Shipping industry
facing return to regulation?
FOUR years after the shipping industry’s
deregulation via Republic Act 9295 or the Domestic Shipping
Development Act of 2004, the Maritime Industry Authority (Marina)
is mulling a return to a more regulated regime.
In a keynote speech during last week’s Supply Chain
Management Association of the Philippines (SCMAP) conference
and exhibit, Marina administrator Ma. Elena Bautista said
the deregulation has caused more harm than good, causing rates
to soar and allowing shipping lines to alter sailing schedules
at the drop of a hat in the race for more profit.
“We are looking at regulating back the local shipping
industry considering that the law only deregulates the rate-setting
mechanism of carriers but not the entire shipping industry,”
Bautista said.
Under the law, the Marina chief finds compliance by shipping
lines to certain requirements — specifically scheduling
of trips — problematic. “They tend to alter their
announced schedules to get better business due to the full
deregulation being implemented,” she explained.
“Frankly, we have no defense if ever anyone sues Marina
for fully deregulating the industry — the very reason
why I ordered the immediate revision of the IRR (implementing
rules and regulations of RA 9295) and focus only on what the
law deregulates and delete other provisions inconsistent with
the law,” Bautista said.
Once the IRR is amended, Marina can for instance compel shipping
lines to stick to their announced trip schedules and regulate
rate increases in keeping with the times.
Marina has begun deliberations on the contested IRR provisions.
Board approval is eyed in the next two months and implementation
within the year, Bautista said.
Pac-Atlantic group managing director Ramon de Leon (left)
with
Australian partner Jeff Bramston. Standing is Pac-Atlantic
Lines general manager Tyrone Regaliza.
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Pac-Atlantic opens Australia subsidiary,
offers direct RP-Australia service
AT a time when most businesses are shying
away from expansion, Pac-Atlantic Holdings Co Inc is doing
the exact opposite. It recently launched its Australian subsidiary,
Pac-Atlantic Australia, in partnership with Manila Express
Freight Forwarding Pty Ltd of Australia.
In an interview, Pac-Atlantic Holdings group managing director
Ramon T. De Leon said the opening of the Australian subsidiary
will create a niche for Pac-Atlantic in the region, cementing
its status as one of the top logistics firms in the area.
The direct Philippines vis-à-vis Australia offering
will also serve as a jump-off point for services to other
regional markets, specifically Vietnam, Singapore, Thailand,
China and Indonesia.
“Easily, I can say that we will register an additional
10-20% growth because of the new service in its first year
of operations,” De Leon told PortCalls. “Further
growth is expected once we start incorporating the trade lane
to our worldwide network.”
Jeff Bramston, Manila Express managing director, said he has
confidence in the partnership, noting Pac-Atlantic stands
for trust, speed, reliability, and cost competitiveness.
Bramston said the subsidiary’s initial focus is the
regional market then, in the next two to three years, the
long-haul markets of US and Europe.
“Being the only one offering a direct service, we can
offer our clients better rates, faster transit time and more
value which other firms cannot offer,” he explained.
“Only we offer such a service, no co-loading, no agents
involved, the only major logistics firm in the Australia-Philippines
trade lane to do so,” Bramston added. “With the
dedicated service, we expect potential and viable growth and
(a) much better service angle for the company.”
The service offers a 50% reduction in transit times to Australia
to 17-19 days. In contrast, non-direct services passing through
Singapore take 25-27 days.
From two times a week, service frequency will also be upped
to three times a week.
Pac-Atlantic Australia offers consolidation and LCL (less
than a container load) and soon, full container load and more
breakbulk consolidation.
More than two months since its incorporation on July 1, the
company is projecting to grow volume by one TEU a week from
a TEU fortnightly and one 40-footer per week both for north-
and south-bound cargoes.
In particular, it is eyeing a modest chunk of the country’s
project cargoes, taking into consideration activity in the
revived mining industry, a sector that is also seeing a boom
in Australia.
Pac-Atlantic Holdings is the parent company of all subsidiaries
and affiliate companies under the Pac-Atlantic Group of Companies.
Its flagship, Pac-Atlantic Lines (Phils) Inc started in 1987
as a freight forwarder with only three employees. Today, the
Pac-Atlantic group employs close to 250 full-time professionals
within its subsidiaries and affiliates.
