PORT operator International Container Terminal
Services, Inc. (ICTSI) will continue to be on the lookout
for foreign ports to manage this year.
At the sidelines of the ICTSI stockholders’ meeting
last week, chairman and president Enrique Razon, Jr., said
after locking up a port in China, the company is now looking
at every available port worldwide, including in the United
States, for expansion this year.
ÒOperating overseas ports is our expertise. We are
now getting ready to bid at some ports in the next few months,Ó
Razon explained.
ÒOur priorities (for expansion) this year will be ports
in Asia, particularly India and Bangladesh including China,
as well as ports in the Middle East and Eastern Europe,Ó
he said.
ÒThe US expansion, on the other hand, is still a long
shot this year as we see no interesting port available to
date but still we are studying several locations in the US,Ó
Razon revealed.
In the local front, aside from its proposal to operate Terminal
1 of the modernized Subic Port, ICTSI sees no other major
investments the country.
Razon said developments in the Philippines have been slow
in the past few years, adding that ICTSI’s current facilities
are enough to support local operations, even after recently
taking a majority stake in the cargo-handling operations in
Davao port.
Last year, ICTSI handled higher volumes primarily driven by
its overseas units. Consolidated volume rose 8.6%, from 1.84
million twenty-foot equivalent units (TEUs) registered in
2005 to 1.99 million TEUs last year.
Tecon Suape in Brazil handled a total of 197, 296 TEUs last
year, up 9.9% compared to a year earlier.
Baltic Container Terminal in Poland posted 410,466 TEUs in
2006 reflecting a 1.4% growth from 2005.
On its first full year of operation, ICTSI’s Madagascar
Terminal handled 92,527 TEUs. Its Naha container port handled
64,526 TEUs while the Makassar terminal in Indonesia yielded
a total of 70,883 TEUs. Plans are underway to transform the
Indonesia terminal into a consolidation and distribution hub
to serve the eastern regions of Indonesia.
The company’s flagship, the Manila International Container
Terminal, also turned in a modest performance last year after
cargo volume picked up in the last four months of 2006.
ICTSI also operates Tartous Containter Terminal in Syria,
which it took over only last November. Last January, ICTSI
gained a foothold in China when it purchased 60% of the company
operating the Yantain Gangtong Terminal. It took over operations
only this month.
Last month, ICTSI was also declared winner to manage and operate
the Port of Guayaquil in Equador. The 20-year concession agreement
will be signed next month.
“With growth registered in all of our first foreign
ports and with the addition of other ports in Latin America
and Asia, we expect to bring in steadier container volume
this year,” Razon said.
THE Bureau of Customs (BOC) will have its
own vessel profile and monitoring of Philippine tankers when
the Maritime Industry Authority (Marina) starts banning single-hull
tankers a year from now.
BOC said the monitoring is needed to ensure that imported
vessels will be slapped the right duties and taxes. It is
also in accordance with the Run After Tax Smugglers program
of the bureau.
In a letter to Marina Administrator Vicente Suazo, Jr., BOC
is asking for information on vessels, which include the import
entry and internal revenue declaration, deed of sale, and
memorandum of agreement relative to marine vessel importation
of consignees/ importers. It also sought a computation of
market value of the ship.
BOC expects that new ships will be in demand, with Marina’s
rule banning single-hull tankers and replacing them with double-hull,
double-bottom models in April 2008.
It said shippers are more likely to buy new tankers, as conversion
is difficult and expensive.
A double-hull tanker amounts to $13.5 million to $15 million
or about P735 million for a 5,000-6,000 GRT and is mostly
constructed in other countries.
Marina will delist from the Philippine registry all tankers
not compliant with the double-hull requirement next year.
Their license to operate will also be revoked.
Marina issued memorandum 2007-001 to prevent incidents such
as the sinking of MT Solar I in July last year which spilt
some 220,000 liters of black oil near Guimaras island and
contaminated the place and nearby islands.
The circular is in compliance to International Maritime Organization
rules.
All oil tankers including tankers below 600 dead-weight tons
are part of the phaseout program of Marina.
No penalties but cargo delays for non IFM-compliant NVOCCs
NON-VESSEL operating common carriers (NVOCCs)
will be spared from penalties under the advance inward foreign
manifest (IFM) requirement but could face delays in cargo
clearance if they fail to comply, according to Customs deputy
commissioner Atty. Reynaldo Nicolas.
Speaking at a recent IFM symposium organized by the Philippine
International Seafreight Forwarders Association (PISFA) and
PortCalls, Nicolas said only carriers are subject to the penalties
but this should not be an excuse for NVOCCs, co-loaders, consolidators
and breakbulk agents to disregard the ruling.
Cargoes of non-compliant NVOCCs face further examination and
additional papers may have to be submitted to the Bureau of
Customs (BOC). ÒThis will mean additional cost to be
shouldered by the importer,Ó Nicolas said.
Penalties under the Tariff and Customs Code of the Philippines
(TCCP), as amended, are P10,000 to P30,000.
