Cabinet cluster agree on measures to decongest Port of Manila

Members of the Cabinet cluster for port decongestion, during a meeting on Tuesday morning, agreed on measures for the immediate decongestion of the Port of Manila, a Palace official has said.

In a press briefing in Malacañang on Tuesday, Presidential Communications Operations Office Secretary Herminio Coloma, Jr. said the President prioritizes the immediate resolution of the problem of congestion in the Port of Manila.

The cluster meeting agreed that effective September 8, all cargoes cleared by the Philippine Ports Authority and Bureau of Customs will be given five days to pull out of the Manila ports or they will be shipped out by the government to the Subic and/or Batangas ports.

It also agreed that effective October 1, all cargoes that have been cleared by port authorities but have failed to pull out within the prescribed five-day period will be charged a fine of P5,000 a day.

Coloma further said that the meeting reached a resolution on the implementation of a 24-hour last-mile truck routes for two weeks.

"Ang isang susi dito kasi ang pag-operate ng mga truckers kapag araw ng Linggo at Lunes ng umaga, so they can maximize the utilization of the 24-hour last-mile truck routes," he said, adding that the government will give incentives to truckers who will operate on Sundays.

These truckers will be tagged by the Metropolitan Manila Development Authority (MMDA) so they can use the 24-hour last-mile truck routes, he said, explaining that with the last-mile routes, truckers can complete their trip, even during the truck ban.

Truck routes that will be open 24/7 include the Roxas Boulevard and Quirino Avenue truck lanes going to the south and the A. Bonifacio C3 to NLEX truck lanes going to the north.

The Cabinet cluster for port decongestion is composed of the respective heads of the Department of Public Works and Highways, Department of Transportation and Communication, Department of Finance, Department of Trade and Industry, the National Economic and Development Authority, and the MMDA.

Joining them during Tuesday’s meeting were the respective heads of the Philippine Ports Authority (PPA), Land Transportation Franchising and Regulatory Board, and the Bureau of Customs. (PCOO/PND)

http://news.pia.gov.ph/index.php?article=1751409661526

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Stinky containers sent back

Subic Bay Freeport — Some 16 containers will have a return trip to Manila as authorities here discovered that these were emitting a stench while two of them are leaking.

This was the statement made by Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia during a press conference yesterday on the progress of the transfer of containers from Manila port to Subic Freeport.

Garcia said that the 16 containers were part of the 721 containers that arrived at the New Container Terminal-2 here which were shipped via the MV Asterix on Friday morning.

The transfer to Subic was SBMA’s thrust to help ease the port congestion in Manila. “But that’s as long as they conform to the SBMA’s environmental laws and policies,” Garcia stressed. (Jonas Reyes, Manila Bulletin)

http://www.mb.com.ph/luzon-newsbits-for-september-2-2014/

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Sept 8 deadline set to clear Manila ports

The Philippine Ports Authority (PPA) announced that importers and brokers have until September 8 to remove their overstaying customs-cleared cargoes from Manila ports.

Containers that will be left unclaimed after the cited date will be transferred to the ports in Subic and Batangas or any other location designated by the Cabinet Cluster on Port Congestion (CCPC). Cargo owners will shoulder all costs related to the transfer of their containers upon their release.

PPA General Manager Juan Sta. Ana in a statement said that the measure is aimed at further decongesting two Manila ports. He noted that erring importers seem to use the ports as virtual warehouses for their customs-cleared cargoes.

“This will serve as notice to all importers and brokers to withdraw their customs-cleared cargoes from the ports, otherwise, we will immediately transfer these cargoes to any of the said destinations at their own expense,” Sta. Ana said.

He added that the PPA issued notices of the cited measure and published these in different newspapers of general circulation.

“We already identified and reasonably informed the owners of these containers, which varies from big-time to small-time, and we will no longer notify them if they fail to meet the September 8 deadline,” Sta. Ana stressed.

According to the PPA’s inventory, many customs-cleared cargoes and container boxes that are customs-cleared with gate passes are still piled in Manila’s ports.

