2 Oil firms on RA 9483
4 KLSM opens academy
6 Marina on ship breaking
10 New book launched
Interisland Trade Outlook Php25.00
September 2007 issue
Vol. 1 No. 2
Industry groups initiate historic convention
MISSION POSSIBLE. Joining hands in meeting the global demand for Filipino seafarers towards a committed partnership.
T
he first ever Philippine Manning Convention 2007 slated November 12 and 13 at One Esplanade, Bay Boulevard, SM Central Business Park, Pasay City is expected to become a historic event for the Philippine maritime industry as 15 manning-related associations have “joined hands in meeting the global demand for Filipino seafarers towards a committed partnership.” The two-day conference will tackle the numerous challenges the country is facing at present, specifically the global shortage of officers, among other issues affecting the crewing trade. The united group is gunned at finding optimistic solutions to identify result-ori-
ented approach under responsible partnership among industry players, both local and foreign, and the government. It will showcase various strategies and action plans designed by stakeholders themselves and highlight “what we have done, what we are still doing, what we expect
from other industry sectors like government and ship owners, and industry strategies to address the global shortage of Filipino seafarers.” The said convention is an offshoot of the successful and productive workshop conducted on August 3 at the Century Park Hotel graced by 133 participants coming from key players in the manning associations, government agencies, and firms from private sectors. The main objective of which is to come up with a common industry position on the solutions required to properly address the present challenges with consolidated issues of each sector as the main focus based on the agreed framework.
The workshop has provided an excellent opportunity for stakeholders to share ideas and identify areas of cooperation for future action. It has significantly produced a clear set of recommended action plans to a wider audience and support the convention’s theme. The 15 manning-related associations include Associated marine Officers and Seamen’s Union of the Philippines (AMOSUP), Conference of Maritime Manning Agencies (COMMA), Filipino Association for Mariner’s Employment, Inc. (FAME), Filipino Shipowners’ Association (FSA), International maritime Association of the Philippines (INTERMAP), Interna…continued on page 3
Oil firms seek deferment of RA 9483 O
il companies as well as tanker operators are seeking the deferment of the implementation of Republic Act 9483 or the Oil Pollution Compensation Act until a new law is passed. The stakeholders, led by the Philippine Petroleum Sea Transport Association (Philpesta), Association of Tankers Owners of the Philippines (Atophil), and the ‘big 3’ oil firms Shell, Chevron (Caltex) and Petron, claimed that the law was poorly crafted and stand to increase prices not only shipping rates but also oil prices down to the basic commodities. The Oil Pollution Compensation Act (RA 9483), on the other hand, seeks to implement the 1992 Civil Liability Convention (CLC) and the 1992 International Oil Pollution Fund (IOPF) Convention. The law requires tanker operators to contribute P0.10 centavos of their freight rates to the oil pollution fund for every liter for every delivery. It likewise obligates oil firms to contribute to the IOPF once every 150,000 tons of oil is delivered to them. In a joint position paper, the group said they are not totally opposing the law itself as it likewise establishes vital aspects in the tanker operations but the non-consultation with them could be the missing piece of the puzzle to craft
a good law beneficial to the state and the operators themselves. It added that the law only subject Philippine-flag vessels but silent on whether international vessels that will spill oil on Philippine waters will be castigated using the same law. “The law should not only target Philippine-flag vessels. The law should subject all oil-carrying vessels including international tankers and should not choose on which to punish. It also does not implement the CLC and the IOPC conventions as provided for in its title but merely provides a domestic regime for oil pollution compensation,” the group explained in their paper, which they presented during their first consultation meeting with the Maritime Industry Authority (Marina) and the Department of Transportation and Communication (DOTC) on the implementing guidelines of the act. “Instead, if the government wants a separate law to cover oil pollution made by vessels on Philippine waters, should have completely adopted the full International Maritime Organization (IMO) convention
on maritime pollution instead of choosing only certain provisions of the convention,” the group stressed, adding that that failure only exposes the country to liability for not properly implementing its treaty obligations. “The 10-centavo contribution is also a pass-on cost on our part. It is not us that will suffer but the end users as they have to pay not only high price of oil but eventually transportation and the cost of basic commodities,” the group added. The group explained that their current insurance coverage such as the Protection and Indemnity (P&I) Club of London and the IOPF are enough to cover for any liability of the ship owner during incidents. Based on average, the P&I coverage of a member-tanker could be access once all measures locally are exhausted. In the P&I coverage, the member is entitled to an average of 4.5 million standard drawing rights (SDR) multiplied by $1.3 per one
SDR or approximately P1 to P1.5 billion aside from the same amount a member could draw from the IOPF after spending the said amount to cover its liabilities. Records, on the other hand, showed that 99% of tankers operating in the local trade are members of the P&I club and the IOPF. “We think this is enough and no need for a domesticated law on oil pollution,” the group stressed. Earlier, the Marina expressed the same opinion that the existing P&I coverage of almost all big-time vessel operators in the country is enough to cover liabilities related to maritime pollution. It added that the new law is only a redundancy to existing international laws, which even local tanker operators follow to the dot. To date, the Marina, which is the fund manager, is fast tracking hearings on the guidelines of the act and expects to come out of it by the end of the month.
FSA wants repeal of bareboat chartering T
he Filipino Shipowners’ Association (FSA) is pushing for a legislation to repeal certain mechanisms on bareboat chartering program of the country to increase the number of Philippine-flag vessels instead of introducing changes in the existing register. It explained FSA, which has long been using bareboat-chartering program, wants some provisions in the program amended or repealed such as the obsolete mortgage laws and the 4.5% withholding tax levied on RP-flag vessels in the carriage of the country’s foreign trade. FSA president Carlos Salinas, in an interview, explained that once the government passes a law to modernize the country’s bareboat chartering program there is no need to relax the country’s ship registry. He added that the move to introduce new registry rules could even backfire particularly on the image of the country as it might be branded as a ‘flag of convenience’. “FSA is against the expansion of the register. Its members have long been the users of bareboat chartering and favor instead
September 2007
fixing existing mechanisms such as obsolete mortgage laws. The FSA also demands maximum use of Philippines-flagged ships to carry government bulk imports such as rice and coal, but it sees no need to change the existing register,” Salinas said. To date, the Philippine government is mulling to introduce new rule proposal under its register in its bid to attract more ships to fly the Philippine-flag. This after the government failed to increase the number of its overseas fleet sailing under the Philippines flag even with a more liberalized bareboat chartering rules. The Maritime Industry Authority (Marina) said the government has decided to draft a plan to attract ships to its register to be embodied through an executive order.