The BOC is crafting a separate regulation on how to penalize
entities not covered by present TCCP penalties.
Under Customs Administrative Order No 1-2007, the BOC is requiring
all shipping lines, NVOCCs, cargo consolidators, co-loaders
and breakbulk agents to provide the BOC accurate data and
information on vessels and cargoes that will arrive at any
port nationwide 12 hours prior to arrival through electronic
transfer coursed either straight to the BOC or any of its
accredited value-added service providers (VASPs).
At the moment, the BOC is finalizing the implementing rules
and regulations of the IFM, and conducting a technical evaluation
of potential VASPs.
The Association of International Shipping Lines is developing
its own system that will be used by its members to ensure
that all data going to the BOC remains confidential.
Freight forwarders are also upgrading their infrastructure
to make it parallel with that of the BOC.
The BOC is set to tentatively start parallel run of the IFM
either at month’s end or in May to determine possible
flaws of the system. Its full implementation schedule, however,
is still hanging.
Keppel sees growth on the back of shiprepair market
KEPPEL Philippines Marine Inc. (KPMI) is
banking on the shiprepair market for large bulk carriers and
container vessels for growth this year.
In a report, KPMI said it will continue to pursue repairs
to maximize utilization and revenue generation of its drydocks,
particularly in its main yard in Cebu.
It said the yards will continue to further build up their
labor force to simultaneously undertake shiprepair works and
offshore construction subcontracted to its subsidiary Keppel
Batangas and Subic Shipyard.
ÒWith the strategic developments in the businesses
at the three yards, the business outlook of the company will
be positive for the year ahead,Ó KPMI said in the report.
On the shipbuilding market, Keppel Batangas will continue
to build tugboats under the build-for-sale program while Keppel
Cebu will continue to develop its new building capabilities.
Keppel Cebu has started to build its first tug under the build-for-sale
scheme and has been able to secure a contract with Maju Maritime
Pte Ltd to build another two tugs of bigger capacity.
In the first three months of the year, Batangas also landed
two conversion jobs from single-hull to double-hull tankers
and will continue to actively pursue more conversion works.
It is expected to benefit from the immediate implementation
of the double-hull tanker policy of the county set to be imposed
by April next year.
Last year, Batangas repaired a total of 80 vessels, down from
104 in 2005 due to fewer foreign vessels repaired from 52
to 28.
Keppel Cebu, according to the report, will continue to enjoy
stable business in repairing Ropax vessels. This year, Cebu
will seek growth in the repair of foreign vessels, especially
reefer vessels from repeat customers and high-value jobs such
as major overhauls, conversion and building marine craft.
In 2006, Cebu repaired 92 vessels, composed of 50 local and
42 foreign, from 76 recorded in 2005.
The Subic Shipyard, meanwhile, will be involved in life extension/conversion
of FPSO/FSO projects and repair of vessels up to 350,000 deadweight
tons.
KPMI will also make commercial visits to the UK, Greece, Japan
and Germany with the aim of securing more vessels from repeat
and new customers.
ÒThe prospect for 2007 is promising since some customers
are also moving away from the China yards due to long waiting
time for dock space,Ó the KPMI document also revealed.
Last year, KPMI registered consolidated revenues of P1.95
billion, 34% higher compared to 2005 mainly due to higher
shipbuilding/fabrication revenue, while cost and expenses
grew 39% to P1.70 billion due to an increase in direct costs.
Operating profit is at P20.6 million or 9% higher than the
previous year. Net income rose 17% to P94.7 million, due primarily
to the increase in contributions from associates, which amounted
to P69.2 million, a 22% increase from 2005.
MAGSAYSAY-controlled Lorenzo Shipping Corp.
(LSC) reported an almost 50% drop in 2006 earnings due to
flat activity in the freight business.
In its annual report, the company said it posted a net income
after tax of P39.7 million, down 62% from the previous year’s
P103.9 million.
Operating costs increased substantially due to changes in
the accounting estimate of the useful life of vessels.
Revenues from freight operations were flat at P1.3 billion.
Direct operating expenses increased 12% to P871.3 million
from the previous P778.1 million as a result of the increase
of its vessels’ depreciation expenses.
The company said expenditures increased the company’s
cost by almost P42 million after the accounting estimates
reduced the economic life of Lorenzo’s vessels from
40 to 35 years.
During the year, the company spent P70.7 million on drydocking
and increased its container pool by adding 500 brand new 20-footer
dry vans and 60 special container vans, which are used for
transporting livestock.
Terminal expenses increased P5 million from last year’s
P228.7 million due to increases in repair costs of container
vans and land-based equipment, estimated to reach P5.1 million
and P3.9 million, respectively.
Established in 1972 by the Go family, the company concentrates
on interisland cargo handling, including containerized cargo.
Magsaysay’s National Marine Corp now owns more than
half of the company.
The company operates a fleet of seven vessels, each with a
200- to 400-TEU capacity.
