Overstaying containers off to Subic

MANILA, Philippines - Starting this weekend, the two private port operators in Manila will transfer about 3,000 shipping containers to Subic to decongest the two main seaports in the metropolis.

The Philippine Ports Authority (PPA) said a containerized cargo ship owned by Hanjin Shipping docked in Manila last Wednesday from Hong Kong.

It was chartered by the International Container Terminal Services Inc. (ICTSI), which runs the Manila International Container Port (MICP), and Asian Terminals Inc.(ATI), which handles the Port of Manila (POM), will be transporting cargoes cleared by the Bureau of Customs (BOC) and cargoes overstaying for over 60 days at the MICP and POM to Subic.

For 15 days, the Hanjin vessel has been chartered to make three trips between Manila and Subic to transport a total of 3,000 container vans. For its initial trip, it would transport 900 containers.

The MICP and ATI would shoulder the charter cost of P14 million.

In today’s scheduled Cabinet Cluster on Port Congestion meeting, PPA general manager Juan Sta. Ana is reportedly intending to propose to the BOC if it is open to the idea that aside from the 60-day cargoes, they would also move to Subic the containers that have been cleared by the bureau and those that have been overstaying between 30-60 days.

This would bring the total number of containers to be brought to Subic from 3,000 to about 7,000.

If the BOC is amenable to the proposal, Sta. Ana is inclined to make a second proposal to extend the hiring of the Hanjin vessel for another 15 days and pay an additional P14 million or a total of P28 million.

Meanwhile, the PPA said in a statement there has been a “significant” decline in the cargo backlog and number of empty container vans that have been clogging the two ports.

“Based on our current inventory, we have to clear about 8,175 twenty-foot equivalent units (TEUs) as we are now below the 90 percent yard utilization threshold,” said Sta. Ana.

He added that the number of empties inside the ports also went down to only 12,000 TEUs, and the held-up containers at foreign ports have likewise declined from 37,000 TEUs some two months ago to only 20,000 as of this August.

“The reduction in the number of laden and empty containers suggests that productivity has increased dramatically, resulting in better efficiency in handling cargoes and vessels at the Manila ports,” Sta. Ana added.

About two months ago, the number of laden containers that piled up at the Manila ports totaled 99,000 TEUs, which occupied about 105 percent of the yard while the total of empty containers also reached a high of 22,000 TEUs.

The congestion was caused mainly by the daytime truck ban imposed by the Manila city government from Feb. 24 to end-May of this year that effectively limited the movement of cargoes in and out of ports during nighttime only.

House seeks lifting of truck ban

The House committee on Metro Manila development passed on Wednesday a resolution urging Manila Mayor Joseph Estrada to suspend the truck ban in his city for three months to help ease the massive congestion in the ports.

Quezon City Rep. Winston Castelo, chairman of the panel, said the committee passed the resolution during the hearing on port congestion.

Manila Rep. Amado Bagatsing and Caloocan City Rep. Edgar Erice, a known critic of Estrada, pushed for the passage of the resolution during the committee’s public hearing the other day.

The resolution also asked the BOC and PPA to speed up moves to decongest the ports of thousands of containers.

“They (BOC and PPA) keep pointing fingers at each other but this kind of problem does not have only one culprit,” Castelo said.

He also prodded the two agencies to cut red tape and corruption to speed up the processing of containers to facilitate the delivery of goods to businesses and the general public.

The lawmaker also asked the two agencies to speed up the confiscation of overstaying containers.

Also present during the hearing were representatives of importers and exporters.

The committee bared a partial list of at about 40 entities that have overstaying containers in the ports, including the Department of Health.

Castelo said various firms also cited the slow government procedures for the delay of the release of cargo in the ports of Manila.

They also told the panel that it would be cheaper for them to pay fines to the PPA and the BOC for their containers overstaying in the ports rather than leasing warehouses.

Aklan Rep. Teodorico Haresco has proposed five steps to decongest the ports of containers, including using the empty and unclaimed containers for classrooms and other facilities in remote areas.

Haresco, chairman of the House committee on Millennium Development Goals, said empty containers that remain unclaimed for six months and over should be turned over to the Department of Public Works and Highways for conversion to classrooms and other needed facilities. (Evelyn Macairan, Paolo Romero, Philippine Star)

PHOTO:
A vessel hired by the Philippine Ports Authority starts loading the shipping containers that will be transferred to Subic yesterday. (Edd Gumban)

http://www.philstar.com/headlines/2014/08/22/1360328/overstaying-containers-subic

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DOLE taskforce inks pact for industrial peace in CL

CITY OF SAN FERNANDO -- With the aim of upholding industrial peace and job preservation in Central Luzon, the Department of Labor and Employment (DOLE) Regional Office 3, in coordination with member-agencies of the newly forged Central Luzon-Regional Inter-Agency Coordinating and Monitoring Committee (CL-RICMC) recently signed a Memorandum of Commitment (MOC) at the Dole regional office in the City of San Fernando.

The CL-RICMC, which was conceived last June 2014, comprise the DOLE RO3 as lead agency, along with the regional offices of the National Conciliation and Mediation Board (NCMB), National Labor Relations Commission (NLRC), Overseas Workers and Welfare Administration (OWWA), Philippine Overseas Employment Administration, Technical Education and Skills Development Authority (Tesda), Armed Forces of the Philippines (AFP) 7th Infantry Division, Philippine National Police (PNP), and the region’s major economic and freeport zones which include the Clark Freeport Zone, Authority of the Freeport Area of Bataan, Subic Bay Freeport Zone, Luisita Industrial Park in Tarlac, TECO, and Pampanga Economic Zone.

