PRIVATE port operator Harbour Centre
Port Terminal, Inc. (HCPTI) will bid for the operation
and management of some of the country’s major
international gateways to widen its domestic operations
and propel its drive to expand overseas this year.
HCPTI said it has formed several consortia, mostly with
Koreans and Japanese investors, to bid for the cargo-handling
operations of the Philippine Ports Authority (PPA)-controlled
ports.
HCPTI chief executive Dr. Michael Romero told PortCalls
that aside from the artificial oil island the company
is keen on developing this year, it is also looking
at bidding for at least five major ports to boost local
operations.
ÒWe will definitely bid for Batangas, Subic,
and the Mindanao Container Terminal (MCT) as well as
North Harbor once these are opened for bidding. We are
also looking at the possibility of operating a port
in Cebu,Ó Romero explained.
ÒWe want to operate at least one port in Luzon,
Visayas and Mindanao and increase our reach not only
locally as we get ready to bid for international ports
this year,Ó Romero stressed.
On the company’s overseas wish list are ports
in China, Southeast Asia and Latin America. Attractive
are ports with at least 1-million TEU capacity with
room for expansion and able to handle post-panamax vessels.
HCPTI is also planning to list in the Philippine Stock
Exchange by next year.
The Federation of Asean Shippers Council
(FASC) is looking to repeal the liner conference block
exemption, as earlier done by the European Community
(EC).
The block exemption grants liner shipping conferences
an exemption from the cartel prohibition and allows
members of a conference to fix maritime transport rates.
FASC vice chair Atty. Pedro Vicente Mendoza told PortCalls
the FASC is inclined to adopt the same regulation. ÒLifting
the block exemption will not only foster competition
by allowing shippers to directly negotiate with the
carriers but will also significantly reduce if not eliminate
hidden charges billed by the carriers,Ó Mendoza,
who is also executive director of the Philippine Shippers’
Bureau (PSB), explained.
Mendoza said a repeal of the exemption would help reflect
the true logistics cost, which he said has been riddled
with hidden charges including the terminal handling
charge (THC) and container cleaning fee.
He claimed such charges jack up logistics costs by 30%.
A FASC steering committee has been formed to look at
how to implement the measure in Asian countries.
FASC is also discussing the measure in the Global Shippers
Forum as of this writing. The council expects positive
results for discussion in the next FASC meeting.
The Philippines has been batting for the elimination
of so-called hidden charges levied by international
carriers in a bid to increase competitiveness of Philippine
products.
Based on PSB records, the THC has for instance cost
Philippine shippers approximately $130 to $200 million
per year. The fee has increased at an annual average
rate of 8% (under the Transpacific Stabilization Agreement),
10%-12% (Far Eastern Freight Conference) and 24% (Intra-Asia
Discussion Agreement).
Recently, the Indonesian government unilaterally cut
the THC by 20%.
North
Harbor posts slight cargo volume growth from Jan-Oct
CARGO volume at the North Harbor grew
slightly to 10.73 million metric tons (mmt) for the
first 10 months of 2006 from 10.74 mmt in the same period
a year earlier.
The figure already includes cargo handled out of the
Marine Slipway, which began generating volumes only
middle of last year.
Containerized cargoes rose to 486,640 TEUs for the period
from the previous year’s 471,154 TEUs, latest
data from the Philippine Ports Authority (PPA) showed.
But for October 2006 alone, container volume dipped
to 48,968 TEUs — of which 36,433.85 TEUs were
laden and the rest empties — from the previous
year’s 49,280 TEUs.
Ship traffic went up to 3,908 vessels during the 10-month
period from the previous 3,720 vessels. In October 2006,
there were 357 vessels that docked at the terminal,
13 more than the 344 vessels in October 2005.
For October, passenger traffic continued to decline
with 79,120 people who patronized ocean-going liners
from 95,412 passengers in 2005.
There were 1.14 million passengers from January to October
2006, down 22% from 1.48 million people in 2005.
PPA is trying to boost attractiveness of North Harbor
by spending about P35.67 million, mostly for the development
of an open area at Pier 2 Extension and the repair of
the electrical system at the terminal’s Marine
Slipway.
