Investors have more confidence in the economy
despite the continued bickering among the country’s
politicians, according to Dr. Cayetano Paderanga, Jr., chairman
of the Institute for Development and Econometric Analysis
(iDEA).
Strong remittances from overseas Filipino workers and the
favorable performance of the services — including transport,
communication and storage — and industry sectors have
boosted gross domestic product (GDP) growth to 7.3% in the
first half of the year, he said.
The GDP growth, the highest in the last 20 years, has already
exceeded that whole-year target of 6.1-6.7%.
For 2007, GDP is seen growing at 6.7% and 7.1% for 2008, and
gross national product at 7.6% in 2007 and 7.9% in 2008.
The favorable external and domestic environments, including
strong equity markets, stable inflation and interest rates,
and appreciation of the peso have supported recent growth.
“Investors now believe that there is no way for our
economy to go but up despite the continuing political noise,”
Paderanga told participants at last week’s PortCalls
Cargo Economics Conference at the Hyatt Hotel and Casino Manila.
“The Philippines is on a growth momentum. Except for
the agriculture sector that is struggling right now, the services
and the industry sectors will continue to drive growth,”
Paderanga explained.
The services sector, to which the cargo industry belongs –
will increase 8.6% this year from last year’s 6.7%,
and accelerate to 9.1% in 2008.
The services sector which also includes trade, private services,
government services, finance and dwellings and real estate,
accounted for 49% of the second-quarter GDP and contributed
4.1% points to the same period’s GDP growth of 7.5%.
The industry sector – including mining, manufacturing,
construction and electricity, gas and water – will also
sustain its momentum, growing to 6.4% this year and to 6.6%
in 2008, Paderanga said.
Manufacturing, in particular, will see flat growth this year.
Top performers will be food, furniture and fixtures while
there will be declines in tobacco and electrical machinery.
The agriculture sector is struggling, affected by the dry
spell in some parts of the country this year. Growth is expected
to dip to 2.5% this year from 3.8% in 2006 and to 2.4% in
2008.
Banana and corn are the top crops. Sugarcane and coconut production
will be weak.
Paderanga said Philippine prospects are supported by strong
regional growth. He noted that Asian growth will be slower
this year compared to 2006 but will nevertheless remain strong
for 2007/08.
Trade volumes will grow at a robust, albeit slower, pace in
2007/08.
Still, challenges remain such as the need for greater investments
particularly in infrastructure to maximize growth potential,
he said. There are also challenges in the institutional environment,
including predatory regulation, high business costs and onerous
administrative requirements.
About a hundred industry executives attended the Oct 18
PortCalls Cargo Economics Conference at the Hyatt Hotel and Casino Manila.
The participants listened to experts' economic and cargo industry projections
for 2008.
Subic Bay Metropolitan Authority chairman Commodore Feliciano
Salonga (left) with one of the conference speakers, Dr Cayetano W. Paderanga, Jr.
Dr Paderanga discussed prospects for the global and local economic environments.
International trade and customs expert and PortCalls columnist
Atty Agaton Teodoro O. Uvero tackled new developments and areas of opportunities for
logistics
Transport economist and planner Dr Ian C. Espada presented the
results of a recently concluded ASEAN study on logistics
Philippine International Seafreight Forwarders Association
president Dexter Yu (left) and Philippine Shippers Bureau executive director Atty
Pete Mendoza
Sky Freight Forwarders marketing manager Lester Miclat (left) and Association of International Shipping Lines general manager Atty Max Cruz
Customs filing at 4 ports nowto be coursed through VASPs
STARTING tomorrow (Oct 23) all filings with
the Bureau of Customs (BOC) must be done through BOC-accredited
value-added service providers (VASP). This after the bureau
ordered the phase-out of Philippine Chamber of Commerce and
Industry-operated entry encoding centers (EECs) at the Port
of Manila, the Manila International Container Port, Ninoy
Aquino International Airport and the Cebu air and sea ports.
