| Harbour
Centre, DMAP training (March 22, 2004)
Harbour Centre
- Harbour Centre Port Terminal, Inc. invited
industry leaders to its formal launch last Thursday,
March 18.
The ceremonies were held
at the Ballroom of the Makati Shangri-La Hotel. The
ceremonies were actually a relaunch, since HCPTI had
its original launch about 8 years ago. It got hit by
the crisis in 1997. Chairman Reghis Romero II and President
Michael Romero proudly announced HCPTI's vision to be
at par with the world's best port terminals, and its
status now as the most modern in the Philippines.
The port terminal is capable
of handling domestic and international ships, containerized
or non-containerized. It is said to now handle 100 vessels
per month, including vessels up to 60,000 tons in cargo
capacity and 240 meters long.
The centre has backup space
of 15 hectares, available for warehousing and other
purposes. Mike Romero boasted that HCPTI has the lowest
cost of any port within Manila, and guaranteed to everyone
that every HCPTI user will reduce his cost.
Among the guests mentioned
by Chairman Reghis Romero were DTI Secretary Cesar Purisima,
DOTC Usec Agustin Bengzon, PPA GM Al Cusi, PPA AGM Ben
Cecilio, and PEZA Director General Lilia de Lima. We
missed seeing anyone from MARINA and the domestic shipping
lines.
The audio visual presentation
included endorsements from four locators/users, namely
Uygongco, CAPP, NUR Integrated Shipping and Ace Navigation.
We view the announcement of HCPTI as a welcome development.
Competition of this kind is good.
DMAP Training
- DMAP completed its first seminar for the
year last Friday. The Basic Shipping Course, a one day
in-classroom seminar, was attended by people from both
cargo owners and service providers, and both shipping
and non-shipping personnel.
Speakers were industry
experts from both the government and from the private
sector. Speakers from the government were Ric Romero,
a MARINA veteran currently assigned to the DOTC, and
Hector Miole, from PPA South Luzon Port District.
From the private sector
were two controversial personalities (harassed is probably
a more appropriate adjective), Cora Curay, past DMAP
President, and Tet Gambito, CSPM spokesman and past
executive of Sulpicio Lines. As we have written in past
columns, Cora has been sued at the Supreme Court for
indirect contempt by the shipping lines and their lawyer
Arthur Lim.
Tet Gambito has not only
been sued (for libel, as I recall), but a warrant for
his arrest had been issued, and his face was published
in a newspaper like a common criminal about two months
ago. We understand that Tet posted bail.
The libel charge appears
to be a response to plunder charges filed by Tet against
certain personalities. The strange thing is that the
libel charge was filed in Ozamis City. Why?
DMAP is also announcing
the next training activities:
* Forum - Measuring Logistics
Performance, April 23 (half day)
* Shipping Immersion Course, May 13-16
* Basic Warehousing Seminar, July 15-16
The Shipping Immersion
Course is a seminar on shipping issues on board a ship.
This annual training activity reaches different destinations
every year. This year the vessel will be going to Bohol.
Next month DMAP will also
announce its theme for the 2004 Logistics Conference
and Exhibit, to be held on Sept. 16-17.
Address inquiries and comments
to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689,
or email dmap@i-manila.com.ph.
Those interested in DMAP
training and other activities are requested to send
their e
mail addresses.
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'Non-reply'-
PCCI 'Non-Reply' (March 8, 2004)
The letter of DMAP incoming
President Ana Rose Ochoa to PCCI incoming President
Noemi Saludo was answered by the latter after all.
Ana Rose had expressed
concern over the appointment of personalities from the
ranks of service providers as key persons in the Transport
Committee and Sub-committees. She had also expressed
concern over the splitting up of the Transport Committee
into Sea, Land and Air Sub-committees.
We mentioned last time the disappointment of DMAP reps
and Directors with Ms. Saludo's non-reply. DMAP President
Ochoa actually received Ms. Saludo's reply on Feb. 21,
after the PortCalls press had already printed the Feb.
23 issue.
The reply was dated Feb.
6 and was postmarked at Makati Post Office on Feb. 11.
