Marina in search of stand-in cargo operators for Sulpicio
THE Maritime Industry Authority (Marina)
is looking for cargo operators that will take up the slack
to be left by Sulpicio Lines when the latter’s eight
freighters are grounded yet again for a more complete auditing
next month.
“Cargoes handled by Sulpicio need to be transported.
We are looking for ways to mitigate effects of the grounding
of all Sulpicio vessels,” Marina administrator Vicente
Suazo, Jr said.
“We will talk to other local vessel operators to alter
their routine to serve routes being served by Sulpicio or
we will just simply issue special permits to foreign flag
vessels to plug the shortage of bottom brought about by the
grounding,” Suazo said.
“We cannot simply stop operations of the freighters
without a substitute as this will really affect the movement
of cargoes in the country particularly now that there is a
looming food crisis,” Suazo said.
The search for alternative cargo operators becomes even more
urgent considering Marina will also not allow Sulpicio’s
11 combination passenger-cargo vessels vessels to restart
operations until they are completely audited. Some of the
vessels have been found with deficiencies.
Sulpicio handles about 40% of the country’s total domestic
cargoes, most of which are shipped through its fleet of freighters
and just a fraction through its combined passage-cargo vessels.
Sulpicio has the widest service coverage, including routes
classified as missionary such as Masbate and some parts of
Leyte.
The Philippine Liner Shipping Association, of which SLI is
a member, earlier said small- and medium-sized enterprises
will suffer much when all Sulpicio ships are grounded and
there are no alternative cargo operators.
The Aboitiz Transport Group, one of the country’s biggest
domestic vessel operators, said it cannot accommodate the
volume from Sulpicio because, having gone through vessel right-sizing
two years ago, its fleet of eight vessels is just enough for
its current operations.
Resumption of audits
In another development, Marina said it is restarting the audit
of all local shipping lines next month, halted due to the
sinking of the Princess of the Stars.
The audit is a new system implemented by Marina at the start
of the year to determine flaws in the structure of shipping
lines, including the software and hardware they use and documentary
requirements of seafarers ashore and onboard.
“The measure is not being implemented because of the
sinking of the Princess of the Stars. The scheme has been
in effect since the start of last year and has already audited
two vessels—one from Montenegro and the other from Starlite.
The audit was stopped as we had to transfer all our audit
personnel to concentrate on Sulpicio,” Suazo said.
“We are restarting the scheme to prevent similar tragedies
in the future by fostering responsible ship ownership where
operators have to rectify all possible flaws as early as possible,”
Suazo added.
Embodied in the National Ship Management Code which has been
in effect since 2005, the scheme is patterned after the International
Ship Management Code crafted by the International Maritime
Organization.
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Cargo operations between Manila, Netherlands
to start
THE Philippine government recently signed
a new air agreement with the Netherlands enabling both countries
to increase their passage entitlements and start cargo services.
Previously, there were only four flights per week between
the Philippines and the Netherlands and no cargo entitlements.
The new agreement provides for seven weekly flights to Manila,
seven to Clark and another seven to other points in the country.
An equivalent number of flights from these destinations to
Amsterdam also applies.
“Also, cargo entitlements were thrown in wherein 700
tons per week will be coursed through Clark and 250 tons per
week to Manila,” Civil Aeronautics Board executive director
Carmelo Arcilla said.
Fifth-freedom rights were also expanded but declined to give
details on a third country.
The new agreement is expected to pave the way for more tourists
and overseas Filipino worker traffic between Manila and Europe
as well as neighboring areas.
The last Philippines-Netherlands air agreement was signed
in 1995.
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May exports up 2.3%
PHILIPPINE exports increased 2.3% in May
to $4.224 billion from $4.128 billion in the same month last
year, latest data from the National Statistics Office (NSO)
showed.
However, compared with the previous month’s level, total
export revenue dropped 2.3% from $4.325 billion, which may
be attributed to the decline in exports of other crude coconut
oil.