Other projects designed to make the North Harbor more
attractive to callers include the repair of damaged
concrete pavement in its piers and construction of several
road markings.
PPA is also privatizing the entire facility as it has
no funds to undertake its modernization. PPA has yet
to start the bidding process due to various issues,
including calls by other government agencies, including
the National Economic and Development Authority, to
use a multi-operator scheme rather than the one-operator
scheme that the port agency and the Department of Transportation
and Communications want to implement.
THE tight watch on containers being
implemented by the Bureau of Customs (BOC) is impeding
growth of the country’s containerized industry,
according to the Association of International Shipping
Lines (AISL).
AISL claimed the practice has led to additional cost
and longer turnaround for carriers, association general
manager Atty. Max Cruz told PortCalls.
Except in specified areas such as those in export processing
zones, under guarding of shipments by BOC guards to
another facility is the common practice, with carriers
paying for services of the guards.
ÒCustoms has been enforcing a tight watch on
shipments due to its revenue-generating functions as
it wants to make sure that proper duties will be paid.
However, over manning impedes the trade process,Ó
Cruz said.
Other BOC measures are also earning the ire of shippers,
including the ban on vessels carrying agricultural loads
without import permits and more stringent clearing procedures
for refrigerated shipments such as meat, marine products,
garlic and onions.
THE Philippine Ports Authority (PPA)
is now studying the proposal of the Department of Trade
and Industry (DTI) to temporarily suspend the collection
of the wharfage fee to aid exporters hobbled by the
strengthening Philippine peso.
According to a PPA source, the suspension is not an
easy decision to make as this will impact on revenue
collection and improvement of major ports nationwide.
The source said the PPA management has yet to sit down
with DTI officials to identify measures that will avert
disruption in port development in case the suspension
forges ahead.
The PPA collects a wharfage fee of P250 to P500 fee
per container. About 70% of the 1.5-million containers
the agency handles a year is subject to wharfage fee.
Last year, the PPA already reported a drop in the collection
of such dues.
The PPA is still using fees based on a 2002 schedule,
having been restricted from implementing any increases
by President Gloria Macapagal-Arroyo. Arroyo issued
a freeze order on all hike in port charges to arrest
the declining competitiveness of Philippine products.
The PPA is presently seeking a 14% increase in wharfage
and port charges to help fund port projects.
DTI wants the wharfage fee suspended at least for the
next six months to aid exporters hurting from the strong
Philippine peso. In addition, the department is looking
at a 5% lower trucking rate for the same period. The
DTI is now working with different trucking groups such
as the 500-member Confederation of Truckers Association
of the Philippines to determine measures to cushion
the impact of lower trucking rates.
THE Bureau of Customs (BOC) expects
to release new warehousing rules and guidelines for
customs bonded warehouses (CBWs) toward the end of the
first semester.
ÒHopefully by June, a new set of rules will govern
warehouse operators and CBWs. These rules are designed
to facilitate importation and exportation of goods in
the country, make Philippine products competitive in
the world market, and reduce smuggling,Ó Customs
deputy commissioner Reynaldo Nicolas told PortCalls.
In dire need of revision are the warehousing rates,
still based on the 1991 schedule.
ÒRates play a vital role in the competitiveness
of Philippine products on the global market that is
why we will concentrate more on how to benchmark these
to world standards,Ó Nicolas stressed.
Originally, the new warehousing rules were scheduled
to come out at the start of the year but had to be pushed
back to give the BOC time to source funds from the private
sector. Now that the funds have started to come in,
Nicolas said the bureau does not see any more delays
in the process.
A draft for presentation to port users is expected within
the second quarter. Earlier, the Port Users Confederation
and the Association of Customs Bonded Warehouses backed
the review and expressed readiness to finance the project.
— Christopher C. Paringit
PORT operator International Container
Terminal Services, Inc. (ICTSI) is concentrating on
two locations for its overseas expansion this year:
Latin America and India.
