10,000 workers needed in Subic Freeport

The Subic Bay Freeport is in need of more than 10,000 workers to help boost the investment here, Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia announced during a press conference on Tuesday.

With the massive growth in port traffic and more orders being made to Freeport investors, he said the current number of workers here will not suffice.

He added that in ensuring fast processing of containers here, the SBMA needs to double its current number of cashiers.

The shipbuilding company Hanjin Heavy Industries and Construction-Philippines (HHIC-Phil) alone needs 10,000 more workers due to the influx of orders to build cargo vessels, said Garcia. (Jonas Reyes)

http://www.mb.com.ph/luzon-newsbits-for-november-27-2014/

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NYK line makes first port call in Subic

Japan-based Nippon Yusen Kaisha (NYK) Line, one of the largest shipping companies in the world, made its first direct route to Port of Subic from Kaohsiung, joining other major shippers in using this free port as a more viable alternative to the congested Port of Manila.

NYK’s MV Jakarta Towers, a 688-gross tonnage Liberian-flagged cargo vessel, made its first port call at Subic on Saturday and docked at the New Container Terminal (NCT)-2 after sailing a day-and-a-half from Kaohsiung, Taiwan.

The cargo vessel unloaded about 110 container vans destined to consignees in Southern Luzon, including Toyota Motor (Phils.) Corp. in Santa Rosa, Laguna; Canon Business Machines (Phils.) Corp. inTanauan, Batangas; and parts of Metro Manila.

The ship also unloaded cargos for consignees in Central and Northern Luzon. These included Sumi Phils. WiringSystem Corp. at the Hermosa Ecozone Industrial Park in Bataan; International Wiring System (Phils.) at Luisita Industrial Park and Special Ecozone inTarlac; and Yokohama Tires at Clark Freeport Zone in Pampanga.

The ship departed on the same day for the Port of Manila, and then later for Singapore after loading almost the same number of containers.

NYK Group National Sales, Marketing and Outports manager Mary Grace Golez said that the port call is part of the ad hoc operation of NYK in Subic and will serve as basis of assessment for opening a full operation here or have Subic only as an alternate port.

“It all depends on the outcome of the assessment after several port calls. But we hope everything would go well,”said Golez.

She added that should the assessment go well, the new route—Kaohsiung-Subic-Singapore—would open Port of Subic to major transshipment ports that connect to the rest of the world’s trade routes, especially in ASEAN countries, Africa, Europe, and North America.

Subic Bay Metropolitan Authority(SBMA) Chairman Roberto Garcia earlier announced that a number of shipping companies in Southeast Asia are starting to consider using the Port of Subic after experiencing long delays in unloading and loading of containerized cargos in Manila.

This was attributed to the congestion at the Port of Manila, which forced cargo vessels to wait off Manila Bay for at least a week before docking and unloading cargos.

Because of this, President Aquino through Executive Order 172, has classified the Port of Batangas and the New Container Terminal-2 in Subic as extensions of the Port of Manila.

Golez noted, however, that the Port of Batangas, which is nearer Manila, was already congested a month after the issuance of EO 172.

Golez also noted the overwhelming support extended by the SBMA to NYK, especially in working out the agreement for the new route to Subic.

Early this month, China-based SITC Container Lines (Phils.), Inc. also opened a direct route from Xiamen,China, to Subic with its container ship MV Sicilia making its maiden voyage to Subic and unloading 22 containers at NCT-2. (RAV/MPD-SBMA)


PHOTO:
A trailer truck hauls off a cargo container from MVJakarta Tower, a vessel chartered by the Nippon Yusen Kaisha (NYK) Line for its first ad hoc call at the Port of Subic. MV Jakarta Tower, which will be used exclusively for NYK bookings, arrived at Subic’s New Container Terminal on Sunday, November 23. (AED/MPD-SBMA)

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ICTSI to expand capacity of its Subic terminal

As government hesitates to allow International Container Terminal Services Inc. (ICTSI) to expand its Manila port operations, the company is seeking to expand its container terminal in Subic Bay, whose capacity utilization is increasing, as part of its strategy to “future-proof” its terminals.

Christian Gonzales, vice president and Asia Region head of ICTSI, told reporters in an interview that this is part of its five-year $300 million to $400-million Medium Term Development program.

Initially, the company has allocated $12 million for rubber-tire gantry (RTG) cranes for both Subic New Container Terminal-2 (NCT-2) and Manila International Container Terminal (MICT).