DOLE Regional Director Ana Dione reported to Labor and Employment Secretary Rosalinda Dimapilis-Baldoz that officials representing the CL-RICMC member-agencies entered into a memorandum of commitment in order to fully and effectively implement the Dole's Administrative Order 104, Series of 2012, otherwise known as the “Operating Guidelines on Inter-Agency Coordinating and Monitoring of Labor Disputes.”

In this memorandum, the DOLE will take lead in information-gathering from tri-media or any sources on brewing labor disputes and displacement of workers due to strikes/lockouts. It shall immediately initiate pro-active assistance and provide alternative means of dispute resolution through either the Dole's Single Entry Approach (Sena), adoption of flexible work arrangements, or in the worst case, proper implementation of retrenchment procedures. Dole and its attached agencies will also provide technical assistance and developmental interventions such as alternative livelihood programs and skills development schemes to affected workers.

DOLE Assistant Regional Director Geraldine Panlilio, who is the official spokesperson of the CL-RICMC, shall handle media-related affairs and the establishment of a command center in the strike area where the CL-RICMC may convene.

Meanwhile, should labor disputes arise within the Freeport or economic zones, management of the said zones will coordinate with the DOLE, as well as its attached agencies, and shall actively participate in the above-mentioned activities as well.

The AFP and PNP on the other hand, who will be on stand-by mode as a peace-keeping team, will ensure the maintenance of peace and order, enforcement of laws, and implementation of legal orders of duly constituted authorities.

Signing the memorandum of commitment with Director Dione include NCMB National Director Reynaldo Ubaldo, NCMB Regional Director Maria Teresita Cancio, Administrative Officer Elizabeth Dizon on behalf of NLRC RO3 Regional Director Mariano Bactin, Colonel Wilfredo Villahermosa on behalf of Brigadier General Glorioso Miranda (AFP 7ID), IPSSupt Danilo Florentino on behalf of PNP Regional Director PCSupt Raul Petrasanta, Provincial Director Benhur Banigued on behalf of TESDA Regional Director Teodoro Gatchalian, POEA head Paterno Juridico, Deputy Administrator for Operations Engr. Emmanuel Pineda on behalf of AFAB Chairman Deogracias Custodio, Criselda Pascual on behalf of SBMA Labor Department Manager Severo Pastor Jr., CFZ head Evangeline Tejada, and LIP/TECO/PEZ head Primitivo Perañas Jr.

Dione, who personally thanked all CL-RICMC member-agencies for their support and cooperation during her welcome message, stressed the importance of partnership and convergence among government agencies in addressing the country’s perennial socio-economic issues on labor disputes and unemployment.

"We are very thankful for your support and cooperation on this important undertaking. Your presence here signals our partnership. The convergence of our programs and services are geared towards the development of coherent and evidence-based approaches to ease the adverse effects of labor disputes by exploring all means to give way to a lasting and a more peaceful resolution between management and laborers, especially in cases where there is presence of imminent or actual strikes," Dione said.

"Through our partnership and proactive information-sharing with one another, we can sustain labor and management relationship through continuous labor and employment education, mainstreaming of alternative dispute resolution mechanisms, and implementation of innovative approaches towards workers' empowerment," she added.

Meanwhile, NCMB Director Reynaldo Ubaldo said in his keynote message that the NCMB, under the instructions of Labor and Employment Secretary Baldoz, is targeting to institutionalize the creation of RICMC in all regions.

"We are hopeful that all DOLE regional offices, just like here in Central Luzon, would be able to establish their respective RICMC’s because the power of convergence can make a difference in addressing labor disputes and we have a pipeline of developmental interventions that would help ease and resolve industrial conflicts which are geared towards productivity and harmony within industries," Ubaldo said.

The RICMC’s objective is to take lead in job preservation, explore all remedies necessary and feasible settlement to potential or actual strike, picket or lockout, or labor dispute especially those who are considered high profile cases, and those imbued with national interest, and undertake coordinative efforts through information-sharing and data gathering. (PR, Sun Star Pampanga)

http://www.sunstar.com.ph/pampanga/local-news/2014/08/20/dole-taskforce-inks-pact-industrial-peace-360860

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Gov't gives ICTSI incentives for declogging Port of Manila

The government has decided to give port operator International Container Terminals Services Inc. (ICTSI) incentives for its share in declogging the ports of Manila.

Port dues for the vessel chartered by ICTSI to bring out overstaying cargoes from the Port of Manila to Subic has been reduced from the $0.081 per GRT per call to only $1 per call while dockage at berth has been cut to $1 per vessel from $0.039 per GRT per calendar day or fraction thereof.

The purpose of the reduction is to “incentivize” ICTSI since the port operator is the one to shoulder the cost in moving out all overstaying cargoes at the Port of Manila. The vessel will ship out about 6,000 containers out of the Manila ports to the Subic ports.

ICTSI is chartering a vessel with a capacity of about 1,300 twenty-foot equivalent units (TEUs) with a GRT of 18,321 tons for at least 14 days to ferry empty containers and other overstaying containers from the ports of Manila to Subic. During its stay in the country, the vessel is expected to ship about 4,000 to 6,000 TEUs out of the Manila ports.

Government slashes vessel-handling fees and port charges at Batangas Pier

The Office of the President has approved the proposal of the state-owned port body to give incentives to vessels that will dock at the Port of Batangas in a bid to further decongest the ports in Manila.

In a statement, the Philippine Ports Authority (PPA) said Malacañang has given the go signal for the reduction of port charges and other vessel-handling related fees at the Port of Batangas to attract more direct callers and port users to utilize the gateway in the Southern Tagalog region.

For direct callers of Batangas, they can enjoy a 90-percent discount on port dues from the existing fee of $0.081 per gross revenue ton (GRT) per day to only $0.008 per GRT per day, as well as a 90-percent cut in dockage at berth from $0.039 per GRT to only $0.004 per GRT per day.