To recover lost tonnage, Marina is proposing the promotion and expansion of the Philippines ship register. Under a draft presidential executive order, foreign-owned ships represented by a ship management company duly accredited by Marina would be entitled to fly the country’s flag. To promote the register, Marina has sought help from the foreign ministry to set up register offices in other countries. It plans to appoint register officers who will facilitate, control and enforce compliance of ships flying the flag. However, maritime analysts said these are not viable at these times since shipping companies would need to abide by a range of legal conditions. In the recovery of lost tonnage, among the controversial legal conditions include compliance by the ship managers with Marina’s accreditation rules and full Filipino crewing, including wages and terms and conditions of employment in accordance with the country’s labor and social security regulations.
DOING HIS ASSIGNMENTS. FSA President Carlos Salinas In 2004, Marina introduces a more liberalized bareboat scheme but it remained ineffective, even if it already removed stringent ship owning rules and other requirements. In the past two years, there have been no improvements in Marina’s bareboat chartering program. The fleet has remained at the current level of 168 ships, from 350400 in the 1980s and early 1990s. Although bareboat has gained newcomers since its revision in 2004, the expansion of the fleet was thwarted by deletions of registered vessels with expiry of time charter contracts.
Increases fuel savings by 24.76% Accelerates engines by 16.79% Boosts horsepower by 20.71%
Philippines to host 8th Asia-Pacific manning and training conference The Philippines will take center stage in international maritime affairs when it again plays host to the 8th Asia-Pacific Manning and Training Conference on November 14 and 15. Organized by the UK-based conference specialists, Lloyd’s List events, the annual conference will be held here at the Hotel Philippine Plaza. Participants can register by calling the local account manager Carmen Chui on +852 2147 9733 or on-line at www.manningandtraining.com/lm1960 or by email to carmen.chui@informa.com. “Training and retaining sufficiently well qualified seafarers and preventing further erosion of maritime skills will be the key focus of the conference,” Lloyd’s List events Conference Producer Danielle Kirton noted. The conference will also provide members of the Filipino crewing community a chance to interact with leading industry leaders and peers. “The conference provides every maritime professional, crew provider and employer the opportunity to put forward various proposals and problematic issues for open discussion by a multinational and multifaceted audience,” Magsaysay Corporation Chief Operating Officer Marlon Roño pointed out. As in previous conferences, this year’s event will feature over 30 industry leaders and experts who will assess the regime of
increasing and changing regulation – even criminalization – which seafarers have to contend with. Also to be discussed are the need for investment in human resources plus corporate, social and environmental responsibility. “Conference speakers are selected from those who understand these issues and are able to clearly express what is wrong and what can be done, Global MET Executive Secretary Rod Short said. “Through interaction in the sessions as well as during the breaks, many ideas are generated and contacts made that can make a huge difference in addressing the concerns,” he added. The conference will also be supported by other events during a full week of manning and training activity. Among these events is an interactive workshop which will undertake an “Assessment of Crew Competence” to be held on November 16. Another supporting event is the first IFSMA (International Federation of Shipmasters’ Associations) Forum on the revised STCW (Standards of Training, Certification and Watchkeeping) to be held on November 13. The Philippine Manning Convention will also host their own event preceding the 8th Asia Pacific Manning and Training Conference.
Industry groups… from front page tional Seamen’s Mutual Labor Association (ISLA), maritime Law Association of the Philippines (MARLAW), Mariner’s and Allied Transport Employees Union (MATEU), Marine Engine Officers Association of the Philippines (MEOAP), Master and Mates Association of the Philippines (MMAP), Philippine Association of Manning Agencies and Ship Managers, Inc. (PAMAS), Philippine Association of Maritime Institutions (PAMI), Philippine Association of Maritime Training Centers, Inc. (PAMTCI), Philippine-Japan Manning Consultative Council, Inc. (PJMCC), the Philippine Seamen’s Union, and the United Filipino Seafarers (UFS). The group also wishes to commend the officials and heads of the following government agencies for their involvement in the manning affairs: Commission on Higher Education (CHED), Maritime Industry Authority (Marina), Maritime Training Council (MTC), National Labor Relations Commission (NLRC), Overseas Workers Welfare Association (OWWA), Philippine Overseas Employment Administration
(POEA), Professional Regulation Commission (PRC), Department of Foreign Affairs (DFA), Department of Labor and Employment (DOLE), and Technical Education and Skills Development Authority (TESDA). Thanks to Smart Link Satellite Services, Inc for sponsoring the Philippine Manning Convention 2007 and for supporting the industry undertakings for several years now. The same appreciation goes to AMOSUP and OWWA for being the other major sponsors of the said event. Interested parties are encouraged to partake and witness this remarkable maritime event of the year. Registration is ongoing and open to local and foreign delegates. Slots are limited and reservation will be accepted until 30 October 2007. For more details, interested parties may call the Convention secretariat at telephone numbers 524-9892 and 524-7337 or they may visit the website at www.philmancon.org.ph . The convention targets 500 delegates who will come together to realize their common mission of providing sustainable employment to Filipino seafarers.
September 2007
KLSM puts up maritime academy K
-Line Ship Management Co. Ltd. has infused $11 million for the construction of the K-Line Maritime Academy Philippines in Pasay to train their own seafarers to become officers. Realizing the global trend of officers’ shortage between now until 2015, the company has invested heavily to train their own seafarers. The academy when completed can accommodate 10,000 trainees per year on various courses, according to Capt. Masanori Okada, manager of seafarers’ policy team, Marine Human Resources group. This includes operational skills, understanding culture and mental training. The training can last one week or two weeks depending on the course. “They will be trained on various courses to be fully equipped to man K-Line vessels,” said Okada, adding that the maritime academy is for all nationality employed by K-Line including Filipinos and Indians. Satoru Kuboshima, executive vice president, said they are training their seafarers in order to field them as officers. “We are offering the training exclusively for our people to be able to live with the KLine standards,” Kuboshima said. He added that other courses outside theirs will also be welcomed including the mandatory Management Level Course to adhere to the International Maritime Organization’s (IMO) Standards of Training, Certification, and Watchkeeping (STCW). The maritime school, which is a seven storey building that sits on a 3,380 sq.m. of prime location along Macapagal Avenue in central business park is scheduled for completion by the end of the year. The K- Line academy will have 11 laboratories, eight classrooms with dormitory fa-
cilities that can accommodate 110 trainees at one time. Other than Manila and Tokyo, K-Line also has maritime training centers in Europe and India.
