SAVE for manning and seafaring, Vietnam
is poised to soon take over the Philippines in all aspects
of the maritime industry, a United Nations Conference on Trade
and Development (UNCTAD) report said.
It said this scenario is likely to happen in the next couple
of years considering that the difference between cargo traffic
and ship registry in the two countries is already too thin.
The report said the Philippines’ inability to correct
problems in the maritime sector may be to blame. No details
were given.
“Port development in Vietnam is being given high priority
by its government, with numerous projects either proposed
or initiated. Foreign expertise provided by global terminal
operators is limited to a handful of projects in the south.
Connecting road and rail infrastructure from the port to the
hinterland is still a concern, and the use of economic zones
may be a useful initial step in order to attract foreign direct
investment,” the UNCTAD report said.
“Port growth will, however, in the short term be dependent
on import/export cargo, which should grow following Vietnam’s
accession to the WTO (World Trade Organization),” it
added.
Container throughput in Manila, the 24th largest port in Asia
in terms of container volume, has been stuck at 2.6 million
TEUs from 2004 to 2006, according to the report.
Saigon port in Ho Chi Minh City, 25th in the ranking, however,
continues its climb, from 1.86 million TEUs in 2004 to 2.12
million TEUs in 2005, and 2.53 million TEUs in 2006.
The report showed Vietnam has been posting double-digit cargo
growth from 2004-2006, from 13% to 20%, while the Philippines
suffered a 2.7% decline between 2004 and 2005 although it
managed to post a 12% increase in 2006.
In terms of port development, the Philippines only has the
Batangas Port Phase II, a P6.1-billion project mostly funded
by Japan Bank for International Cooperation, to speak of,
the report noted. The privatization of the project has even
been delayed due to a court case involving expropriated land
owners and port owner Philippine Ports Authority.
In Vietnam, there are port developments in most major trade
sections of the country. APM Terminals and Saigon Port Company
agreed to build a $186-million container terminal with a 14-meter
draft at Cai Mep Thuong, 15 miles south of Ho Chi Minh City.
Another $160-million project is being undertaken by SSA Marine
and Saigon Port Company for the construction of a container
port in Cai Mep Ha. PSA International and Saigon Port Company
will also build Thi Vai Port in Ba Ria-Vung Tau Province,
and the Hiep Phuoc project in Ho Chi Minh City, which will
start operations by 2010.
There are also more vessels registered in Vietnam’s
registry with 352 ships, 30 which are foreign-owned. The Philippines
only has 221, 35 of which are foreign.
The Philippines, however, has much larger vessels at a total
weight of 5 million gross tons (GT), mostly bulk carriers,
while Vietnam has 2 million GT, mostly general cargo.
PCCI access shutdown has no effect on EDI gateway operations
ELECTRONIC data interchange (EDI) gateway
operations are functioning normally even after the Philippine
Chamber of Commerce and Industry (PCCI)-operated EDI access
was shut down starting Friday last week.
The slack was taken up by the Bureau of Customs’ (BOC)
accredited value-added service providers (VASP) Cargo Data
Exchange Center (CDEC) and Intercommerce Network Services
(INS).
The EDI gateway is used to clear low-risk cargoes such as
those registered under the Super Green Lane (SGL).
The use of the CDEC and INS gateways is technically outside
the two companies’ VASP responsibilities. But both have
been EDI service providers even prior to their VASP accreditation.
“We already agreed with BOC on the procedures on the
continued operations of import declarations by SGL-accredited
corporations as well as the online release with outside CY/CFS
(container yard/container freight stations) clients,”
Leo Morada, CDEC general manager, told PortCalls.
“Since Friday, we’ve been ready after we adjusted
our message and encryption procedures to EDI standards and
expect no interruption in our operations starting today,”
Morada, who also writes an IT column for PortCalls, added.
“We also expect a smooth shift from the PCCI EDI gateway
to our existing VASP gateway and no delays whatsoever,”
he added.
BOC eyes control of foreign vessel, impex cargo entry
THE Bureau of Customs (BOC) wants to exercise
control over the entry of vessels engaged in foreign trade
as well as import and export cargoes to combat smuggling and
increase revenue collection.
The bureau has initiated a memorandum of agreement (MOA) with
the Philippines Ports Authority (PPA) as well as with the
United Harbor Pilots’ Association of the Philippines
(UHPAP) toward this goal.
“There are reports of rampant smuggling in the country’s
seaports, particularly in the private ports,” Customs
Commissioner Napoleon Morales said, noting that this was the
main reason for the bureau pushing the MOA.
He said he wants to see the MOA approved before the year is
through.
The draft agreement states that the Tariff and Customs Code
of the Philippines provides that the powers and jurisdiction
of the BOC shall include the prevention of smuggling and other
fraud upon customs as well as the supervision and control
over the entrance and clearance of vessels and aircraft engaged
in foreign commerce.
In addition, the bureau also has control over all import and
export cargoes landed or stored in piers, airports, terminal
facilities including container yards and freight stations
for the protection of government revenues.
“For the due and effective exercise of the powers conferred
by law and to the extent requisite therefore, the bureau shall
have the right of supervision and police authority over all
seas within the jurisdiction of the Philippines and over all
coasts, ports, airports, harbors, bays, river, and inland
waters whether navigable or not from the sea,” the draft
MOA stated.