Customs-cleared containers are boxes that already paid the proper duties and taxes to the Bureau of Customs but have yet to pay the cargo-handling fees. Customs-cleared cargoes with gate passes, meanwhile, are boxes that already paid customs duties and cargo-handling fees but remain stored at the ports.

“Please understand that this is not to punish our importers but only to clear as much space as possible in preparation for the influx of cargoes due to the peak season and reduce pressure on inflation,” Sta. Ana told importers and brokers.

At present, yard utilization at the two Manila ports has jumped back to 90 percent after a long weekend in mid-August.

Productivity at the Manila International Container Terminal is still tallied at 20 moves per hour – a significant improvement from 10 to 12 moves per hour seen two months ago. Meanwhile, productivity at the Manila South Harbor soared to 15 moves per hour from only eight moves per hour two months ago.

The PPA and port operators are also trying to maintain the number of container empties inside the ports to gradually accommodate 20,000 held-up containers in foreign ports.

As of the end of June, the number of laden containers piled at Manila ports numbered 85,000 twenty-foot equivalent units (TEU) which occupied about 104 percent of the yards of the ports while empty containers reached a high of 22,000 TEUs.

Importers and other stakeholders blamed the daytime truck ban imposed in Manila from February 24 to the end of May for the congestion of containers in Manila ports.

Meanwhile, the CCPC also continues to appeal to the importers and brokers to take advantage of weekends and holidays in transporting cargo on account of light traffic and looser restrictions.

Last week, the government has shipped out some 1,154 TEUs out of the identified 3,000-TEU customs-problematic containers to the Subic ports and expects to complete the transfer this coming weekend. (Rosalie C. Periabras, Manila Times)

http://www.manilatimes.net/sept-8-deadline-set-clear-manila-ports/123037/

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P14B earmarked for LGUs’ 2015 climate change mitigation programs

The national government has earmarked P14 billion for 2015 to help beef up various climate change mitigation campaigns and programs of local government units (LGUs).

The amount was disclosed by Philippine Climate Change Commissioner Undersecretary Naderev Saño in an interview with the press during the “Hazards and Communicating Climate Change Adaptation and Mitigation Measures” conference held at Subic Bay Freeport Zone in Zambales recently.

The budget allocation was made under Republic Act 10174, also known as People’s Survival Fund (PSF) Act of 2012, which states that the fund will be sourced from the national treasury to provide assistance to various sectors such as farmers, fishermen, nutrition, infrastructures and those that help in maintaining ecological balance, such as programs to promote disaster-resilient communities, river dredging and rehabilitation, and the construction of bicycle lanes.

Saño, however, said that the Department of Finance (DOF) is currently studying how to obtain funds for the local government, since the budget for survival fund is different from the calamity fund.

“Calamity fund is used after the disaster while the survival fund is a pre-emptive budget intended for climate change mitigation and adaptation,’’ said Saño.

He also said that a PSF board was formed to monitor and supervise LGUs on how or where their funds should be spent.

He added that the board will also ensure that the projects being proposed by the LGUs are important enough to merit the funds.

Organized by the Philippine Information Agency in collaboration with the Department of Environment and Natural Resources, the Luzon-wide confab saw participation from LGUs in Regions 1, 2, and 3; the Cordillera Administrative Region; and the National Capital Region. (Franco G. Regala, Manila Bulletin)

http://www.mb.com.ph/p14b-earmarked-for-lgus-2015-climate-change-mitigation-programs/

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Govt moves to decongest Manila ports as peak season starts

PORT authorities have started to ship out overstaying containers to Subic to partly decongest the ports in Manila in anticipation of the start of the pre-Christmas peak season that is expected to start next week.

The chartered vessel, MV Asterix, left the Manila International Container Terminal (MICT) on Thursday en route to Subic carrying 1,154 twenty-foot equivalent units (TEUs). The vessel is expected to be back in Manila over the weekend to carry the remaining overstaying containers.

The government, through the Bureau of Customs, the Philippine Ports Authority (PPA) and port operators International Container Terminal Services Inc. and Asian Terminals Inc., has identified about 3,000 TEUs that can be relocated and is in the process of identifying several more to be moved out of Manila.