It took ten days to travel six kilometers or so to Ortigas
post office.
We reproduce below the main body of Ms. Saludo's reply.
"Permit me to clarify
that three (3) sub-committees each for air, land, and
sea were created under the umbrella of the (central)
Transport committee. However, it is a different matter
altogether to claim that the Transport committee has
been divided into three (3) sub-committees.
Hence, your apprehension
that such a move may 'defeat the concept of multi-and
inter modal transport system necessary for greater efficiency'
appears to be the result of misinformation. The creation
of three (3) specialty sub-committees will even allow
PCCI to speedily address transport industry related
issues.
Precisely, it is the aim
of the (central) Transport committee to achieve closer
coordination by and among the three (3) sub-committees
created.
We note likewise your
concern anent the appointment of service providers as
VP for transport and the chair or heads of the transport
sub committees and the potential for a conflict-of-interest-situation
that may arise.
The appointments to the position of VP for Transport
and heads of the transport sub-committees is a decision
of the board of directors, not solely the prerogative
of the President.
The appointees of said
committee/sub-committees were chosen precisely because
of their experience and expertise in the field of transportation.
While there may inevitably be potential for conflict-of-interest
situations, the same can be avoided by the active and
vigilant participation of member organizations such
as yours.
Let's please not prejudge these Board appointees. Let's
give them a chance to prove themselves.
If and when the situation
does arise that you feel the chair of the Transport
committee or any of the heads of the transport sub-committees
may in fact be biased, that should be the appropriate
time to bring the matter to the attention of the President
and the Board."
DMAP President Ochoa's brief reply stated "As you
have suggested, we will suspend judgment of the Board
appointees of the Transport Committee and the Sub-committees.
Rest assured that we would bring to your attention any
concerns we would have on developments in the committee."
In the same letter, Ms. Ochoa named DMAP's representatives
and alternates (names in parentheses) to the committee/sub-committees.
* Transport Committee: Ana Rose Ochoa herself, J&J
(Jun Gabrino, Splash)
* Sea Sub-committee: Cora Curay, XVC (Gerry Ong, Cheng
Ban Yek)
* Land Sub-committee: John Guillermo, CDO (Alain Ison,
Colgate)
* Air Sub-committee : Marichelle Chan, Unilab (Ed Fausto,
L'Oreal)
Ms. Saludo's letter raises questions or comments from
DMAP Perspective. Questions or comments such as: Which
sub-committee will tackle RORO problems?
Who will compare sea,
land and air alternatives for Manila to Tacloban? What
potental for conflict-of-interest situations?
Cases between DMAP and
the shipping lines have already been pending for years
at the MARINA and the Supreme Court.
Reclass TWG - DMAP's request to MARINA to be
included in the Technical Working Group that will deliberate
on the proposed reclassification of commodities has
been answered. MARINA Administrator Oscar Sevilla answered
DMAP's request with an announcement of Special Order
No. 105-04 creating the TWG.
DSO Director Lilian Javier
was named as the chairperson. There are 11 members,
one each from DTI, PSB, NEDA, DA, PCCI, PLSA, DMAP,
and from MARINA units PPO, FO, MSO and MISO.
Basic Shipping Course March 19 - This is a
one-day classroom seminar which aims to provide basic
knowledge on shipping and an update on the latest developments
in this important logistics function.
Speakers will be from government
(Hector Miole, Southern Luzon Port District Manager
of the PPA; and Ric Romero, DOTC, former Domestic Shipping
Director of MARINA) and also from the private sector
(Cora Curay, DMAP Sea Transport Chair, and Tet Gambito
of CSPM).
The seminar can serve as
a prelude to DMAP's Shipping Immersion Course, or as
a self-contained one-day session for busy practitioners
who cannot take time out for three to four days. Target
participants are:
* Logistics, distribution or transport staff requiring
an introduction to shipping, older shipping staff requiring
a refresher and update
* Managers and non-shipping or non-transport staff in
related and interface functions (warehousing, distribution
planning, trucking, inventory management, purchasing,
accounting, engineering, QA, etc.) who require a basic
understanding of domestic shipping and the latest developments.
