TRUCKERS will submit tomorrow (Jan 29) a
petition that seeks to include the industry in the discounted
fuel program. The program gives a P1 fuel discount to public
utility vehicles (PUVs).
The scheme will mean fuel savings of P100-P200 per truck for
every one-way trip, or about 5.5% of a company’s fuel
expenses, Confederation of Truckers Association of the Philippines
(CTAP) president Col. Rodolfo De Ocampo told PortCalls.
The petition will be submitted to the Department of Transportation
and Communications and the Office of the President at the
start of a four-day energy summit.
De Ocampo said the inclusion will prevent further increases
in trucking rates and give truckers the opportunity to sustain
a rebound in a sector that has been anemic for the past three
years.
He said incentives provided to PUVs should also be enjoyed
by truckers who are key contributors to economic growth.
“(Inclusion in the discounted fuel program) will be
a big help to us. It will mitigate the effects of the rising
fuel cost on our business,” De Ocampo said.
“(Its) effects… will mostly be felt by consumers
through lower logistics cost translating to lower market prices
of major commodities,” he added.
Truckers want the inclusion because they claim the Malacañang-approved
oil tariff cut is not expected to fully address the problem
of high fuel prices.
The price of diesel, the most commonly used fuel by trucks,
increased almost 15% in the last few months from P32 per liter.
Last year, the trucking industry saw a 10% growth. Rates have
remained the same but not for long. North Harbor truckers
are jacking up their rates by 16% starting Valentine’s
Day. Even CTAP wants a rate hike.
CTAP said business growth could have been higher kast year
if not for the continuing volatility of fuel prices.
THE Chamber of Customs Brokers, Inc. (CCBI)
is open to corporations lodging, filing and processing export
entries at the Bureau of Customs (BOC). This, the chamber
said, is a concession that could help settle a long-standing
dispute on whether or not corporate practice is allowed in
the customs broker profession.
“This is a win-win solution for both brokers and corporations,”
explained CCBI president Rolando Quiambao. “However,
the lodging, filing and processing of import entries should
still be limited to licensed and accredited customs brokers
and no corporations should be allowed to file such entries
at the BOC,” said Quiambao, who is also president of
Nonpareil Int’l Freight and Cargo, Inc.
If corporations insist on processing import entries themselves,
they can expect strong opposition from CCBI, the only accredited
professional organization (APO) under Republic Act 9280. CCBI’s
APO accreditation has lapsed recently, however. The chamber
is now awaiting accreditation renewal from the Professional
Regulation Commission (PRC).
Proposed congressional amendments to Section 29 of RA 9280
state that “The practice of the customs broker is a
professional service... As such, no firm, company or association
shall be registered or licensed with the PRC for the practice
of the customs broker profession. Nothing in this act shall
prevent corporations from being registered to engage in the
business of customs brokerage provided they hire the services
of at least one customs broker.”
Delay in release of amended forwarding rules
not affecting compliance schedule
THE Philippine Shippers’ Bureau (PSB)
has deferred release of the amended version of Administrative
Order (AO) No. 6 or the Revised Rules on Freight Forwarding
pending resolution of some issues.
The development will, however, not affect the compliance timetable
for new paid-up capital requirements of new and existing freight
forwarders.
“The PSB is still fine tuning several provisions of
the amended AO 6 but the capitalization requirement for old
and new entrants of P4 million remains,” PSB executive
director Pedro Vicente Mendoza told PortCalls.
“The memo I issued effectively extends compliance of
the P4-million capital requirement for existing forwarders
to January next year while new entrants should be compliant
with the condition immediately before they are issued accreditation.
These are all consistent with the amended version of AO 6,”
Mendoza explained.
“Stakeholders should not make this an issue to further
extend their compliance beyond 2009,” Mendoza said.
Some stakeholders, mostly small and medium-size freight forwarders
are asking the PSB to further extend compliance to 2010 to
allow them ample time to source funds for the new requirements.
Based on the AO amendment, specifically Rule XII, Sec. 52,
by January 2, 2008, all new entrants in the freight forwarding
business — whether non-vessel operating common carrier
(NVOCC), international freight forwarder (IFF) or domestic
freight forwarder (DFF) — should have complied with
the new capitalization requirement for their respective categories.
The new capital requirement for NVOCCs is P4 million from
the previous P500,000, and for international freight forwarders,
P2 million. The requirement for DFFs has also been increased
to P1 million from P250,000.