New rates

THE new rates, however, will be applicable only for six months wherein the discount for the succeeding six months will be reduced to 50 percent for both, or from $0.081 GRT per day to $0.040 per GRT per day, and from $0.039 per GRT to $0.020 per GRT per day.

The new rates took effect at the start of this month.

“This is a big boost in our bid to increase utilization of the Batangas port,” PPA General Manager Juan C. Sta. Ana said. “The new directive has, likewise, changed the basis in the computation of the dockage at berth from per GRT per calendar day or fraction thereof to per GRT per block of 24 hour or fraction thereof.”

Currently, there are at least six international carriers calling at Batangas port since June. This includes MCC Transport Corp., NYK Shipping Lines, SITC Container Lines, American Presidents Lines, Regional Container Lines/Pacific International Lines and CMA-CGM.

Sta. Ana noted that would aid the ongoing decongestion efforts being undertaken by the government at the ports in Manila.

Booming economy

THE tight bottleneck situation at the ports in the country’s capital was caused by the booming economy that resulted in the spike of cargo throughput due mainly to the increase in shipments from the imports and exports sector.

The ongoing truck ban imposed by Manila City and traffic congestion in major roads were also blamed for the port gridlock, which has resulted in the accelerated inflation last month. Inflation was at 4.9 percent, a three-year high from October 2011.

Manila ports’ decongestion

STA. Ana reported that the gridlock at the ports of Manila continues to decline with yard utilization almost down to the desired level of 80 percent.

The port body aims to arrest the adverse economic impact of the port congestion through several measures which include a 24-hour dedicated trucking lane and a weekend facility for the release of cargo. The government also is pushing for a longer moratorium period on the truck ban for certain routes and the promotion of the Batangas and Subic ports.

The Cabinet Cluster on Port Congestion also continues to find ways on how to further decongest the ports including the opening up of additional empty container depots with close proximity to the Manila ports including a 10-hectare empty lot inside the Cultural Center of the Philippines Complex to temporarily house empty containers bound to be collected by the international shipping lines.

The CCP depot will only be operated from 12 midnight to 5 a.m. to allow the free-flowing of trucks to and from the area. The facility will be maintained by the two listed firms.

Earlier, PPA ordered the two port operators ICTSI for MICT and ATI for Manila South Harbor, to come up with the list of shipments containing food items and other perishables and prioritize its release in order to reduce the inflationary effects of congestion to food items in the market. (Lorenz S. Marasigan, BusinessMirror)

http://businessmirror.com.ph/index.php/en/news/economy/37292-govt-slashes-vessel-handling-fees-and-port-charges-at-batangas-pier

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Navy warship off to Australia

Philippine Navy warship BRP Ramon Alcaraz left Subic Bay yesterday to join a multilateral naval exercise that will be held in Australia.

A total of 180 Filipino sailors will participate in the Kakadu 2014 war games from Aug. 25 to Sept. 12 at the Northern Australia exercise area.

The Philippine delegation to the exercise was sent off yesterday in a ceremony led by Navy Vice Commander Rear Adm. Isabelo Gador in Subic.

The delegation consists of the crews of BRP Alcaraz and Navy helicopter Augusta Westland PNH431, a medical team, and the exercise directorate members.

Kakadu is the largest international maritime exercise hosted biennially by the Royal Australian Navy. The activity seeks to promote and enhance regional interoperability and cooperation among participants.

Twelve countries have sent representatives to the exercise. Five of them – Japan, New Zealand, Pakistan, Australia and the Philippines – have ships and aircraft.

The exercise will be held amid the territorial row in the West Philippine Sea (South China Sea) and East China Sea.

Both the Philippines and Japan are embroiled in a territorial dispute with China, whose occupation of disputed areas has been stirring tensions in the region.

China claims almost the entire West Philippine Sea while the Philippines, Vietnam, Malaysia, Brunei and Taiwan have overlapping claims.

It is also claiming the Senkaku Islands in East China Sea, an area that Japan considers as part of its territory.

The Philippine Navy said the exercise would provide an opportunity for participants to enhance cooperation, camaraderie, and good working relationship.

“The Philippine Navy’s participation is expected to enhance its surface warfare capabilities and interoperability with regional navies,” said Ensign John Abing, public affairs officer for Kakadu 2014. (Alexis Romero, The Philippine Star)

PHOTO:
BRP Ramon Alcaraz docked at the Subic Bay Freeport Zone

http://www.philstar.com/headlines/2014/08/18/1358837/navy-warship-australia

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SBMA gives Subic Aytas P14.8 million for land rental

The Subic Bay Metropolitan Authority (SBMA) achieved another milestone in improving the lives of the indigenous Ayta tribesmen in this free port when it handed over to tribal leaders on Monday millions of pesos representing payment for the use of the Ayta ancestral land here.

SBMA Chairman Roberto Garcia handed over the check in the amount of P14,791,440.00 to Conrado Frenilla, chieftain of the Pastolan Aytas here, in the presence of other tribal elders, as well as representatives of the National Commission on Indigenous People (NCIP) headed by Regional Director Salong Sunggod.

The check represents the share of the Ayta Ambala tribe of the village of Pastolan in the lease rentals of business companies located within the Ayta ancestral domain from May 2009 to December 2013.

“This day is historical for the SBMA,” Garcia said during the turnover held after last Monday’s flag-raising ceremony. “At last we have fulfilled one of the major commitments of the agency for our Ayta brethren under an agreement that we have signed with them,” he added.

The Ayta Ambala tribe holds a Certificate of Ancestral Domain Title (CADT) representing ownership of the more than 4,280 hectares of land covering the Kalayaan and the Binictican housing areas in this free port, as well as the tourism areas of Apaliin, Pamulaklakin, and El Kabayo, among others.