For the first five months of the year, export receipts rose
3.1% to $21.085 billion from $20.452 billion during the same
period in 2007.
Accounting for 58.6% of the aggregate export revenue in May
2008, electronics product shipments continued its downtrend
for the second consecutive month in 2008, further contracting
3.4% to $2.474 billion in May from $2.561 billion in May 2007.
The same is true with the previous month’s level, where
a 1.8% decrease from $2.519 billion was noted. This may be
due to the slowdown in demand for electronic products especially
on components/devices (semiconductors) recording a dip of
7.1% to $1.873 billion from $2.016 billion in May 2007, the
NSO said.
Cathodes and sections of cathodes of refined copper was the
country’s second top earner in May 2008 with a 3.7%
share and an aggregate receipt of $155.14 million or 16.2%
higher than the $133.52 million in May 2007.
Articles of apparel and clothing accessories followed as the
third top earner in May 2008 with total revenue of $150.18
million or a combined share of 3.6%, posted the highest decline
of 17.7% from $182.43 million in May 2007.
Woodcrafts and Furniture, ranked fourth in May 2008 with sales
amounting to $94.27 million or a growth of 3.1% from $91.47
million in May 2007.
Petroleum products, ranked fifth with export receipts of $88.89
million or an annual growth of 3.4% from $85.97 million in
May 2007.
Rounding up the list of the top ten exports for the month
of May 2008 were ignition wiring set and other wiring sets
used in vehicles, aircrafts and ships (consisting only of
electrical wiring harness for motor vehicles) valued at $69.65
million or an increase of 22.3%; coconut oil with receipts
of $63.55 million down 1.5%; other products manufactured from
materials imported on consignment basis valued at $49.90 million
or a decline of 7.3%; metal components with proceeds billed
at $49.60 million or a 20.2% increment; and bananas with export
revenue of $41.44 million, up 18.8% from May 2007 level.
The US remained the country’s top market for May 2008
accounting for 16%, followed by Japan, China, Hong Kong, Korea,
the Netherlands, Singapore, Germany, Taiwan and Malaysia.
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RP aviation industry upgrade will have
to wait
THE Philippine aviation industry will have
to wait a bit before getting an upgrade after evaluation proceedings
have been reset for August.
The Philippines was to have presented to the United States
Federal Aviation Authority (FAA) its plans to upgrade the
industry’s Category I status to Category II on July
7.
The evaluation was delayed because the choice for CAAP chief
to spearhead the Category I compliance also took time. Retired
Air Force Gen. Ruben Ciron now heads CAAP.
“The government, through the Civil Aviation Authority
of the Philippines (CAAP), is very ready to make its presentation
to the US FAA to bring back Category I status to the Philippine
aviation industry,” Transportation and Communications
Secretary Leandro Mendoza said in a chance interview.
“Hopefully, after the presentation, we will be upgraded
to Category I in the next couple of months,” he said.
The evaluation schedule was originally set for April or May
but the government decided not to rush things, instead targeting
compliance for the latter part of the year.
The CAAP aims to establish a regulatory framework for maintaining,
enhancing and promoting domestic and international civil aviation,
with particular emphasis on aviation safety and security.
The law converts the Air Transportation Office into an autonomous
body with quasi-legislative and quasi-judicial powers possessing
corporate attributes
CAAP will have fiscal autonomy with the power to generate,
dispense and retain its revenue and income independent from
the budgetary restriction of the Congress and the power to
hear and decide civil aviation cases.
CAAP shall also be responsible for the development and use
of the air potential of the Philippines; encouragement and
development of an air transportation system properly adapted
to the present and future of foreign and domestic commerce
of the Philippines; regulation of air transportation in such
manner as to foster sound economic condition in such transportation
and to improve the relations between air carriers; ensuring
safety, quality, reliability and affordability of air transport
services for the riding public; and encouragement and development
of a viable and globally competitive Philippine aviation industry.