First seminar held The management team of KLSM headed by its president Shuichiro Maeda, together with his Tokyo, Singapore, and Mumbaibased officers flew to Manila to grace the two-day seminar which started on September 25 at the Pan Pacific Hotel in Malate, Manila. KLSM Filipino officers who are currently off ship attended the seminar that focused on Risk Management, Essence of Tanker Management Self-Assessment (TMSA), Incident Investigation and Root Cause Analysis, Promoting Safety and Psychological Assessment, Crew Readiness and Leadership Styles. K-Line master plan was also presented its officers particularly the expansion of fleet and manpower. To date, KLSM manages 46 vessels. As of this month, KLSM has six VLCC, four Aframax tankers, two product
Shuichiro Maeda, president, and Satoru Kuboshima, executive vice president. carriers, five gas carriers, four LNG carriers, 24 container ships and one bulk carrier. KLSM vowed that by 2011, it will manage 74 vessels wherein eight to ten of which will be manned by all-Filipino seafarers. The company also reported that it is presently working on its compliance with the TMSA 12 elements standard on management system that includes ship/shore personnel and safety management systems using four achievement levels. KLSM specializes in managing dangerous cargo carriers and container ships and as such the company pursues and ensures safe navigation which is a deeply rooted “K” Line standard. The responsibility of the management company is to operate ships with zero accident and zero pollution.
Filipino officers hailed
There is probably no ship in the world that does not have a Filipino seafarer on board.
September 2007
Highlighting the last day of the seminar was the awarding of plaques of appreciation to all Filipino captains and chief engineers who have stayed with K-Line for so many years, for contributing to safety in navigation and for performing their jobs excellently. The Ventis Maritime Corporation supplies competent crew and officers to KLSM. They have been stringent in screening Filipino seafarers to ensure that the company meets the standards set forth by KLSM. Maeda, during an interview, said he rec-
Mr. Octavio S. Katigbak, Ventis executive committee chairman ognizes and admires Ventis officer Captain Wilfredo Garcia. “He is the most excellent Filipino captain in our fleet,” the president said. With that, Maeda and his partner, Kobushima vowed that there will be 95% retention on Filipino crew supplied by Ventis. A company established on 12 April 1989, Ventis has been an awardee of the Philippine Overseas Employment Administration (POEA) search for Top Performer of Year in 1996, 2002, and 2006, for its outstanding performance in the sea-based sector. An ISO 9001:2000 certified company, Ventis has 42 employees, 64 vessels and more than a thousand seafarers enlisted in its roster.
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Committed to world-class training, producing world-class seafarers F
areast Maritime Foundation, Inc. (FEMFI) is a maritime training center committed to provide a responsive, affordable, and internationally acceptable training for seafarers in a safe, friendly, and conducive environment. In order to do it, officers and instructors of FEMFI make it a point to fully understand the training requirements of its clientele, keep training fees within reach of seafarers, comply with national and international standards, ensure the safety of its trainees and personnel, maintain an atmosphere of teamwork, cordiality, and mutual respect at all times, and improve on a continual basis its services and quality system. Established in 1992, FEMFI was conceived to provide and deliver quality training for Filipino seafarers. It firmly believes in world-class motivation for world-class seafarers through high-standard training and education. Reflective of its pioneering and innovative spirit, FEMFI distinguished itself amongst the most trusted maritime training center in the country being the first to offer training program in Ship Restricted Radio Operator Course (SRROC) and the INMARSAT / GMDSS courses. Since then, FEMFI evolved from a oneroom training center to what is now one of the country’s leaders in maritime training. By the year 1995, FEMFI was the first training center to expand to the south by establishing its branch in Cebu and in 1998 the second branch was opened in Pangasinan. The year 1999 was the year that marked major expansions of FEMFI-Manila adding more training courses in navigation and tanker operations. Three years later, the Basic and Advanced Safety Courses were added to cater to the needs of the growing number of seafarers. In line with its pursuit for excellence in maritime training and education, it acquired its ISO 9002 certification from Bureau Veritas Quality International (BVQI) in February 1999 and was re-certified to ISO 9001:2000 standards on 22 December 2003. Its vision has solidly entrenched itself to maintain leadership and to be recognized for its excellence in maritime training and education; equipped with pioneering attitudes for training innovations and development in responding better to the needs of a borderless maritime industry. FEMFI is accredited by the Maritime Training Council, Maritime Industry Authority, the Seafarers Certification and Documentation Department of the Republic of Liberia, Marshall Islands Maritime Authority, Malaysian Marine Department, and the Panama Maritime Authority, among others.
State of the art facilities and training equipment Aside from Basic Safety Training with full range firefighting and survival training fa-
cilities and equipment intended for a more realistic training, FEMFI also provides computer-based training and simulators for deck and engine watchkeeping using Transas Marine Software, CBTs from Seagull AS, as well as computer literacy training both basic and advanced levels. FEMFI have recently invested on the following to ensure its trainees of high quality training and latest state-of-the-art education facilities: Liquid Cargo Handling Simulator, Navigational Bridge Simulator, Engine Room Simulator, Full Mission Bridge Simulator, and ECDIS with UAIS, among others. The newly-acquired Liquid Cargo Simulator developed by Kongsberg AS is intended for Specialized Training in Oil, Chemical and LPG Carrier, and other training programs such as COW/IGS, Cargo Handling and Care of Cargo and Ballast Management. Navigational Bridge Simulator system enables FEMFI to train deck ratings on handson steering and watch keeping duties. Simulation exercises comprise about 30% of the total hours required for the training. Simulator exercises are preparation for the use of a full mission bridge system during practical assessment.
