North Harbor
truckers take a “holiday” due to stalled rate
increase implementation
MEMBERS of the Alliance of North Harbor
Trucking Association (ANHTA) went on a “trucking holiday”
beginning Friday (April 11) after distribution managers and
shipping lines refused to accept the group’s proposed
rate increase.
ANHTA, the largest trucking association in North Harbor, claims
more than 1,000 trucking units of its members have stopped
operating since Friday.
Composed of the Allied Transport Group, Integrated North Harbor
Truckers Association and the WGA Trucking Association, ANHTA
said it will continue with the trucking holiday until the
Supply Chain Management Association of the Philippines (SCMAP)
and the Philippine Liner Shipping Association (PLSA) agree
to their proposal to increase rates by 16%.
The group described the PLSA counter-proposal, in particular,
as too one-sided. PLSA reportedly wants to slash the increase
by half to 8% at the same time impose a 10% retention fee
on cargo passed on by carriers to truckers.
“We do not know what to call this. They (carriers) will
let us increase rates but will (also) ask for a retention
fee higher than (the actual increase that they will allow).
Instead of benefiting from the increase, we will be shelling
out more for the retention fee or we won’t get any cargo
from the lines!” the truckers exclaimed.
“Unless they agree to our proposal to increase our rates
by 16%, we will continue to park our trucks and not accept
any shipments,” the group said.
“As a win-win solution, we are amenable to an 8% increase
in rates as a survival relief measure provided they scrap
the 10% retention fee… then we go to the table to negotiate
the implementation of the remaining percentage of our proposal,”
the truckers stressed.
The truckers were supposed to increase their rates on April
16 from P5,100 to P5,915 per TEU for a 40-km radius round
trip but the implementation was halted due to SCMAP and PLSA’s
refusal to accept the hike.
The two associations are only amenable to P5,615 for each
20-footer within the 40-km radius round trip.
Since last year, North Harbor trucking operators have been
clamoring for larger rate increases due to the impact of spiraling
costs such as fuel, spare parts and labor, and the peso appreciation.
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Slowdown not changing ICTSI international
plans
UNFAZED by the ill-effects of the US economic
slowdown, International Container Terminal Services, Inc.
(ICTSI) said it will continue its search for new ports this
year.
In an interview after the ICTSI stockholders’ meeting
last week, chairman Enrique Razon expressed cautious optimism
about business prospects this year, saying the company will
closely evaluate where the global economy is headed.
“We continue to hunt for new ports this year as we see
no immediate need to invest in the domestic market,”
Razon said.
ICTSI is looking at Africa, the Middle East, Latin America,
Eastern Europe and Asia for additional business.
Locally, the company recently won the 25-year management and
operations contract for the Mindanao Container Terminal.
This year, ICTSI is looking at sinking a little over P10 billion
to improve cargo-handling equipment and facilities for its
ports world wide.
Additional cargo-handling equipment will be purchased for
its flagship Manila International Terminal as well as its
Baltic Container Terminal in Poland, Tecon Suape SA in Brazil,
Madagascar International Container Terminal Services Ltd.
in Toamasina and its new terminals in Equador, China, Syria,
Georgia, Colombia and Davao.
Last year, ICTSI handled a consolidated volume of 3.007 million
TEUs, up 51% from the 1.995 million TEUs handled in 2006.
Philippine operations accounted for 54% of the consolidated
volume and overseas volume, 46% from the 38% share a year
earlier.
Overseas volume grew 83% over 2006 driven principally by the
addition of China, Ecuador, and Syria and the strong growth
in Poland, Brazil and Madagascar operations.
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Truckers push for nationwide uniform truck
ban
THE truck ban reprieve for the National Capital
Region (NCR) is simply not enough help for the trucking industry.
Truckers want a long-term solution: the implementation of
a nationwide uniform truck ban provided under Executive Order
712 issued last month.
Confederation of Truckers Association of the Philippines (CTAP)
president Col. Rodolfo De Ocampo told PortCalls the removal
of the NCR truck ban has had little effect on the movement
of containers because adjacent municipalities and provinces
continue to implement their own truck ban policies.
“The government should immediately come out with the
implementing guidelines for the nationwide uniform truck ban
as provided under EO 712 to reap more benefits and reduce
transit time for cargoes,” the CTAP president said.
He said a synchronized ban will help truckers plan their trips
ahead, leading to at least a 20% cut in transit time of cargoes
to any destination.
The Department of Transportation and Communication—the
agency tasked to formulate implementing guidelines—has
no timetable on the start of hearings.
Since the implemen-tation of the NCR truck ban and the subsequent
enforcement of such ban from different towns, municipalities
and provinces nationwide, truckers have been complaining of
longer transit time leading to higher logistics costs.
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Back to basics for 20-year-old Asialink
Cargo Phil. Inc.
THE US economic slowdown is making airfreight
forwarder Asialink Cargo Phil. Inc. (ALC) — which is
celebrating its 20th year in the airfreight forwarding industry
today — think of going back to basics.
