PCG exempts
int’l carriers from vessel rules during bad weather
THE Philippine Coast Guard (PCG) is excluding
international shipping lines from guidelines on vessel movement
during inclement weather.
“International carriers are excluded from the new guidelines
(as opposed) to our earlier proposal,” the PCG said
in the latest public consultation on the policy.
“Since their operations are international in nature,
carriers will be covered by regulations promulgated by the
IMO (International Maritime Organization) on international
going vessels,” PCG added.
Under international guidelines, the shipowner and master of
the vessel are responsible for ensuring the safety of the
ship during inclement weather.
Under draft PCG guidelines, domestic vessels under 1,000 gross
tons will not be allowed to set sail if storm signal number
1 is hoisted along the area of its voyage; all kinds of vessels
are barred to sail under storm signal number 2.
The existing policy — contained in Memorandum Circular
(MC) 06-08 —bars all shipping lines, including international
vessels, within Philippine waters to set sail when storm signal
number one or higher is hoisted except when the vessel needs
to seek shelter.
The MC was issued after the sinking of the Princess of the
Stars under extreme weather conditions on June 21 leaving
about 800 people missing and endangering the marine environment
because of the ship’s toxic cargo.
Local operators are seeking to refine the guidelines. They
propose that vessels with 1,000 gross tons and below be barred
from sailing under storm signal number one and those with
2,000 gross tons and below under storm signal number two.
When signal number three is hoisted, they agree that no vessel
movement should be allowed at all.
Earlier, the Association of International Shipping Lines sought
exemption from the guidelines, stressing serious delays in
their commercial operations.
The carriers explained foreign vessels calling Philippine
ports — mostly feeders — are sticklers when it
comes to schedules to ensure that they connect with the mother
vessel at the foreign relay port. Any misconnection to the
mother vessel, they said, will cause delays in the arrival
of the goods at destination, which will be detrimental to
Philippine exporters and to Philippine trade in general.
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Non-container business lifts ATI revenues
PORT operator Asian Terminals, Inc. (ATI)
reported a consolidated net income of P382 million for the
first six months, up 18.8% from P321.4 million in the same
period last year. This was achieved partly on the strength
of its non-containerized cargo business, whose volume rose
21.7% for the period.
In a statement, ATI said the increase in loose/bulk cargo
volume cushioned the impact of the 16% fall in containerized
cargo volume for the period and the 4% drop in passenger volume
for its South Harbor operations, its flagship.
South Harbor domestic operations also decreased 12% for the
first six months.
Despite lower container volumes, revenues from the trade rose
4.2% for the period due to favorable revenue rates while revenues
from the non-container trade soared 28% because of a favorable
commodity mix.
Consolidated revenues increased 4.9% to P2.11 billion from
P2.01 billion last year. Revenues from port operations rose
6.3% to P1.90 billion against last year’s P1.79 billion.
Revenues from non-port operations, however, decreased 7.2%
from P219 million in 2007 to P203 million this year.
Consolidated cost and expenses in the first half of the year
totaled P1.40 billion, up 4.7% from P1.34 billion last year.
Labor costs of P428 million were 3.9% higher than the P412.1
million of a year earlier.
Consolidated other expenses were 15% more, from P271 million
last year to P311.9 million this year.
Meanwhile, ATI is taking its time on the sale of its Mariveles
Grains Terminal (MGT) to beverage giant San Miguel Corp. (SMC).
ATI said despite SMC claims it will complete the MGT acquisition
for P1.6 billion within the year, the port operator said it
has yet to confirm the deal.
Negotiations on the sale of MGT to SMC began almost four years
ago when SMC’s single biggest shareholder, Eduardo Cojuangco,
announced his interest in the grains terminal.
SMC has already bought properties adjacent to the terminal.
ATI has spent $60 million (around P2.7 billion) for the development
of the terminal.
ATI has a contract with the Philippine Ports Authority and
the provincial government of Bataan to develop and operate
the facility for 20 years until 2013.
Proceeds of the sale would supposedly be used to finance the
modernization of ATI’s South Harbor.
Last year, MGT handled 1.6 billion metric tons of grain cargo,
a 1.1% increase compared to the 2006 volume.