In a special stockholders meeting held last week, ICTSI
chair and chief executive Enrique Razon said the company’s
focus is on overseas expansion.
ÒOf late, our focus is to land another port in
South America, India, and probably China,Ó Razon
explained.
Recently, the company acquired a stake to operate and
manage the Yantai Gangtong port in China and is again
looking at landing another port operation agreement
in other areas in China.
ICTSI operates Tecon Suape Container Terminal in Brazil,
the Baltic Container Terminal in Poland, Tartous Port
in Syria, the Naha Port in Japan, the Makassar Port
in Indonesia and the Madagascar Port in Toamasina.
The company is looking to restart negotiations for the
operation and management of the Guererro Port in Guam
after talks bogged down early last year.
Locally, after acquiring full cargo-handling operations
at the Davao port, ICTSI early this month tendered its
proposal to the Subic Bay Metropolitan Authority to
operate Subic Container Terminal. Being the existing
operator at the port, ICTSI is getting first crack at
the 25-year operations and management contract.
Aside from the two domestic investments, ICTSI said
it has no other plans to expand domestic operations,
including bidding for the North Harbor.
THE Association of International Shipping
Lines’ (AISL) Board of Directors for 2007 was
recently inducted in the presence of guests of honor
Transportation and Communication Secretary Leandro Mendoza
and Representative Monico Puentebella.
Shown in photo (L to R) are Maurice McKeating of APL,
Klaus Schroeder of Hapag Lloyd, Erik Nielsen of Maersk,
Octavio Katigbak (AISL President) of K-Line, Rep. Puentebella,
Secretary Mendoza, Patrick Ronas (AISL VP & Treasurer)
of Tasman Orient, Agapito Capistrano of PEL/PIL and
Jae Jang of Dongnama.
The AISL, consisting of 43 international containerized
member lines, aims to provide an effective representation
with government and other industry partners towards
a progressive and efficient international shipping environment
and to deliver effective services to its members. The
AISL is envisioned to represent the voice of international
shipping.
New
vessels from Hamburg Sud, Hapag-Lloyd call at MICT
Two vessels from mega liners Hamburg
Sud and Hapag-Lloyd made their maiden call and maiden
voyage, respectively, at the Manila International Container
Terminal (MICT) as the terminal began to see positive
volume growth beginning the third quarter of last year.
Hapag-Lloyd’s 2,824 TEU-capacity Cardonia arrived
from Brisbane, and set off to Hong Kong, while Hamburg
Sud’s 2,568 TEU-capacity Cap Bizerta docked at
the MICT on its maiden voyage. Cap Bizerta came from
Sydney, and also set off to Hong Kong.
Cardonia and Cap Bizerta are each to call at the MICT
once a month. Both vessels are part of Hyundai Merchant
Marine, Hapag-Lloyd, Hamburg Sud, and Shandong Yantai
Marine Shipping joint and newly launched Asia Australia
Service that plies the ports of Manila, Hong Kong, Yantian,
Pusan, Shanghai, Ningbo, Melbourne, Sydney and Brisbane.
The MICT is International Container Terminal Services,
Inc.’s flagship operation, and is the country’s
largest and most modern container handling facility
with an annual capacity of 1.5 million TEUs. Volumes
in the terminal for the fourth quarter increased 7%
from 297,225 TEUs in 2005 to 318,803 TEUs in 2006.
Captain J.S. Domisiew (third from left), Cap Bizerta
Vessel Master, and Cipriano Bandong, FilSov Shipping Operations Manager
(fourth from left), are each presented commemorative plaques by William
Gutierrez (second from left), ICTSI Customer Relations Manager, during the
vessel's call at the MICT. Witnessing the ceremony were Artemio Lim
(extreme right) and Eulalio Borja, ICTSI Operations Superintendents.
Captain Georgiev (center), Cardonia Vessel Master,
receives from William Gutierrez (right), ICTSI Customer Relations Manager,
a commemorative certificate marking the vessel's maiden call at the MICT.
Klaus Schroeder (left), Hapag-Lloyd Phils., Inc. President and Chief
Executive Officer, witnessed the ceremony.