“The shipping out of these overstaying containers is only one of the few measures aimed at unclogging the ports before the start of the peak season,” PPA General Manager Juan C. Sta. Ana said. “This will be complemented by the increase in storage fees that will encourage shippers to get their cargoes immediately instead of leaving them inside and use the ports as virtual warehouses.”

“This will enable the port of Manila to have sufficient port space to take in the influx of cargoes needed for the Christmas season, which is expected to come in toward the end of next month,” he added.

The port chief noted that, while the ports will remain a bit congested in terms of yard capacity, the productivity and efficiency of the two Manila ports are slowly returning back to normal in time for the expected spike in cargo volume.

The MICT, the country’s top international gateway, has an annual capacity of 2.5 million TEUs. It has a surplus capacity of more than 1 million TEUs for the year, as it only handled about 1.1 million TEUs thus far.

The Manila South Harbor, operated by Asian Terminals Inc., has an annual capacity of 1.3 million TEUs. It has so far handled 800,000 TEUs and has an excess capacity of about 500,000 TEUs more.

“While it seems that we have a shortage in yard space, it doesn’t mean we don’t have enough capacity. We have the capacity, we just have to work at a slower pace compared to last year,” Sta. Ana explained.

As of the moment, yard utilization at the two Manila ports has returned to 90 percent, brought about by the long weekend. Nonetheless, utilization is expected to go back down to 88 percent at week’s end, after containers being released at the ports continue to climb from 4,200 a day to about 4,400 a day.

Productivity and efficiency at MICT, on the other hand, has already reached 20 moves an hour, a significant improvement from the 10 to 12 moves an hour two months ago, while MSH productivity has jumped to 15 moves an hour from only eight moves an hour during the same period.

The PPA, along with the port operators, meanwhile, is trying to maintain the number of empties inside the ports at 12,000 TEUs as it also slowly takes in the 20,000 containers at foreign ports.

As of end-June, the number of laden containers piled up at the Manila ports totaled 85,000 TEUs, which occupied about 104 percent of the yard of the ports, 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 city government of Manila from February 24 to end- May of this year, which practically limited the movement of cargoes in and out of the ports during nighttime only. (Lorenz S. Marasigan, BusinessMirror)

http://www.businessmirror.com.ph/index.php/en/news/economy/37889-govt-moves-to-decongest-manila-ports-as-peak-season-starts

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Subic Super Shuttle starts box barging service

The Subic Super Shuttle (S3) service recently began its maiden voyage from Manila to Subic using the MV West Ocean 3.

The vessel, with a 2,749 gross tonnage, discharged 18 containers from the Manila International Container Terminal, all part of Yokohama imports, to Subic Bay’s New Container Terminal 1. Yokohoma’s manufacturing hub is at the nearby Clark freeport zone.

“The concept of the Subic Super Shuttle Service is to provide an immediate alternative in response to the current problems being experienced by everyone at the Manila ports,” Bennedict Navalta, general manager of the PTC Agency and Transport, Inc. (PTCAT), earlier told PortCalls.

PTCAT is the agent of S3’s owner, Subic Super Shuttle Marine Services, Inc.

Navalta described the service as “viable, cost efficient and (an) immediate solution” to issues triggered by the Manila truck ban.

The vessel used for the service can ship 138 twenty-foot-equivalent units (TEUs) between MICT and Subic Bay, and will act as a common feeder for shipping lines serving locators and shippers in and around Northern Luzon.

Navalta said S3 is also looking to alleviate the backlog of empties in container depots within Metro Manila by assisting with their repositioning.

“Carriers can choose to direct empty returns to Subic, utilizing the S3, and then connect the empties to their respective feeders out of Manila,” Navalta said. “The empty return into MICT is with certainty versus the hit-or-miss arrangements with the depots.”

Rates for the service are P20,000 per 20-footer laden and P25,000 per 40-footer laden. For empty boxes, rates are P14,000 per 20-footer and P17,500 per 40-footer.

