PortCalls
The Philippines only shipping and  transport guide.
 

::Industry News::


Archives 2008 : Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov

January 2 | January 7 | January 9 | January 14 | January 16 | January 21 | January 23

January 28 | January 30


* Customs eases scanning procedures

* PPA eyes mandatory use of Batangas port by PEZA Calabarzon locators

* Single maritime agency gets powerful advocate

* SBMA: ICTSI bid for second Subic container terminal welcome

* APEX marks 10 years

* Maritime sector continues to lack long-term goals

* 16% trucking rate hike on hold, but not for long

Customs eases scanning procedures

THE Bureau of Customs (BOC) has relaxed its container scanning procedures, exempting from the process shipments with certificates of origin (COO).
Newly installed x-ray inspection project chief Atty. Lourdes Mangaoang said, “Shipments with COO may be exempted from scanning as its quantity and value can be counterchecked from the COO.”
The agency’s scanning focus will instead turn to small and medium enterprises and a few big corporations with high risk of smuggling, she said.
She added the easing of procedures ensures prevention of container pile-ups, a big problem for the BOC since the start of the scanning requirement last year.
One company exempt from scanning is multinational Nestle, which provides information on the quantity and value of its goods.
Mangaoang said the bureau will be strict in enforcing which cargoes will be scanned and not.
“The customs police will now be designated to man and police the x-ray scanning operations,” she added.
In the past six months, scanning fees have contributed P4 million to BOC coffers.
The bureau is also embarking on a project that would make scanned cargo images visible in several customs offices, including the Office of the President.
The project, which requires P150 million, will deter the person scanning questionable shipments from looking the other way, according to Customs deputy commissioner Alexander Arevalo.
The BOC has already installed 19 non-intrusive scanners; 11 more will be installed by end-January in major ocean gateways including Harbour Centre, the North Harbor, and Cebu, Clark and Zamboanga ports.

Back to Top


PPA eyes mandatory use of Batangas port by PEZA Calabarzon locators

THE Philippine Ports Authority (PPA) is teaming up with the Bureau of Customs (BOC) in a bid to place Batangas Port in the international container industry radar.
As part of its marketing efforts, the team is looking at negotiating with the Philippine Economic Zone Authority (PEZA) for the mandatory use of the port among its Calabarzon locators.
“We will really push for the full utilization of the port particularly now that the needed cargo-handling facilities are in place,” PPA general manager Atty. Oscar Sevilla told PortCalls.
“Hopefully, once we get the nod of (PEZA) locators, we will be able to lure back APL (American President Lines) and other international carriers to have direct calls in Batangas,” Sevilla said.
APL dropped Batangas from its ports of call a few years ago due to low cargo volume and inadequate cargo-handling facilities.
Now, Batangas port handles predominantly car shipments. Vessel calls are down to once every two weeks.
Last month, additional cargo-handling equipment were installed, including two quay cranes, four rubber-tired gantries and a patrol boat. In addition, the BOC has installed two non-intrusive scanners.
Electronic transactions will also begin in the first quarter.
Meanwhile, Asian Terminals, Inc’s special permit to operate Batangas port has been extended with the PPA expecting a long legal battle involving its expropriation case with Batangas land owners.
ATI is the remaining eligible bidder for the port’s 25-year management and operation contract after International Container Terminal Services, Inc said it would much rather concentrate on its Bauang operations.

