Harborscope Volume 2 No. 2

4

Celebrating

20

years of manning service in the Philippines

thome

ELVICTOR, SMART deal

TSM GROUP of Companies 1747–1751 Dian St., Makati City Tel. (+632) 860-7500 www.tsmphil.com.ph

6 ABB opens Davao office

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8

ATI expands presence

9th LSM in Manila

We’re

ONE Year

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Empowering Maritime Entrepreneurs Php35.00

October–November 2008 issue

Vol. 2 No. 2

The OSG Family.

OSG spearheads int’l coastal clean-up

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he dream to enhance and improve the beach cleanliness everywhere in the world, was fulfilled by OSG Ship Management Manila, Inc. when it supported the Ocean Conservancy organization for International Coastal Cleanup, whose admirable aims is to “Start a Sea Change” around the globe.

Now on its 23rd year of commitment, the Ocean Conservancy group has been requesting companies with social and corporate responsibility towards the environment to sacrifice one day a year to participate in the International Coastal Cleanup. OSG is truly committed to this environmental endeavor and as such, participated from every OSG office around the world in this noble call.

According to Captain Kenneth MacLeod, Fleet Coordinator, for OSG Manila and acting as Site Captain, for the annual International Coastal Cleanup, this activity has become an illustrious tradition for their company – a legacy that they want to pass on to their children and their children’s children.

“The long term objective is that it is all related in trying to save our planet and preserve and conserve what remains of it. As an oil company, we transport energy around the world in a safe and efficient manner. As an oil company, it is paramount that we are

Capt.Tkalcic and his manager take time out to help in the clean-up.

By Jun G. Garcia clean and perfect when it comes to all environmental issues. We genuinely want to pass this heritage and environmental concept down to our families, our children, our grand children.

Captain Ken MacLeod confirmed that Tamra T. Pierce, Quality and Environmental Officer, from OSG Tampa, had initiated this wonderful concept whereby all OSG offices around the world would participate in conjunction with the Ocean Conservancy agency or equivalent organizations that are dedicated to the preservation of our seashores.

Tamra coordinates such activities in New York, Houston, Philadelphia, Tampa in the U.S., Athens in Greece, Newcastle in England, Singapore, and Manila to provide world coverage on the day designated in the month of September. We are all

working at different time zones but very happy to know that somewhere in the world, OSG employees are contributing to this great worthwhile environmental event.

An OSG Activity Designated by Captain Eduard Tkalcic, OSG Head of International Crewing, and with the acknowledgement of Cristina Paras, OSG Manila, Inc. president, Capt. Ken Macleod was requested to lead the OSG Manila team in the preparation, organization and arranging of the International Coastal Cleanup along Roxas Boulevard beachfront, Manila – in a location adjacent to the US Embassy office on September 20, 2008.

Captain Ken MacLeod, in conjunction with Geronimo P. Reyes, National Philippine Coordinator for the Ocean Conservancy group, arranged and organized the OSG event with due consideration to the location and logistical requirements to maximize the efforts and endeavors of all the happy volunteers.

The purchase of 500 biodegradable sacks, hand gloves, first aid kits, hand sanitizers were amongst many items incorporated to protect the volunteers.

The OSG Manila also distributed caps and T-shirts with the logo stating OSG – STEWARDS OF OUR ENVIRONMENT, which will serve as a memento for the said activity and a reminder of our honorable commitment to the Philippines. The two tents on station contained the distribution area for equipment, administration for the documentation and also a medical area for the doctor and nurse to administer assistance.

The happiest and noisiest area was the food tent which distributed 500 excellent meals to feed all the volunteers. On occasions we received many welcome visitors such as a Hari Krishna group who brought some welcome humor and light relief to the hard working volunteers found their efforts extremely laborious considering the amount of garbage on this section of beach. …continued on next page

OSG

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OSG family supports typhoon victims Aklan, Philippines – On the 22nd of June 2008, Iloilo and Aklan, two provinces located in the Visayas region of the Philippines, were hit by typhoon Frank leaving most parts of these provinces heavily damaged due to flash flood, mud and land slide. Many families were badly affected including some of our own OSG sea staff.

Due to the damages on power and communication infrastructure during that time, our seafarers onboard requested assistance to check on their families as they have no means to communicate with them.

By Ms. Cristina G. Paras President – OSG Manila

As per the seafarers’ requests on the very same day, we have dispatched Mr. Ronald Palma, OSG Manila’s Assistant Crewing Manager, to assess the situation.

He was able to visit only five families due to restrictions on mobility. The flash flood has covered most of the roads.

