THE tanker industry is bracing for tough
times ahead.
It faces a new requirement that needs massive investment as
well as a new law that requires contribution to a fund that
will help fight pollution caused by oil spills.
The double-hull double-bottom vessel requirement for all local
tankers carrying persistent oil will be in effect by April
2008. Republic Act 9483 or the Oil Pollution Compensation
Fund (OPMF), on the other hand, mandates that P0.10 per liter
per delivery of oil will go to the fund.
“It’s really a double whammy,” Maritime
Industry Authority (Marina) deputy administrator for Operations
Col. Primo Rivera told PortCalls.
“Tanker operators are really being burdened by the two
orders as both require huge amounts of money that will eat
up majority of their revenues,” he said.
“How can they refleet and source the fund to pay for
the double-hull tankers if one-third of the freight revenue
is contributed to the local oil fund?” Rivera asked.
“Marina, despite being tasked to craft the implementing
guidelines of RA 9483, is siding with the tankers this time
and we are helping them as much as we can to prolong the implementation
of the law (so they can) look for ways to cushion the law’s
impact,” Rivera said.
He added the immediate implementation of the oil pollution
law is unwise at this time as the insurance coverage of tanker
operators is enough to answer for any liabilities during an
oil spill.
Rivera, a former Navy officer before joining Marina, said
the government should have implemented a calibrated approach
to the oil pollution act starting from persistent oil instead
of a sweeping order covering all kinds of oil.
The tanker operators claim their members are starting to look
for other businesses since starting a new one may be cheaper.
They are at the same time looking for legal redress once RA
9483 is implemented.
THE foreign exchange situation will be a
crucial issue in talks for a cargo-handling rate increase,
Asian Terminals, Inc. (ATI) chair Bryan Smith told PortCalls.
“We are looking at a wide range of issues. But the most
vital one is the foreign exchange issue. We are looking at
the best percentage not only for the company, the carriers,
the Philippine Ports Authority (PPA) but also the users,”
Smith said.
The Philippine peso was at P41.52 to the US dollar last Dec
21. The currency has appreciated about 19% from the beginning
of the year, its strongest in the last seven years.
Smith said ATI has to make sure any fluctuation in foreign
exchange rates will have minimal effects on the company’s
revenue-generation projections, expansion plans and loan repayment
schedule.
A meeting with the PPA is being scheduled to discuss the possible
cargo-handling rate hike. Smith said negotiations with the
Association of International Shipping Lines are also continuing.
ATI became qualified for a cargo-handling rate increase after
completion of the two-tranche rate hike in 2006.
The terminal operator said a rate adjustment is necessary
due to cost hikes in fuel and labor.
Apart from ATI, PPA said it expects a petition for increases
from International Container Terminal Services, Inc and other
cargo-handling operators.
The Maritime Industry Authority (Marina)
will start auditing classification societies in the runup
to a mandatory merger program.
Marina will conduct the audit to determine which among the
seven classification societies will stay under the merger.
Col. Primo Rivera, Marina deputy administrator for operations
told PortCalls the societies have been informed of the measure
and will once more be notified for their individual audit.
“We are really pushing for the immediate merger of the
class societies as the current structure has resulted in cutthroat
competition… safety standards have been sacrificed for
better profit margin,” Rivera said.
The Marina safety office is finalizing guidelines for the
mandatory merger. The guidelines require Board approval.
Rivera said Marina will also establish its own classification
department to serve as an alternative.
The streamlining of the class societies is patterned after
Japan where only two groups composed of different class societies
— the Japan Government class and another one from the
private sector — guarantees business is equally divided
among the players while giving operators an alternative.
“In this setup, we can ensure the seaworthiness of vessels
plying the local trade and improve maritime safety in the
country,” Rivera said.
The seven classification societies compete for the shallow
number of vessels plying the local trade.
Big companies such as Sulpicio Lines, Inc., Aboitiz Transport
System, Magsaysay Logistics and Negros Navigation have their
vessels classed by the Association of International Class
Societies before the vessels actually arrive on local shores.
THE Philippine Ports Authority (PPA) is transferring control
of the Batangas Port access road to the Department of Public
Works and Highways with or without toll collection recommended
by the Japan Bank of International Cooperation (JBIC). JBIC
funded the project.
PPA assistant general manager Claro Maranan, in an interview,
said the agency has already drafted the memorandum of agreement
(MOA) on the transfer and will schedule it for PPA Board approval
next year.
JBIC earlier recommended the development of a toll mechanism
structure before the road is transferred to DPWH, the government
agency responsible for the maintenance of the country’s
road networks.
Maranan said such a measure is, however, the responsibility
of DPWH as it has to connect the one-kilometer port access
road to the 22-kilometer Southern Tagalog Arterial Road (STAR).
The latter exacts a toll from users.
Maranan said the DPWH will have to decide whether it will
increase the toll for the entire STAR Tollway due to the new
access road or levy a separate fee for those using the express
lane to Batangas Port alone.
The STAR Tollway Project was also funded by JBIC and the Japan
International Cooperation Agency (JICA). Its operator is South
Luzon Tollways Corp, a joint venture between Philippine National
Construction Corporation and MTD Manila Expressway Corp.,
a subsidiary of MTD Capital of Malaysia.
The PPA was to have signed the transfer MOA with DPWH last
October but this was postponed as a result of the JBIC recommendation.
The MOA’s salient points are also still being studied
by both the lender and PPA.
The P336-million Batangas port access road and flyover are
part of Phase II of the Batangas Port development project.
Its other components are the P5.7-billion marine and civil
works under Package 1, and the P126-million supply and installation
of passenger boarding bridges completed on September 2001
under Package 2.
THE Bureau of Customs (BOC) is looking at including collectibles
from other government agencies in its financial report to
ensure the bureau meets its collection targets.
Customs commissioner Napoleon Morales in an interview said
the unpaid duties and taxes of government agencies related
to the importation of rice, corn, sugar and coal are more
than enough to plug revenue shortfalls for the year.
“We are really keen on collecting these unpaid bills.
We will be sending letters to the government agencies involved
such as the Department of Agriculture, the National Food Administration
and others to remind them to pay their unpaid accounts,”
Morales said.
“According to our estimates, the amount would exceed
the current collection shortfall of about P15 billion and
will enable the bureau of post some surplus if we can collect
the accounts immediately,” he added.
“We are already looking at including these collectibles
in our financial statements to meet our target collection
as the depreciation of the peso really hit the agency big
time,” Morales said.
He said while the strong peso meant some savings in loan repayment,
the same has at the same time caused revenue losses of P3
billion.
The Philippine business delegation which joined President
Gloria Macapagal-Arroyo’s trip to Spain views the unique
modular technology on a roll on-roll off facility. The delegation
was with Philippine Ports Authority (PPA) general manager
Atty. Oscar M. Sevilla (3rd from left) with PPA assistant
general manager Claro V. Maranan (center) and other Business
partners in the maritime industry.