Gonzales said it is not yet certain how many RTGs will go to Subic, which has already six, and MICT as this will depend on market demand.

“We won’t be adding quay cranes in Subic because they have already four.

In Manila, we plan on adding two but that’s over 2 years depending on how we see the market developing,” he said.

Gonzalez noted that ICTSI’s strategy in its strategic expansion planning has always been to “future proof” its terminals. Subic has been designated by the government as alternative to Manila port in light of the ongoing port congestion.

While the additional equipment and capacities may only be a small portion of its overall MTD plan as there is no need to expand the pier but to continue with two berths for the big ships, Gonzales said they may also need to expand the port area in coordination with Subic Bay Metropolitan Authority.

NCT-2 has a total of 13.16 hectare terminal Area; 14-hectare container yard; 280 meters quay; controlling depth of 13 meters; 6 truck lanes; 0.7 hectare truck holding area; and 60 ton weigh bridge.

He noted there are still available lots in Subic that they can expand into.

ICTSI has already discussed this plan with SBMA Chairman and Administrator Roberto Garcia who told them to possibly do it in stages.

“Chairman Garcia is very flexible, very aggressive. We are just making sure that Subic is ready to accommodate more traffic as much as possible,” he said.

According to Gonzalez, the capacity utilization of NCT-2 in Subic is expected to reach 21 percent by next year. NYK shipping line has their first call on Monday.

The government has been against further expansion of the Manila port, but Gonzalez said there has been some softening of government stance as they now allowed the expansion of berth 7.

Gonzalez explained there are two kinds of expansion, one is just expanding capacity to allow bigger but fewer ships to call and making the Manila port operations more efficient. The other type of expansion is where a player just wants to get a bigger market share.

Gonzalez does not want to divulge its market share in the Manila port but said that they understand the government’s move to promote Subic and Batangas.

He, however, stressed that the “promotion for Batangas and Subic should be done by getting industries to move there not by taking the cargo of somebody.”

Gonzalez even said that the shift of cargoes from the MICT to Subic following the port congestion and the designation of Subic and Batangas as alternative to Manila ports has been very small and just temporary.

Those that shifted permanently are those that are really from the nearby areas.

“It does not mean that while you have the port, the cargo volume will go to you,” he stressed. (Bernie Magkilat, Manila Bulletin)

http://www.mb.com.ph/ictsi-to-expand-capacity-of-its-subic-terminal/

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Bright outlook for Subic all the way to 2016

The stability of the SBMA (Subic Bay Metropolitan Authority) and its unyielding performance, coupled with the current business in-flow in the Freeport will definitely create a strong economic surge in the Freeport Zone in 2015 and in 2016.

This was the prediction of Subic Bay Freeport Chamber of Commerce (SBFCC) President Rose Baldeo during the Subic Bay Outlook Towards 2016 Economic Employment Summit held at the Olongapo City Convention Center last week.


The prediction Baldeo made was based on SBMA’s accomplishment of besting 2012’s net profit record of P824 million with last year’s P1.2-billion net profit, highest in the entire 21 years of existence.

SBMA Chairman Roberto Garcia also stated that the agency’s gross revenue last year of P2.09 billion and the Earnings Before Interest Taxes Depreciation Amortization (EBITDA) of P992 million are the highest levels in the history of the SBMA.

Garcia also pointed out the increase in port traffic as this Subic Freeport became the alternative port for Manila, thanks to Executive Order 172. Garcia said that Subic’s cargo volume is expected to hit more than 70,000 TEUs this year from 38,000 TEUs last year.

Nippon Yusen Kaisha (NYK) Line made its first direct call at the Subic Port to help solve the current concerns in Manila. According to NYK Manager Mary Grace Golez, the Subic call is marked by many firsts, opening more opportunities for Philippine shipping.

“This will be the first service in the Philippines to make a direct call from Japan to Subic, in addition to the regular Taiwan-Subic call. It will also be the first service to call from Subic to Singapore, a major transshipment port providing numerous connections to East Asia, the Middle East, South Asia, Europe, Africa, North America, Australia and New Zealand ports,” she said.

Baldeo said, “Outlook-wise, we as locators and investors are beginning to feel the change of the business climate in the Subic Bay Freeport. Slowly and steadily, the SBMA has begun to adjust to the needs of its investors businesses.”

“But these positive outlooks require a great cooperation; we the locators see the need for an improved working relationship or partnership with the local governments, the educational institutions, the SBMA, and other concerned government agencies including the local businesses in the city and in the nearby provinces,” she said.