During his visit, he witnessed the extent of the damages as some houses were still submerged in water. It almost reached the ceilings of the first floors of two-storey houses, which were more than a meter high. The mud filled the houses and many roofs were detached and blown away by strong winds. One house was uprooted by strong water current and was dragged a couple of meters away. The family members from that house resorted to cling on a tree for their lives until the rescuers came.

Upon their return to Manila, proper recommendations were made based on their assessments. Beneficiaries of the calamity fund reached a total of 26 OSG families who were directly affected by the devastated provinces.

The goodwill service was extended to four other OSG seafarers from the Northern Philippines, who were stricken by the typhoon Cosme. Four elementary schools and a daycare center also benefited from the enormous turn-out of the donations.

Upon knowing this, Capt. Eduard Tkalcic, Head of International Crewing, immediately reported this unfortunate incident to Capt. Robert Johnston, SVP and Head of Shipping Operations on June 26. It was then discussed with Capt. George Dienis, Managing Director and COO of OSG GR and Capt. Ian Blackley, Managing Director and COO of OSG UK. The discussion resulted to the creation of a Calamity Fund for the victims where every one has outrightly agreed to it. A day after, (June 27), we start receiving pledges from the top management includ-

This humanitarian effort jointly undertaken by OSG’s sea and shore staff has once again demonstrated our commitment in fulfilling our corporate social responsibilities.

OSG spearheads… from front page This year’s event was a huge success for OSG Manila, because they were able to collect a massive total of 24 tons of flotsam and jetsam along the beach area designated, surpassing the 12 tons lifted during their first International Costal Cleanup last year on 15th September 2007. The rubbish collected were bagged and taken to dump trucks provided by the local government of Manila. Some of the biodegradable sacks had to be recycled due to the considerable amount collected.

They were able to involve some 650 participants for this year consisting of 100 partakers from the OSG office and their families, about 50 seafarers and their families, some 100 folks from the Malate Church, around 200 college students in Intramuros, Manila and some 200 concern friends, relatives, and their families. It was a wonderful harmonious effort which is deeply appreciated by all concerned and OSG is very proud to participate.

All the staff, seafarers and their families and the church friends considered it as a big family day with the same mission, vision, and motivation to enhance the environment. All employment status was set aside whereby company presidents, managers or

The OSG has extended cash assistance to the seafarers with varying amounts depending on the extent of the property damage while each of the schools and daycare center were given two sets of computers, two printers and reference books. ing Mr. Morten Arntzen, OSG President and CEO. In less than a week, an appeal letter to support our cause was officially sent across the vessels fleet and all OSG offices worldwide. Simultaneously, we have also appointed fund administrators and set up guidelines as to whom and how to distribute the fund.

The whole month of July and the first 2 weeks of August were allocated to gather requests for assis-

tance from our seafarers. The seafarers and their families were assisted in submitting documentary requirements for our evaluation.

It was on August 19 to 21 when Capt. Ken Macleod, one of the fund administrators, and Ms. Arlene Montales, OSG Manila Family Center representative, went to Iloilo and Aklan to physically evaluate the merits of the requests.

Captain Ken MacLeod reported that since the International Coastal Cleanup event will become an annual activity for OSG on the Saturday allocated every September. They are proposing and viewing the port of Batangas, in Cavite as their target and next stop in 2009. The location will be approved and confirmed by Gerry Reyes again. “He was very pleased with our contribution last year and I think he will be overwhelmed with the contribution this year because there’s a lot of effort and hard work involved,” he said.

Captain Ken MacLeod has envisioned the participation of this important environmental event in subsequent year to enhance the cleanliness everywhere in the world. If OSG can impart a little bit to help out the local government and barangay, in its environmental campaign, then we feel very privileged to do so. We fully understand that local governments have social issues to prioritize but if OSG can assist and help with the environment then this is our humble contribution to the country,” the kindhearted captain claimed.

Good Samaritan While the OSG Manila office was very happy with the turnout of the activity, Capt. MacLeod and Ms. Paras felt sorry for Gerry Reyes who could not witness the splendid activity because he was fighting a cancer ailment and was hospitalized. Nonetheless, the OSG Manila family honored him silently and was very grateful to him that even stricken with a disease. Gerry would still meet up with Captain Ken MacLeod to give some light on this momentous event.