Manila to Subic calls are scheduled for Tuesdays and Fridays, with the estimated time of arrival in Manila at 12 pm, while the Subic to Manila service is offered Wednesdays and Saturdays with ETA at Subic at 10 am. (PortCalls)

http://www.portcalls.com/subic-super-shuttle-starts-box-barging-service/

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1,800 Manila containers now in Subic

To help ease the growing burden of traffic, this premier Freeport has received some 1,800 shipping containers that were overstaying in the Port of Manila.

Another shipment of containers today from Manila will be delivered by a containerized cargo ship owned by Hanjin Shipping.

The operation, which started last Wednesday, is chartered by the International Container Terminal Services, Inc. (ICTSI) and the Asian Terminals, Inc. (ATI).

These two companies will be transporting these containers that have already been cleared by the Bureau of Customs (BOC) and are overstaying for more than 60 days at the Manila International Container Port (MICP) and the Port of Manila (POM) to Subic Bay Freeport.

MICP and POM, owned by ICTSI and ATI respectively, shouldered the P14 million transport of these containers to Subic Bay Freeport.

The 15-day operation for the Hanjin vessel will complete three trips from Manila to Subic to transport a total of 3,000 containers. (Jonas Reyes, Tempo)

PHOTO:
BUSY PORT - Hauling trucks deliver some of the containers at the New Container Terminal-1 in Subic Bay Freeport. The Manila Port has transferred most of its overstaying cargoes to Subic to help ease the congestion in Manila. (Photo by Jun Dumaguing)

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SBMA projects P1.17 billion in net earnings for 2014

The Subic Bay Metropolitan Authority (SBMA) projects net earnings of P1.017 billion by year end, having reached the level of P737.89 million in June 2014 compared to the P992 million total in 2013.

This, as SBMA has again notched impressive financial performance in the first semester of 2014, surpassing even its record-breaking first half performance last year when it turned in a net profit of P1.2 billion, the agency’s highest in its entire 21-year history.

According to the SBMA’s midyear accomplishment report, the state-owned corporation obtained positive results in the first six months of 2014 in all the key results areas like investment generation, customs duties and tax collections, export production, as well as job creation.

In terms of committed investments, the SBMA amassed $267 million in the first six months of 2014, a 400 percent improvement over the $53 million record in the same period the previous year.

Meanwhile, freight-on-board exports rose by 173 percent, with $185,088 million in the first semester 2014 compared to $67,476 million last year; while employment generation managed a 1 percent growth, from 89,436 in 2013 to 90,425 in 2014.

Likewise, cash collections by the Bureau of Customs (BoC) here grew by 44 percent, from P4.945 billion in the first half of 2013 to P7.099 billion in 2014; while taxes collected by the Bureau of Internal Revenue (BIR) rose by 25 percent, from P737 million in the first half of 2013 to P919 million in the same period this year.

SBMA officials said the continuing improvement in the agency’s financial performance stemmed from prudent fiscal management over the past few years under the helm of Chairman Roberto Garcia, which successfully implemented various measures to balance the budget and promote a healthier financial condition for the organization.

Records from the SBMA Finance Group indicated that, in particular, port revenues showed an increase of 52 percent in the first half of 2014 to cement a positive financial performance for the Subic Bay Freeport. The port revenues totalled P457.29 million, compared to P300.94 million in the same period last year.

Tourism revenues also grew by 20 percent, from P6.9 million last year to P8.29 million this year, resulting to a 27 percent increase in the SBMA’s total operating revenues that increased from P946.01 million in first half 2013 to 1.198 billion this year.

The agency also posted a 62 percent increase in earnings before interest, taxes, depreciation and amortization (EBITDA), from P454.10 million to P737.89 million. The increased earnings, officials said, would allow the agency to recoup by the yearend despite a midyear slowdown in net income before tax from P767.27 million in January-June 2013 to P337.26 million this year.

In view of SBMA’s improved fiscal performance, the agency was able to remit P243 million in dividends this year to the National Treasury, the first time it did in more than a decade.