Existing NVOCCs have until January 2, 2009 to comply with
the new requirement. Fifty percent of the new capital should
have been raised by January 3, 2008 and the rest by January
2, 2009.
Existing DFFs also have until January 2, 2009 to comply with
the new requirement.
In January 2006, PSB increased the capital requirement for
existing and new players in the freight forwarding business
to streamline the industry and eliminate fly-by-night companies.
It also collapsed the previous five categories to three, namely
NVOCC, IFF and DFF.
THE Philippine Economic Zone Authority (PEZA)
is pinning its hopes on continued growth of the country’s
semiconductor and electronics industry to duplicate, if not
exceed, its investment takeup last year.
Last year, investments coursed through PEZA registered a 60%
increase over 2006 propelled by new investments and growth
in the electronics industry. Export products grew 16%.
“We are very bullish about 2008 and we expect to perform
even better this year compared to last year,” PEZA director
general Lilia de Lima said in a speech during the formal launch
of the first PEZA container yard/container freight station
in Camelray Technopark in Laguna last week.
“We anticipate better numbers and larger investments
to be injected to the country’s semiconductor and electronics
industries which we expect to exceed last year’s figure,”
de Lima added.
“With the influx of more investments, we also expect
to generate more employment for our people,” de Lima
said.
Exports of electronic products are seen maintaining their
2007 growth of about 10% against this year.
Last year, combined investments approved by the Board of Investments
and the PEZA rose 28.67% to P349.08 billion.
THE Transmodal Group of Companies recently signed a joint
venture agreement with foreign and local partners that will
allow the company to expand in the areas of airfreight, logistics
and trade services.
The deal was signed by Transmodal chief executive Irene Manguiat-Tan
with Manquist Holdings Pte Ltd-Singapore represented by Ronald
Tan, Nayak Holdings(S) Pte Ltd Inc through Arvind Nayak, and
Jang Holdings, Inc through chairman Capt Jae Jang along with
local investors Antonio Tan, Jr and Barbie B. Rivadeneira.
The joint venture, which took four months to hatch, is the
next big leap for Transmodal, after the company transferred
to its own four-storey office building in Intramuros last
year, said Manguiat-Tan.
Synergy, like-minded forces
“We see big potential for this partnership, which capitalizes
on synergy and a merger of like-minded forces,” added
Manguiat-Tan.
Joint venture partners Manquist Holdings Pte Ltd and Jang
Holdings, Inc are also optimistic about the partnership, describing
it is as a perfect fit for their own international expansion
plans.
Manquist Holdings and Jang Holdings are active in the ocean
and air shipping businesses, and Nayak Holdings in aviation
and ground handling operations in India.
“We are very upbeat about the strength of Transmodal
and the growth potential for our overseas expansion,”
Manquist Holdings chief Ronald Siong Kiat told PortCalls during
the signing of the agreement.
Kiat, who is also vice chairman of the joint venture, said:
“My company is very bullish about the Philippines despite
its current unique problems that is why we are putting money
here.”
“We will use our partnership with Transmodal to interconnect
with our other businesses in Asia such as India and Singapore,”
Jang Holdings, Inc chief Capt Jae Jang piped in.
“We expect the Philippines to corner a modest chunk
of foreign investments starting this year. This will definitely
bump the volume of cargo moved through air,” Jang, who
chairs the joint venture, added.
Transmodal’s affiliations
Transmodal International Inc is the mother company of Pacific
Concord Container Lines, Inc. (NVOCC); Global Star Logistics,
Inc.(Project cargoes); TMI Shipping, Inc. (ship agency); Travelworx
(travel agency); International Plant and Equipment Inc (heavy
equipments and trading); Multi-pallets & Boxes, Inc (manufacture
of corrugated pallets/boxes).
Company offices are strategically located all over the archipelago
— in Manila (head office) and in the cities of Cavite,
Cebu, Davao, Cagayan de Oro, General Santos and Zamboanga.
Two new companies from this joint venture will be established
shortly: TMI Corp, focusing on trading, distribution and supply;
and TMI Logistics, Inc, catering to logistics and warehousing
and acting as general sales agent and international airfreight
services provider.
Synergy in action: Transmodal recently inked an agreement to create a joint
venture with Manquist Holdings Pte Ltd, Jang Holdings, Inc,
and Nayak Aviation Pte Ltd. At the signing were, seated (L
to R), Ronald Siong Kiat of Manquist Holdings Pte Ltd., Capt.