Back to Top


Single maritime agency gets powerful advocate

MALACAÑANG is backing the creation of a single maritime agency, with President Gloria Macapaga-Arroyo ordering the maritime sector to lobby for the establishment of such an agency.
“I think the Cabinet Secretaries will not disagree anymore this time because President Arroyo herself gave her approval,” Subic Bay Metropolitan Authority chair Feliciano Salonga said, adding that the sector is now preparing the ground work for its lobbying gameplan.
The creation, he said, would mean reorganization at the Department of Transportation and Communications (DOTC) and its agencies, including the Maritime Industry Authority (Marina) and the Philippine Ports Authority (PPA).
Efforts to create a Department of Maritime Affairs under President Estrada’s term were clipped by disagreement among Cabinet Secretaries.
Salonga explained there was much disapproval over a separate agency for fear that the powers of the DOTC will be diluted.
Marina presently regulates the shipping industry and the PPA, the ports.
As it is, Marina’s powers are already limited since it shares training and regulation of seafarers with some agencies of the Department of Labor and Employment and with the Commission on Higher Education.
In 2006, the committees on government reorganization and on transportation at the House of Representatives filed measures offering maritime industry reforms. All were shelved as a result of the May 2007 elections. These include House Bill 622, which seeks to institute a Maritime Code of the Philippines and to create the Philippine Maritime Commission, an attached agency of the DOTC.
The commission would serve as the lead agency for planning and coordination of maritime transportation, and supervision of maritime business and ocean affairs.
House Bills 883 and 2197, on the other hand, sought to create a Department of Maritime Affairs tasked to establish and administer integrated programs relative to the promotion, development and regulation of ports, shipping, shipbuilding and seafaring industries; promotion of maritime safety; protection of marine environment and resources; and training and development of the country’s seafarers and merchant marines.
“The creation emphasizes the urgent need to create a separate department that will formulate a comprehensive, sound and up-to-date policy that will govern the administration of the country’s maritime affairs,” according to the bills.

Back to Top

 

SBMA: ICTSI bid for second Subic container terminal welcome

INTERNATIONAL Container Terminal Services Inc (ICTSI), the country’s largest port operator, is welcome to bid for the Subic Freeport’s New Container Terminal 2 (NCT-2), Subic Bay Metropolitan Authority (SBMA) chairman Feliciano Salonga said.
ICTSI, through subsidiary Subic Bay International Terminal Corp., already won the contract to operate New Container Terminal-1 (NCT 1), which will commence operations within the first quarter of 2008.
If the company wins the NCT-2 contract — up for grabs via international bidding — the Razon-controlled firm will have exclusive control of cargo handling operations in the entire Subic freeport.
NCT-1 was not bid out since the SBMA applied the Swiss challenge on the deal.
The terms of reference for the privatization of NCT-2 is now being finalized.
Construction of the 300,000 TEU-capacity NCT-2 will be completed in March, the same time that SBMA will commence the bidding procedure.
NCT-1 has the same capacity as NCT-2.
SBMA has been improving the Subic facilities in order to accept more cargo. Current volumes, however, are still thin compared to ports in Manila.
SBMA’s Seaport Department records showed there were 1,101 vessels which docked at Subic Bay during the first three quarters of last year.
In 2006, the Port of Subic handled 34,601 TEUs, with imports consisting of 17,109 TEUs.
Based on projections, there will be a 200% increase in container traffic up to 150,000 TEUs once the two new container terminals become fully operational.
ICTSI, in its earlier disclosure, said it will spend some P473 million for NCT-1, mainly for the construction of an administration office, motor pool/engineering office, truck holding area, refueling station, and field office.
It said that when the terminal’s volume reached 250,000 TEUs per year, the terminal should have four rubber-tired gantry cranes, 22 prime movers, five forklifts, three-yard vehicles, and three company vehicles.
At the moment, SBMA owns two quay cranes for use at the terminal.
“If the actual volume at the NCT-1 will require more investment in cargo-handling equipment and other facilities, SBITC will be prepared to make such investment. This expenditure for capacity development is separate from fixed fees and variable fee payments to SBMA,” SBITC said.

Back to Top

 

APEX marks 10 years

ASIA Pacific Express Corp (APEX) recently celebrated its 10th anniversary at the Shangri-la Hotel in Makati City. The event, which coincided with the company Christmas party, was attended by Jae J. Jang, president of the Korean Chamber of Commerce of the Philippines, and Atty Pedro Vicente Mendoza, executive director of the Philippine Shippers’ Bureau. Both were guest speakers, with Atty Mendoza citing the company’s outstanding performance for the past ten years.
APEX employees gave a dance performance to entertain guests. Loyalty awardees were given plaques and cash awards.
The event also marked another milestone as the company officially announced its ISO accreditation for Quality Management Systems 9001:2000 and Environmental Management Systems 14001:2004.