The International Coastal Cleanup (ICC) is something worth appreciating not only by the Filipinos but the Philippine Government as well because such an activity requires considerable funds to serve its purpose and function. With the many concerns the

October–November 2008

This humanitarian effort jointly undertaken by OSG’s sea and shore staff has once again demonstrated our commitment in fulfilling our corporate social responsibilities. We thank every one who voluntarily shared their blessings and hope that we will still get the same support in our future endeavors. H

staff alike joined in this wonderful event as a team with the ultimate goal of removing as much garbage as possible in the allotted six hours timescale.

The OSG Manila, Inc. has been very generous with the blessings they are receiving in the business and with all modesty, they give due credit to the Filipino seafarers, who provide the knowledge and expertise to operate OSG ships. It is for this reason that in every activity they initiate, they make sure that the Filipinos will be the primary beneficiaries, especially considering that 52 of OSG vessels have a full compliment of Filipino seafarers.

The distribution of the donations was finally accomplished last September 24 in Days Hotel Iloilo where beneficiaries, except for those who are not from Iloilo and Aklan, were present.

country is experiencing, the government finds it quite difficult to allocate funds for their own version of coastal cleanup.

As proven in the recent past, the OSG Manila, and the OSG Group has been allocating funds for the improvement of the lives of many Filipino seafarers. To mention a few, they have donated classrooms, books, computers and audio/visual aids, among other educational items. Most recently, a 54-seater fully airconditioned bus for the transport and trainings of the midshipmen of the Philippine Merchant Marine Academy has been donated.

OSG have allocated funds for those affected by typhoons, the most recent being typhoon ‘Frank’.

OSG also has ‘Family Days’ in the provinces, which brings together many seafarers and their families to promote close relationships and enhance the family concept. Whereby, the OSG House is their home, not just a work place.

These and many other initiatives are the social responsibility that OSG feels towards all its employees.

It is a corporate company with a big heart and wishes to improve the conditions and welfare of all its employees. Captain Ken MacLeod’s final comment summarized all the social and welfare topics above when he said “OSG Really Cares.” H mate check

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October–November 2008

MATECHECK ELVICTOR signs up with SMART R

esponding to the request of its seafarers, the ELVICTOR Group has recently signed an agreement with Smart Communications, Inc. to further enhance the communication and information benefits of its fleets.

The ELVICTOR Group – a shipping company that has projected 44% expansion on the fiscal year 2008 with a substantial growth of over 27% per annum for the last five years, is expecting 20 new deliveries by December this year composed of Oil and Product Tankers, Chemical Tankers, Cement Carriers, Roro and Bulk Carrier vessels with full Filipino crew.

As such, ELVICTOR’s partnership with Smart – a leading telecommunication firm in the Philippines, will pave the way for the binding of its technologies and resources that would offer the best packages for their seafarers.

According to visiting ELVICTOR Group CEO, Mr. Constantinos S. Galanakis - the eldest son of the ELVICTOR Chairman and Founder Stavros C Galanakis, his team’s visit to their Manila offices has led to the enhancement of one of the most important packages for their seafarers – communication.

“Come November 2008, we will launch the Intranet facilities complemented by Smart Technology. Hence, the seafarers will find it convenient to send and receive

messages, view the photos and videos of their loved ones, receive news and announcements promptly, and the new system will also provide an access to the portfolios and information on our seafarers,” said the younger Galanakis.

Smart said “ELVICTOR has too many innovative ideas that will be used also from Smart with ELVICTOR seafarers and their systems will be bridged for the best benefit of their seafarers.”

“I am definitely sure and convinced, that the management and products and services of Smart meet our innovative ideas that lay upon the satisfaction of our seafarers, and mostly keeping our seafarers close to us and to their families. We as company have developed an innovative platform, we call it Seafarers intranet, and we aim to bridge our system with that of Smart so the seafarers will be able apart from their mobiles to send cheap short messaging system (SMS) from our intranet with the systems of Smart Communication,” added Mr. Galanakis.

“We will use the system of Smart as a company to our online in-house developed application WEB EWAN, in order to text our seafarers and inform them of their position and status on every single recruitment process. We believe that we have a bright future with Smart Telecoms and their way of thinking meet ours because it is innovative and takes a closer look to the human needs,” Mr. Galanakis further said.

Established since 1977, ELVICTOR currently employs, through its offices in Manila, over 4,800 Filipino crew on contract basis and over 10,000 seafarers per annum.

ELVICTOR is subsidizing since September 2008 with a strategic alliance that was signed with Engr. Alex A. Villamante and Mr. Jesse Sarol, top management of Asia Pacific Maritime Training Center. The Asia Pacific Maritime Training Center takes care of the training

ELVICTOR will apply the Smart Technology to its inhouse development programs and to all of its co-operations in the Philippines. As an expansion project, it will soon embed the technology of Smart to six more satellite offices.

