More funds funnelled
into port development
THE port industry will receive about P10
billion in investments starting this year. A consortium of
Filipino and Chinese businessmen is sinking in P5 billion
in port operations, on the back of the booming mining industry,
while International Container Terminal Services, Inc. (ICTSI)
will invest P4.463 billion to develop an area adjacent to
the Manila International Container Terminal (MICT) in answer
to growing demand for container handling.
Rizhao Development Corp, 60% owned by a Filipino company and
40% by its Chinese partners, will render port services to
the mining industry in nickel- and chromite-rich Zambales.
Owned by John Dawn Daily, Jeffrey Daily and the Daily clan,
the company will revive the mothballed Masinloc port.
The investment covers the purchase of state-of-the-art equipment,
acquisition of new land and reclamation involving 2.5 hectares.
A total of seven berths will be constructed, three for mixed
use but with a capacity of 5,000 metric tons and the other
four berths for mixed export cargo.
Commercial operations are expected in July 2009.
ICTSI, on the other hand, will construct Berth 6, north of
the MICT, and a concrete wharf. The project will allow the
terminal operator to service post-panamax vessels of up to
85,000 deadweight tons. The wharf, on the other hand, will
support rail mounted post-panamax container cranes and five
12-meter draft berthing slots.
Permits have been secured from the Philippine Ports Authority
and from the Philippine Reclamation Area for the reclamation
and development of new land of about 23.4 hectares.
Site preparation and development will start this year for
completion next year. Full commercial operations are targeted
in 2010.
ICTSI may collect port dues and charges for the use of the
facilities, cargo handling equipment and services rendered.
The expansion is a pioneer project entitled to incentives
under the 2007 and 2008 Investment Priorities Plan. A pioneer
project requires a construction cost of at least $100 million.
The terminal operator is expanding the capacity of MICT to
handle more than 2-million TEUs next year from the current
1.6-million TEUs.
ICTSI’s capital expenditures for the year has been upped
to P10 billion from P9.9 billion last year. The funds will,
among others, buy equipment for its Ecuador facility and construct
terminals in Colombia and Poland.
ICTSI will also expand its facilities in Brazil, Poland, Indonesia,
Ecuador and Georgia.
Mindanao Container Terminal
In another development, ICTSI will also open the Mindanao
Container Terminal (MCT) for commercial operations before
end-June.
It had signed a concession contract for management and operation
of MCT with the Phividec Industrial Authority, which oversees
the Phividec Industrial Estate, where the MCT is situated,
ICTSI told the stock exchange.
The concession contract is for 25 years
The Phividec Industrial Estate is in Tagoloan town in the
province of Misamis Oriental, about 20 kilometers from the
capital city Cagayan de Oro. The terminal is designed to accommodate
an annual throughput of 270,000 TEUs.
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Ro-ro highway promises cargo traffic
surge
MASBATE CITY — The Philippine Ports
Authority (PPA) expects a 10-20% cargo traffic surge in ports
now part of the Central Nautical Highway, launched this week
by President Gloria Macapagal-Arroyo.
Revenue in those ports are also seen increasing 5%-10%.
The Central Nautical Highway encompasses Bulan in Sorsogon;
Masbate City; Cawayan, Masbate; Bogo, Cebu; Tubigon, Bohol;
Jagna, Bohol; Mambajao, Camiguin; Benoni, Camiguin; and Balingoan,
Misamis Oriental.
A Ro-Ro (roll on-roll off) Caravan organized by the PPA which
began on Monday and ended today, traversed those ports.
Companies located in the area such as Nestle and exporters
of products such as volcanic sand, cement and copra and other
general cargoes are expected to supply the bulk of shipments.
Masbate, Bohol, Cebu, Camiguin and Cagayan de Oro port managers
expressed optimism for the new ro-ro highway even if some
routes are considered missionary in nature.
“We expect strong performance from the inclusion of
ro-ro operations to some of the ports that also cater to other
modes such as containers and bulk,” the managers said.
“This development will translate to faster transit time
of about 50%... further boosting the competitiveness of products
to buyers,” they explained.
Western Nautical Highway
In 2003, the government also opened the Western Nautical Highway
composed of the ports of Batangas City; Calapan City and Roxas
City in Oriental Mindoro; Caticlan, Aklan, Iloilo City; Bacolod
City; Dumaguete City and Dapitan City in Zamboanga del Norte.
In its first year of operation, the highway posted a 675%
increase in both passenger and cargo throughput and up to
now posts double-digit growth.
Vessel operators and private port operators may tap a credit
window offered by the Development Bank of the Philippines
as well as the NDC-Maritime Leasing Corp for projects intended
for any of the nautical highways.
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Wallem Phils to formalize use of Subic as
transshipment hub
WALLEM Philippines Shipping, Inc. (WPSI)
will soon sign an agreement with Subic Bay Metropolitan Authority
(SBMA) making Subic port the shipping line’s transshipment
hub.
In the runup to the agreement, WPSI will already introduce
a twice-a-month call with provision to increase if the need
arises.
SBMA seaport department manager Capt. Perfecto Pascual told
PortCalls WPSI has informed SBMA of its intent to make regular
calls at the port.
