to roll out within the
first quarter of next year the National Single-Window Transaction (NSWT)
among seven key agencies involved in BOC operations.
The NSWT is a prelude to the imposition of the Asean Single-Window
Transaction (ASWT) system set to be enforced by the Philippines in 2008.
A pilot test with Thailand is eyed in the first quarter of 2008 and two
other Southeast Asian countries in the second half of 2008.
A full hook-up with the entire Association of Southeast Asian Nations is not
expected until four years later or toward the end of 2012.
Customs deputy commissioner for Management Information System and
Technology Group Alexander Arevalo told PortCalls the bureau is
now finalizing pilot-testing procedures for the NSWT among the BOC,
Bangko Sentral ng Pilipinas, Philippine National Police, Department
of Agriculture and its attached agencies, Land Transportation Office
and Philippine Ports Authority.
He said the BOC has pending agreements on the use of the NSWT with the
Board of Investments and the Bureau of Product Standards but expect to
iron out kinks in the agreement by early next year.
The single-window plan will link all government agencies
to customs offices where importers will no longer secure documentation
for their imports and exports from one government agency to another,
thus reducing red tape.
With the implementation of the single window, Asean members can
equally compete with neighboring Asian giants such as China, Japan,
and South Korea in terms of trade facilitation. The traditional method
requires traders to secure voluminous documents. Weeks go by before
their shipments are released.
Under the new scheme, all transactions will be done through computers
or mobile phones while person-to-person business dealings at the BOC
will be reduced, cutting down graft and corruption. The scheme is
designed to speed up disposition of shipments in line with the trade
liberali-zation program mandated by the World Trade Organization.
ONCE again, no settlement has been reached on the neutral
airway bill (NAWB) issue with debates among stakeholders to resume as early
as this week.
In a hearing at the Civil Aeronautics Board (CAB) last week, respondents
International Air Transport Association (IATA) and flag carrier Philippine
Airlines stuck to their position of imposing the use of the NAWB as prescribed
by IATA.
This is a case of relationship between airlines and forwarders over which CAB
has no jurisdiction, IATA said during the hearing.
PAL, for its part, reiterated that the imposition of the use of the NAWB is a
business decision. We share the same position as IATA. We also move for the
dismissal of the case due to lack of jurisdiction, it said.
The Aircargo Forwarders of the Philippines, Inc. (AFPI), which opposes the
imposition because it will bring additional cost to forwarders, said it is
open to a settlement.
AFPI said it is, however, unwilling to implement a measure which it reckons
will add P20,000 to P50,000 a month in expenses or up to P600,000 a year to
forwarders' budgets. Prior to April 1, 2006, AWBs were provided to forwarders
by airlines for free.
AFPI legal counsel Atty. Romeo Sto. Tomas said CAB has jurisdiction over the
case because the issue at hand is the cost of the NAWB and not the NAWB form
itself.
Insofar as charges are concerned, CAB has jurisdiction. In our petition, if
CAB so desires that freight forwarders carry the cost, then CAB should also
allow us to levy our customers, Sto. Tomas told PortCalls after the hearing.
AFPI chairperson Cynthia Reyes-Tsui further explained that CAB is the correct
venue as it is the government body that regulates airlines, and that anything
related to cost is coursed through it.
We will fight the imposition of the NAWB, Tsui stressed.
Earlier, the CAB proposed parties a lower amount for the cost of the NAWB -
P6 per set - hoping this would put an end to a case that has been dragging on
for months.
Since April 1, individual AWBS are no longer allowed. The
NAWB is available at IATA for P10 per booklet, P2.50 lower
than it was first introduced after IATA eliminated the P2.50
storage fee. - Christopher C. Paringit