Part of the group’s growth strategy is to work with
foreign partners that possess strong expertise in their respective
fields. As a result, Pac-Atlantic has forged tie-ups with
companies based in Singapore, Japan, the United States and
Australia, and has joined worldwide networks to ensure sufficient
rep-resentation in foreign ports.
Pac-Atlantic’s core activities revolve around integrated
logistics services, though it has other interests in after-market
services, information and communi-cations technology and property
management.
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All port stakeholders to start client profile
data build-up
THE Bureau of Customs (BOC) has formally
notified all port stakeholders that they may now start encoding
their respective client profile data into the e2m Customs
Client Profile Registration System (CPRS).
The CPRS is an internet-enabled software application that
facilitates an automated process of accreditation and/or registration
of all BOC stakeholders by their accrediting offices –
either from BOC or other agencies.
Among information that will be encoded are business name and
address, contact details (phone/fax/email address/mobile phone)
and nature of business. Names and contact details of major
stockholders, principal officers and responsible officers
will also be submitted (a maximum number of names is set)
as well as major clients and suppliers. Some of the abovementioned
information may be mandatory or optional depending on the
type of BOC stakeholder.
An important requirement of CPRS is the upload of digital
images of company logo as well as photos and scanned signatures
of major stockholders, principal officers and responsible
officers.
The BOC believes that electronic registration into CPRS will
provide for the efficient and pro-active processing of registration,
accreditation and renewals of BOC stakeholders.
BOC also emphasizes that “before any transactions with
the new e2m Customs System can be made, it is imperative that
information pertaining to each client is captured in the CPRS.”
There are two methods by which client profile data will be
encoded and submitted online to CPRS.
Shipping lines and agents, freight forwarders/consolidators
and exporters will be given access to the BOC portal (www.customsgov.ph/nsw).
Another group of BOC stakeholders (importers, customs brokers,
off-dock CY-CFS, surety companies, airport warehouse and warehouse
operators) will encode and submit data through any of the
customs-accredited value-added service providers (VASPs) –
Cargo Data Exchange Center, e-Konek Pilipinas, and InterCommerce
Network Services).
Since September 10, the Association of International Shipping
Lines and the Philippine Ship Agents Association had been
asked to get their respective members ready for the system.
Late last week formal notifications were sent to the Port
Users Confederation and the Philippine Exporters Confederation
together with BOC guidelines on the registration of stakeholders.
The VASPs began last week the “live” submission
to CPRS of client profile data of their respective clients
and subscribers. — LEO V. MORADA, IT Columnist
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Marina to carriers: High fuel prices not
enough to warrant rate adjustments
LOCAL shipping lines will have to cite reasons
other than high fuel prices before their rate adjustment proposal
is approved by the Maritime Industry Authority (Marina).
In an interview at the sidelines of the Supply Chain Management
Association of the Philippines conference and exhibit last
week, Marina administrator and concurrent Transport Undersecretary
for Maritime Affairs Ma. Elena Bautista said, “Shipping
lines should show concrete reasons aside from fuel if they
want their proposal approved. I don’t think they can
use fuel (alone) as reason considering prices have gone down
significantly in the past couple of weeks.”
Besides, she said the government and carriers in a recent
Cebu meeting agreed to temporarily hold rates. “I’m
holding on to their (carriers) word,” Bautista said.
Cargo carriers National Marine Corp, Sulpicio Lines, Inc and
Oceanic are seeking increases of 8%, 9% and 10%, respectively.
Last June 16, the three along with other member lines of the
Philippine Liner Shipping Association implemented a 10% general
rate increase (GRI). The increase is on top of the adoption
of the 6-8% fuel surcharge.
The last time they implemented a GRI was in 2005.
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North Harbor privatization gets boost
METRO Pacific Investment Corp (MPIC) is
entering into a compromise agreement with the Philippine Ports
Authority (PPA) for the public bidding of the Manila North
Harbor Modernization project, the company said in a recent
disclosure to the Philippine Stock Exchange.
The decision paves the way for the privatization of the port.
With joint venture partner Harbour Centre Port Terminals,
Inc., MPIC emerged as the only qualified bidder for the 25-year
management and operations contract for North Harbor. But the
PPA declared the bidding a failure, claiming more than one
bidder was needed to get the best possible. The joint venture
partners elevated the matter to the courts.
No details have been released on the compromise agreement.
PPA general manager Atty. Oscar Sevilla earlier said the agency
has been trying to get the partners to drop the case, noting
the port is already in immediate need of rehabilitation by
the private sector.
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