The joint management agreement (JMA) between the SBMA and the Ayta tribe authorizes the Subic agency to undertake systematic management and development of parts of the ancestral land to help uplift the economic, cultural and social life of the tribe based on the programs implemented by the government.

Under the JMA, the Pastolan Aytas will collect 5% of the gross income paid by the investors for rent of the land starting May 12, 2009, when the CADT was registered. In addition, each Aeta family will receive P20,000 a year.

Other benefits include hiring of qualified Aeta workers; implementation of community development assistance programs; construction of schoolrooms for high school, and the hiring of four teachers; establishment of a community clinic with detailed medical personnel from the SBMA Public Health and Safety Department; and an annual donation of P100,000 each for village fiesta and Christmas celebrations.

In receiving the SBMA allocation, Frenilla said that they will use the fund to develop their community, improve the Pamulaklakin tourist facility, and send qualified and deserving students to colleges.

“Malaking bagay talaga ang itinutulong sa amin ng SBMA. Tulad ngayon, mapag-aaral na namin ang mga kabataang Ayta sa kolehiyo para lalo pang mapaunlad ang kanilang buhay,” said Frenilla.

He added that a small amount of the fund will also be used for a modest celebration in order for all tribe members to really feel the benefits from the SBMA.

Frenilla also noted that community members who initially objected to the JMA are now returning to the village after seeing the improvements in their community since the JMA was signed.

NCIP’s Dir. Sunggod said, for his part, that this was the first time in the country that an indigenous people’s group received a share of payment for the use by investors of their ancestral land.

“Ito ang unang-unang pangyayari sa ating bansa na hindi lamang kinilala ang karapatan ng mga katutubo sa kanilang lupang ninuno, kundi ibinigay pa sa kanila ang karampatang pakinabang,” Sunggod said.

He added that the SBMA could be a model for other agencies in the country in terms of providing assistance and undertaking developments to improve the lives of indigenous people. (RAV/MPD-SBMA)

PHOTOS:
[1] SBMA Chairman Roberto Garcia (second from left) holds a symbolic check representing payment for the use of Ayta ancestral lands with Chieftain Conrado Frenilla (right) and SBMA Director Wilfredo Pineda. With them are (from left): NCIP Director Salong Sunggod, Mrs. Marivic Garcia, and other SBMA officials. (AED)

[2] Members of the Ayta Ambala tribe in the Subic Bay Freeport join SBMA Chairman Roberto Garcia and Chieftain Conrado Frenilla, along with SBMA Public Relations manager Armie Armas and other employees, in displaying a symbolic check representing payment for the use of Ayta ancestral lands in the Subic Bay Freeport. (AED)

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Zambales sees bigger turnout for 2014 coastal cleanup drive

Stakeholders in Zambales and the Subic Bay Freeport Zone have pledged their full support to the upcoming International Coastal Cleanup (ICC), vowing an even bigger turnout of volunteers to help save the marine environment and ensure resource sustainability for the future.

During the ICC project launch here at the Ayala Harbor Point on Friday, officials of private organizations and government units in the province said they will come up with at least 30,000 participants in the coastal cleanup to be held on September 20.

The ICC-Zambales group came up with 27,000 participants in the 2013 cleanup, the second biggest number of volunteers in the whole country last year. The Philippines itself, with a total of 182,408 volunteers, also had the second biggest number of participants among all the countries that joined the ICC last year.

Vice Gov. Ramon Lacbain II, who represented the Zambales provincial government, said that at least 14,000 volunteers from the 11 coastal towns and even the two landlocked municipalities of Zambales will join next month’s cleanup project.

Councilor Jong Cortez of Olongapo City, meanwhile, promised the full participation of city government employees, as well as at least 10,000 volunteers from the 17 barangays in the city.

The rest of the target participants are expected to come from the Subic Bay Metropolitan Authority and schools and companies in both Olongapo City and the Subic Bay Freeport.

Zedrik Avecilla, ICC area coordinator for Zambales, said the local cleanup project has astronomically grown from 30 volunteer-employees from The Lighthouse Marina Resort in the free port, to 800 volunteers in 2009, 2,000 participants in 2010, 4,000 in 2011, 14,000 in 2012, and 27,000 last year.

The ICC-Zambales group last year removed more than 67,000 kilograms of debris from 47 cleanup sites in Subic Bay, Olongapo and Zambales, Avecilla added.

The ICC, an annual project of the non-profit organization Ocean Conservancy, has become one of the largest volunteer efforts for ocean preservation worldwide.

Aiming for science-based solutions to the problem of ocean trash, the group’s ICC project involves the collection, segregation, data-card recording, weighing and hauling of trash from four types of cleanup: shoreline, waterway, using watercraft and underwater.

The data collected in the ICC is used to educate people and create solutions to the problems of solid waste and litter.

Last year ICC volunteers from all over the Philippines found that the most common kind of trash in coastlines are food wrappers, followed by and paper bags, straws and stirrers, disposable diapers, plastic bottle caps, cigarette butts, plastic grocery bags, other plastic bags, plastic cups and plates and plastic lids.

In contrast, the top 10 debris items found all over the world were cigarette butts, food wrappers, plastic beverage bottles, plastic bottle caps, straws and stirrers, plastic grocery bags, glass beverage bottles, other plastics bags, paper bags, and beverage cans.

Commodore Gerry Reyes of the Philippine Coast Guard Auxiliary, who attended the ICC project launch here, said that everyone has to participate in cleaning the environment because pollution is posing a deadly threat to mankind.

“The scariest indicator is the recent findings that fish larvae already contained plastics, and that birds have been ingesting bottle caps. This means that our food chain is already threatened,” Reyes said.