PPA’s mandate under the MOA is to prescribe rules and
regulations, procedures and guidelines governing the establishment,
construction maintenance and operation of all ports, including
private ones all over the country.
The PPA shall also ensure strict compliance of the certificate
of registration issued to port operators, and would require
all vessels to submit documents such as cargo manifest and
vessel information prior to berthing.
PPA shall “cause the cancellation or suspension of the
certificate of registration of any private port if proven
to have been involved in smuggling and other similar activity,”
the MOA said.
The UHPAP, on the other hand, must provide the government
agencies with a list of vessels maneuvered on a weekly basis
or as requested by them.
No RP entry for single-hull foreign tankers by Apr '08
THE Maritime Industry Authority (Marina) will disallow single-hull
foreign vessels to enter Philippine seas by April 2008, a
parallel move to an earlier decision to ban such tankers in
the local trade also by April next year.
In an interview, Marina administrator Vicente Suazo, Jr. said
he will issue a flag-state advisory to all foreign-flag single-hull
oil tankers calling the country to upgrade their vessels to
double-hull so they can continue trading with the country.
He said this will prevent incidents such as the recent one
in the Yellow Sea off Taean in central South Korea when some
10,500 tons of crude oil leaked after a crane barge rammed
into a Hong Kong tanker.
Oil spread more than 35 miles to the south and 13 miles to
the north of the spill. Maritime police said 25 miles of coastline
beaches were contaminated.
“I’m bothered with what happened in Korea that’s
why I am issuing an order banning international single-hull
tankers to enter Philippine waters also by April 2008,”
Suazo said.
“We will be hardest hit when such incident happens here
as current laws only penalize local firms during oil spill
incidents,” Suazo added.
Foreign vessels have no liability even if they cause a massive
oil spill and damage the environment.
“I will also personally talk to the oil firms to ship
their oil imports particularly persistent oil using double-hull
tankers to prevent any disruption in the delivery of their
shipments,” Suazo said.
He added Marina will study the possibility of implementing
a penalty system for any foreign tanker that will spill oil
in Philippine waters.
Earlier, also forced by an oil spill incident involving a
local tanker, Marina decided to ban the use of single-hull
tankers carrying black oil in local waters starting April
next year.
The vessel, MT Solar I, spilt some 220,000 liters of black
oil near Guimaras Island, contaminating Guimaras and nearby
islands.
The decision is parallel to the order of the International
Maritime Organization banning the use of single-hull tankers
in the international trade.
Based on Marina regulation, ships not compliant with the new
requirement will be suspended for 60 days without prejudice
to the issuance of a cease and desist order, possible delisting
from the Philippine register, and immediate cancellation and
revocation of their authority to operate.
Marina will also impose a fine of P50,000 to violators for
each day of operation, without prejudice to the imposition
of applicable claims and liabilities in cases where the ship
is involved in a maritime accident.
Marina is also contemplating to ban local and international
single-hull tanker carrying white oil starting 2010.
LOCAL tanker operators are getting a 90-day reprieve from
the introduction of implementing rules and regulations (IRR)
of Republic Act 9483 or the Oil Pollution Compensation Act.
In an interview at the sidelines of the induction ceremony
of three manning associations last week, Transport undersecretary
Ma. Elena Bautista said the Department of Transportation and
Communications (DOTC) has asked the Office of the President
for another 90 days or until February next year to come out
with a more polished IRR.
Based on the original schedule, RA 9483 should have been implemented
last month.
RA 9483 seeks to implement the 1992 Civil Liability Convention
and the 1992 International Oil Pollution Fund (IOPF) Convention.
The law requires tanker operators to contribute P0.10 of freight
rate to the oil pollution fund for every liter for every delivery.
It also obligates oil firms to contribute to the IOPF for
every delivery of 150,000 tons of oil.
Bautista said they reviewed the draft IRR and found loopholes
such as when, where and who will replenish the fund after
every use. “However,” she said, “only details
like those will be subject for review as the 10-centavo levy
for every liter of oil per delivery will stay since it needs
an act of Congress before we can touch it,” she said.
“DOTC understands the dilemma of tanker operators but
we can only do so much. Unless an amendment to the existing
law is passed, the levy will continue to be collected on the
part of the tanker operators,” Bautista stressed.
Tanker operators and oil companies are seeking to defer implementation
of the Oil Pollution Compensation Act until a new law is passed.
The Philippine Petroleum Sea Transport Association, Association
of Tankers Owners of the Philippines, and the Petroleum Institute
of the Philippines claim the law was poorly crafted and will
increase not only shipping rates but oil as well, eventually
affecting basic commodities.
“If the government wants a separate law to cover oil
pollution made by vessels on Philippine waters, it should
have completely adopted the full International Maritime Organization
convention on maritime pollution instead of choosing only
certain provisions of the convention,” the associations
stressed, adding this only exposes the country to liability
for not properly implementing its treaty obligations.
THE Bureau of Customs (BOC) is confident of netting a total
of P1 billion from its post-entry audit (PEA) on oil companies
by year end, a development that will go a long way in helping
plug the agency’s collection deficit.
Customs commissioner Napoleon L. Morales said the bureau has
collected more than P800 million as of late last week with
more PEA activities scheduled in the coming weeks.