Trainees on bridge simulator. ECDIS is being introduced by FEMFI using both live and simulated ECDIS equipment supplied by TRANSAS.
New Courses Among the new courses being offered by FEMFI are Ballast Water Management, AIS, MARPOL VI Prevention of Air Pollution from Ships, Crude Oil Washing / Inert
Training Manager Daks Villanueva demonstrating the use of tanker simulator. Gas System, Leadership Course (for seafarers), Cargo Handling Simulators on VLCC, LPG / Ethylene, and Chemical Carrier. It also offers Proficiency in Crisis Management, Accident Investigation, Blasting and Painting, Gas Tanker Safety Course, Marine Risk Assessment, Route Planning with Chart Correction, and Steel Maintenance, among other courses relevant to the shipping profession.
In order to train engine personnel both ratings and officers, FEMFI incorporated engine simulation in its exercises for better understanding of the engine room environment as well as its management. The Engine Room Simulator is available for training in Engine Room Resource Management, Engine Team Management, and Watchkeeping for Engine Ratings. Full Mission Bridge Simulator equipped with TRANSAS NAVI-TRAINER PRO 4000 backs FEMFI’s training programs in Ship Simulator and Bridge Teamwork, Bridge Resource Management, Collision Avoidance, Deck Watchkeeping, and Basic Deck Operation and soon to offer the Ship Handling and Maneuvering course. The live Universal Automatic Identification System is used for familiarization training of the UAIS as well as training in Ship Security Courses and GMDSS refresher training program. A training course in the operational use of the September 2007
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Marina backs proposal for ship breaking industry W
e should be a one-stop-shop. There will be more shipbuilding projects if ship breaking takes place.” These are the words of Maritime Industry Authority (Marina) administrator Vicente Suazo, Jr. when interviewed regarding the proposed one-stop-shop for the shipbuilding and ship repair industry to generate more investments in the country. He explained that the Philippines could generate more projects in shipbuilding and ship repair if it could also offer ship breaking industry. Wikipedia explains that ship breaking or ship demolition is a type of recycling involving the breaking up of ships for scrap. Most ships have a lifespan of a few decades before there is too much wear to make refit and repair practical. Ship breaking allows for materials from the ship, especially steel, to be given a new life in a new vessel. Realizing the need to secure various environmental compliance certificates for such, Suazo added that he will propose the project to newly-appointed Environment secretary Lito Atienza. He claimed that ship breaking would also open up new business opportunities in ship repair including sale of scraps. Those who may opt to scrap old ships can generate another economic activity, which is supportive of ship repair because of the recyclable materials. The recycled steel plates can be utilized for ship repair while engines can be remanufactured or rebuilt. The Philippines adhere to the provisions of the Basel convention on the control of transboundary movements of hazardous wastes and their disposal. Marina is bent on creating the ship breaking industry through discussion with agencies concerned and stakeholders.
Pushing for modernization Marina has been pushing for the modernization of the country’s shipbuilding industry in compliance with the executive order No. 588 or “Strengthening the Philippine ship building and ship repair sector and instituting measures to promote its growth and development.” It has already ordered the implementation of double-hull requirement for tankers carrying black oil by 2008. He also announced the plans to phase-out the single hull tankers carrying white oil by 2010. Suazo said by 2010, he expect that all single-hull tankers plying the local trade has been phased-out to prevent maritime pollution and in compliance with international standards. Suazo added he would issue a memorandum circular phasing-out the single-hull tankers, after the International Maritime Organization (IMO) made the final decision on tanker regulation. The government’s priority sectors are maritime manpower, maritime administration, port administration, maritime environmental protection, safety and security, shipbuilding and ship repair, trade liberalization and facilitation, and legal review. Marina has amended the implementing rules and regulations on the registration of
ship builder, ship repairers, afloat ship repairer/service contractors and boat builders/repairers.
More about ship breaking Ship breaking started in port cities of the “First World,” including the United States. It is now being done in developing countries such as Bangladesh, China, and India primarily because of lenient environmental regulations dealing with the disposal of lead paint and other toxic substances and minimal labor costs. Older vessels may contain many substances which are now banned or considered dangerous such as Asbestos. It was used heavily in the shipping world until it was finally banned in most of the developed world in the mid 1980s. Aside from health consideration, ship breaking has become an issue of major environmental concerns. Many ship breaking yards in developing nations have lax or no environmental law, enabling large quantities of highly toxic materials to escape into the environment and causing serious health problems among wildlife, ship breaking workers and the local population. Environmental campaign groups such as Greenpeace have made the issue a high priority for their campaigns.
The government’s priority sectors are maritime manpower, maritime administration, port administration, maritime environmental protection, safety and security, shipbuilding and ship repair, trade liberalization and facilitation, and legal review.
Shipping, manning firms to offer MLC
S
hipping companies and manning agencies have recently sought accreditation from the Maritime Training Center (MTC) to allow them to offer the management level course (MLC) necessary for securing certificate of competency (COC). MTC acting executive director Teresita Laurel revealed that “Magsaysay Maritime Corp., Philippine-Japan Manning Consultative Council, and Norwegian Training Center were among those which already sought accreditation and are willing to give MLC for free.”
September 2007
Dalisay Shipping Corp. president, Capt. George Pimentel, said many crewing companies including his will be giving the MLC free for their officers. Laurel said the MLC is the government’s solution to the shortage of officers, as seafarers in the operational level who undergo such training can go up to the upper level as captain or master mariner, chief engineer or second engineer. She added that any training providers such as training centers, maritime schools, manning association, and shipping companies may apply for an accreditation from MTC to offer the course. MTC has accredited 54 training centers in the country. However, MTC has no hand on how much fees the training centers should charge the enrollees, but claimed there are groups which intend to
offer them for free. Training centers reportedly charge P42,000 for deck courses and P52,000 for engine courses. The Filipino seafarers on board numbered about 250,000 to 300,000, wherein some three (3) percent obtained the MLC. About 25 percent of the world’s seafarers are Filipinos, making the country still the dominant supplier of seafarers in the global market for almost three decades now. Demand for Filipino seafarers has been growing at the average rate of 10% every year in spite of competition posed by emerging sources of labor such as China, Ukraine, India and Greece. Study show that there is a shortage of 30,000 officers between now until 2015, as a result of strong demand from the industry and the building of 500 ships in Japan by 2010 to 2011.