Fee is P4,400 VAT included for DMAP members and P5,500
VAT included for non-DMAP members. This includes lunch
and two meriendas plus materials.
Address inquiries and comments to Ed Sanchez at tel.
671-8670, fax 671-4793, cell 0918-914-1689, or email
dmap@i-manila.com.ph.
Those interested in DMAP
training and other activities are requested to send
their e-mail addresses.
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Non-reply
(February 23, 2004)
DMAP members' representatives, and particularly DMAP
Directors, were quite disappointed with the speech of
incoming PCCI President Noemi Saludo, who was co-keynote
speaker and co-inducting officer with Sec. Angelito
Sarmiento, recently resigned Presidential Adviser on
Agri-Fisheries Modernization.
DMAP incoming President Ana Rose Ochoa had written to
Ms. Saludo expressing concern over the appointment of
personalities from the ranks of service providers as
key persons in the Transport Committee and Sub-committees.
DMAP also expressed concern over the splitting up of
the Transport Committee into Sea, Land and Air Sub-committees,
the latter a step in the wrong direction as far as DMAP
is concerned.
Ms. Saludo had a long informative speech, which the
audience welcomed and appreciated, but the speech was
totally silent on DMAP's concerns. Ana Rose and the
rest of the Board, and many of the membership who were
aware of DMAP's letter at the time, eagerly awaited
what she would say, but they were disappointed.
After the induction DMAP still waited for a written
reply, but none came. Instead DMAP recently received
from the PCCI the standard communication asking PCCI
members which committees it would like to be involved
in.
The communication listed Xavier Aboitiz
as Vice President in charge of Transport and Port Services,
Henry Ah as Chair of Air Transport, Atty. Alejandro
Dizon (PPA Board) as Chair of Sea Transport and Col.
Rudy de Ocampo (CTAP President) as Chair of Land Transport.
As if in indirect response to DMAP's letter, the communication
seemed to say - PCCI does not give a damn about your
concerns.
The induction ceremonies normally attract people from
the shipping lines. The ceremonies last Feb. 6 missed
two shipping lines.
These two were also missed during the
2003 Christmas fellowship. A coincidence? Actually somebody
from WG&A did attend the fellowship, their new recruit
Norman Adriano, but he attended as a past President
of DMAP.
On the shipping rates row, DMAP wrote to each of the
shipping lines about the position of the general membership,
which is to withhold payment of the rates being demanded
by the shipping lines until after the resolution of
the corresponding cases. The rate increases complained
about in the cases filed pertain to the Nov. 2000 (20%),
Nov. 2002 (6%) and Oct. 2003 (7.5%).
The Philippine Liner Shipping Association, Inc. (PLSA),
successor to DSA, sent a letter to DMAP, as a reply
of its member shipping lines. The letter does not mention
who PLSA's members are, therefore it is not clear who
are replying.
The letter also mentions the option
of a ship operator "not to accept shipments unless
freight is paid in full at the time the cargo is accepted
for shipment". Such kind of statement evokes two
kinds of reactions, fear and anger.
Fear of one's shipments being refused,
and being sued. Anger as a customer with being treated
contemptuously. The tenor of the letter illustrates
the kind of relationship we have between service provider
and customer, and makes a mockery of the current buzzword
"collaboration".
Collaboration is also one of the focuses
of DMAP President Ana Rose, which she also discussed
at last week's general membership meeting.
Ochie's focuses for 2004 are:
* Education
* Cost Competitiveness
* Innovation
* Collaboration
* Membership Revitalization and Expansion
Under the collaboration focus, DMAP will continue to
collaborate with government agencies to pursue reforms
and initiatives that will promote the general interest.
DMAP will try to strengthen its contacts with government
and private organizations, through courtesy calls that
can facilitate exchange of information and obtain technical
assistance as well.
Last year's efforts to collaborate with the shipping
lines failed because the liners published shipping rate
increases in October, without bringing them up to the
collaboration panel, as agreed.