To help entice more shipping lines to use Subic, the SBMA cut its port fees starting October 1, even if this would result in losses of about $10 million to $15 million for the state agency. (Jonas Reyes, Manila Bulletin)

PHOTO:
SUBIC SHIPPING SHAPES UP — A truck hauls off a cargo container from the ‘M/V Jakarta Tower,’ a cargo vessel chartered by the Nippon Yusen Kaisha (NYK) Line, after docking at the NCT-1 of Subic Bay Freeport. The NYK Line made its first direct call at the Subic Port to help solve the current concerns in Manila.

http://www.mb.com.ph/bright-outlook-for-subic-all-the-way-to-2016/

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Subic Freeport land row far from over

A TRIAL court judge in Olongapo City is now in hot water after criminal and administrative complaints had been filed against him for stopping a construction project on a disputed 1-hectare property inside the Subic Freeport Zone.

Charged for violation of the Anti-graft and Corrupt Practices Act before the Ombudsman is Judge Richard Paradeza of the Regional Trial Court (RTC) in Olongapo City.

An administrative complaint was also filed against Paradeza before the Supreme Court (SC) for allegedly “knowingly rendering an unjust decision” based on Article 204 of the Revised Penal Code.

The cases were filed by Marianito B. Fernandez of the Subic Coastal Development Corp. (SCDC), through his legal counsel, Bonifacio Alentajan.

Fernandez also sought the immediate inhibition of Paradeza from handling the land-dispute case.

The cases were filed after Paradeza issued a temporary restraining order (TRO) on the construction of a manufacturing facility on the 1-hectare property by Japanese Cresc Inc., based on a petition by a former Zambales governor Vicente Magsaysay.

In filing the motion for inhibition, Fernandez said Paradeza had lost the “cold neutrality” of a judge, since he could no longer achieve justice from the court.

Fernandez asked that civil case 119-0-2014 and the case should be re-raffled to another branch of the RTC in Olongapo City for disposition.

The Japanese company had also echoed SCDC’s position, saying the TRO should not have been issued at all as it lacked merit and Magsaysay had no legal personality to file the case.

“We invested in Subic Freeport in response to the Aquino administration’s efforts to attract foreign investments to the country. But we are now having second thoughts about our investments here as we now find ourselves in a legal dispute that has jeopardized our business expansion and impaired our capability to meet global demand for our ink products,” Cresc said.

“This is not only a legal and business dispute. It will also have an adverse impact on the Aquino administration’s drive to attract more foreign investments,” Cresc added.

The case started in 2002, when the Subic Bay Metropolitan Authority (SBMA) leased 16.5 hectares to SCDC, a private firm.

Magsaysay offered to assist SCDC in clearing the leased property, where it built the Moonbay Marina Resort.

In 2008 SCDC was shocked when Magsaysay demanded that he be given control of 1 hectare of the 16.5-hectare property as “payment” for his unsolicited help in clearing the leased property.

Since it doubted the legality of Magsaysay’s demand, SCDC referred the case to SBMA.

A memorandum of agreement (MOA) was later signed by the SBMA, SCDC and Magsaysay’s Mobi, and Red Enterprises (MRE).

The 2008 MOA stipulated that SBMA would allow MRE to sublease the 1-hectare property if the Magsaysay-owned company would meet all of the SBMA’s terms and conditions within 30 days of the MOA signing.

The 2008 MOA also clearly provided that, at the event of the MRE’s failure to meet the MOA’s terms and conditions, and failure to secure a sublease from SBMA, the 1-hectare property would remain as a leasehold of SCDC.

As confirmed by SBMA Deputy Administrator for Legal Affairs Randy Escolango, the 2008 MOA did not take effect because MRE failed to meet the MOA’s terms and it failed to secure a sublease from the SBMA for the property.

Not only did SBMA not issue MRE a sublease, SBMA also affirmed that legal control of the subject property never left SCDC, as SBMA continued collecting from SCDC all pertinent fees on it, such as base rent, sublease share and monthly billings.

Likewise, SBMA confirmed SCDC’s right over the disputed property and approved the survey plan, covering the one-hectare subleased by SCDC to Cresc in 2013.

The sublease between SCDC and Cresc was also deemed approved by SBMA when the latter approved Cresc’s development plans on the area, which allowed the Japanese company to undertake business expansion. (Joel R. San Juan, BusinessMirror)

http://www.businessmirror.com.ph/subic-freeport-land-row-far-from-over/

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Rich cultural exchange between Filipinos and Koreans in Subic

“South Korea and the Philippines have a long history together. South Korea’s political, economic and cultural ties with the Philippines are stronger than before.”

