SHIPPERS should brace themselves for higher trucking rates
as early as New Year’s Day following a petition from
North Harbor truck operators.
Truckers said they can no longer subsidize losses resulting
from a slowdown in the trucking business as well as several
cost increases, and are petitioning for an average 16% hike.
The Integrated North Harbor Truckers Association (INHTA),
WGA Truckers Association and the Allied Trucking Group said
the adjustment does not even cover increases in indirect expenses
such as interest and depreciation, only direct costs such
as fuel and spare parts.
Interest and depreciation eat up 25% of truckers’ total
expense.
In its petition for increase, the three associations —
collectively known as the Alliance of North Harbor Trucking
Association — said the bunker surcharge has increased
28% in the past four months yet trucking rates have remained
the same.
“Truckers are only asking for an P817.77 increase in
trucking rate per TEU from P5,100 to P5,917.77 per trip of
40 km round trip to and from Metro Manila,” the group
said in their petition.
“After one year and seven months after the last increase,
with the interminable rising costs of diesel fuel and other
direct cost expenses, the P5,100 rate can no longer support
daily operations,” the alliance said, adding that many
trucking companies have since closed shop.
“We are only giving the Philippine Liners and Shippers
Association (PLSA) as well as the Supply Chain Management
Association of the Philippines (SCMAP) until December 28 to
convince us that our claim for rate increase is unjustified
or we will implement the increase with or without their consent
on January 1, 2008,” the alliance stressed.
“Our group will also not allow… PLSA and SCMAP
to prolong negotiations… like… they did in our
last petition… We believe that a delay will result in
inefficiency and a domino effect such as delays in deliveries
of raw materials, delays in the manufacturing process and
ultimately delays in all aspects of commercial activi-ties,”
the group said.
In May 2006, INHTA, SCMAP and PLSA agreed to implement an
18% increase in trucking rates as opposed to the truckers’
30% petition.
THE ongoing expropriation case involving Batangas port is
making its bidders think twice about operating the facility.
International Container Terminal Services, Inc (ICTSI) has
now opted to upgrade its own port in Bauan, Batangas. “While
we remain interested in Batangas Port, I think ICTSI will
just have to improve and expand its current operations in
the area than to operate another one,” ICTSI chair Enrique
Razon said in a chance interview during the inauguration of
the new headquarters of the Philippine Ports Authority (PPA).
It may be recalled that the Supreme Court (SC) has ordered
PPA to pay residents affected by the Batangas port development
project additional expropriation fees of P11.3 billion. The
decision is being appealed by PPA.
Razon said even if the PPA includes an escape clause in the
terms of reference for Batangas port, ICTSI would still want
to be first assured that no additional burden will be borne
by its investors.
PPA said its proposed escape clause guarantees that the winning
operator can withdraw all its commitment at the port in case
of an unfavorable final SC decision.
The only other eligible bidder, Asian Terminals, Inc (ATI),
shares ICTSI’s view. In a separate interview, ATI chair
Bryan Smith said PPA proposals for an investment guarantee
may not be enough assurance for its investors.
He added ATI has decided to wait for the final SC decision
on the expropriation case before making up its mind.
“ATI is a public company and we would like to protect
the interest of its investors… that’s why we will
hold everything until the court decides on the issue,”
Smith said.
“Nonetheless,” he added, “ATI remains committed
to its operations in Batangas as of now particularly if the
PPA extends our temporary permit to operate the port until
a new operator comes in.”
Based on the Batangas terms of reference, all PPA expenses
to develop the port will be reimbursed by the winning bidder
over the 25-year contract, including the P11.3-billion additional
expropriation fee and the P5.5-billion total project cost.
The Bureau of Treasury has already garnished P800 million
from PPA funds to form part of the agency’s payment
to Batangas lot owners in the case the SC decides to uphold
its earlier decision.
PPA eyes P10B Spanish loan for solar-powered
modular ports
THE Philippine Ports Authority (PPA) is eyeing
a P10-billion official development assistance (ODA) from Spain
to construct about a hundred modular ports and passenger terminal
buildings all over the country, possibly before President
Arroyo steps down from office in 2010.
Banco de Bilbao Vizcaya Argentaria in Madrid, Spain’s
biggest bank, has agreed to extend the loan, and the PPA is
hoping to get an interest rate of 2.2 percent and a maturity
of 10-15 years with a grace period of five years, PPA general
manager Oscar Sevilla said.
“The Department of Finance will sign the loan in behalf
of the DOTC (Department of Transportation and Communications).
PPA will be the implementing body,” Sevilla said at
the sidelines of the inauguration of the PPA’s new building
in Manila.
Sevilla said the source of the counterpart funding has yet
to be determined.
The deal was hatched during the recent state visit of President
Arroyo to Spain, the first for a Philippine president in 45
years. Sevilla and some PPA officials accompanied the President
during the trip.
Sevilla said the project, dubbed the GMA Maritime Port Access,
calls for the deployment of 70 to 100 modular ports all over
the country. Each costs P40 million to P50 million and can
be installed within three months. This compares to Japan Bank
for International Cooperation-funded ports costing P150 million
each.