APEX president Edward Chang addresses guests
while group photo shows guest speaker Philippine Shippers Bureau executive
director Atty Pete Mendoza (seated, fourth from right) with company officers and staff. (photo below)


Back to Top

 

Maritime sector continues to lack long-term goals

THE government’s shortsighted approach to developing the maritime industry is keeping the country’s ship registry from attracting more international carriers.
Atty. Jose Adolfo Cruz, fleet manager of United Philippine Lines Inc, said the Philippines is losing out to developing countries in the region such as Vietnam since authorities have no long-term goals on how to make the country a maritime destination.
“Lead agencies are not doing anything to investigate why the Philippines is not a destination for firms and there is no official government position. The Philippines needs long-term solutions and not short-term goals,” he said.
“The Philippine should study or investigate the reasons why we are slowly losing out to Vietnam or to any other nation to lay down the necessary measures to compete,” Cruz added.
“If we are only making measures without determining the causes, then we will continue to be shunned by foreign investors. The Philippines should have a basis in making these efforts,” Cruz explained.
He said authorities’ efforts to promote the Philippine ship registry and other maritime development programs depend on personalities that keep changing with each administration.
Earlier, the Maritime Industry Authority (Marina) said it was pushing for foreign shipping firms, through their ship management agencies, to be allowed to set up their own businesses here and for their vessels to be registered under the Philippine flag.
The proposal also provides for the establishment of register offices in other countries, especially shipowning ones such as the United Kingdom and Greece, to facilitate, control and enforce compliance of ships flying the flag.
The proposal is on top of the easing of the country’s bareboat chartering law in 2004. The latter development, which has removed stringent ship owning rules and other requirements, has been deemed ineffective.
In the past two years, there have been no improvements in the country’s ship registry.
The number of Philippine-registered vessel has remained stagnant at 168 ships, from about 400 in the 1980s and early 1990s.

Back to Top


16% trucking rate hike on hold, but not for long

NORTH Harbor truckers have decided to temporarily defer implementation of their proposed 16% rate increase, subjecting the petition to further discussion with the Philippine Liner and Shipper Association (PLSA).
The reprieve may, however, be short lived with the truckers setting the deadline for the increase within the month.
The Allied Transport Group, WGA Truckers Association and the Integrated North Harbor Truckers Association (INHTA), collectively known as North Harbor Trucking Association, said they decided to stall the increase that should have been enforced as early as New Year’s Day to make way for the meeting with PLSA set for tomorrow (Jan. 8).
Still, PortCalls sources claim some truckers have already implemented the 16% rate increase on their in-house accounts. Other operators are expected to follow suit if talks with PLSA drags, they said.
At the meeting, truckers expect PLSA to offer reasons why they think the increase is untimely and unjustified. A win-win solution to mitigate the impact of the increase is also being eyed.
In its petition, the truckers said the bunker surcharge has risen 28% in the past four months, the latest being the 17% hike implemented just last month.
Truckers are asking for an P817.77 increase in rate per 20-foot container from P5,100 to P5,917.77 per trip of 40 km round trip to and from Metro Manila.
The truckers said the rate increase covers only adjustments in direct cost such as fuel and spare parts, and not indirect expenses like interest and depreciation to help minimize its effects on shippers.
“One year and seven months after the last increase, and with the interminable rising costs of diesel fuel and other direct cost expenses, the P5,100 rate can no longer support daily operations as evident from some firms already closing shop,” they said.
“Our group will also not allow both the PLSA and SCMAP (Supply Chain Management Association of the Philippines) to prolong negotiations like they did in our last petition… We believe that delays 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 activities,” they said.
In May 2006, INHTA, SCMAP and PLSA agreed to implement an 18% increase in trucking rates, 12% lower than the 30% increase petitioned by the group. — Christopher Paringit


Back to Top

Archives 2008 : Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov

January 2 | January 7 | January 9 | January 14 | January 16 | January 21 | January 23

January 28 | January 30