It also released P93.7 million in revenue shares early this month to local government units contiguous to the Subic Bay Freeport, and P14.8 million in rental fees to the Ayta Ambala tribe for the use of parts of their ancestral domain in the Subic Bay Freeport. (HEE/MPD-SBMA)

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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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PH gov’t urged to fast track projects that will propel cargo traffic to Batangas, Subic

Philippine business groups and joint foreign chambers (PBG-JFC) have expressed their support for shifting cargo traffic from Manila to Batangas and Subic to help stimulate economic activities in the two areas.

Prior to the President Benigno Aquino III’s State of the Nation Address on July 28, the PBG-JFC sent him a letter dated July 21 containing a list of key issues and proposed measures the group strongly believes will “help achieve our shared vision of inclusive growth through job generation, poverty reduction, and global competitiveness.”

One of group’s suggestions is “to shift cargo traffic from the Port of Manila to the Ports of Subic and Batangas and support these with parallel initiatives to stimulate economic activities in these areas, and to reduce the cost of logistics.”

The group is also asking to fast track construction of the North Luzon Expressway-South Luzon Expressway Connector, as well as the feeder road that will connect it to the Port of Manila.

The group believes this will “facilitate the movement of goods to and from production sites and our major ports.”

For the aviation sector, the group reiterated its call for a multi-airport system, in which the Ninoy Aquino International Airport (NAIA), Clark International Airport, and a future third airport will serve the country’s current and prospective aviation requirements.

“On this note, we strongly believe that we should continue to enhance the advantages given by an international gateway in close proximity to the National Capital Region, while complementing this with further improvements in the capacity of Clark International Airport,” the letter said.

Noting that public-private partnership initiatives have steadily gained steam since 2010, with close to 50 projects for implementation, PBG-JFC said they fully support the government’s efforts to raise infrastructure spending to 5% of GDP by 2016.

The PBG-JFC also underscored the pressing need to bridge the wide infrastructure gap to support the economy, mainly through completion of these pipeline infrastructure projects as soon as possible.

The business sector likewise welcomed Aquino’s pronouncement at the recent Daylight Dialogue that he plans to issue an executive order institutionalizing a mechanism for public-private cooperation that instills integrity in governance.

It encouraged government agencies to follow the Department of Public Works and Highways’ lead and compel companies bidding for government contracts to sign an integrity pledge and commit themselves to ethical business conduct.

Furthermore, the group is pushing for the immediate enactment and enforcement of the Customs Modernization and Tariff Act currently pending in both chambers of Congress.

PBG-JFC noted that in a forum with business organizations, Customs Commissioner John Sevilla estimated the value of smuggled merchandise in 2011 alone to be between P350 billion and P1.4 trillion.

“This hole must be plugged,” the group said.

Moreover, PBG-JFC reiterated its proposal for high-level government representatives to continuously engage the private sector in a joint effort to address smuggling, similar in form to a Cabinet-level oversight committee with private sector participation, something that was done in previous administrations.

The letter was signed by representatives from the Makati Business Club, Semiconductor and Electronics Industries in the Philippines Inc., Employers Confederation of the Philippines, IT and Business Process Association of the Philippines, Management Association of the Philippines, Alyansa Agrikultura, Philippine Exporters Confederation, Chamber of Mines of the Philippines, Federation of Filipino-Chinese Chambers of Commerce and Industry, Financial Executives Institute of the Philippines, Philippine Chamber of Commerce and Industry, American Chamber of Commerce, Australian-New Zealand Chamber of Commerce, Canadian Chamber of Commerce, European Chamber of Commerce, Japanese Chamber, Korean Chamber of Commerce, and Philippine Association of Multinational Companies Regional Headquarters. (PortCalls Asia)

PHOTO: The New Container Terminal (NCT) in Subic Bay Freeport

http://www.portcalls.com/ph-govt-urged-to-fast-track-projects-that-will-propel-cargo-traffic-to-batangas-subic/

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Subic Freeport firms, schools form ICT council

Companies, schools and government agencies involved in information and communications technology (ICT) at the Subic Bay Freeport have formed a multi-sectoral organization to maximize industry prospects and boost the potentials of this free port as a world-class ICT hub.

In a meeting organized by the Subic Bay Metropolitan Authority (SBMA) recently, the Subic Bay Freeport Zone ICT Advisory Council was formed with Atty. Severo Pastor Jr., manager of the SBMA Labor Department, elected as president.