Demand for Filipino seafarers has been growing at the average rate of 10% every year in spite of competition posed by emerging sources of labor such as China, Ukraine, India and Greece.
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Cosco eyes Subic, Mindanao for logistics hub A reliable source from the maritime industry revealed that China Ocean Shipping Company (Cosco) is also looking at Subic and the Phividec Industrial Park in Mindanao for its proposed logistics hub and is not yet final on Sangley Point in Cavite as earlier reported. Reports said Cosco will definitely invest some USD4- 5 billion in the country. However, they are yet to discern the viable location for investment. It was also divulged that apart from Subic and Mindanao Container Terminal (MCT), Cosco is also reportedly be looking at Quezon, Batangas, and Bataan as another options. The source explained that Cosco is yet to address its concerns before announcing their chosen venue of investment which will also house its transshipment hub for training school and its shipyard business.
The company is said to build piers, container yards, and put up maritime schools, among others. Cosco is also said to ink an agreement with the country’s leading port operator International Container Terminal Services, Inc., if it decides to invest in Subic. Cosco is the second foreign firm to establish a shipping complex in the Philippines, which will be developed as an international transshipment point. Early this year, Hanjin Heavy Industries of Korea, the world’s fourth largest shipbuilding facility infused %1.46 billion for
a shipyard project at the Subic Bay Freeport in Zambales. By 2016, Hanjin’s Subic Bay facility will be able to manufacture the world’s largest tanker and generate 40,000 direct and indirect employments while Cosco’s facility would create 100,000 jobs particularly for the country’s seafarers. Aside from the Philippines, Cosco is likewise talking with other Asian countries such as Thailand, Malaysia, and Indonesia for a regional logistics hub to accommodate the increasing requirement of its Asian, European, and US markets.
As the second largest shipping company, Cosco has 770 vessels with a combined tonnage of 47 million dead-weight tons. The company is engaged in global logistics, shipbuilding, ship repair, terminal operation, freight forwarding, trade, financing, real estate, and information technology. In the country, Cosco operates through an appointed agent, Cosco Philippines Shipping, Inc. (CPSI), formed by a joint venture between Cosco Freight Agency Investment Ltd. and Bantayog Ocean Shipping, Inc. CPSI act as port and freight agent of owners, operators, and/or charterers of vessels calling on Philippine Ports. Maritime Review
September 2007
PPA reduces wharfage dues despite high revenue losses
P
hilippine Ports Authority now implements the Php 20.00 and Php 40.00 wharfage fees for the 20 and 40 footer vans of containerized export cargoes pursuant to the demands of the export industry to cope with the strengthening peso and the approval of the President. Down from Php 259.70 and Php 391.05, respectively, the rate reduction has been in place since April 20 up to July 20 this year and subsequently renewed starting August 13 up to December 30, 2007. In the Southern Mindanao ports, said wharfage cut benefits mostly bulk exporters of fresh fruits such as bananas and pineapples and the growing export-oriented wood product industry. “We welcome this development with both reliefs for the exporter groups which are burdened by more expensive exports and reservation on PPA’s part as the government stands to lose substantial revenues,” PPA Port District Manager Abdussabor Sawadjaan expressed during the recent budget hearing for next year’s corporate plans and programs. PPA General Manager Oscar Sevilla earlier expressed that the move is greatly detrimental to PPA’s revenue targets for the year as it loses Php 30 million a month from all ports nationwide. Port revenues like those derived from wharfage, GM Sevilla furthered, are plowed back to fund all local infrastruc-
ture projects of PPA for both medium to long term to sustain its operations as well as to realize its corporate vision. Moveover, Sevilla maintains that PPA’s fees are only a measly “less than 1% of the total shipping charges” paid by exporters and that the shipping lines, which, to date, have no regulatory body to oversee their operations and charges get the bigger slice of the pie without potential financial risks. This was revealed in a resolution arising from an earlier meeting of the National Port Advisory Council (NPAC) held in March 20. NPAC members include representatives from the Department of Transportation and Communication (DOTC), Maritime Industry Authority (MARINA), Bureau Of Customs (BOC), Department of Labor and Employment (DOLE), and Department of Trade and Industry (DTI)/Public Standards Bureau as well as delegates from the private sector consisting of the foreign and domestic shipping associations, Philippine Chamber of Commerce and Industry, Port Users’ Federation and cargo handlers’ association.
T
he Philippine Ports Authority (PPA) mulls to return expropriated lots in Batangas Port than to pay the P11.7 billion as additional compensation to lot owners as ordered by the Supreme Court. In an interview, PPA general manager Atty. Oscar Sevilla, said they could not afford to pay the amount and instead will just return the expropriated lots to its rightful owners regardless of its possible ill-effects to the project if the Supreme Court denied its motion for reconsideration. He added that such measure is already included in their petition submitted to the Supreme Court. “The PPA could not afford to pay such amount as it will bleed to dry the coffers of the PPA that will stop whatever port development that is more vital to the movement of goods in an out of the country than Batangas Port,” Sevilla said. “However, we are keeping our fingers crossed that the Supreme Court will reconsider its decision. We believe that what we [have] paid [is] enough to the land owners and that the lots are agricultural in nature contrary to the findings of the Supreme Court that it is commercial,” the PPA GM added. Two weeks ago, the Supreme Court issued a status quo order on all affected stake
September 2007
holders at Batangas Port pending final resolution of the case that seeks to pay 231 landowners a higher compensation pay for expropriated properties. On August 24, Associate Justice Angelina Sandoval-Gutierrez, affirmed the earlier rulings of the Court of Appeals and Batangas Regional Trial Court, which set the expropriation price of the subject lots at P5,500 per square meter. It likewise ordered the trial court to implement its final and executory orders requiring the PPA to pay the respondents the amount of P5,500 per square meter or about P12 billion with 12% annual interest from the date of expropriation on September 11, 2001 until fully paid. PPA, on the other hand, insisted the value of the 1.3 million sq.m. (or 130 hectares) should be lower than P4,800 per square meter because they were agricultural lands.