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Transfer of PSB powers to Marina seen this
year
THE power to supervise and regulate international
sea freight forwarders may be transferred to the Maritime
Industry Authority (Marina) from the Philippine Shippers’
Bureau (PSB) within the year.
The Marina Board, which includes representatives from PSB
and Department of Trade and Industry, will tackle a proposed
executive order related to the transfer in a meeting this
month.
“We are hoping the EO will be approved this year,”
Marina administrator Vicente Suazo, Jr. said. “Once
approved, we could complete the transition period also within
the year,” he added.
The draft EO noted that Marina in pursuant to Section 3.a
of Presidential Decree No. 474 provides the definition of
the “maritime industry in the broadest concept of the
term,” thus encompassing the freight forwarding sector.
The same decree specifies that the maritime industry covers
“all enterprises engaged in the business of designing,
constructing, manufacturing, acquiring, operating, supplying,
repairing and/or maintaining vessels, or component parts thereof;
of managing and/or operating shipping lines, stevedoring arrastre
and customs brokerage services, shipyards, drydocks, marine
railways, marine repair shops, shipping and freight forwarding
agencies and similar enterprises”.
The draft EO also appoints Marina to “supervise and
oversee the ship agents, representatives or local branches
of international/foreign shipping lines, relating to standards
of safety, quality and operations, including the rate-setting
mechanism of the former applicable to local charges only.”
Marina is drafting a memorandum of agreement with the PSB
stipulating the transition period.
The Port Users Confederation and the Philippine International
Seafreight Forwarders Association have been pushing for the
transfer of powers from PSB to Marina. In their letter to
the Department of Transportation and Communications (DOTC),
they said Marina is the most appropriate government body for
the job.
PISFA and PUC also requested DOTC to oversee the multimodal
transport and international logistics industries. The DOTC
is now undertaking to implement the Asean Framework Agreement
on Multimodal Transport, and the Asean Sectoral Integration
Protocol for the Logistics Service Sector pursuant to the
Asean Framework Agreement for the Integration of Priority
Sectors.
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Resin importation through CBWs restarts
today
RESIN importers — under certain conditions
— may bring in the commodity through customs bonded
warehouses (CBWs) beginning today.
“The BOC (Bureau of Customs) acknowledges the interest
of legitimate business as far as the importation of resin
though the customs bonded warehouse system is concerned,”
Customs commissioner Napoleon Morales said in Customs Administrative
Order (CAO) 4-2008-A.
“Considering that the government is bent on promoting
legitimate business which account for the country’s
economic stability and global competitiveness, we are making
several changes in our system for legitimate importers and
exporters,” Morales added.
CAO 4-2008-A amends CAO 4-2008 which banned the importation
of resin through CBWs. Local plastic products manufacturers
eschewed the latter policy because it forced them to pay in
advance taxes and duties for their resin imports.
The following may now import resin through CBWs: 1) Board
of Investments (BOI)-registered manufacturing companies; or
2) industry-specific CBWs directly supplying the resin requirements
of their clients involved in the semiconductor/electronic/automotive
industry; or 3) manufacturing CBWs or members of CBWs registered
as exporters by the Export Development Council (EDC); or 4)
such other CBWs established to be legitimate exporters after
due consultation with the BOI, EDC, Department of Trade and
Industry, Philippine Economic Zone Authority, Freeport authorities,
and other relevant agencies and stakeholders.
Importers must, however, submit a “prior disclosure
statement” signed under oath containing the following:
1) maximum cubic space of applicant CBW’s raw materials
and finished product compartments at any given time for manufacturing
including all members for CBW and all accredited clients/end
users for ICBW; 2) no Sub-contracting of the subject resin;
3) number of equipment indicating their rated and actual capacities;
3) number of factory workers directly involved in the production;
4) percentage of outright and constructive exports, indicating
buyers, and respective volume and value; and 5) monthly resin
requirements, indicating types, grades, volume, value, as
well as names of local suppliers if sourced through bonded
to bonded transfer or constructive exports.
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Conversion to double hull for white oil
tankers scheduled for 2011
SINGLE-HULL tankers carrying white oil will
be phased out at the start of 2011. This was the agreement
between the Maritime Industry Authority (Marina) and the Philippine
Petroleum Sea Transport Association and the Association of
Tanker Operators of the Philippines.