Also at last week's general membership meeting, DMAP
started to form its industry groups from among member
companies, with an appointed industry champion and team
leader. The groups are, Food & Beverage, Other Consumer
Goods, Industrial Goods, Distributors & Logistics
Providers.
This will allow networking and benchmarking
opportunities to be maximized.
Last week's general membership meeting
also featured two different presentations:
* Company sharing by a DMAP member - Safety in the Warehouse,
By Dan Araga of J&J
* Corporate presentation by a non-member - IMAS Retail
and Distribution Software by Right Computer Systems
Address inquiries and comments to Ed
Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689,
or email dmap@i-manila.com.ph.
Those interested in DMAP training and
other activities are requested to send their e-mail
addresses.
Back to
Top
DMAP direction
(February 9, 2004)
Secretary Angelito Sarmiento, recently resigned Presidential
Adviser on Agri-Fisheries Modernization, and incoming
PCCI President Noemi Saludo were tapped to be joint
inducting officers and keynote speakers at DMAP's induction
of officers last Friday.
Sec. Sarmiento has resigned his cabinet
position to reportedly run for Congressman, or is it
Mayor? Ms. Saludo, from the ranks of the Port Users
Confederation, is the first woman President of PCCI.
As we are submitting this column before the induction
itself, we are not able to fill you in on the actual
turnout of the event.
The guest list included the usual guests
coming from the government (DOTC, MARINA, PPA) and the
private sectors, with a large bloc typically coming
from the shipping lines. Also invited were principal
sponsors at DMAP's annual logistics conference, past
DMAP Presidents, and other personalities from the logistics
industry.
Leading the inductees was incoming DMAP
President Ana Rose Ochoa from Johnson & Johnson.
This year might be labeled the year of ocho-ocho in
DMAP's history, because of Ana Rose's nickname, which
is "Ochie". Ochie is the longest serving Director
of DMAP, dating back to the days of her former boss
at J&J, Malou Santos.
Malou was herself the first woman President
of DMAP. Ochie is the fourth woman President of DMAP,
after Malou, Cora Curay and Arlene Azul.
Ochie's plans will focus on
* Education
* Cost Competitiveness
* Innovation
* Collaboration
* Membership Revitalization and Expansion
with the end view of optimizing opportunities for member
companies' quality improvement and cost reduction, professional
growth of practitioners and significant improvements
in customer service levels.
As this is the first time the Committee
Chairpersons have been elected instead of appointed,
Ochie expects them to work closely with the Directors
in charge to ensure implementation of plans and programs.
These plans and programs include benchmarking and sharing
of best practices, focused group discussions on distribution
related issues, seminars, workshops, annual logistics
conference, port and warehouse visits.
Also included are developing and strengthening
contacts with government, academe and other related
associations.
DMAP shall also seek to provide access
to a greater array of resources to enhance the competence
and expertise of its members. The General Membership
Meetings shall be a venue for harnessing opportunities
presented by today's technologies through product and
service presentations by selected providers.
DMAP will also form industry groups
from among member companies, with an appointed industry
champion, for example, Food, Other Consumer Goods, Construction,
Petroleum, Logistics Providers, etc. This will allow
networking and benchmarking opportunities to be maximized.
DMAP will continue to collaborate with
government agencies to pursue reforms and initiatives
that will promote the general interest. DMAP will try
to strengthen its contacts with government and private
organizations, through courtesy calls that can facilitate
exchange of information and obtain technical assistance
as well.
On the takeover of EXE Technologies
by SSA, their South Asia boss Fulvio Lana visited the
Philippines last week. EXE executives Mark Weaser and
Cyril Ng are officially out. Mr. Lana was invited to
DMAP's induction ceremonies but could not make it, as
he had to return to Singapore.
Last week's hearing at the Philippine
Shippers Bureau on Terminal Handling Charges (THC) was
well represented, as far as various sectors are concerned.
The government had PPA and DOTC. The private sector
included representation from freight forwarders, brokers,
shippers, and cargo handlers, although the number of
representatives were few from each.
Only one ship agency represented the
liners. DMAP and the Export Development Council were
the groups from the ranks of shippers. The PSB presented
the results of its study, which cited duplication of
charges, and lack of justification for many of the THC
components.