Bidding as usual Despite its decision to defer the submission of bidding documents indefinitely
They (NPAC) notably recognized the need for further study to rationalize Ports and Terminal Handling Charges imposed by foreign shipping companies or their agents to shippers. This move was prompted by a presentation of PPA clarifying a World Bank report attributing the bulk of expenses shouldered by an exporter of a 20 footer container to Port and Terminal Handling Costs.
What will repeal a provision of law is a subsequent law itself and this could only be done through Congress In an effort to unbundle the shipping cost, PPA was able to establish that export wharfage is the only direct port charge and this comprises only of about 0.52% of Ports and Terminal Handling Costs or 0.39% of Total Transport Costs which includes customs documentation and other administrative fees of shipping companies. Another cost item which may be said to be indirectly attributed to PPA is Container Handling, although this goes to the
cargo handling operator yet this is equivalent to 4.63% only of Ports and Terminal Handling Costs and 3.44% of Total Transport Costs. In sum, what may be attributed to port costs is equivalent to 5.15% and 3.83 % respectively of Ports and Terminal Handling Costs and Total Transport (Export) Costs. Likewise, Sevilla brushed aside the private exporters’ clamor for the outright abolition of wharfage dues as it definitely is not within the jurisdiction of PPA. Wharfage collection is explicitly provided for in the PPA Charter (Presidential Decree 857) and rates of port charges are subject to the approval by the President. What will repeal a provision of law is a subsequent law itself and this could only be done through Congress and if PPA is such in a close rein in terms of regulation, then shipping lines should also be subject to review, he added. “Results of the NPAC study should clarify and rationalize charges which will benefit the shippers particularly the members of Mindanao Federation of Shippers Association (MINFESA) in terms of more cost-effective rates but allow me to emphasize that wharfage which is less than one (1) percent of costs will hardly create a dent in the pocket of exporters but will go a long way in enabling PPA finance the development of non-viable ports, most of which are located in Mindanao,” Sevilla concluded.
PPA mulls to return property pending the Supreme Court’s final decision on the issue, the PPA is still set to meet with representatives from International Container Terminal Services, Inc. (ICTSI) and Asian Terminals, Inc. (ATI) to lure the two operators to continue to bid for the said port irregardless of the verdict from the High Tribunal. According to the Terms of Reference for the privatization of Batangas Port, the winning bidder will reimburse to the PPA the entire amount used for the development of Phase II of Batangas Port or its international terminal including the amount used in the procurement of several cargo-handling equipment that is set to be delivered towards the end of the year. According to Sevilla, the Supreme Court decision will bumped total project cost to about P17 billion which he think is too high to lure other investors aside from ICTSI and ATI to come to Batangas considering its cargo traffic that is almost idle the past two years. He added that even eligible bidders ICTSI and ATI expressed hesitance to bid for the port if the additional amount will be
placed on top of the original budget for the development of the port. Batangas Port is one of the 10 ports being groomed by the PPA to be at par with world standards by 2010. The PPA expects to corner some 10% of the estimated 400 million annual containerized traffic in the Asia-Pacific region by next year and increase the number by a modest percentage annually. The Phase two of the Batangas Port, which was funded by a P5.5 billion loan from the Japan Bank for International Cooperation, consists of dredging and reclamation, construction of two foreign container cargo berths, reconstruction of the general cargo berth at the Phase 1 area with provision for stacking yard, container freight station, terminal building, utilities, access road, and other support facilities. Phase one of the Batangas Port development, mainly geared for domestic operations, started last 1992 and completed in 1997, which cost about funding of P1.21B. It includes ferry, Roll-on Roll-off, and general cargo services. ATI has the contract for the Phase I.
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September 2007
A practical guide to become an efficient master mariner
D
o you have an advance idea on what to do to avoid off hire? Do you know the best solutions if conflicts and disputes arise? How about knowing what to do if there is conflict between the owner, charterers, sub-charterers declarations on consumption in governing charter party? These are some of the many advance knowledge and advices studied, compiled, reviewed, and edited by Capt. Fernando S. Soriano in his new book entitled Master’s Handbook, A Practical Guide. This handbook, said Capt. Soriano, is a practical guide to Master Mariners who want to practice their professions with excellence. It is also ideal for beginners and those who have just acquired their licenses, particularly those Captains who still doubt their capabilities. It is also ideal for trainors of Shipping Agencies and educators as a reference material during in-house training or seminar for their new masters to acquire new and additional knowledge related to their profession. The author furthered that this handbook is a simple guide and it is important to note that it varies depending on circumstances that may dictate and every company has its own policies to follow. The humble captain have recently presented his work to Commodore Adonis B. Donato, president of Master and Mates Association of the Philippines – the only organization for deck officers duly recognized and accredited by the Professional Regulation Commission and the Philippine Federation of Professional Association. “With full modesty, I have presented my work to Commodore Donato because
I know for a fact that as president of our profession, he can vindicate whether my book is indeed useful or not,” the young author said. “When I saw his (Capt. Soriano) book, I thought it would be helpful. And then when I turned on the pages, I found out that the contents were based on actual situations onboard. The examples are focused on actual facts of the vessel’s smooth operations, it covers the master’s responsibilities, his overriding authority, search and rescue operations even international maritime law. It was actually a helpful tool that would benefit our young masters of today,” Commodore Donato said. The handbook also discussed how to avoid deficiency by PSC, AMSA, USCG by advance planning, good crew motivation, training and drills, safety precaution in all aspects of Master’s job. It also gives precaution to avoid short cargo and/or overloading and best ship handling techniques. It also teaches advance knowledge on various Marine or Sea protest, Letter of Protest, and Letter to Agents, among others, to avail the reader or the master mariner the reserving the rights at any time and place convenient. Both Commodore Donato and the author believe that the captain is the sole owner’s representative and a prudent master will always do his job for the interest of his
Commo. Donato receives his copy from the author. owner, charterers, and third parties concerned in strict conformity in accordance with ISM – ISPS Code and company policy that are tuned to safety of vessel and crew. Capt. Soriano vowed to share with his subordinates and his fellow masters, his learning and experiences gained in his 22 years of working onboard ocean-going vessels. It was his humble goal to share and transfer his knowledge to the next generation. Born in the town of Dao, Antique, to a less fortunate family, Capt. Soriano pursued his dreams with strong determination and with poverty as his inspiration. After completing his BSMT in PMI Colleges, he was able to compete and take the command early, despite starting in college late due to financial difficulties at that time. He promised, “one day, when I am already on the top, I want to be a good leader so I can guide others in tracking “a true course” to reach their destination.