Marina originally wanted a 2010 schedule, a year after implementing
the total phaseout of single-hull tankers carrying black oil.
Marina administrator Vicente Suazo, Jr., in an interview,
said the agency has completed consultations with stakeholders.
“(But) it’s (just) funny that they (tanker operators)
didn’t want the December 31, 2010 deadline, but agreed
to January 1, 2011 because it sounded longer. They couldn’t
do anything but follow because of the tight competition since
oil companies themselves require them to be double-hulled,”
Suazo said.
“Total and Pilipinas Shell, for instance, have told
them to replace their fleet to double-hull in order to continue
carrying their white or black oil,” he explained.
Of the 214 oil tankers in the country, 100 vessels carry white
oil.
Marina is seeking the total phaseout of single-hull tankers
by 2011 to comply with international standards.
Earlier, Marina said tanker operators not ready for the double-hull
requirement could be delisted from the Philippine registry
and their license to operate revoked.
The Marina board has already extended to yearend compliance
to the double-hull requirement for black oil, provided special
permits are secured.
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PAL expects savings of $20-30M this year
PHILIPPINE Airlines (PAL), the country’s
flag carrier, will implement a fuel-efficiency program to
bring in savings of $20-$30 million a year.
“Once again, a pall of dark clouds hovers over our industry.
Like they were in recent months, sharp oil price spikes will
be a recurring challenge in the short to medium term,”
said PAL chairman Lucio Tan and president Jaime Bautista in
a joint letter released at last week’s stockholders’
meeting.
PAL’s cost-savings program includes working with authorities
so it can take the shortest possible route to its destinations,
reducing free passenger baggage allowance, reducing baggage
for cabin crew, cutting on meal servings to two instead of
three, and offering fewer drinks.
Andrew Huang, SVP-Finance and chief financial officer said
the carrier now has to cough up $360 million a year just to
cover the additional cost brought about by the $60 difference
in jet fuel from last year’s $90 a barrel to today’s
$150. PAL consumes six-million barrels of jet fuel a year.
Huang said increasing fares was out of the picture because
this would only dampen appetite for flying. The carrier would,
however, implement surcharges.
“Malaysian airlines have increased (their) surcharge
by 80%; (The) Taiwanese had (a) 25% increase across-the-board
but still they have not recovered,” Huang said.
“The outlook for the next 12 months is anything but
rosy,” PAL executives admitted.
“Until the recent tempest caused by the unprecedented
upsurge in fuel prices, the airline industry appeared to be
one of the best-performing business,” they said.
For 2007, PAL posted a $30.6-million profit, its fourth consecutive
annual surplus since exiting receivership in September last
year.
It expects to increase passenger volume to 8 million from
7 million last year.
PAL recently secured a total of $200 million in loans to purchase
new aircraft. The first of six orders is due for delivery
in September 2009.
SINGLE-HULL tankers carrying white oil will be phased out
at the start of 2011. This was the agreement between the Maritime
Industry Authority (Marina) and the Philippine Petroleum Sea
Transport Association and the Association of Tanker Operators
of the Philippines.
Marina originally wanted a 2010 schedule, a year after implementing
the total phaseout of single-hull tankers carrying black oil.
Marina administrator Vicente Suazo, Jr., in an interview,
said the agency has completed consultations with stakeholders.
“(But) it’s (just) funny that they (tanker operators)
didn’t want the December 31, 2010 deadline, but agreed
to January 1, 2011 because it sounded longer. They couldn’t
do anything but follow because of the tight competition since
oil companies themselves require them to be double-hulled,”
Suazo said.
“Total and Pilipinas Shell, for instance, have told
them to replace their fleet to double-hull in order to continue
carrying their white or black oil,” he explained.
Of the 214 oil tankers in the country, 100 vessels carry white
oil.
Marina is seeking the total phaseout of single-hull tankers
by 2011 to comply with international standards.
Earlier, Marina said tanker operators not ready for the double-hull
requirement could be delisted from the Philippine registry
and their license to operate revoked.
The Marina board has already extended to yearend compliance
to the double-hull requirement for black oil, provided special
permits are secured.
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