There was agreement among those present
on the double charging of some items. The PSB paper's
main recommendations were to abolish the THC, or to
re-incorporate the THC components in the ocean freight,
subject to negotiation with the liners.
DMAP was in basic agreement with the
PSB paper, as was the EDC, whose Meneleo Carlos also
warned of market dominance by shipping conferences and
questioned the charging of THC since 1990, when there
were no additional services or change in services introduced.
Address inquiries and comments to Ed Sanchez at tel.
671-8670, fax 671-4793, cell 0918-914-1689, or email
dmap@i-manila.com.ph.
Those interested in DMAP training and
other activities are requested to send their e-mail
addresses.
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Another windmill?
(January 26, 2004)
DMAP's induction of officers
has been moved from January 30 to February 6.
Being eyed to be the keynote speakers
are Sec. Angelito Sarmiento, Presidential Adviser on
Agri-Fisheries Modernization and incoming PCCI President
Noemi Saludo. Speaking of PCCI, the Transportation Committee
has reportedly been broken up into three sub-committees,
land, sea and air.
With the advent of RORO and other concepts
in multi-modal logistics, this move goes in the wrong
direction. In addition, pressures from globalization
are making it more necessary to coordinate activities
in all three modes. Again the PCCI move runs counter.
DMAP is alarmed at the reported appointment
of service providers at key positions in the new structure
for transport at the PCCI. It fears the worst. With
the advent of MC153 in late 1999, DMAP and all cargo
owners had suffered a serious blow, as the burden of
proof shifted.
Whereas shipping lines had to justify
their rate increases before the existence of MC153,
cargo owners must now prove that rate increases of shipping
lines are not justified. In the area of cargo handling,
lack of transparency and methodology at PPA had been
the cause of a series of questionable rate increases
at the ports.
As one of its actions in such a difficult
environment, DMAP had sought help at the PCCI where
it could air its concerns. With the reported appointments,
it will again be like the EO59 situation. DMAP will
be fighting a windmill, since a shipping line executive
will reportedly oversee all transport, and a PPA Board
member will oversee sea transport.
DMAP is also concerned that the committee
has not yet met, with January almost finished. As the
committee did not meet in December, it is now almost
two months without a meeting. Meanwhile hot issues which
we highlighted in the last issue are begging for action.
To express its concerns with the above
points, DMAP has written to incoming President Noemi
Saludo.
Also related to the PCCI, the author of the anonymous
letters attacking Tet Gambito continues to send anonymous
letters.
The first letter of 2004 took a "parting
shot" at Tet, and also his "esteemed patron"
Ito Carlos, on their silence with respect to the recent
increase by foreign shipping lines, while they "screech
like banshees" when domestic freight rates go up
by a few percentage points.
If this parting shot is a clue, then
it is very clear from whose ranks he comes from. But
now, the writer has touched on another topic. Under
a sub-title of "Three Stooges act lives on in the
PCCI", he writes about the "Three Stooges"
who "Like leeches they cling. Control of the Chamber
was and still is their objective".
With all of DMAP's problems in logistics, PCCI politics
is the last area DMAP would want to be involved in.
We hope that this anonymous letter will
be the last and that the author will reveal his identity
and begin to contribute positively in the area of Philippine
transport.
On the specific matter of GRIs, DMAP
awaits MARINA's response on its motion for reconsideration
filed before Christmas of the resolution issued on WGA's
7.5% GRI. Early this year the shipping lines filed an
omnibus motion to consolidate all pending GRI cases
for different shipping lines. DMAP immediately filed
its opposition.
On the issue of cargo reclassification,
the MARINA is set to form a Technical Working Group
to study the merits of the proposed reclassification
and make recommendations. DMAP has expressed its desire
to be part of the Technical Working Group.
Imagine a Technical Working Group that
does not include the most affected party, the one that
will have to pay for the resulting overall increase
in rates, and the one most knowledgeable about specific
cargoes. Here again, from DMAP's standpoint, the proposed
reclassification is another scheme to increase rates.