Among the attendees to the organizational meeting were senior officers and delegates from various schools and ICT-related companies in Olongapo City and the provinces of Zambales and Bataan, network providers, representatives from the media and the academe, and government agencies like the Commission on Higher Education (CHED) and Technical Education and Skills Development Authority (TESDA).

“The Subic Bay Freeport Zone ICT Advisory Council has renewed enthusiasm in establishing a stronger network with more direct linkages to build a better partnership towards a more focused ICT industry,” Pastor said.

He admitted that a number of investors engaged in business process outsourcing (BPO) that found it hard to recruit qualified staff in the Subic Bay area eventually closed shop.

However, BPO investors should not be discouraged by this and instead train their own workers to reach the desired level of excellence, he added.

“At the Hanjin shipyard, local workers used to work only with acetylene or stick welding machines. However, after providing training in various types of arc welding, Hanjin has become successful with plenty of locally hired welders,” Pastor pointed out.

Meanwhile, in a message read by SBMA Senior Deputy Administrator Joy Alvarado, SBMA Chairman Roberto Garcia said that in a short period of time, the Philippines has become one of the top outsourcing destinations in the world.

“We in Subic should take a chunk of that opportunity,” Garcia added.

SBMA Director Benjamin Antonio III, who was chosen as adviser for the ICT Council, noted that Subic is very much ready to become an ICT hub but that only business locators are lacking.

“Magkaroon lang ng kahit isa pang (BPO) player sa Subic, makikita nila ang kakaibang opportunity ng BPO sa Subic Freeport,” Antonio said.

He also pointed out the facilities that are already in place in Subic to provide the needs of the BPO locators, including those of PLDT SubicTel, fiber optic cable system for reliable linkages, dependable security system, related infrastructure, power supply and access linkages to other economic zones and Metro Manila.

“We are in a unique position to attract locators. That is why we need to be more aggressive and focus on creating job opportunities, focus on creating a more resilient SBFZ, and promote a positive image of Subic Bay,” Antonio also said.

In the same forum, Director Benhur Baniqued of the TESDA Zambales provincial office recommended aligning and adjusting the educational curriculum of the country towards defining the requirements of the BPOs.

Baniqued said that the government should encourage educational institutions to improve and support the ICT industry, while urging the experts to share their knowledge and equipment that are lacking in most of the schools in the locality. (RAV/MPD-SBMA)

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PCCI says diverting other cargo to Subic may boost Luzon trade

NORTHERN Luzon can draw more investments and expansions if the government shift the traffic of container cargoes in the Subic Bay Freeport and put a cap on the container volume to be handled by Manila, said the country’s largest business groups on Friday.

The Philippine Chamber of Commerce and Industry (PCCI) is advocating a mandatory cap on the capacity of Manila’s ports and reiterates the maximizing of Subic ports, echoing the call of its Northern Luzon members.

PCCI President Alfredo M. Yao met with presidents and delegates of PCCI member-chambers in Northern Luzon during the North­ern Luzon Business Conference in Baguio City in July.

Northern Luzon member - chambers said the shift of car­goes to Subic will benefit not only business communities in Luzon outside Metro Manila but also the port users.

Reg ions in Luzon out side Metro Manila account for about 20 percent of gross domestic product.

“Efficient movement unleashes a lot of business projects in prov­inces,” Yao said in a statement.

“Subic uses only 6 percent of its capacity because cargoes do not go there. It’s time for the Philippine Ports Authority to look seriously at recommendations for a manda­tory cap.

The port in Manila is now at about 120 percent and have long overstretched its capacity,” Yao said.

Trucking costs have shot up to about P50,000 per trip from P18,000 per trip in the first quar­ter, he said.

The shift also will remove uncer­tainties about the reliability of port users as part of the production and distribution links of global supply chains.

The chambers are confident that the mandatory cap makes growth of future earnings of port users sustainable, Yao said.