“I’ve been doing this (coastal cleanup) for 30 years, and I can say that it’s not futile because we’re here to tell the children that we have to do something for the Earth. This is our responsibility, and no one else’s,” Reyes added. (Henry Empeño, BusinessMirror)

PHOTO:
Volunteers scour the Subic Bay Freeport coastline for trash during the International Coastal Cleanup project in September 2013.

http://www.businessmirror.com.ph/index.php/en/news/regions/36958-zambales-sees-bigger-turnout-for-2014-coastal-cleanup-drive

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Congested ports stunting growth

Trade Secretary Gregory Domingo said port congestion due to the truck ban will slow down economic growth before picking up toward year-end.

“We expect that much but the situation will improve by the fourth quarter. With the continuing improvements in port operations by all sectors involved, we can expect quasi-normal operations within 10 days and full normalization by end-September,” he said, admitting things “were doing well before the truck ban”.

Domingo said the situation of the industries dependent on port operations eased up compared to 10 days ago “but may still impact on the GDP (gross national product)”.

In an update last Friday on port and shipping operations, Trade Undersecretary Victoria Dimagiba of consumer protection group said ports had accumulated a backlog of 135,000 twenty-foot equivalent units (TEU) in three months.

He said six shipping lines were now making as much three portcalls a week in Batangas while Subic Port increased portcalls to twice a week with 600,000 combined TEUs of Wan Hai Philippines Inc. and APL Philippines Co.

To ease port crowding, Customs-cleared overstaying cargo will move to a 10.6-hectare lot at the Cultural Center of the Philippines complex.

Also lined up are at least 36-hectares of off-dock facilities to park empty container vans--5 hectares near the Cavitex toll gate; 9 hectares between the IRS Eastern depot and the Philippine Economic Zone Authority; a 4-hectare depot in Malvar, Batangas; 5 hectares within the Asian Terminal facility in Calamba, Laguna; the planned 6-hectares property of ICTSI in Cabuyao and 2 hectares in North Harbor.

Other decongestion measures being proposed include nightime private warehouses to shorten truck dwell time and make more turnaround or trips, weekend cargo release and a five-day port clearance processing. (Othel V. Campos, Manila Standard Today)

http://manilastandardtoday.com/2014/08/11/congested-ports-stunting-growth/

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Hanjin top exporter in Subic Freeport

Hanjin Heavy Industries and Construction-Philippines (HHIC-Phil) once again emerged as the biggest exporting company in this free port after building 11 ships in just the first half of this year at its state-of-the-art facility in this free port.

HHIC-Phil posted a total of $88.48 million in exports in the first half of the year, the Subic Bay Metropolitan Authority (SBMA) said in its January to June 2014 report.

The SBMA also noted that the Subic shipbuilder’s output has increased from five vessels in the first half of 2013 to a total of 11 in the first semester of 2014.

The firm’s employment generation record also improved from 18,535 in the first half of 2013 to 20,562 in the same period this year, the SBMA stated.

HHIC-Phil President Jin Kyu Ahn said the South Korean shipbuilder delivered its latest projects recently, the 3,800-twenty-foot equivalent units container carriers MV Perceiver and MV Conceiver that were ordered by Belgium-based Delphis, which provides multimodal container transport throughout the world.

Each of the newly built vessels weighs 41,286 tons, measures 222 meters long, 37.3 m wide and 19.3 m deep, and attains a speed of 20.9 knots.

Both are equipped with the latest in marine vessel technology, Ahn said in a news statement.

The two ships were formally unveiled late last week at HHIC-Phil’s Redondo Peninsula shipyard here by top executives of Delphis in the presence of representatives from DNV-GL, a leading ship and offshore classification society.

Ahn said the launching of the new container carriers marks another milestone for HHIC-Phil, and affirms the company’s “unwavering commitment to innovation geared toward excellence in the craftsmanship of our products to better serve the challenging demands of our valued clients around the world for highly sophisticated yet cost-efficient and environment-friendly commercial vessels.”

He added that the HHIC-Phil has already built and exported a total 66 vessels as of July this year, ever since it started operations here in February 2006. Its products ranged from container ships and bulk carriers to crude oil tankers and other high-value oceangoing ships and offshore facilities.

The feat led the Philippines to be ranked by Clarkson Research Services Ltd., a reputable research firm based in Europe, as the fifth among the biggest shipbuilding nations—next only to China, South Korea, Japan and Brazil.

On the other hand, HHIC-Phil placed 11th in the list of almost 100 shipbuilders in the world, according to the Clarkson listing in June.

Ahn added that the firm’s order block is fully booked until 2018, thereby proving “HHIC-Phil’s global competitiveness and the stability of its Subic shipyard amid the intense competition in the international shipbuilding arena.”

The firm’s increased production has consistently put it on top of the list of the biggest exporters here.

HHIC-Phil’s January to June 2014 export record of P88.48 million has placed it way ahead of traditional top exporters here, like Sanyo Denki Phils. Inc., which notched a first-semester export of $11.45 million; Wistron Infocomm, $8.11 million; Tong Lung Phils. Metal Industry Co., $6.75 million; Hitachi Terminals Mechatronics, $6.74 million; HLD Clark Steel Pipe Co. Ltd., $5.04 million; Air 2100 Inc., $4.33 million; Nicera Philippines, Inc., $4.29 million; and Juken Sangyo Phils., $3.96 million. (Henry Empeño, BusinessMirror)

PHOTO:
Guests walk past the newly christened MV Perceiver, one of the two container carriers recently launched by HHIC-Phil at its Redondo Peninsula shipyard in the Subic Bay Freeport. (photo by Jonas Reyes)

http://www.businessmirror.com.ph/index.php/en/news/economy/36842-hanjin-top-exporter-in-subic-freeport

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International Coastal Cleanup-Zambales launched in Subic Bay

OCEAN CONSERVATION: Stakeholders in the Subic Bay Freeport and Zambales sign a memorandum of agreement for the staging of the International Coastal Cleanup-Zambales (ICC-Z), a multi-sectoral volunteer effort scheduled on September 20. Those who pledged full support to the endeavor included (seated, left to right): Zambales Vice Governor Ramon Lacbain III; The Lighthouse Marina Resort owner Jesus Avecilla, Jr.; SBMA Senior Deputy Administrator for Regulatory Group Reuel John Kabigting; and Olongapo City Councilor Aquilino “Jong” Cortez. With them are, standing, left to right: Harbor Point Mall manager Argee Gomez; PCGA Commodore Gerry Reyes; Region 3 Tourism Director Ronnie Tiotuico; and ICC-Zambales coordinator Zedrik Avecilla. Around 30,000 participants from Zambales, Olongapo City and the Subic Bay Freeport Zone are expected to join the coastal clean-up drive.