Apa r t from the code of ethics of designed for deck officers, Capt. Soriano shares the same valuable principles with his senior – Commodore Donato, which are hard work, patience, perseverance, humility, discipline, and strong determination that are considered instrumental key to become successful. The Master’s Handbook is available Splash Philippines Inc., Master and Mates Association of the Philippines, Golden Success Maritime Consultancy, New Simulator Center of the Philippines, and FYC Maritime Softwares c/o Luneta Seafarers Center, among other accredited centers. For orders, interested parties may call the publisher or author at telephone numbers 541-53-59 or mobile 0917-2026217.
So-Min port district co-hosts Maritime Week P hilippine Ports Authority Port District Office-Southern Mindanao (PPA PDO-SoMin) conveys its support to this year’s National Maritime Week (NMW) with a blast and more. Annually, PPA observes NMW with a simultaneous ceremonial dressing of ships and blowing of horns in all government ports nationwide to drum up the opening of said week-long celebration held September 24-30 this year. Veering away from the usual traditions, PPA PDO-SoMin and all the Port Management Offices (Cotabato, Davao, General Santos and Zamboanga) under its jurisdiction instituted the International Coastal Cleanup (ICC) observed every the third Saturday of September as a significant part of the NMW commemoration. This year’s simultaneous ICC was set September 15. PDO-SoMin Safety Committee Chairperson Nimrod Bona earlier expressed that since PPA employees partly derive their livelihood and subsistence from the oceans, they should be more vigilant of their role to conserve the marine resources. In a recent memorandum from PPA’s Assistant General Manager for Operations Benjamin Cecilio, he advocates for the ICC as part of the ports’ regular program for 10
September 2007
safety and the environment for the NMW beginning in 2007. For its part, PDO-SoMin coordinated the hosting of the ICC with Barangay Sasa in Davao City, the Department of Environment and Natural Resources through PPA’s Safety Committee as well as the Ocean Conservancy (OC), the international organization which pioneered the idea 22 years ago. Meanwhile, the rest of the PMOs also linked up the ICC directly with the OC or either through their respective local DENR offices. OC serves as the repository of the bulk data and classification of debris/waste materials collected from the shorelines, oceans and waterlines on an international level. The ICC activity aptly coincided with the 2007 NMW’s theme: “Response to Current Environmental Challenges” which called for the campaign for all sectors to preserve the health condition of the navigable waters, particularly the marine environment which is an essential source of renewable energy. “The
Philippines is considered as the world’s center of marine biodiversity which bestows upon all its citizens the responsibility to preserve it for the coming generations which will greatly benefit from it considering also that 80% of the earth is composed of water,” guest speaker Hon. Councilor Leo Avila of the Davao City Council and Committee Chairperson on Environmental Concerns expressed during the NMW opening rites.
“We are indeed very blest that 90% of the world’s demand for maritime manpower are supplied by highly-trained and qualified Filipino seafarers and this poses a great challenge for all of us to take care of the health of our oceans,” Director Nanette Villamor-Dinopol of the Maritime Industry Authority (MARINA)-XI exhorted in her closing remarks at the opening program. …continued to next page
For more info call Shie G. Aurelio mobile: +63918-404-7833 email: rg_aurelio0213@yahoo.com
Japanese ShipManagement opens Manila office
J
apanese firm TM (Manila) ShipManagement, Inc. has recently inaugurated its Manila office in Suite 804 Ermita Center Building, 1350 Roxas Boulevard, Ermita, Manila. Headed by its president, Mr. Masaru Tamura, along with his Filipino general manager for ship management department, Capt. Nivardo Y. Pusta, TM (Manila) ShipManagement aims to promote the employment of Filipino seafarers onboard Japanese-flagged vessels. TM (Manila) ShipManagement supplies all Filipino crew to Tokyo Marine Co. Ltd. – a shipping company handling chemical tankers plying the route of Fareast, and Asia. It will soon have seven tankers early next year that would ply worldwide route. Capt. Pusta said the company “expects all Filipino seafarers to perform their work well since they will be the first line in the operation of the vessel.” He furthered that the M/T Pacific Sound – a 10,716GT Chemical Tanker servicing Southeast Asia, is manned by competent all Filipino crew. Knowing chemical tanker to be very sensitive, TM (Manila) ShipManagement conducts consistent training and seminar to their existing crew. New applicants are screened stringently to ensure their competencies by asking them to attend external trainings such as advance oil and chemical cargo handling, among others. Mr. Tamura exhorts Filipino seafarers to be their best all the time by being competent. He reminded the company about the motto of the company, which is “safe and efficient operations.” The president prom-
So-Min port… from previous page Quoting a report from the International Maritime Organization, Director Dinopol elaborated that over 90% of all the world’s trade is carried onboard ships and that shipping is the most environmentally efficient form of transportation. A significant part of sustaining these benefits from the oceans, particularly the high demand for maritimerelated jobs, however, entails the conservation of the marine environment, locally and even internationally, she added. NMW yearly observance is spearheaded by the MARINA nationwide. In Region-
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ised Filipino crew that in due time, the company might consider giving scholarship to their children apart from the bonuses they are enjoying right now such as standby pay, return and performance bonuses. As for Capt. Pusta, he always makes it a point that their seafarers are always encouraged and reminded to strive their best to run a vessel efficiently, operate it safely, economically, and efficiently. The humble captain concluded that “There are many systems on how to run a vessel and how to run a company efficiently. We see to it that we are on the correct side to avoid loses. We are very particular with safety as the number one system because we believe that where there is safety, there is prosperity.”
