Manual lodgement of entries still in force at Cebu, Davao and Clark
IMPORT entries at four major sub-ports are
still lodged manually despite orders from the Bureau of Customs
(BOC) for full migration to electronic lodgement.
“Entry encoding centers (EECs) are still operating at
Cebu, Mactan, Davao and Clark as shippers and BOC continue
to lodge entries manually, defeating our presence in the area,”
said Francis Lopez, president of InterCommerce Network Services
(INS), one of the BOC-accredited value-added service providers
(VASP).
The culprit, it seems, are the inability of the BOC itself
to provide electronic submission of manifests and the absence
of a guideline for ecozones.
“There have been no changes in the lodgment of entries
at the said ports and the procedures remain the same despite
the introduction of the VASPs,” Lopez said.
At Clark, the district collector is eager to implement the
VASP system but the absence of guidelines for the port prevents
VASPs from rolling out the system, he said.
Clark wants separate guidelines as its operations are geared
toward transshipment.
“Until all the necessary requirements are put into place
by the BOC, the procedure will remain the same in the four
sub-ports,” he added.
BOC deputy commissioner and VASP accreditation chief Alexander
Arevalo told PortCalls the BOC is conducting a “parallel
run to properly prepare stakeholders on VASP operations particularly
the electronic submission of manifests.
“Most companies, particularly at the airports, are lodging
electronically but submit manifests manually rendering the
electronic lodgment invalid,” Arevalo added. “We
will continue to do the same until all are ready.”
Meanwhile, the BOC will evaluate VASP operations at Batangas,
Cagayan de Oro and Subic in preparation for expansion of its
automation program. The three sub-ports do not have EECs.
Arevalo said the operation of VASPs in the three ports is
easier, requiring only technical readiness from stakeholders
unlike in the first three ports with VASPs — Manila,
the Manila International Container Terminal and Ninoy Aquino
International Airport — which hosted EECs. The shutdown
of EECs involved displacement of workers.
SOUTH Harbor operator Asian Terminals, Inc.
(ATI) is expecting better results this year on the back of
positive economic developments.
“ATI is growing and is moving very well as the economy
grows. ATI sees a better year for its business this 2008 as
it maintains its optimism in the Philippine economy,”
ATI chair Bryan Smith told PortCalls in a recent interview.
“We are constantly buying equipment… We are also
investing in civil works, equipment and port facility,”
he added.
Recently, ATI bought three rubber-tired gantry cranes worth
$3.4 million. This year, the operator will have a new combined
South Harbor truck holding area and will be expanding the
container terminal stacking yard significantly.
ATI is also undertaking the rehabilitation of Pier 13 into
the first dedicated covered motor vehicle terminal in the
Philippines.
“I have always stressed that one of the core strengths
of ATI is the capability to combine expertise, equipment and
other resources to offer integrated port solutions. This principle
of synergy runs true not only in South Harbor but throughout
the whole company,” Smith explained.
Projects in the pipeline include the extension of crane rails
and adding one more quay crane at Pier 3; the building of
crane rails and two additional quay cranes at Pier 9; and
the development of additional container yard at adjacent to
its Eva Macapagal Domestic Terminal.
ATI is reportedly sinking in fresh investments of $350 million
for South Harbor after the Philippine Ports Authority approved
its cargo-handling contract extension for another 25 years
through 2038.
THE poor navigability of Pasig River is contributing
to increased logistics costs resulting from slower transit
time and higher fuel and maintenance expenses for shippers
who use the river.
The Association of Private Port Operators and Owners of the
Philippines (APPOOP) said companies using the river are losing
5-10% of their revenues as deliveries are being done only
during high tide due to the river’s siltation problem.
The river is only three meters deep. APPOOP said the ideal
draft is between five and seven meters.
The losses increase if the operator’s vessel fails to
deliver during high tide as it has to wait another 24 hours
before the next delivery. This results in higher overheads
eventually passed on to consumers.
APPOOP claimed some companies have since chosen to close shop
and relocate elsewhere to save on expenses.
The group is batting for continuous maintenance dredging of
the river instead of a one-time dredging as is the policy
now.
“Until government changes its dredging and maintenance
plan for the river, (the policy) will continue to result in
business inefficiency and higher cost for consumers,”
APPOOP said.