COASTAL CLEANUP EXHIBIT: Stakeholders in the Subic Bay Freeport and Zambales cut the ceremonial ribbon to open an exhibit at the Harbor Point Mall, which is a preparatory event for the upcoming International Coastal Cleanup-Zambales (ICC-Z), a multi-sectoral volunteer effort scheduled on September 20. In photo are (left to right): Harbor Point Mall manager Argee Gomez; PCGA Commodore Gerry Reyes; Zambales Vice Governor Ramon Lacbain III; The Lighthouse Marina Resort owner Jesus Avecilla, Jr.; SBMA Senior Deputy Administrator for Regulatory Group Reuel John Kabigting; Olongapo City Councilor Aquilino “Jong” Cortez; Region 3 Tourism Director Ronnie Tiotuico; and ICC-Zambales coordinator Zedrik Avecilla.

Photos by Jun Dumaguing, MPD-SBMA

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Graft charges filed vs former Olongapo mayor

Former Olongapo City Mayor James Gordon Jr. has been charged before the Ombudsman in connection with some P44 million worth of alleged illegal government transactions during his tenure as city chief executive.

The alleged illegal transactions included ghost deliveries and the unauthorized sale of several parcels of land owned by the city government.

Olongapo Mayor Rolen Paulino said he filed charges against Gordon based on findings by the Commission on Audit (COA) that ghost deliveries worth around P30 million were paid for with city funds in January to June 2013, the last semester of Gordon’s term.

Another case against Gordon was filed by City Administrator Mamerto Malabute on July 22, for the sale of government land worth P14 million to the Olongapo Electric Distribution Company (OEDC), a private company which took over the power-distribution system here after the city government incurred a P5.2-billion power debt under the Gordon administration.

Paulino said in a statement on Wednesday that the illegal transactions made under his predecessor’s watch bilked local taxpayers of millions of pesos.

“We are not talking about thousands of pesos here; we are talking about millions of pesos from taxpayers’ money,” the mayor said.

“The big question is, where did the money go?” Paulino added.

In the first case, Paulino cited findings that supplies and materials totaling P19,407,658.40 and P11,321,232.80, respectively, were supposedly procured under various purchase orders (POs) that were charged against the Public Utilities Department fund and the 10-percent proceeds from the sale of city shares in the Subic Water and Sewerage Co. Among the supposed purchases made were those for office supplies, cleaning materials, plastic chairs, food and other items.

However, the COA said these purchases “were not supported by certificate of inspection and acceptance and not received by the end user, thereby providing no proofs on the veracity of the delivery.”

The COA findings were backed up by a “certification of no record” issued by the current head of the city’s General Services Office (GSO), Merlito J. Majarucon.

Paulino said that on the basis of these findings, cases had similarly been filed against former GSO Head Victor S. Bernabe and City Accountant Dennis Martinez.

City Hall sources said Bernabe is now on a “floating status” in the city government, while Martinez had been dismissed earlier by the Ombudsman for another case.

In the second case filed before the Ombudsman, Gordon allegedly sold four parcels of government land to the power firm OEDC, but without express authority from the city council.

The alleged illegal sale involved a 2,133-square meter lot with improvements in Barangay Mabayuan, which was sold for P3,424,000; a 2,122-sq-m property with improvements in Barangay Kalaklan, which fetched P6,624,800; a 1,360-sq-m lot at Transco Compound in Kalaklan at P2,584,000; and a 300-sq-m property along the national highway in Barangay Old Cabalan, which was sold for P1,311,000.

Paulino, who was vice mayor at that time, said the transaction was illegal because the city council did not allow the sale of said properties.

“The sale was executed six days before I assumed office as the new mayor, but the Treasury Department did not receive the amount of P14 million, which was supposed to be the value of the lots,” Paulino added.

Among those charged with Gordon on the alleged illegal land sale were Beth Marzan, former head of the city budget office, who was reportedly dismissed by the Civil Service Commission last October; and lawyer Bernardine S. Gantan, the former city legal officer. (Henry Empeño, BusinessMirror)

http://businessmirror.com.ph/index.php/en/news/regions/36769-graft-charges-filed-vs-former-olongapo-mayor

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PPA acts to ease congestion at Manila ports

Congestion at the ports of Manila is expected to ease up and start to return to optimum operational level by August 15 due to the various government and private sector-led measures and initiatives, according to the Philippine Ports Authority (PPA).

PPA General Manager Juan Sta. Ana said public and private cooperation has been consistent in bringing port utilization down to its optimum level.

Sta. Ana lauded, among others, the Federation of Filipino-Chinese Chamber of Commerce for agreeing to take advantage of the government’s weekend release of cargo for at least two months, which the PPA will reciprocate by giving discounts on cargo-handling charges.

Sta. Ana also cited the direct callers led by MCC Transport, NYK, CMA-CGM, Pacific International Lines, APL, among others, in choosing to utilize Batangas for southbound cargoes and Subic for Northbound cargoes instead of coursing everything via Manila.