TOP PHOTO Mr. Masaru Tamura, president (middle), and Erlindo M. Salvador, director, leads the inauguration of TM (Manila) ShipManagement, Inc. LEFT The staff: (L–R) C/E Julio M. Tumoc, technical manager; Ms. Myrnanita F. Uson, accounting manager; Ms. Nina Juliet O. Caisip, secretary; Mr. Tamura; and Capt. Nivardo Y. Pusta, general manager.
XI, Director Dinopol also concurrently serves as the head convenor of the Department of Transportation and Communication-Regional Management Council (DOTC-RMC XI) which covers the water transport cluster agencies such as PPA and the Philippine Coast Guard along with the other service clusters for land, air and communications. Other major co-hosts for the week-long fete include government agencies, namely, PCG, Philippine National Police-Maritime Group, Commission on Higher Education, Overseas Workers Welfare Administration, Philippine Overseas Employment Administration, Philippine Regulation Commission, Family Planning Organization of the Philippines and the Local Government of Davao City and private sectors such as maritime schools, shipping lines, tugboat pilots’ association, seafarers’ family associations/federations and the religious groups. Similarly, September 27th is celebrated annually by the International Maritime Organization as the World Maritime Day.
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September 2007
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Italian Shipowners Academy to train Filipino seafarers for Italian-flagged vessels I
n an effort to address and overcome the challenges the shipowners are facing with their growing fleets, RINA has invested in the country to put up the Italian Maritime Academy Phils., Inc. (IMAPhil) – a training school designed to provide high quality training and to assess and further enhance the professional competency of Filipino seafarers in carrying out responsibilities assigned onboard ships trading on international routes, dealing with international and national regulations, and fulfilling the management requirements of charterers. RINA, an Italian Classification Society, along with Italian shipowners’ association CONFITARMA, and Elburg Ship Management, consolidated their resources, knowledge and experiences to focus on training engineer officers, using its own simulators and also the Subic-based Wartsila facility. It will then extend the program to cover all deck, engine and electrical disciplines. The training, which will complement the STCW requirements, aims to prepare their officers in the stringent selection and qualify them with proven skills and competency for the ranks and tasks required for vessels trading worldwide, as well as ensure that they acquire the essential skills needed to be able to work on modern international tonnage. With the institution’s thrusts focused on Skills’ Assessment, Competency Enhancement, and Professional Development, they will be expected to even assess the instructors as well as monitor and audit the courses that will be offered. The development of this initiative is in response to the increase in the worldwide fleet coupled with a shortage of qualified officers and crew. BIMCO/ISF report (2005) estimated a lack of qualified crew equal to 20,000 in 2010. In Italy, a study of the Federation of the Sea estimated that the Italian fleet will reach 20 m.grt. in 2010, determining a need of qualified officers and crew, both Italians and from other countries. Presidential Assistant on Maritime Affairs Hon. Generoso Mamaril and Congressman and presidential son Juan Miguel “Mikey” Arroyo were among the top personalities who graced the inauguration of its office in Makati City. Among the personalities in the Philippine Maritime Industry who attended the ceremonial opening were Professional Regulation Commission (PRC) Chairman of the board of marine engineers Engr. Jose Abugan and board examiner Ferdinand R. Pascua, Wartsila Director for Asia Helge Oliversen, SUMACS stalwart Captain Roberto Uy, Luneta Seafarer’s Center general manager Don Bagatsing, representatives from premier maritime schools in the country, manning agencies, government agencies, among others.
Vision IMAPhil aims to provide pre-employment qualifications to ship officers and crew, by assessing their level of competence, training them in areas where needed, e.g. on rule updating and, after a familiarization
period on board, through an examination, certifying the skills achieved. The academy will endeavor at all times to meet the requirements of customers and promote a culture of continuous improvement of competence and skill of personnel employed on board. The assessment and training activity of IMAPhil will help seafarers to achieve the level of competence and proficiency required by the STCW Convention and other applicable international and national standards.
Accreditation IMAPhil assessment and training schemes will be certified according to ISO 9000 standards and the RINA ‘Rules for Certification of Training and Competency Management Systems’ (TCMS).
Scientific committee A Scientific Committee will supervise the principles and methods of work applied by IMAPhil, regularly reviewing the material of training modules, examinations and skills assessment criteria, providing suggestions for their continuous improvement. The Committee consists of representatives of the Italian maritime cluster, including Shipowner Associations, Trade Unions, Manning Agents, Maritime Academies and the foundation Registro Italiano Navale.
Services IMAPhil offers assessment and training services to seafarers to help them meet the expectations and high standards of the always more demanding shipping companies trading worldwide: 1. Basic training on selected course modules and relevant examination 2. Practical training for familiarization on future work assignment 3. Skill assessment following basic and practical training 4. Assignment of professional competency certificates 5. Skill updating through further course models e.g. on new rules or innovative technologies 6. Renewal of professional competency certificates, within the period of validity
7. Definition of cadetship programs for future officers 8. Tailor-made training as per owner needs and request
Modular Training System The basic training provided by the Italian Maritime Academy is structured in a modular training system (with an assigned duration, e.g. 80 training hours, each) including Deck officers (operational/management levels), Engine officers (operational/management levels), Petty Officers (pumpman, machinery, electrician, fitters), and Safety /Security officers. Following the basic training, the trainees will be employed on board the kind of ship for which they are intended, for a period of at least two months. Then following this period on board, the trainees will be subjected to an external examination to assess their skills and qualifications. This modular system complements the one required by flag administrations to
CLOCKWISE, FROM TOP: Congressman Mikey Arroyo, Mrs. Proserfina S.A. Terrei, president, and Ugo Salerno, chairman of the board lead the ribbon-cutting ceremonies. NEXT Secretary Generoso Mamaril with John Orola. NEXT Salerno and Capt. and Mrs. Nicolo Terrei. NEXT Captain Uy and Ms. Mona Lisa A. Intong, Imaphil quality manager, with a guest. NEXT Arroyo and Palerno. assign the relevant STCW certificates. IMAPhil updating courses will be suitable to demonstrate attendance at professional updating courses for renewal of the COC. Italian Maritime Academy Phils., Inc. is located at the 6F NEDA Bldg., 106 Amorsolo Street, Legaspi Village, Makati City 1229 Philippines. Its numbers at present are 0917-5029110 and 0918-8339422. They can also be reached at email address: imaphil@gmail.com.