Jae Jang of Jang Holdings, Inc, and Irene Manguiat-Tan of
the TMI Group of Companies. Standing (L to R): Efren Caboteja
of Jang Holdings, Inc., Atty. Jean Paulo Primavera of TMI
Group of Companies, Arvind Madhav Nayak of Nayak Aviation
Pte Ltd, and Barbie Rivadeneira of Pacific Concord Container
Lines.
OPERATIONAL efficiency at the North Harbor, the country’s
premier port, has fallen way below international standards
stressing the need for its immediate rehabilitation by the
private sector, according to the Philippine Ports Authority
(PPA).
In a report to Transport undersecretary Ma. Elena Bautista,
who is in charge of the transport department’s water
sector, PPA said the terminal facilities are more than 50
years old and have outlived their economic usefulness.
“Expectedly, structural soundness and operational safety
(are) now (at) the critical stage. Operational efficiency
at this port is way below international standards,”
PPA said in the report.
PPA said it has no funds to finance improvements and only
the immediate transfer of the port management and operation
to a third-party will guarantee that the port is modernized.
PPA is also urging the Manila Regional Trial Court to decide
on a suit filed by Harbour Centre Port Terminals Inc which
questioned the port privatization process.
Harbour Centre, the lone eligible bidder for the 25-year North
Harbor management and operations contract, filed a case in
August 2007 after the PPA board inserted a provision in the
bidding rules that there should be at least two eligible bidders
for the project.
North Harbor services Metro Manila and the nearby provinces
of Bulacan, Pampanga, Tarlac, Nueva Ecija, and Nueva Vizcaya,
Rizal, Cavite, Laguna, Batangas, and Quezon.
It can accommodate all types of interisland vessels and has
six main piers that cater to coastwise cargo and passenger
ships.
The Philippine Interisland Shipping Association (PISA) earlier
proposed to PPA the creation of a state-owned firm that will
handle the development of North Harbor.
It said the new firm could secure seed money from aid agencies
such as the Japan Bank for International Cooperation and Asian
Development Bank for the development of the terminal.
PISA said this measure can still be qualified as privatization
since the private sector can join the project once the firm
becomes public or through private equity.
THE Davao Integrated Port and Stevedoring Services, Corp.
(DIPSSCOR) has reached the 200,000 twenty-foot equivalent
unit (TEU) annual mark for the first time.
DIPSSCOR, a subsidiary of International Container Terminal
Services, Inc and the cargo-handling operator of Sasa Wharf
in Davao, reached the milestone when it unloaded the 20-footer
APZU 4427290 from American President Lines’ (APL) 1,341-TEU
Montana.
“With the 200,000th container, Sasa Wharf is now the
leading port in southern Philippines. We are confident that
Davao will become a major international port in Southeast
Asia in the next few years especially with the increasing
volumes from foreign trade,” DIPSSCOR general manager
Manuel De Jesus said.
He added that new and bigger vessels are berthing at the terminal
and investments are underway to further improve the terminal’s
operations, facilities and equipment to address bigger volumes
and vessels.
Foreign trade constitutes 80% of volumes handled by DIPSSCOR.
Last year, DIPSSCOR serviced 10 maiden calls of foreign containerships
within the 800- to 1,400-TEU range. The vessels had increased
on-board reefer outlets to sustain Davao’s increasing
fruit exports.
Vessel upgrades of foreign lines translated to a combined
34% increase in the port’s monthly average capacity.
DIPSSCOR serves five international carriers at the Sasa Wharf
— APL, Maersk, Regional Container Lines, Malaysian International
Shipping Co, and Mariana Express Lines. It services an average
of nine vessels weekly.
To boost its handling capacity, DIPPSCOR recently took delivery
of a 45-tonner reach stacker from Kalmar. The equipment is
the latest addition to the port’s container handling
fleet of two stackers and two top lifters.
“We have already placed an order for a fourth stacker,
and we expect delivery by the second quarter. This will further
enhance our capability and readiness for the projected volumes
in the short term before we go to our committed next step
of deploying mobile harbor cranes once the structural testing
procedures of Sasa’s quay have been completed,”
De Jesus said.
“We are not only committed to our shipping line clients
but to the economy of Mindanao. Sasa Wharf is in the best
position to serve growing trade in southern Philippines,”
he added.