“With the gray forecast for the airfreight business
this year because of factors such as the US recession, appreciation
of the peso and stricter security requirements, ALC will gear
toward our strengths to weather ill effects of these developments,”
ALC Vice President/General Manager Chris Coching said in an
interview.
“We will continue to provide quality and personalized
service but keep our operations cost at a manageable level
to carry us over the hump in the air freight industry,”
Coching added.
“We will also lean on our dynamic team of professionals
who are receptive to improvements yet maintain a conservative
outlook. This team is focused on quality service and on controlling
cost,” he said.
Coching noted the industry has been in crisis for sometime
now but he is confident ALC will survive and even thrive through
good governance and teamwork.
ALC gears to be borderless in terms of technology and has
embarked on information technology upgrades, purchasing new
hardware and software that will complement and further improve
its systems. These upgrades will help the company conform
to external improvements being implemented by sectors it deals
with such as Customs, carriers and clients.
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Education key to cutting supply chain costs:
2GO
FORMAL education in supply chain management
is one of the ways to go in cutting the country’s supply
chain cost.
“With a formal course in supply chain management, we
are targeting to reduce the country’s supply chain cost
of about 12% to a certain percentage nearer that of the US
which is 4.5%, and with spillage down to about 20%,”
said Sabin Aboitiz, president of 2GO, the logistics arm of
the Aboitiz Transport Group.
2GO recently entered into an agreement with De La Salle University-College
of St. Benilde (DLSU-CSB) on a supply chain management post-graduate
program together with the Society of Fellows in Supply Management.
“If we are to help the country lower its supply chain
cost, making us competitive, we need to start educating our
youth and professionalizing our Filipino supply chain practitioners
and we need to start now,” Aboitiz said.
He lamented the lack of formal education on supply chain management
in the country, with most practitioners securing training
while on the job.
“As the world gets smaller with globalization, it is
increasingly important to arm our youth with the proper education
making them globally competitive,” Aboitiz added.
2GO also recently partnered with Jose Rizal University on
a collegiate course on supply chain management.
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New appointments at ICTSI, TNT
INTERNATIONAL Container Terminal Services,
Inc. (ICTSI) and TNT Express Philippines recently announced
appointments of key officials.
Fernando L. Gaspar has been appointed ICTSI Senior Vice President
and Chief Administrative Officer. Prior to joining ICTSI,
Gaspar was managing director and Asia Practice head of Alvarez
& Marshall, an international financial advisory and restructuring
firm, where he served as chief restructuring officer and interim
CEO of several medium and large enterprises across a wide
range of industries in Asia and Europe. Prior to Alvarez &
Marshal, Gaspar was CEO of Kuok Group of Companies (Philippines)
where he managed three Shangri-la Hotels and Resorts, and
restructured Kuok’s real estate holdings.
TNT Express also appointed Ann Rose Lago as National Sales
Manager for Territory Sales. As such, Lago is set to achieve
TNT’s target trading base and profitable revenue growth
as well as ensure high levels of retention and acquisition
of new business.
Lago is currently taking her Master’s Degree in Business
Administration at the Ateneo Graduate School. Prior to joining
TNT Express, she was involved in the banking and information
technology industry.
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Wallem charts new waters with Microsoft
ERP Solutions
THE Wallem team behind one of the biggest
enterprise resource planning (ERP) implementations in Asia
has been awarded a place in the top five of CIO Asia magazine’s
CIO 100 Index for 2008. Patrick Slesinger, director and chief
information officer (CIO), Wallem Innovative Solutions, was
presented with the award for his team’s project, which
utilizes Microsoft Dynamics AX to improve the efficiency of
Wallem’s financial reporting services, for both Wallem
and its clients.
Microsoft Dynamics AX, integrated with Wallem’s Total
Procurement Solution and the Microsoft BizTalk Server platform,
allows Wallem to seamlessly connect with vessels, creating
more efficient procurement and reporting services.
The new platform provides Wallem with more analytical power
and reporting flexibility allowing for any number of performance
measurements and reporting formats to be extracted very expediently.
Another key feature of the new platform, which was an important
factor in selecting Microsoft Dynamics AX, is its open-ended
architecture which also provides Wallem with the potential
to integrate a wide range of internal and external applications,
which is especially important for the procurement processes.
As a maritime services provider, Wallem aims to integrate
its own IT environment with vessel owners’ and the more
than 300 vessels under the company’s management. This
project will contribute greatly to achieving that integration.
“It is a great honor to have been selected in the top
five of the CIO Asia Awards,” said Slesinger.
“The success of the project was due to a true partnership
with our selected vendors, and the dedication and talent of
Wallem staff. We look forward to leveraging the investment
made in these products to derive even greater value in the
coming years,” said Slesinger.
The project is developed at Wallem Innovative Solutions Phils.
Inc, located in the Clark Freeport Zone.
WIS Clark operates under an ongoing service agreement with
Wallem Innovative Solutions Limited based in Hong Kong. WIS
Clark’s team is predominantly made up of young, enthusiastic
and dynamic information technology professionals who are among
the best available in the Philippines. WIS Clark’s technical
competence comes from the knowledge and expertise of its development
team in the use of predominantly Microsoft Development Tools.
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