October–November 2008

SMARTLINK TIES UP WITH ELVICTOR GROUP. Leading wireless services provider Smart Communications, Inc. (SMART) through its Global Access Group’s Smartlink brand recently forged an alliance with Greek Shipping Agency Elvictor Group. With this partnership, over 4,800 Filipino crew deployed by Elvictor will benefit from the free Smart Link satellite phones which will be installed in Elvictor Group’s vessels under the Smart Link Fleet Program. Smart Link, the first and only prepaid satellite telecommunications service in the Philippines provides connectivity to seafarers sailing the seas of Asia-Pacific, the Indian Ocean, the Middle East, and Africa.

Photo shows the symbolic turnover of the SMART Link Satellite phone (from left): SMART Global Access Head Tina Z. Mariano, SMART Head for International & Carrier Business Division Mon S. Fernandez, Elvictor CEO Constantinos S. Galanakis and President of Elvictor Human Resource Management, Inc. Atty. Vicente Dante P. Adan.

and upgrading of its ratings and officers to a large percentage.

ELVICTOR seems to innovate by funding and subsidizing their own seafarers for generating young and future officers to man its growing fleet. ELVICTOR currently mans through its offices about 200 vessels, and based on their contracted new manning and crew management agreements, a minimum of additional 100 vessels of various types are to be manned until June 2009.

ELVICTOR will apply the Smart Technology to its in-house development programs and to all of its co-operations in the Philippines. As an expansion project, it will soon embed the technology of Smart to six more satellite offices.

“With training and development through Asia Pacific, and with the collaboration of SMART and our ELVICTOR Research and Development Department and IT Team, and with the launch of ELVICTOR Intranet of Seafarers, we can achieve the optimum allocation of our human resources with total coverage of the seafarers’ needs,” assured Mr. Galanakis.

“And by continuously motivating and proving to them that we always stand next to them and to their families, because we first respect the human factor and the mission and vision of my father since he established this conglomerate called ELVICTOR, we are bound to continuously improve from day to day. My team, my colleagues, my staff and our ideas are always here to support Smart and jointly to attain the ultimate satisfaction and coverage of the needs of our current and future seafarers, so they will truly believe without hesitation that we are an extension of their own families, he concluded.”

Specialized subsidized cards will be developed and provided through SMART to ELVICTOR offices for the satisfaction of our seafarers and for the continuous communication with them onboard the vessels. H

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October–November 2008

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MATECHECK ABB Turbocharging inaugurates Davao Service Station

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ith the continuous growth in Mindanao region and its commitment of bringing the business closer to its customer, ABB Turbocharging inaugurated its new service station in Davao City with investment close to 15MPHP. The state of the art and modern facility is the third in the Philippines and the 99th service station worldwide. The other two stations in the country are in Manila and Cebu.

The inauguration was held on October 8, 2008 with, Nitin Desai, ABB Philippines President and Councilor Danilo Dayanghirang, Floor Leader of Davao City Council and Axel Ketmann, Senior General Manager, ABB Turbo System Switzerland cutting the ceremonial ribbon. Showing full support were Bernard Teo, ABB Turbocharging Regional Manager from Singapore, Tahar Azizi from ABB Turbo System, Chito Majabague, LBU Manager, Kritskorn Hongprapat, ABB Philippines Country CFO, Rudy Indorte, Sr. Manager, Front End Sales, Maning Rosales VisMin Sr. Manager and customers from different local maritime and power generating industry were present during the inauguration.

The new service station is strategically located at Arroyo Street, Km. 6 Lanang, Davao City minutes away from major ports.

ABB Turbocharging with head office, production and service facilities in Baden, Switzerland develops turbocharging solutions in close cooperation with the world’s top engine makers.

BU Turbocharging

More than 90 certified ABB turbocharger service stations around the world guarantee that welltrained service and support staff are always close to our customers. ABB turbocharger service stations are linked via the company’s own on-line computer network to headquarters in Baden. Fast, direct access to the case history of every turbocharger in operation ensures optimized, pro-active support.

Required spare parts can be immediately identified, ordered and dispatched by the fastest means.

The turbocharger service organization is on call 24 hours a day.

ABB is the world leader in turbocharging diesel and gas engines in the 500 kW plus power range.