This was the statement made by Hanjin Heavy Industries and Construction-Philippines President Jin Kyu Ahn during the opening ceremony of the Korean Cultural Festival at the Redondo shipbuilding facility on Wednesday.

With the theme: “Hi Korea Anneong ASEAN,” the Korea Cultural Festival is in line with the celebration of the 25th anniversary of the relationship between South Korea and the Association of Southeast Asian Nations (ASEAN). The celebration is a precursor to the two-day Korea-ASEAN Summit that will take place on December 11 in Busan, South Korea.

Ahn said that the evolving partnership between the Philippines and South Korea rests on a foundation of shared values and interests. He added that the vessels made by the company are a testament of the two countries’ ingenuity and hardwork.

Director for Korean Cultural Center Hon. Chung-Suk Oh and other Korean diplomatic officials who came to the event were welcomed by some 25,000 shipbuilding workers at the Redondo facility.

The Filipino workers were treated to a Korean traditional dance, as five beautiful Korean performers dressed in Hanbok gracefully danced onstage. A ballet dance was also showcased in the event.

Other highlights of the night were a balancing act, a traditional drum exhibition and a band performance by Korean artists. (Jonas Reyes, Manila Bulletin)

PHOTO:
KOREAN HERITAGE – Dancers in colorful Korean Hanbok perform during the Korea Culture Festival at the Hanjin shipbuilding facility in Redondo Peninsula, Subic on Wednesday.

http://www.mb.com.ph/rich-cultural-exchange-between-filipinos-and-koreans-in-subic/

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Gov’t, private sector tackle port congestion on Nov 27

Government officials would meet next week with various stakeholders in the Port of Manila to update them on the ongoing efforts to ease the port congestion and other concerns, Communications secretary Herminio Coloma Jr. said yesterday.

Coloma said the meeting had been set for November 27 at the Manila Diamond Hotel with some 300 people representing the government, port operators and the private stakeholders like the importers, exporters and truckers are expected to attend.

Coloma said Cabinet Secretary Jose Rene Almendras would represent the government including members of the Departments of Public Works and Highways (DPWH), Transportation and Communications (DOTC), and Finance (DOF), Land Transportation Office (LTO), Land Transportation Franchising and Regulatory Board (LTFRB), Philippine Ports Authority (PPA), Metropolitan Manila Development Authority (MMDA), Bureau of Customs (BOC) and the Subic Bay Metropolitan Authority (SBMA).

The congestion of the Manila Port had worsened over the past months following the imposition of a truck ban by the Manila local government early this year.

This resulted in use of the Ports of Batangas and Subic as an alternate port to Manila, and release of cargoes on Sundays, among others. (Malaya Business Insight)

http://www.malaya.com.ph/business-news/business/gov%E2%80%99t-private-sector-tackle-port-congestion-nov-27

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SBMA officials, staff spread early Christmas cheer

The Subic Bay Metropolitan Authority (SBMA), a government owned and controlled corporation (GOCC), is composed of employees with an employment status of either plantilla or contract of service (CS).

Most of those CS employees are the old ladies who sweep the streets and some building inside this premier Freeport. And being CS means that their bonuses are incorporated in their salaries, leaving almost no spare to save on a rainy day.


With most of them under “Salary Grade: 3,” expect that their monthly pay to stay within P7,000, not really enough to send their children to college. Now that the Yuletide season is upon us, these elderly women will be celebrating Christmas and New Year with only their usual monthly salary.

But the SBMA is not without any kind-hearted employees among its rank-and-file and executives. In a simple yet meaningful early Christmas gift-giving, employees and their bosses dug deep into their pockets and gave their less-fortunate workers of the SBMA food packs last weekend.

Spearheaded by the agency’s Legal Affairs Department, around 300 rank-and-file employees were given food packs by their fellow SBMA workers and the Philippine Coast Guard Auxiliary’s 111th Squadron.