Newsbit EXE Technologies, the supplier
of ExCeed Warehouse Management System, has merged with
SSA, and in effect has been taken over by the latter.
Initial indication is that the local distributor, ABM
Computech, will be retained. Singapore-based executives
of EXE (Cyril Ng and Mark Weaser) are or will be out.
Address inquiries and comments to Ed
Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689,
or email dmap@i-manila.com.ph.
Those interested in DMAP training and
other activities are requested to send their e-mail
addresses.
Back to
Top
Calendar,
Issues and Prospects (January
12, 2004)
"Happy Four Kings" was the text greeting I
received from some friends last January 4.
It sounds funny at this time, but may
not be so funny five months from now. DMAP renews its
quest for improved logistics in the Philippines with
a session for planning its activities for 2004.
Incoming President Ana Rose Ochoa (J&J)
has initially identified some thrusts for discussion,
namely:
* Education
* Cost efficiency
* Innovation
* Collaboration
* Membership revitalization
/ expansion
To increase participation by members and effectiveness
of the committees, DMAP has adopted a change in the
process of selection of committee chairpersons. Starting
this year, the chairpersons are now elected by the body
of members.
The chairpersons are not members of
the Board, but are in line to succeed in case of vacancies.
In addition, each one is supported as committee chairperson
by a Director.
There are six committees and, fortunately, three of
the chairpersons are well experienced, having served
as past Directors, including past President Ike Castillo.
The result of the planning session will be published
as soon as finalized, and most certainly announced at
the induction of 2004 officers on January 30, 2004.
Meanwhile an initial calendar was released to members
late last year. The calendar includes the schedule of
Board meetings, general membership meetings and seminars.
General membership meetings are scheduled on Thursdays:
* February 19
* April 15
* June 10
* August 12
* October 14
* November 11
Seminars and conferences are scheduled as follows:
* March 19 - Basic Shipping
Course
* April 23 - Forum on
Measuring Logistics Performance
* May 14-17 - Shipping
Immersion Course
* July 15-16 - Basic Warehousing
Seminar
* September 16-17 - Annual
Logistics Conference & Exhibit
* November 19 - Advanced
Warehouse Management Seminar
As the year starts, DMAP has a number of big operating
problems and issues to deal with, carried over from
2003. To me, these are:
*High domestic shipping
rates, due to unilateral increases by the liners and
an impending reclassification of commodities
* Hijacks and pilferage,
esp. for saleable consumer goods and branded pharmaceuticals
* Inefficient ports
* High cargo handling
fees and other expenses
* Bad land infrastructure
Although not yet falling in the category of problems
and issues, also looming in the not too distant future
is the prospect of a monopoly at the ports, including
North Harbor. This would arise with the feared victory
of Da King at the polls, and a consequent revival of
past efforts under EO59 by monopolists.
As to the economy, great fears are sowed in the minds
of business owners and managers by FPJ's possible victory.
With his lack of everything and anything, he will be
manipulated by all kinds of vested interests. The sea
transport providers bloc will conveniently switch from
GMA to Da King, as easily as it did from Erap to GMA.
On the specific matter of DMAP's complaint vs. WGA's
latest unilateral 7.5% rate increase, DMAP filed a motion
for reconsideration just before Christmas. Therefore,
to date, various issues are still hanging as far as
DMAP is concerned - the Nov. 2000 20% GRI, the Nov.
2002 6% GRI, the proposed reclassification of commodities
and the latest 7.5% GRI.
Also still hanging is DSA's indirect
contempt case filed vs. DMAP and DMAP officials Cora
Curay and Lorie Cinco. All the GRI issues and the reclassification
will lead to huge rate increases which can seriously
affect logistics costs and the viability of many companies.
Over at the PCCI a change of leadership has paved the
way for a change in leadership of the Transport Committee
to the sea transport providers bloc. It seems that the
committee will be restructured, with the formation of
sub-committees in land, sea and air.
Address inquiries and comments to Ed Sanchez at tel.
671-8670, fax 671-4793, cell 0918-914-1689, or email
dmap@i-manila.com.ph.
Those interested in DMAP training and
other activities are requested to send their e-mail
addresses. |