He said the service will carry rolling cargoes for distribution
to clients in the Asia-Pacific region.
“It’s a done deal. WPSI will be using Subic as
their transshipment hub,” Pascual said, two months after
WPSI first used the port for its completely build-up units
shipments.
“We expect to ink other deals such as this with other
shipping lines as we aggressively market Subic as the country’s
top transshipment hub,” Pascual said.
WPSI is the agent for international carriers Heung-A Shipping
Co., Eastern Carliner and IRISL.
With the entry of WPSI and the expected rise in shipcalls
this year, Subic forecasts a bigger volume of containerized
cargo to 43,490 TEUs from 36,451 TEUs in 2007.
Non-containerized cargo is targeted at 2.66 million metric
tons (mmt) this year from the 2007 record of 1.89 mmt.
Shipcalls were at 1,576 in 2006 and 1,778 last year.
Most ships that docked were trading vessels, including barge
tankers, general cargo vessels, container ships, and fishing
boats. The majority of calls were made by barge tankers, with
a total of 1,916 from 2003 to 2007, followed by general cargo
vessels, with 1,469; fishing boats, 870; container ships,
864; and general cargo barges, 731.
Bulk carriers called a total of 333 times in the same period,
navy ships with 293, and oil tankers with 206.
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Vessel operators seek government incentives
JAGNA, BOHOL — Local vessel operators
are asking for government subsidies to cushion the impact
of rising fuel prices.
Paul Rodriguez, president of Asian Marine Transport Corp.,
one of the largest vessel operators in the Bicol, Visayas
and Mindanao areas, said operators are hurting from high fuel
costs, which have increased two fold and are now eating up
60% of gross revenue compared to 30% a few years earlier.
“The bulk of the transport system is shipping yet shipping
does not enjoy support from the government in terms of subsidy.
We are asking for tax breaks as well as fuel discounts which
the government has already given to public utility vehicles,”
he said.
“Domestic shipping is also affected by the slowdown
in the international shipping industry partly due to the potential
US economic breakdown,” Rodriguez said.
“To survive, the government should support the industry
or the situation will remain the same or even worsen amid
the current global condition,” he explained.
Rodriguez said competition from low-cost airlines is also
weighing down on growth.
Measures such as fuel blending have not resulted in any savings
but have only increased maintenance cost.
Nonetheless, operators remain optimistic about shipping industry
prospects this year, projecting a 10-30% growth boosted by
activity from the use of the roll on-roll off highway.
Diesel, the most commonly used fuel in sea-going vessels,
has been increasing almost weekly since last month and is
now at P41.50 per liter. The increase could have been even
sharper if not for the strong performance of the peso. If
the current trend continues, diesel’s price is expected
to rise to about P42 per liter in the next few weeks.
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CTAP pushes entry into fuel discount program
THE Confederation of Truckers Asso-ciations
of the Philippines (CTAP) has asked Malacanang to issue an
order adding truck operators to the list of public utility
vehicles eligible for the P1 diesel discount fuel program.
CTAP said the move will comple-ment other govern-ment measures
such as the lifting of the truck ban, in the process helping
cushion the impact of rising fuel costs and avoid higher trucking
rates.
CTAP president Col. Rodolfo De Ocampo told PortCalls the association
sought the help of Malacanang after receiving slow action
from the Department of Energy on its request. CTAP expects
a favorable decision after a meeting with transport stakeholders
presided over by President Gloria-Macapagal Arroyo herself.
“It will really help truck operators if we get included
in the discounted fuel program… Being one of the major
players in the movement of goods nationwide contributing to
economic growth, truckers should also be given such an incentive,”
De Ocampo said.
He noted inclusion in the fuel discount program will mean
savings of P100-P200 per truck for every one-way trip or 5.5%
savings in fuel expenses for every truck.
“It will also prevent the upward movement of trucking
rates amid rising fuel, food and labor prices brought about
by the slowdown in the global economy,” he added.
As a safety net, CTAP proposes to restrict discounts to trucks
with franchises to ensure only legitimate operators avail
of the incentive.
As early as the start of the year, truckers have been batting
for inclusion in the fuel discount program implemented by
government with some gasoline stations.
The price of diesel, the most commonly used fuel by trucks,
has risen almost 26% in the last couple of weeks from P32
per liter to P40.50 per liter.
The price is expected to go up further as prices of oil in
the world market have reached almost $120 per barrel from
only $80 in the last quarter of last year.
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DMIA expansion in the works
THE Clark International Airport Corp (CIAC)
is expanding capacity of the Diosdado Macapagal International
Airport (DMIA) in preparation for the expected influx of investments
and tourists in the next few months.
CIAC is increasing the capacity of its passenger terminal
building to seven million passengers per year from 2.5 million,
and expanding ancillary and support facilities.
“We are expanding DMIA with the aim to become one of
the best international service and logistics centers in the
Asia-Pacific region,” CIAC president and chief executive
Victor Jose Luciano said.
Hopes are high that the government declaration of open skies
at DMIA will translate to increased passenger and cargo traffic
and greater viability of the Subic-Clark-Tarlac economic corridor
to investors.
To date, only budget airlines land at DMIA. Express operator
UPS maintains an Asia-Pacific hub in Clark.
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