In a meeting last week attended by port stakeholders from
the Port Users Confederation (PUC), Chamber of Customs Brokers,
Inc. (CCBI), the Philippine International Seafreight Forwarders
Association (PISFA) and Aircargo Forwarders of the Philippines,
Inc. (AFPI), the BOC said it will eventually phase out other
EECs and EDI services in a bid to expand the operation of
its accredited VASPs.
The BOC removed the EECs to reduce human intervention, reduce
costs and better facilitate trade.
“All filings with the BOC will now be through electronic
means. All entries will be coursed through the gateways of
the three VASPs already accredited,” the BOC said in
the meeting.
The three VASPs are Intercommerce Network Service (INS), e-Konek,
and Cargo Data Exchange Center (CDEC). INS has been marketing
its services since June while e-Konek and CDEC were accredited
just this month.
“Brokers, freight forwarders and other stakeholders
can now file their customs entries in their offices, internet
cafes or any of the business centers that will be set up at
the VASP operational areas,” the bureau added.
The stakeholders expressed readiness under the new setup.
“On the part of brokers, we are ready as all our members
have undergone the necessary training for this,” CCBI
president Roland Quiambao said.
Atty. Romeo Sto. Tomas, PISFA executive director and PUC spokesperson,
said members of the two associations have been in training
since the accreditation of the first VASP.
Sto. Tomas, who is also legal counsel of AFPI, added their
group will establish several strategic business centers to
help members in the electronic filing. The same will be done
by other sectors, such as warehouse operators.
Cold chain sector, FPI push reduction in power costs
THE Federation of Philippine Industries (FPI)
and the Cold Chain Association of the Philippines (CCAP) will
push for the removal of the power cross-subsidy to reduce
expenses in power.
In addition, they will bat for a 25% to 50% reduction in the
benchmark for the Manila Electric Co (Meralco) Time-Of-Use
(TOU) program so more companies may participate and avail
of reduced power rates. Under the TOU program — or off-peak
periods usually during Sundays and nighttime — power
rates are generally lower by almost 50%.
Power eats up about 30% of a company’s total operations
cost. Industries, however, subsidize about 45% of the current
residential rate.
Speaking before members of the CCAP in a roundtable discussion
last week, FPI president Meneleo Carlos explained the cross
subsidies being implemented by Meralco, the National Power
Corp and National Transmission Corp heavily affect companies’
competitiveness.
He said the subsidies should be transferred to portions of
the commercial sector that do not compete globally or should
be shouldered entirely by the government as is the case in
Malaysia, Indonesia and Thailand.
He added that the ancillary charges of about P0.60 per kWh
should also be lowered to cut power cost.
Meantime, FPI and CCAP claim that the TOU yardstick should
be cut to 750 kilowatts and eventually 500 kilowatts from
the present one megawatt.
This benchmark is too high for CCAP members, CCAP president
Anthony Dizon said.
The entire cold chain system only uses about 500-750 kilowatt,
he added.
THE $200-million oil island planned by Harbour
Centre Port Terminals, Inc. (HCPTI) has gained ground after
Petron Corp expressed interest in the project.
HCPTI president and chief executive Dr. Michael Romero said
Petron flew in technical experts from Singapore for an initial
study of the site.
“The oil island is pushing through,” Romero said.
“The study will determine if the oil of Petron will
either be transported going to the oil island by pipes that
will still pass through Manila or by barges,” he added.
The initial plan calls for HCPTI to reclaim 50 hectares for
the island and for Petron to construct the facilities for
its depot.
Romero earlier said HCPTI is eyeing the country’s big
three oil firms to join in the initiative considering the
huge cost.
MAGSAYSAY-owned Islas Tankers Shipping Corp.
(ITSC) has placed orders for a double-hull tanker with a China-based
shipyard in compliance with a Maritime Industry Authority
(Marina) requirement that will take effect in April 2008.
ITSC in a statement said it has signed an agreement with Shandong
Rushan Shipbuilding Co. Ltd. for the construction of a 3,800-deadweight
ton double-hull tanker, referred to as Hull No. 507, to be
delivered in time for the full implementation of the Marina
requirement.