PCGA 111th Squadron Commander Randy Escolango said that these are just small tokens for the services rendered by the less-fortunate workers to the SBMA. Escolango, a deputy administrator of the SBMA, said that both the Legal Affairs and the PCGA chipped-in to give these workers some Yuletide cheer. (Jonas Reyes, Manila Bulletin)

PHOTO:
GIFT-GIVING — (From left) Captain Henric David, Philippine Coast Guard Auxiliary (PCGA) director, and PCGA 111th Squadron Commander Randy Escolango distribute a food pack to an employee of the Subic Bay Metropolitan Authority in their early Christmas gift-giving event last Friday.

http://www.mb.com.ph/sbma-officials-staff-spread-early-christmas-cheer/

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UK-based firm builds new PH plant

David Brown Gear Systems, a global United Kingdom-headquartered leader in gear engineering, has expanded its world wide presence with the establishment of a new facility in the Philippines.

On Thursday, David Brown opened its new industrial gearbox service and repair facility in Subic Bay Freeport Zone, Philippines.

Fully equipped with modern gearbox strip, condition assessment, repair, rebuild, assembly and test facilities, David Brown Gear Systems (Philippines) Inc. will repair and upgrade gearboxes in industrial applications including mines, power stations, cement and sugar processing plants as well as oil and gas facilities and marine vessels.

“David Brown works in industries where maximum process availability is critical and we are proud to be the only industrial gearbox OEM [original equipment manufacturer] operating a dedicated service center in the Philippines,” David Brown Asia general manager Scott Gilmour said in a statement.

“Our new service center in Subic Bay brings us even closer to our valued customers and is a major milestone in the company’s plan to deliver premium gear engineering expertise throughout Asia,” he added.

For his part, British Ambassador to the Philippines Asif Ahmad said it is good to see another world-leading British company choosing the Philippines for its operations.

“Filipino businesses in industries such as mining, energy and construction will benefit from David Brown’s experience and expertise,” Ahmad said.

“With more than 150 years in the business, David Brown offers top-notch specialist transmission engineering and repair services and adheres to the highest global quality assurance standards,” he added.

Established in 1860, David Brown is a world-leader in gear engineering and service support working in core industries such as defense, oil & gas, mining and minerals processing. (MBM, Manila Bulletin)

http://www.mb.com.ph/uk-based-firm-builds-new-ph-plant/

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20 emergency vehicles for Yolanda –devastated areas arrive in Subic

Twenty emergency vehicles from Japan intended for distribution in typhoon areas affected by Typhoon “Yolanda” in Tacloban, Leyte arrived at the Port of Subic on Tuesday.

The vehicles were among the shipment on board the Panama-registered M/V Ligulao, which docked at the former Naval Supply Depot (NSD) terminal here.

Mariko Watanabe, Third Secretary at the Economic Section of the Embassy of Japan, said that the vehicles, comprising 17 fire trucks and three ambulances, have a total value of US$202,760 or about P8.5 million.

Watanabe, who was here in Subic to personally supervise the unloading of the vehicles and their transfer to the conversion facility, said the vehicles which were funded through a Grant Assistance for Grassroots Human Security Projects (GGP).

The vehicles, all right-hand drive, will be first converted into left-hand drive in Subic, which is said to be the only place in the country which the government of Japan certifies to meet the safety standards in converting RHD vehicles to LHD.

Watanabe said the vehicles are part of the “The Project for Providing Emergency Vehicles for the Typhoon-Affected Areas in the Philippines" signed by Chargés d'affaires to the Philippines Tetsuro Amano and Chief Superintendent Carlito Romero, the Bureau of Fire Protection’s director for plans and standard.

The donations are expected to help strengthen the capability of the Philippine National Police (PNP)and the Bureau of Fire (BFP) in responding to disasters and managing emergencies.

It is expected that the vehicles will be driven to their destinations in the Visayas on the second week of December after the necessary test drives here. The send-off ceremony to will be attended by the Ambassador of Japan and Philippine government officials.

Watanabe said that a group of at least 12 BFP personnel will be sent to Japan to undergo development and skill trainings for them to properly operate all the second-hand but modernly-equipped ambulances and fire trucks.

Meanwhile, Chairman Roberto Garcia of the Subic Bay Metropolitan Authority (SBMA) was glad to note that Subic was chosen to be the offloading point for the emergency vehicles, saying that the least Subic could do in helping the Yolanda-devastated areas is to provide a facility for their unloading and conversion.