He added that private shipping lines have sent its sweepers at the Manila Ports clearing approximately a fifth of the estimated 17,000 to 22,000 empty containers occupying space at the Manila Ports. Three more sweepers are expected to arrive prior to August 15 to clear the remaining number of empty containers at the port.

For its part, PPA has started to implement a trucking scheme wherein only trucks that will have business or cargo to be taken out of the port will be allowed inside the port for a specific time. Likewise, empties to be deposited inside will also observe this kind of scheme.

Sta. Ana said the PPA is also contemplating on reducing free storage of Customs-cleared cargoes at the three ports.

“From the usual five days after the 45-day clearing period allowed by the Bureau of Customs, the PPA is planning reduce it and put a premium wherein any cargo staying inside the port after free storage period after clearance will be levied a penalty of more than three-fold of their existing fee for every day the cargo stays at the port,” he explained.

Meanwhile, International Container Terminal Services, Inc. (ICTSI), operator of the Manila International Container Terminal (MICT) has offered to use its two Subic terminals with a combined capacity of about 600,000 TEUs to be a temporary container depot for empties free of charge.

Sta. Ana said ICTSI likewise offered its 21-hectare property in Cabuyao, Laguna as another facility to house empties as well as customs-bonded cargoes that has yet to be cleared by the BOC.

The port official also disclosed that the government is sending Customs-cleared and overstaying cargoes out of the Manila ports wherein transportation of such cargo back to Manila will be shouldered solely by the cargo owners. Sta. Ana said the move will drastically reduce the number of laden containers at the MICT and the Manila South Harbor to ease congestion brought about by the backlog caused by the Day-time truck ban imposed by the City of Manila since February.

“The cargoes will be stored in any of Subic’s two ports, Batangas Port or at the 21-hectare ICTSI facility in Cabuyao, Laguna. Cargo owners, however, are still given the choice to have their cargoes stored inside the two ports but will be slapped with a stiff penalty that will encourage them to takeout their cargoes within the allowable time prescribed by laws, policies and orders instead of temporarily stacking their shipments inside the ports,” Sta. Ana pointed out.

There is also a parallel move by the Cabinet Cluster on Port Congestion to lease a 15-hectare lot in CCP Complex, adjacent to the World Trade Center and behind the PICC tent to serve as temporary holding area for empty containers.

“The Government has started negotiations with the owners through a representative from the Department of Finance. The area will house all empty containers bound for both MICT and MSH. The area will be operated by both operators,” Sta. Ana disclosed.

“Under this process, all empty containers from MICT and/or MSH will go directly to this facility and no withdrawal of empties for export use in this facility. Such will be done using the existing process. To manage traffic, the port operators will dictate which time and date such empty containers will be accepted at the said facility,” he added.

According to recent PPA records, congestion continues to ease up with yard utilization at MICT — the country’s top gateway — reduced to 89 percent while utilization at South Harbor’s empty container depot is at 89 percent and its laden depot at 88 percent Both ports estimate that utilization will be reduced to 87 percent and 86 percent respectively this weekend. (Kris Bayos, Manila Bulletin)

PHOTO: MICT at the Port of Manila

http://www.mb.com.ph/ppa-acts-to-ease-congestion-at-manila-ports/

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Truck ban hurting economy–chamber

The truck ban measure in Manila is partly to blame for a recent spike in the inflation rate and may hold back economic growth, locally-based foreign businessmen say.

The Foreign Chamber Council of the Philippines (FCCP) said that City Ordinance 8336 on road decongestion has increased the cost of doing business nationwide. FCCP chairman Philip Chien said transport and storage charges have risen significantly since the truck ban took effect.

The cost of trucking alone has nearly doubled following the truck ban in Manila, he said because cargo firms have been forced to charge more for the same services because their trucks can make fewer round trips daily.

“Our members are paying for the idle time of those trucks,” Chien said.

The chamber has recommended the immediate suspension of CO 8336 to avert the “derailment” of the economy; decongestion of the Port of Manila by relocating some of its key operations to other viable ports, such as the Batangas Port and the Subic Bay Port; removal of 35,000 empty containers; inclusion of the business sector in the formulation of a long-term solution to the present transport problems.

Chien said CO 8336 is likely to be reflected in the 3rd quarter Gross Domestic Product (GDP) figures. He said a growth of “less than 6 percent” is probable because of higher costs, delays in delivery and losses in business opportunities. The Aquino Administration is reportedly targeting upwards of a 7 percent growth.

FCCI’s membership includes the local chambers of commerce of Taiwan, India, Finland, Israel, Singapore, Spain, France, Turkey and Malaysia.

Chamber insiders said the Federation of Philippine Industries is being tapped to join the move to have the ban revoked.

The group has indicated plans to go directly to Malacañang for an audience.

“The Administration’s economic growth targets are at stake, so we think the President will support us,” it said in a statement. (Miguel C. Gil, Manila Standard Today)

http://manilastandardtoday.com/2014/08/08/truck-ban-hurting-economy-chamber

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Belgian firm orders ships made in Subic

Spurring the shipbuilding industry in the country, Hanjin Heavy Industries & Construction-Philippines (HHIC-Phil) christened two newly built 3,800 TEU container carriers ordered by Belgian shipping firm Delphis inside the Redondo Peninsula last month.

Christened as “M/V Perceiver” and “M/V Conceiver,” the two ships proudly Philippine-made at the 300-hectare state-of-the-art Subic shipyard facility in Redondo, will beef up the operations of Delphis.

The event was graced by HHIC-Phils Inc. senior officials led by President Jin Kyu Ahn, top executives of Delphis and representatives from classification society DNV-GL.