Lat January, the US FAA downgraded the country’s aviation
sector from Category I to Category II due to safety concerns.
Category I is given if the country’s civil aviation
authorities (CAA) has been found to license and oversee air
carriers in accordance with International Civil Aviation Organization
(ICAO) aviation safety standards.
Category 2 means a country’s CAA does not provide safety
oversight of its air carriers in accordance with the minimum
safety oversight standards of ICAO.
The downgrade has stalled plans by flag-carrier Philippine
Airlines to expand its US operations.
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Adoption of new safety policies may have
mitigated Sulpicio accident
THE Princess of the Stars accident could
have been avoided if the implementation of at least three
new safety policies were not deferred.
The policies provide for the segregation of toxic substances
from the passenger section, putting full liability on the
master and operator during accidents, and adoption of safe
cargo storage methods.
In February, the Maritime Industry Authority (Marina) deferred
implementation of the following safety policies: Marina Circular
No. 2008-01 or the “Rules Governing the Carriage of
Dangerous and/or Hazardous Cargoes in Package Form for Ships
Plying the Domestic Trade”; Marina Circular No. 2008-02
or the “Rules to implement the Master’s Oath of
Safe Voyage (MOSV)”; and Marina Circular No. 2008-03
or the “Rules and Regulation to implement the Code of
Safe Practice for Cargo Storage and Securing in Domestic Shipping”.
A high-ranking Marina official, who asked not to named, told
PortCalls: “The problems being experienced by government
now are self-inflicted after higher authorities decided to
defer the implementation of the new safety policies.
“Government should have had no problem whatsoever with
regards to the sinking of the Princess of the Stars if they
prioritized safety,” the official added.
He said at least more safety policies were taken off the list
of policies that were originally for Marina Board consideration.
These are the Special Board Resolution on the Requirement
of Rescue Boats; Loadline Annual Endorsements; Manning Annual
Endorsement; Ad Measurement; and the mandatory Protection
and Indemnity Coverage of all domestic shipping lines.
Under Marina Circular No. 2008-01, the transport of dangerous
and/or hazardous cargoes in package form shall be covered
by a Dangerous Cargo Manifest, which should also be reflected
in the MOSV. It also provides for proper identification, packaging,
marking, labeling, stowage and transfer of the dangerous/hazardous
cargo and training of personnel involved in the cargo operation
of such cargo as well as ensure that equipment are readily
available to address accidents involving dangerous goods.
The circular puts full responsibility on the company in the
event of an abandoned ship due to an incident involving dangerous
cargoes, or in the event of a report from such a ship being
incomplete or unobtainable.
Retrieving the toxic endosulfan cargo from the sunken vessel
owned by Sulpicio Lines and sourcing funds for salvaging operations
are huge problems.
For now, it is unclear who will pay for the salvaging operations.
Based on estimates by Malayan Towage and Salvage Corp, one
of the companies contracted for the salvage operations, about
$50-$100 million or P2.25 billion to P4.5 billion is needed
to refloat the vessel. Sulpicio had previously estimated that
this exercise would cost P600 million.
Sulpicio’s insurance does not cover salvage. Had Sulpicio
been covered with protection and indemnity insurance this
would have been covered, but this is not required in the Philippines.
Sulpicio’s insurance agreement with Oriental Assurance
Corp only covered the hull, machinery and third party injuries
and damage.
It appears likely that Sulpicio will pay for the 23,824-gross
ton ferry’s recovery, but as the ship poses potential
environmental hazard it has been suggested that the government
should pay the costs initially to ensure work is done quickly,
with Sulpicio to be charged later for this.
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RP industries to get assist from new TNT hub
EXPRESS firm TNT is helping boost competitiveness
of Philippine export products in the Asia-Pacific region with
the introduction of its Thailand road hub.The hub is designed
to handle heavy freight and to leverage on the soaring demand
for freight express services between Southeast Asia, China
and Europe.