“At the same time, the skills and talents of workers in Subic are being recognized in the international level in motor conversion of right-hand drive to left-hand drive,” Garcia said. (RAV/MPD-SBMA)

PHOTO:
A firetruck goes down the ramp of MV Ligulao, a Panamanian-registered vehicles-carrier ship, which unloaded emergency vehicles at the NSD Pier of the Subic Bay Freeport on Tuesday afternoon. A total of three ambulances and 17 firetrucks arrived in Subic as donation from the Japanese government to areas affected by Typhoon Yolanda in the Visayas. (AED)

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NYK opens direct routes to Subic Freeport

Another international shipping line has opened a direct route between this free port and the major ports of Japan and Singapore, joining a growing number of shippers that now call on Subic following its classification as an extension port of Manila.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto V. Garcia announced on Wednesday that Nippon Yusen Kaisha (NYK) Line, one of the world's leading transportation companies, will open direct routes from Japan to Subic and from Subic to Singapore.

Garcia finalized an agreement for the new shipping route late last month with Capt. Chak Kwok Wai, chairman and managing director of the NYK Group; Ian T. Maambong, NYK sales manager for export; Dan Florentino, chief operating officer of the Transnational Diversified Group; and Tony Ramos, administrative officer of Subic Bay International Terminal Corp.

“The opening of NYK’s direct routes to Subic is intended to provide an alternative solution to the port congestion in Manila,” Garcia explained.

“NYK has stressed that it opened the routes as a contribution to help solve the current concerns in Manila and in response to the Philippine government’s request to decongest Manila ports,” Garcia added.

The NYK Group, which is based in Japan, is a comprehensive global-logistics enterprise offering ocean, land, and air transport services.

Under the agreement, NYK will be providing Subic discharge and load options for urgent cargoes, thereby helping to minimize their vessel’s overall port stay in Manila.

Garcia said that NYK will start an adhoc call at the Port of Subic using its 2,300-TEU capacity target vessel MV Jakarta Tower exclusively for NYK bookings. Jakarta Tower is scheduled to make its first Subic call on November 22.

Daniel Ventanilla, general manager of NYK Fil-Japan Shipping Corp., said in a message to Garcia that NYK’s new line to Subic is marked by many milestones.

“This will be the first service in the Philippines to make a direct call from Japan to Subic, in addition to the regular Taiwan-Subic call,” Ventanilla said.

“It will also be the first service to call from Subic to Singapore, a major transshipment port providing numerous connections to East Asia, the Middle East, South Asia, Europe, Africa, North America, Australia and New Zealand ports,” he added.

The SBMA said earlier that the Southeast Asian shipping community is starting to notice the potentials of the Port of Subic as an ideal port to move and transship both containerized and bulk cargo shipments.
​
"With the entry of NYK, our port would virtually become a gateway to ASEAN, Africa, Europe, and North America," Garcia noted.

Last month, China-based SITC Container Lines Philippines, Inc. opened a direct route from Xiamen, China to Subic when its container ship MV Sicilia made its maiden voyage to Subic and unloaded 22 containers at the New Container Terminal (NCT) 2.

The cargoes included products from Guangxi, Sichuan and Shanghai, all in China, respectively for Orica Philippines in Limay, Bataan; Nestle Philippines Inc. in Cabuyao, Laguna; and Manila World Transport, Inc. in Metro Manila. (HEE/MPD-SBMA)

PHOTO:
NEW SHIPPING LINE: SBMA Chairman Roberto V. Garcia (left) meets with representatives of the NYK Group South Asia Pte Ltd. to discuss the potential of NYK Shipping Line calling on the Port of Subic. Present during the meeting are, from far left: Tony Ramos, admin officer of Subic Bay International Terminal Corp.; Ian T. Maambong, sales manager for export, NYK Group; Capt. Chak Kwok Wai, chairman and managing director, NYK Group; and Dan C. Florentino, chief operating officer, Transnational Diversified Group.

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Asian ports meet in Subic to strengthen regional integration

Leaders and delegates from eight major ports in Asia are meeting at the Port of Subic for the three-day 16th General Assembly and Symposium of the International Network of Affiliated Ports (INAP), which began Wednesday.

The delegates came from the INAP-member ports of Colombo in Sri Lanka, Mokpo New Port and Dangjin in South Korea, Tanjung Perak in Indonesia, Qingdao in China, and Subic and Cebu in the Philippines.

With the theme, “Opportunities of ASEAN Integration,” the gathering focuses on port innovations, as well as mutual opportunities for increased competitiveness, productivity, and cooperation.

The meeting also paved the way for outgoing INAP chairman Gov. Masanao Ozaki of the Kochi Prefecture in Japan to officially turn over the INAP leadership to Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia.