Member-chambers that recom­mended the limit on container traffic in Manila’s congested ports and the use of Subic Freeport by international shipping lines are the Metro Angeles Chamber of Commerce and Industries, Clark Investors and Locators Associa­tion, and the Export Processing Zone Chamber of Exporters and Manufacturers.

The government and private sector collaboration on logistics and transportation issues will be a topic to be taken up between Cabi­net officials and business execu­tives during the 40th Philippines Business Conference, scheduled this October. (Catherine N. Pillas, BusinessMirror)

http://www.businessmirror.com.ph/index.php/en/news/regions/36407-pcci-says-diverting-other-cargo-to-subic-may-boost-luzon-trade

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SBMA: Measures in place to avert ore spill in Subic Bay

The top official of the Subic Bay Metropolitan Authority (SBMA) said the agency has institut­ed measures to avert the recurrence of iron-ore spill following complaints from local fishermen that the off­shore terminals of a freeport-regis­tered company polluted the waters of Subic Bay last week.

SBMA Chairman Roberto Gar­cia said in a media forum here on Wednesday that he ordered the management of Vale, which operates two floating transfer stations (FTS) in Subic Bay, to stop transshipment during heavy rains to avoid spillage.

The company has also committed to increase the capacity of the rain­water collection tanks in its floating terminals so that excess rainwater will not wash down whatever iron ore is left on the deck of the ships, Garcia added.

The firm, Brazil-based Vale In­ternational SA, is the world’s largest producers of iron ore and controls the largest share of the seaborne trade in iron ore. The company expanded its operations in Subic Bay after one year by deploying another FTS in April.

Garcia said some iron ore on the deck of the floating terminals “were washed away” when it rained hard on July 25.

“We have monitored the spill, which caused discoloration of the waters around the vessels, and by the third day, it has already dissipated,” Garcia said.

The discoloration, however, alarmed residents, particularly fish­ermen, in the Subic Bay area. They initially thought the discoloration was due to rust coming off the hulls of the two floating terminals.

But a resident who recently opened a page called “Stop Vale Ore Operations in Subic Bay Now” in the Facebook social-networking site pointed out that the reddish water around the ships was the result of iron sediments.

The Facebook activist also assert­ed that Olongapo City should earn money from the multimillion-peso income of SBMA from Vale opera­tions because “it is clear that the part of Subic Bay where Vale ships operate is under the jurisdiction of Olongapo, and not of SBMA.”

“The SBMA enjoys huge income while Olongapo gets the damage,” the Facebook page also said.

Garcia, however, gave the assur­ance that Vale operations do not pose a threat to the environment, as well as the health of residents, adding that the firm is “very much safety-conscious.”

He also said it would not be pos­sible for any local government unit (LGU) to collect more fees from Vale operations “because the SBMA is re­leasing revenue shares regularly to all LGUs affected by Subic Bay Freeport operations.”

The Subic agency had just an­nounced on Tuesday it would re­lease a total of P93.7 million to eight LGUs in the Subic Bay area. This includes Olongapo, which will get the lion’s share of P22.7 million as revenue share from Subic Bay Freeport operations for the first semester this year.

On concerns about the environ­ment, Garcia said iron ore is not a toxic substance and that because it is a naturally occurring element, “does not react to the environ­ment.”

The only possible hazard that iron ore may pose, Garcia said, “is when you inhale it in dust form.”

He said, however, that Vale is wetting the iron ore slightly during transshipment to prevent the forma­tion of dust that may be blown by the wind into the sea.

“We have done due diligence here in coordination with Vale even before they started operating,” Garcia said.

Garcia, however, may not be ready for an offshoot of the alarm raised by the reddish waters seen around the Vale ships last week.

Olongapo City Councilor Noel Atienza said he will file two separate resolutions about the issue: The first to urge the Office of the President and the Department of Environment and Natural Resources to conduct an investigation into the Vale iron-ore spill, and the second, to urge the SBMA to stop Vale operation to pre­vent further spillage.(Henry Empeño, BusinessMirror)

PHOTO: VALEMAX OF BRAZIL

http://www.businessmirror.com.ph/index.php/en/news/regions/36405-sbma-measures-in-place-to-avert-ore-spill-in-subic-bay

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