TNT said the hub is expected to benefit Philippine business
with operations or trade links with Thailand as well as customers
that move high volume of goods through the Asia Road Network,
which has been extended into China.
“The completion of the Thailand Road Hub is an integral
part of TNT’s growth strategy in the region and will
play a vital role in our freight business,” said Onno
Boots, regional managing director, TNT Southeast Asia.
“It also enhances our Asia Road Network, which covers
125 cities in Singapore, Malaysia, Thailand, Vietnam and China.
As the mid-point along the Asia Road Network, Thailand is
the ideal location to carry out the trans-loading of trucks.
Its strategic location also allows for seamless integration
between our air and road network,” Boots added.
Thailand is the Philippines’ fifteenth biggest trading
partner, with total exports amounting to $1.4 billion, and
total imports amounting to $2.2 billion in 2007. Some of the
Philippines’ biggest exports to Thailand comprise mostly
of machineries and transport equipment and parts, electronics,
various resource-based commodities, tobacco, and processed
foods. In addition, it exports certain commodities, including
greeting cards and stationary, dried vegetables, natural rubber,
canned tuna, women’s and girls’ wear, and petroleum
products to Thailand.
The new hub spans some 3,000 square meters. Located in the
Lamlukka district in the Thai capital, the new road hub employs
150 full-time staff that man the facility 24/7.
Goods passing through Thailand will be consolidated and processed
at the road hub before making their way to TNT’s Southeast
Asian hub in Singapore via the Asia Road Network. These will
be subsequently airlifted to China and Europe using TNT’s
Boeing 747-400 ER Freighter that flies between Singapore,
Shanghai, China and Liege, Belgium three times a week.
The hub is expected to reduce transit time between the warehouse
and distribution center by at least two hours due to its ideal
location.
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No dismissals at BOC just yet
THE Bureau of Customs (BOC) has guaranteed
work for all employees who failed to meet their 2006 targets
under the Lateral Attrition Law (LAL). In addition, the employees
will receive a flat reward of P8,500.
Under the LAL, BOC employees who fail to meet targets by less
than 7.5% will be moved to less sensitive positions while
those who fall short by more than 7.5% will be dismissed.
“There is no basis to dismiss from the service the bureau’s
personnel for their collection performance in 2006 since the
rules in the Lateral Attrition Law was made in the middle
of the year,” Customs deputy commissioner Reynaldo Umali,
who also heads the BOC Revenue Collection and Monitoring Group,
said.
At least three ports failed to meet their collection targets
in 2006 — the Ninoy Aquino International Airport (NAIA),
Manila International Container Port (MICP) and Cagayan de
Oro.
Umali said the BOC could not fully implement the Lateral Attrition
for the 2006 collection year, since at the time there was
only a port target and not a section target, a requirement
to gauge performance of officers.
He explained that the Revenue Performance Evaluation Board
which crafted the LAL guidelines issued the rules in mid-2006.
BOC conducted a reshuffle that took effect also in mid-2006.
MICP Collector Carlos So was transferred to NAIA, and Batangas
Port Collector Adelina Molina was reassigned to the MICP.
Based on records, So’s collection at the MICP was down
in the first half of the year but he excelled at the NAIA.
Molina, on the other hand, experienced the opposite: She had
positive collection targets in Batangas but failed to meet
her targets at the MICP.
Cagayan de Oro’s then Collector Andy Salvacion ran for
a seat in Congress and has resigned from his post.
Meanwhile, the BOC has began looking at complaints of at least
80 personnel demanding about P3 million more in the share
of incentives.
Customs Commissioner Napoleon Morales said a grievance committee
has since been organized to address the complaints and review
rewards distribution guidelines.
Morales was to have received P5.2 million and his deputy commissioners
P899,000 each from the incentives scheme but all chose to
forego their reward to give to the complaining employees.
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