As head of the host port, Garcia opened the conference, pointing out that the event is very important, not only for the Philippines, but also for all the ASEAN countries that rely on their ports for increased commerce.

“As with the theme, we should take advantage of the opportunities of ASEAN integration and explore the business opportunities each port and host city is ready to offer,” Garcia said.

Garcia added that the Port of Subic is eyeing a major role in Philippine shipping after President Aquino declared Subic and the Port of Batangas as extensions of the Port of Manila, which has long suffered from port congestion.

Presenting the Subic Bay Freeport’s role in the ASEAN Integration, SBMA OIC-deputy administrator for business and investment group Ronnie Yambao noted that the Subic Freeport is being utilized as a manufacturing base and logistics center by local and foreign investors from the region.

He added that Subic, along with other Asian ports, has joined the Asian Cruise Terminals Association (ACTA), which is considered a strategic move to attract major cruise ships plying the Asian tourism route.

“With these developments, the Port of Subic is playing key roles in the ASEAN integration by serving as transshipment hub in this part of the region,” Yambao added.

Meanwhile, Prof. Paolo Jamil Francisco of the Asian Institute of Management (AIM) who talked about ASEAN integration, said that the concept is becoming accepted by ASEAN countries and is now being practiced by many investors and manufacturers.

Francisco cited as an example a popular car manufacturer, which produces parts in various ASEAN countries like Thailand, Malaysia, and the Philippines.

Francisco urged the attending INAP members to cooperate with the government, “co-opete” (compete-cooperate) with other firms, consolidate capabilities and strengths, and take advantage of the challenge.

“While competing with other firms, everyone must cooperate with them on how to improve their products, and meet the required materials and supplies,” he said.

Francisco’s statement was supported by Roberto Locsin, general manager of Subic Bay International Terminal Corp. (SBITC), saying two Japanese companies are now shipping cargoes via Subic as a result of the congestion in the Port of Manila. (RAV/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia (middle) links arms with other leaders of the International Network of Affiliated Ports (INAP) in front of the iconic Spanish Gate during the opening of the 16th INAP General Assembly and Symposium at the Subic Bay Freeport.  The three-day conference will focus on port innovations and the promotion of competitiveness, productivity and regional cooperation. (AED)

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Apple supplier Foxconn mulls a manufacturing facility in PH

Foxconn Technology Group, the world’s largest computer manufacturer and supplier to Apple Inc., is looking a closer look at the Philippines as company officials visited various economic zones in the country.

Amadeo R. Perez Jr., chairman of the Manila Economic and Cultural Office (MECO), told reporters that Foxconn officials came over three months ago and were brought to various ecozones, including the country’s Freeport zones Subic and Clark, and Calabarzon areas such as Batangas, Laguna and Cavite.

“They are looking into several areas and they have lots of considerations, including fung shui,” Perez said. So far, Perez said there has been no word yet from Foxconn.

Government investment promotion agencies Board of Investments and the Philippine Economic Zone Authority started courting this Taiwanese firm in 2012 yet.

Foxconn has been mulling about relocating some of its capacities outside of its production hub in mainland China due to rising wage rate and shortage of available workers and has included the Philippines in its shortlist of countries as investment destination.

The company employs 1.2 million people at its China facilities producing laptops, tables and PCs for the export market. Aside from the rising cost of wage, the lack of available manpower has turned off some of multinational firms, which relocated in China based on these attractions.

Foxconn is a multinational business group anchored by the Hon Hai Precision Industry Co., Ltd., a Republic of China-registered corporation headquartered in Tucheng, Taiwan.

As the world’s largest manufacturer of electronics and computer components, Foxconn mainly manufactures on contract to other companies. Among other things, Foxconn produces the Mac mini, the iPod, the iPad, and the iPhone for Apple Inc.; Intel-branded motherboards for Intel Corp.; various orders for American computer manufacturers Dell and Hewlett-Packard; motherboards for UK computer manufacturer Zoostorm; the PlayStation 2 and PlayStation 3 for Sony; the Wii for Nintendo; the Xbox 360 for Microsoft, cell phones for Motorola, the Amazon Kindle, and Cisco equipment.

It assembles an estimated 40 percent of the smartphones, computers and other electronic gadgets sold around the world. Foxconn’s decisions set standards other manufacturers must compete with.

It has 13 factories in nine Chinese cities employing 1.2 million. Foxconn is the world’s largest maker of electronic components and the largest exporter in Greater China. Foxconn is primarily an original design manufacturer and its clients include major American, European and Japanese electronics and information technology companies. Notable products which the company manufactures include the iPad, iPhone, Kindle, PlayStation 3, Wii and Xbox 360.