“A modular port is mostly made of steel,” he added.
“The technology for it was developed in Spain. Russia
was said to be the first to acquire a modular port from Spain
and we could be the second,” Sevilla said.
The modular ports last between 30 and 50 years.
Sevilla also said modular ports offered added environmental
benefits as these were powered by energy from the sun, which
is always available and does not cause pollution.
No target date was given for the project, saying this depended
on when the Department of Finance would close the loan deal
with Spain.
THE Philippines should have dedicated terminals
for different vessel operations to lure more investments in
the maritime sector, according to manning agency United Philippine
Lines, Inc (UPL).
Atty. Jose Adolfo Cruz, spokesperson for UPL, told PortCalls
dedicated terminals for cargo, passenger, cruise and other
kinds of vessels will translate to better efficiency and productivity
that will eventually result in higher volume, revenues and
low shipping cost.
UPL deploys workers for Holland America Cruises, Windstar
Cruises and Belle Ships, among others.
“If the Philippines will continue to utilize current
port facilities, it will continue to be shunned by different
vessel operators and look for other alternatives where facilities
are much more favorable,” Cruz explained at the sidelines
of the induction for three manning associations.
He said the current port setup is not conducive to vessel
operators, preventing them from deploying bigger vessels.
“Foreign investments will likewise be limited as they
see very minimal improvements in our ocean gateways,”
Cruz added.
“To immediately reap the benefits and attract a larger
chunk of the estimated $100 billion in foreign direct investments,
now mostly concentrated on China, the Philippine Ports Authority
should immediately undertake major improvements in the current
port setup,” he said.
He added UPL member-companies (both cargo and cruise ships)
are willing to call Philippine ports as long as there are
facilities to support their operations, and there are long-term
programs such as maintenance dredging to accommodate larger
vessels.
Philippine ports are also urged to enforce better cost transparency
by charging carriers only services that they actually use.
THE Bureau of Customs (BOC) needs up to P150 million to improve
its scanning system in order to ensure transparency.
The plan is to make available in real time the scanned cargo
images to 15 different customs offices nationwide as well
as to the Office of the President.
Customs deputy commissioner Alexander Arevalo told PortCalls
the presence of the scanners is all well and good, but the
real danger lies with the scanning personnel, who may decide
to allow the entry of illegal goods anyway.
“If he or she chooses to blink, then we have a problem.
(The action) will again deprive the government of duties and
taxes (needed) to plug revenue shortfalls and will not improve
the image of the bureau as one of the most corrupt government
agencies,” Arevalo said.
“To prevent this, we have to make available the images
from scanners to several offices for further scrutiny and
also as an anti-corruption measure,” Arevalo added.
The BOC has already installed 20 non-intrusive scanners in
major gateways including at the South Harbor, the Manila International
Container Port, Cebu, Subic, Batangas, Zamboanga, Davao, Cagayan
de Oro and Clark.
Another 10 will be installed in the next few weeks to complete
Phase 2 of the non-intrusive container inspection system project.
The BOC procured the scanning units through a concessional
loan from the Chinese government.
The machines are capable of scanning at least 20 forty-footers
and vehicles or 17 full forty-footers and vehicles per hour
in a single pass.
The government, through Executive Order 592, has ordered the
installation of the non-intrusive scanning devices in all
major ports to ensure that all containerized cargoes, particularly
those US-bound, are free from materials used for weapons of
mass destruction.
CORPORATIONS and brokerage houses will exert extra effort
lobbying for amendments to Republic Act 9280 or the Customs
Brokers Act of 2004 on both Houses of Congress.
“The passage of the amendment to RA 9280 is our biggest
concern right now. We are exerting extra efforts to have it
approved immediately,” Philippine International Seafreight
Forwarders Association (PISFA) president Dexter Yu told PortCalls
in an interview.
“If the law is implemented as it is, there will be further
increases in logistics costs as the law involves sub-contracting
brokerage services,” Yu added.
“Hopefully, with extra effort we can get the amendment
which we failed to get in the last Congress due to lack of
quorum,” he said.
He noted the changes will put local customs policies at par
with world standards and make the country more conducive to
investments particularly if the country intends to adopt the
Revised Kyoto Protocol.
The logistics industry wants to amend provisions barring corporate
practice in brokerage, particularly Sections 28 and 29.
Section 28 states that no person shall practice or offer to
practice the profession, or use the title of customs broker
unless one is a registered licensed customs broker. Section
29, on the other hand, specifically provides that the customs
broker practice is a professional service and as such, “no
firm, company, or association may be registered or licensed
as such for the practice of customs broker profession”.
The Lower House is deliberating on at least three bills seeking
to amend the law. The bills allow corporations and brokerage
houses to transact with the BOC as long as they hire at least
one customs broker.
The Senate is also conducting hearings on the law despite
the continued detention of Civil Service Committee head Senator
Antonio Trillanes IV. Trillanes’s chief of staff and
other senators, including Richard Gordon, are deliberating
on the proposed amendments. Trillanes is under detention for
rebellion charges.
