PortCalls
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::Industry News::


Archives 2008 : Jan | Feb | Mar | Apr | May | June | July

May 5 | May 7 | May 12 | May 14 | May 19 | May 21 | May 26 | May 28

 

* Cargo volume down 6% in first two months

* AEO set to replace SGL

* ATS earmarks P1B for Mindanao expansion

* Refundable tax levy on imports soon in place

* Delivery of oil products faces delays

Cargo volume down 6% in first two months

AFTER posting positive growth last year, cargo throughput in the first two months of the year nose dived 6.18% due to the sluggish performance of both foreign and local cargoes, which dropped 9.26% and 3.06% (see table), respectively.
The transfer of cargoes from Philippine Ports Authority (PPA)-operated port Cagayan de Oro port to nearby Mindanao Container Terminal also affected performance for the period in review.
In a report, the PPA said the sluggish showing reflects volatility in the national economy.
The PPA explained the decline in domestic cargo volume, specifically at the South Harbor, is attributed to reduced vessel deployment of the Aboitiz Transport System and the marked decrease of cargoes handled at the Terminal Management Office in Pasig.
The ports of Legazpi, Surigao and Cagayan de Oro contributed to the decline, posting dips of 9.54%, 8.47% and 25.01%, respectively.
Export and import cargoes both posted negative growths of 9.03% and 9.69%, respectively. Export cargoes declined in Surigao (predominantly shipping mineral ores), Nasipit (nickel ores), Tagbilaran (limestone) and Ormoc (nickel, copra and chrome) due to diminishing demand for commodities.
Import products also declined at the North Harbor (mainly shipping lumber), Batangas (crude and petroleum products) and Ormoc (copper cathode and copper concentrate).
Container traffic continued its uptrend, increasing 4.75% for the period in review from 587,315 TEUs to 615,315 TEUs mainly due to active exports.
Total foreign containerized shipments grew 5.85% from 346,315 TEUs last year to 366,563 TEUs for the period in review. Import containerized cargoes saw a 2.34% increase while export boxes registered a 9.30% growth from 174,400 TEUs to 190,625 TEUs for the period.
PPA said the volume of foreign containerized cargo received at the Manila International Container Terminal, General Santos and Davao significantly contributed to the bulk of the increase despite the slight decrease in volume at the South Harbor.
Domestic containerized cargoes grew 3.17% from 241,117 TEUs to 248,752 TEUs.
Passenger traffic rose 165,102 or 2.58% due to activity in the ports of Batangas, Calapan, Pulupandan, Zamboanga, Ozamiz, Dumaguete, Iloilo, Iligan and Ormoc.
Zamboanga was the only port that reported receiving foreign passengers.
Vessel traffic posted an increase of 5.24% compared to last year. Domestic and foreign shipcalls both rose 5.35% and 1.58%, respectively, during the period.
Earlier, the PPA said it does not expect stellar throughput growth in the next three to four years as expansion in the 10 key ports being groomed to achieve world standards by 2010 is limited to less than 5%.
The PPA forecasts that of the 10 ports, six will post a combined 2.5-5% growth until 2010. The remaining ports are projected to have flat to negative growth due to the slow Philippine economy.
International shipping lines operating out of the Philippines also project flat growth this year due to the global economic slowdown which will impinge on consumer spending.


Cargo Traffic for Jan-Feb 2008
Jan-Feb
Inc/(Dec)
2008
2007
Volume
%
Cargo (mmt)
20.86
22.24
(1.37)
(6.18)
Domestic
10.72
11.06
(0.34)
(3.06)
Foreign
10.15
11.18
(1.04)
(9.26)
Import
6.66
7.32
(0.66)
(9.03)
Export
3.49
3.86
(0.37)
(9.69)
Container (in TEUs)
615,315
587,437
27,883
4.75
Domestic
248,752
241,117
7,635
3.17
Foreign
366,563
346,315
20,248
5.85
Import
175,938
171,915
4,023
2.34
Export
190,625
174,400
16,225
9.30
Passenger (millions)
6.561
6.196
0.365
5.89
Domestic
6.557
6.190
0.367
5.93
Foreign
0.003
0.005
(0.002)
(35.34)
Shipcalls
48,434
46,025
2,409
5.23
Domestic
46,955
44,569
2,386
5.35
Foreign
1,479
1,456
23
1.58
Source: Philippine Ports Authority

 

 

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AEO set to replace SGL

THE phaseout of the Super Green Lane (SGL) looms with the impending implementation of the Authorized Economic Operator (AEO) measure in the Philippines.
AEO accreditation standards are expected to be more stringent than those of SGL, making the latter redundant.
Under the World Customs Organization-sponsored AEO, reliable traders that meet specified criteria may obtain facilitation from security measures and also ask for simplification as provided for under customs rules.
The form the AEO will take for the Philippines will be deliberated upon in next week’s 1st National Conference on Safe Trade and AEO being organized by the Aircargo Forwarders of the Philippines, Inc. The conference takes place on May 13-14 at the SMX Convention Center in Pasay City.
A conference highlight is the breakout session, where delegates will be able to provide their inputs on what they think should be part of the AEO Philippine model.
The conference is the first of its kind where private sector participation is actively sought in the crafting of a key measure.