Foxconn has been identified by the Global Marketing Intelligence System (GMIS) of the Department of Trade and Industry as a potential investor. Companies targeted under GMIS for investment promotion must have four common characteristics: Mass employers, the technology used in their current production is within the capability of the Philippines and can be serviced by Filipinos; if a potential company is located outside of Asia, that company must have an existing operation in Asia; and if located in the Middle East or in the Americans, they must have operation abroad. (Manila Bulletin)

https://ph.news.yahoo.com/apple-supplier-foxconn-mulls-manufacturing-facility-ph-162738637.html

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Port of Subic bustles with more ship calls

[1] The MV Front Runner, a Panamanian-registered vessel, unloads grains at the Mega Grain Terminal while Singaporean-registered container vessels MV Thana Bhum and MV Spirit of Colombo unload cargo containers at the New Container Terminal in the Subic Bay Freeport in this photo taken November 4, 2014. (AED)

[2] A stacker truck gets moving at the New Container Terminal in the Subic Bay Freeport, as the Singaporean-registered cargo vessels MV Thana Bhum and MV Spirit of Colombo unload container boxes in this photo taken November 4, 2014. (AED)

[3] Trailer trucks get busy at the New Container Terminal in the Subic Bay Freeport, as Singaporean-registered cargo vessels MV Thana Bhum and MV Spirit of Colombo unload container boxes in this photo taken November 4, 2014. (AED)

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MOA signed empowering SBMA, 3 more port authorities to require security compliance

CITING terrorism as the number one threat in transportation, four port authorities yesterday signed a memorandum of agreement (MOA) with the Office for Transportation Security (OTS) on the issuance of security certification for Philippine-registered vessels and port facilities.

The MOA will further empower Cebu Port Authority (CPA), Subic Bay Metropolitan Authority (SBMA), Cagayan Economic Zone Authority (Ceza) and Regional Ports Management Authority (RPMA) of the Autonomous Region of Muslim Mindanao (ARMM) in requiring security compliance of port operators and in imposing penalties on violations.

The MOA was signed by OTS Administrator Roland Recomono, CPA General Manager Edmund Tan, Jerome Martinez for SBMA, Dhart Carpio for Ceza and Hanie Bud for RPMA.

Monitoring

Under the MOA, and in the case of Cebu, a vessel owner or port operator will submit a security plan, such as X-ray machine for passenger screening and manual screening of cargoes, to CPA. The CPA will review and assess the plan and, if in order, endorse it to OTS for second review and approval.

Once the OTS approves the plan, it will assign an oversight team to monitor compliance. If the plan has been complied with, then the OTS will issue a certificate of compliance.

Reconomo said the security plan and compliance must be in accordance with Chapter XI-2 of the Safety of Life at Sea 74 and the International Standard for Port Facilities Security, both imposed by the International Maritime Organization (IMO).

Abaya’s message

The signing was witnessed by Department of Transportation and Communication (DOTC) Undersecretary Jualianito Bucayan Jr., port officials, port operators, shipping lines owners and operators, and other maritime industry stakeholders.

In DOTC Secretary Antonio Abaya’s message read by Bucayan, Abaya said sea transport and maritime infrastructure and the public are living in an era where the ever-changing threats of violence can impact our daily lives at any time.

“As a consequence, we have to find ways of trying to prevent the atrocities that might take place by having mechanism to respond should disaster strike,” Abaya said.

“Terrorism existed yesterday, occurs today and will persist tomorrow. Terrorists have continued to target the transportation system to publicize their cause or ideology. We are all witness to the emergence of global attacks in the recent past to the security and safety of our riding public either in land, maritime and civil aviation,” he said.

To counter these unlawful acts of terrorism, Abaya said it is imperative that transportation security infrastructure should be effective.

“In the pursuit of security excellence, we must adopt the latest professional skills and technology available which, in conjunction with well-trained and motivated security professionals, can help protect the industry from increasing sophisticated threats to the maritime infrastructure and facilities,” he said.

Abaya said the outcome of this endeavor will enhance the enforcement security of shipping and port operators to enroll in the security program, thus eventually complying with the maritime security standards prescribed by IMO. (Elias O. Baquero, Sun Star)

http://www.sunstar.com.ph/cebu/local-news/2014/11/04/moa-signed-empowering-4-port-authorities-require-security-compliance-3747

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