The vessel’s overall length is 94.40 meters with a designed
laden speed of 12 knots. The double-hull design reinforces
the integrity of the vessel’s structure, increases vessel
buoyancy and virtually eliminates the possibility of massive
oil spills since the cargo is protected both by the interior
and exterior hulls, ITSC said.
The vessel is equipped with an Accuload System that enables
the vessel crew to remotely monitor the actual volume of a
fuel oil product being loaded.
It is also able to load and discharge two grades of black
petroleum products.
The company said the newbuilding will boost ITSC’s service
coverage to safely transport, supply and distribute petroleum
products to various points in the country covering Bataan
and Southern Luzon as well as key areas in the Visayas and
Mindanao Islands.
THE government should declare Diosdado Macapagal
International Airport (DMIA) as the premier international
airport if it wants to compete with other international air
hubs, according to former Presidential Assistant for Central
Luzon Renato Diaz.
The proposal came following the arrival of the Airbus A380,
the largest passenger jet ever built, at the DMIA last October
12.
In a memo to President Gloria Macapagal-Arroyo, Diaz urged
the President to accelerate the operation of the Clark airport
as the country’s premier international airport.
He said this follows the policy stated in previous executive
orders and is also the essence of the President’s 10-point
agenda to develop Clark and Subic into world-class mega logistics
hubs.
“This is a critical period because the deployment of
long-range aircraft such as the Airbus 380 will determine
which air hub will attract more airlines. If we are not ready
during this period, then we will lose this opportunity,”
Diaz said in his letter.
He said the landing of the A380 makes it imperative to accelerate
the operation of DMIA to 2010 and to give it more scheduled
flights than the Ninoy Aquino International Airport (NAIA).
He said a date must be set to allow airlines, service contractors,
travel industry, forwarders, brokers, and foreign groups to
consider DMIA in their programs and budgets, as companies
conduct their plans three to five years in advance.
“If we don’t serve notice now, then we will not
be in their radar screen and they will not be able to adjust
their plans,” he claimed.
Manning conference is RP's largest international event
THE 8th Asia Pacific Manning and Training
Conference in Manila is turning out to be one of the largest
international events to be hosted by the Philippines this
year. The event will be attended by more than 300 participants
representing over 42 of the biggest international maritime
companies from over 22 countries.
“An unprecedented number of international companies
have registered this year,” Lloyd’s List events
Marketing Director Aidan O’ Donovan noted.
Among the companies attending the conference are DNV of Norway,
Hapag Lloyd of Germany, Finaval Spa of Italy, World Tankers
Management of Singapore, Fesco of Russia and Hanseatic Shipping
of Cyprus. Companies from China, North Korea, India, Thailand
and Nigeria will also be represented at the conference.
Organized by the UK-based conference specialist, Lloyd’s
List events, the annual conference will be held at the Sofitel
Philippine Plaza on November 14 and 15.
Explaining the importance of the conference, GlobalMet Ltd
Executive Secretary Rod Short said, “In view of the
many concerns being expressed about manning and training,
the theme of the conference, it is important that the industry
collectively considers and proposes means to address these
key issues.”
This view was also supported by Wallem Shipmanagement Ltd,
Hongkong Fleet Personnel Director John Wood who noted that
“networking is important and conferences are great places
to network.”
“Taking up speaking roles also offers us the opportunity
to share our thoughts on selected issues with a wider audience,
our primary objective being to stimulate further discussion,”
he added.
A key attraction of the conference is the 1st IFSMA (International
Federation of Shipmasters’ Associations) Forum which
will tackle proposed revisions in the Standards of Training,
Certification and Watchkeeping (STCW) convention.
The STCW is the main international convention which sets the
minimum requirements for seafarer’s training and the
issuance of licenses and certificates. A full scale review
of the STCW standards is now underway and the IFSMA Forum
will provide participants a chance to influence the changes
taking place.
“The reason people should attend is that this STCW review
will be debated at the next STCW sub-committee of the IMO
in March 2008. IFSMA is one of the few NGOs that speak on
behalf of the seafarers” IFSMA Secretary General Capt
Rodger MacDonald explained.
To participate register at www.manningandtraining.com or email
carmen.chui@informa.com.