“These new container carriers are well equipped with the latest technological advancement in shipbuilding. The occasion is yet another milestone for us because it affirms Hanjin’s unwavering commitment to innovation,” Ahn said. (Jonas Reyes, Manila Bulletin)

PHOTO:
PROUDLY PH-MADE — The ‘M/V Perceiver’ is docked at one of the wharves of Hanjin’s shipbuilding facility in Redondo Peninsula after being christened recently.

http://www.mb.com.ph/belgian-firm-orders-ships-made-in-subic/

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IPAs to set unified investments goal and strengthen referral system

The government’s investment promotion agencies (IPAs) are expected to come up with a unified investment target as they collaborate to further strengthen a referral system to promote each other in their various investment campaigns, including the huge agricultural potential for Bangsamoro provinces.

Trade and Industry Undersecretary Ponciano C. Manalo Jr. told reporters that heads of the various IPAs met recently in Zamboanga City and agreed to jointly promote the country as an investment destination with a single message “Invest Philippines”.

With that, Manalo said the IPAs should have a common investment target noting that the Board of Investments and the Philippine Economic Zone Authority are the ones accounting for the bulk of investments generation.

At present, each IPAs have individual targets which are later on combined but Manalo, as head of the DTI investment promotion group, said the IPAs, can adopt a unified target where there is a specific target for foreign direct investments and total projects approved.

The IPAs are led by the government’s premier investment premier investment promotion agency Board of Investments (BOI). Other IPAs include the Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, Cagayan Economic Zone Authority, Zamboanga Special Economic Zone, Aurora Special Economic Zone, Philippine Retirement Authority, Phividec Industrial Estate, BOI-Autonomous Region of Muslim Mindanao and the Bases Conversion Development Authority.

In 2010, the IPAs had set an investments growth target of 10 percent in 2010 and 15 percent for 2011 to 2012 and 20 percent by 2013 to 2014. Investments generated by the government’s IPAs in 2009 reached P315.28 billion from P473.25 billion in 2008.

The setting of an investments target could help the IPAs measure their performance in light of the good reviews the country has been getting from the international business community.

“We should be running on all four cylinders,” Manalo stressed.

To push for an aggressive investment promotion campaigns, Manalo also urged the iPA members to work together by providing referrals for each other noting that not every IPA can accommodate all the specific needs of investors. There are small IPAs that can host small manufacturing operations.

“I encourage them to work together that even if they have specific mandate they can refer each other for projects that are suitable in another area,” Manalo said.

He cited the case of the recent P9 billion investment of Panhua Group Co. Ltd. in Subic Bay. The Chinese firm plans to build a pre-paint could and metal sheets factory for export and domestic markets.

The Panhua investment was actually an effort of the BOI, which was referred to the more appropriate Subic Bay Metropolitan Authority because Subic can appropriately serve the requirements of this manufacturing firm.

Manalo also cited the Authority of the Freeport Authority of Bataan, which has already an established players of garments and leather goods making it easier in terms of materials sourcing.

In the case of the Bangsamoro, Manalo was positive that once the law is passed, there will be more investments inflow particularly in agriculture in this region

“I am very hopeful, Mindanao is very rich in agriculture and agri processing,” he said.

It is rich in fisheries, rubber, seaweed manufacturing, tuna and sardines processing.

“Once the Bangsamoro is completed with a plebiscite, I am very hopeful for Zamboanga,” he added.

The incentives to be granted by IPAs to investors will depend on the list of economic activities listed under the Investment Priorities Plan (IPP), an annual list of priority projects that are entitled to government incentives.

Manalo further said the 2014 IPP has identified sectors that need reinvestments the most. (Bernie Magkilat, Manila Bulletin)

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SBMA, Subic EnerZone renew MOA for “Adopt-An-Ambulance” program

Subic EnerZone Corporation (SEZ), the power provider in this Freeport, adopted anew all ambulances of the Subic Bay Metropolitan Authority (SBMA) as part of its corporate social responsibility program and added a 25 per cent increase to the maintenance allocation for the vehicles.

SBMA Chairman Roberto Garcia and SEZ assistance vice president and general manager Warell Kern Sario, representing SEZ senior vice president and COO Dante Pollescas, signed the memorandum of agreement for the firm’s “adopt-an-ambulance” program.

The SEZ-SBMA cooperation project started in 2007, with the donor allocating P100,000 annually for the maintenance of the eight ambulances of the SBMA.

This year, however, the allocation was increased by 25% to P125,000.

Garcia described the “adoption” as a clear manifestation of the how effective the public-private partnership program works, where a private corporation cooperates or assists a government agency in the implementation of a program that benefits the general public.

“Our ambulances are an integral part of the Freeport’s Emergency Medical Services (EMS) Program,” Garcia said.

He explained further that with the EMS, the SBMA is able to deploy a medical emergency reaction team at any given emergency situation, to any place within the Subic Bay Freeport Zone and, if needed, to nearby towns and provinces.

EMS is a component of the SBMA Emergency Rescue Group, which is composed of personnel and logistical support units from the SBMA Health and Safety Group. Other members included personnel from the agency’s fire and law enforcement departments.

For SEZ, the program fulfils the company’s CSR thrust, which is designed to benefit the entire Subic Bay Freeport community.

“We believe in the primary responsibility of the SBMA EMS, and how important these ambulances are to be available anytime they are needed,” Sario said.

He added that the P125,000 will help fast-track the purchase of needed spare parts for the vehicles to ensure the reliability of service at all times. (RAV/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia (left) concludes an agreement with EnerZone Subic AVP and General Manager Warell Kern Sario for the Adopt-an-Ambulance program that will provide an annual allocation for the maintenance of ambulances used by the SBMA Emergency Medical Services Group. Witnessing the signing of the agreement are Dr. Solomon Jacalne, head of the SBMA Public Health and Safety Group (standing left), and Edgar M. Caluza, administrative manager of EnerZone Subic.

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