The maintenance dredging will not only save the government
much money but will also guarantee that the river is dredged
and maintained properly, the group noted.
It said the current program is costing government million
of pesos, with contractors more concerned with their profit
margin.
Contractors are just putting to work dredging machines at
certain points, stopping after some time, leaving the machines,
then eventually pulling them out, APPOOP said. No improvements
were made upon evaluation of the activity, with siltation
at the same time becoming a big issue.
“(We need) a long-term plan where dredging will be slowly
(done)… instead of a band-aid solution like what is
being enforced,” APPOOP said.
“Pasig River is a port itself. It has to be properly
maintained, dredged and monitored to function properly,”
the group stressed, adding that “dredging should be
done like clockwork.”
The river has now been declared a critical water body because
of the unspeakable amount of waste dumped into it daily by
households and industries. About 330 tons of industrial and
domestic wastes are discharged everyday in this waterway,
depleting the biochemical oxygen needed to support marine
life.
In 1999, President Estrada ordered a 15-year project to clean
the river until 2014 — and hopefully see fish return
to its now filthy waters.
Backed by $176.8 million from the Asian Development Bank (ADB),
the project entails the redevelopment of riverside slums,
relocation of tens of thousands of squatters and the launch
of a passenger ferry.
At the halfway mark, government officials and ADB experts
say progress has been made, but much more needs to be done
if the Pasig is to regain its former splendor.
In early 2000, the Lighterage Association of the Philippines—the
main users of the Pasig River—has partnered with the
City Government of Manila to dredge and maintain the river
but no significant improvement has been reported to date.
Shippers push reopening of General Santos-Bitung route
MINDANAO shippers are urging government to revive an initiative
to relaunch the General Santos-Bitung, Indonesia route to
boost competitiveness of products from Southern Philippines
and lower cost by eliminating transshipment to Manila.
“There were pronouncements by the government to revive
the shipping route but there were no serious studies being
made on the viability of the route like the potential demand
of Philippine products in Indonesia and vice-versa,”
the Mindanao Federation of Shippers Association (Minfesa)
said in a document provided to PortCalls.
“Also, marketing strategies have to be formulated and…
aggressively promoted to both Philippine and Indonesian companies
for the route to succeed,” it added.
It said the Mindanao Economic Development Council, the Department
of Trade and Industry and the Maritime Industry Authority
need to aggressively promote the route and conduct a thorough
study of commodities that can be shipped to Indonesia.
“In return, the shippers through the Minfesa will help
promote the route to Mindanao shippers,” Minfesa said.
In 2003, a regular shipping service was established between
General Santos and Bitung but this lasted less than six months
due to cargo imbalance. The average volume of inbound cargoes
was 40-50 TEUs against 5 TEUs for outbound.
The proposed General Santos-Bitung feeder corridor is expected
to enhance trade under the East ASEAN Growth Area (EAGA) initiative.
It offers the shortest distance between North Sulawesi and
Southern Mindanao under the EAGA framework — about 18
sailing hours from point to point.
THE Department of Transportation and Communication recently
signed the contract signaling the start of construction of
the Laguindingan Airport Development Project.
The project aims to expand and improve the country’s
civil aviation infrastructure and support safer operation
based on international standards and practices.
Funding will come from Economic Development Cooperation Fund
of Korea, the Export-Import Bank of Korea, Nordic Investment
Bank (for the air navigational support facilities) and the
Philippine government.
The main civil works, amounting to P4.992 billion, involve
construction of a runway, new passenger terminal building,
air traffic control tower/operation building, cargo terminal
building, maintenance building, power house building, administration
building, cold water receiving station, fuel farm, and wastewater
treatment plant.
Hanjin Industries Construction Co. Ltd of Korea is the lead
contractor.
The consulting services for construction supervision will
have a foreign cost component of 4.869 billion korean won
and local cost component of P130.990 million. The consultant
is Yooshin Engineering Corp.
Located at Laguindingan, Misamis Oriental, a major growth
area in Mindanao, the airport facility covers about 400 hectares
of which 300 hectares were acquired or donated. Ayala Land
Corp donated 94 hectares.
The corridor airport service area covers the provinces of
Bukidnon, Misamis Oriental, Lanao del Norte, Lanao del Sur,
and the island of Camiguin.