SGL-accredited importers
Importers accredited under SGL are, however, pushing for the enhancement of SGL procedures rather than its outright replacement. “We should use the existing SGL and enhance its procedures... we could use it as our AEO system to facilitate compliance with the newest safe trade measure,” the SGL users said.
“There is no need for an entirely new procedure as all the requirements needed under the AEO such as registration of importers, brokers, etc are also provided under the SGL. We just have to change the name SGL to AEO,” the group added.
The importers said that if SGL is used as basis for the AEO, stakeholders simply have to comply with whatever additional regulations from the Bureau of Customs instead of starting from scratch.
Under the SGL, importers can pre-clear their cargoes and forego several physical examination processes as long as the importer is accredited under the program.
The AEO is also aimed at pre-clearance of cargoes at its destination as long as it is from an AEO in the country of origin.
The SGL-accredited importers are seeking an audience with the BOC to discuss how the SGL could be transformed into the AEO. They also want to know BOC’s AEO compliance plans.
SGL operator and BOC-accredited value-added service provider Intercommerce Network Service (INS) echoed the sentiment of importers, saying the SGL is enough basis for an AEO.
But INS president Francis Lopez said the existing system should be improved to include additional safety and security measures.
“There is no need to phase out the SGL; it has to be simply enhanced to meet the requirements of the AEO system,” Lopez said.


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ATS earmarks P1B for Mindanao expansion

ABOITIZ Transport Corp (ATS) is investing about P1 billion to expand operations in Northern Mindanao to accommodate increasing demand for containerized shipping.
The amount will be used to develop its own container freight station (CFS) adjacent to the Cagayan de Oro (CDO) port.
ATS acquired the four-hectare land from Capicor, a rice trader from the area. The property acquisition took longer than expected as both parties first asked the Bureau of Internal Revenue to determine the property’s real capital gains value.
“Investments from the private sector are mushrooming in Cagayan de Oro.. we expect (this will) boost the performance of the port, particularly freight,” CDO port manager Efren Bollozos said in an interview.
He explained the new CFS would complement operations of the port and reduce congestion, resulting in better efficiency and faster turnaround for cargoes.
ATS is slowly shifting operations from passenger to freight by converting its unused passage capacity to make room for its containerized and ro-ro services.
The ro-ro service has lately been gaining ground, currently contributing over 23% to ATS’s freight business.
In the last two years, ro-ro capacity has swelled more than 20%.


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Refundable tax levy on imports soon in place

THE Department of Finance (DOF) will soon implement a refundable 30% tax levy on all import products through the country’s ecozones.
The move is designed to guarantee that all products shipped through the ecozones will be consumed within the area. The 30% will serve as payment guarantee if ever such products are shipped out of the zones.
The percentage, to be computed from the total dutiable amount of the goods, will be held in escrow and canceled if there is no tax deficiency for the products.
“I believe in taking preventive rather than curative (measures). We are planning to levy the amount on all products passing through the ecozone as an assurance or initial payment of taxes for the products,” Finance Secretary Margarito Teves said in a recent interview during the Ro-Ro caravan held last week.
“We believe that not all products are consumed within the ecozones and the amount to be collected is just an assurance that the shipper will pay its obligation. If not, then at least we have collected a significant amount from such products,” Teves added.
He said negotiations are ongoing with the Subic Bay Metropolitan Authority and the Clark ecozone for the initial implementation of the refundable levy.
The DOF is fine tuning provisions of measure’s implementing guidelines for release in the next few days.


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Delivery of oil products faces delays

A SLOWDOWN in oil products delivery may be looming due to compliance issues of tanker-barge operators owning single-hull vessels with the double-hull requirement.
It may be recalled that the Maritime Industry Authority (Marina) last month extended until end of the year the deadline for single-hull tanker-barge operators to comply with the double-hull requirement.
Under the extension, however, operators must pay a P25,000 penalty per day until full compliance and a P5-million bond for each single-hull vessel in use as seed money in case of oil spills. The bond is refundable upon compliance and if no incident involving the vessels occurs.
The Philippine Petroleum Sea Transport Association (Philpesta) called the penalty clause unnecessary and is asking Marina to reconsider it. “We believe the bond held in escrow by the authority is enough to cover for whatever liabilities an operator has in cases of oil spills,” it said.
“It is even more profitable to operate just the compliant tankers and park the single-hull tankers while waiting for their replacement,” Philpesta added.
Based on estimates, the 20 tanker-barges operated by Philpesta members will cough up P14 million a month starting this month or roughly P112 million for the entire eight-month extension period.
Last March, Philpesta asked Marina to exempt tanker-barges carrying persistent oil plying the coastwise trade from the double-hull tanker requirement claiming the impending transfer of the Pandacan oil depot, the key market for barges, will render refleeting immaterial as there is no guarantee for a return of investments beyond 2013.
There are at least 20 tanker-barges carrying black oil plying the coastwise trade. Most have yet to initiate compliance with the requirement.

 

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Archives 2008 : Jan | Feb | Mar | Apr | May | June | July

May 5 | May 7 | May 12 | May 14 | May 19 | May 21 | May 26 | May 28