Worldwide, more than 180,000 ABB turbochargers are in operation - on ships, in power stations and gensets, on diesel locomotives and in large off-highway vehicles.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs more than 110,000 people. H

Mindanao is the home of seven tuna canneries in the Philippines which is ranked 7th among the top tuna producers in the world, both in terms of fresh/frozen tuna and canned tuna. Mindanao is also one of the biggest exporters of Banana and fresh pineapple to Japan, Korea and the Middle East. Mining Industries is growing in different part of Mindanao.

Celebrating 20 years of manning service in the Philippines TSM GROUP of Companies

1747-1749-1751 Dian St., Palanan, Makati City • Tel. (+632) 860-7500 Email your resume: ro.support@tsmphil.com.ph Online application visit www.tsmphil.com.ph/apply.htm

October–November 2008

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6/F NEDA sa Makati Bldg. 106 Amorsolo Legazpi Village 1229 Makati City, Phil.

Tel. Nos. (632) 813-3554 • Fax (632) 813-2863 E-mail: ima@imaphilsinc.com Website: http://www.imaphilsinc.com

October–November 2008

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9th Annual Asia-Pacific Manning & Training Conference

Applying New Strategies to Address the Crewing Crisis

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he Lloyd’s List event is set to enlighten the industry anew with this year’s 9th Annual Asia-Pacific Manning & Training Conference on November 4th and 5th.

With the theme “Applying New Strategies to Address the Crewing Crisis”, the pivotal industry event is set to be the liveliest yet with leading manning and training experts debating the key issues in today’s manning crisis.

As the impact of the manpower shortage starts to affect shipowners, this conference will look forwards not backwards, and analyze solutions not problems.

The Conference Topic will talk about The Philippines’ Manning Roadmap, Manpower supply, Industry and training institute initiatives, Optimizing career progression, Value added training: onboard and onshore, International regulatory frameworks: the impact on shipowners and manning agencies.

October–November 2008

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Lloyd’s List Events drops conference rates for Filipinos

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o allow more Filipinos a chance to participate in the 9th Asia-Pacific Manning and Training Conference, rates have been lowered to UK 150 pounds.

UK-based conference specialists, Lloyd’s List events, announced that the new reduced rates will apply to all Filipino resident participants who register before October 20. After this date the price will increase to UK 200 pounds.

The 9th Asia-Pacific Manning and Training Conference will be held at the Sofitel Philippine Plaza Manila from November 4 to 5, 2008. Participants can register online at www.manningandtraining.com.; email alica.brlajova@informa.com or call +44 (0) 20 7017 5511.

The event will include a Pre-Conference Workshop: International Maritime Resource Management, which takes place on Monday 3rd November 2008. The conference will also feature international industry leaders from: the OSM Group, IMEC, Intertanko, InterManager, The Nautical Institute and many others.

Programme highlights include: -Presentation of the Philippines’ Manning Roadmap-Analysis of current manpower supply & demand -Appraisal of industry & training institute initiatives to retain crews & enhance standards -Assessment of pioneering technologies to empower seafarers -Review of international regulations:

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STCW & Maritime Labour Convention 2006 -Evaluation of methods to optimise human resources & prepare for the ship of the future.

October–November 2008

WANTED

FOR IMMEDIATE HIRING

2 NAVAL ARCHITECTS Call 3030179 to 81 52279 47 • 4 0 0 5310 Look for C/M Leo Candava

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IMOSTI – A Center for Learning and Competence T

he International Maritime & Offshore Safety Training Institute, INc. (IMOSTI) is a center for learning and competence development dedicated to administering training services for both the marine and offshore sector.

Incorporated last December 20, 2006 with primary intention of providing training services for personnel in maritime and offshore petroleum industries, IMOSTI is one of the few forward-thinking developmental training centers in the Asia-Pacific region providing business-focused professional human resource solutions to ensure maritime and offshore safety at all times.

This institution was envisioned to maximize the ability of skilled personnel to contribute positively to business success while endowing them with characteristic essential to the improvement of quality of life and preservation of environment.

Managed and operated by leading practitioner in maritime training and administration, its collective experiences cover training administration and management, quality and safety management, research and development, trade relations and business development.

Its Core Values include Empowerment, Partnership, Innovation, and Commitment.

Empowerment because they believe that the crucial element of business success is people. At IMOSTI, they encourage people to act and dispose their abilities with pride and responsibility.

Partnership through industry-based collaboration.

IMOSTI better understands the needs of its custom-

ers and using that as baseline in the development and delivery of services. IMOSTI shall adhere to conform and implement industry-established specifications on personnel training and education while allowing to independently evaluate against appropriate standards.

Innovation. IMOSTI invoke among its people and partners its quest to be always in the forefront of activities and maintain a pioneering attitude towards development of product and services that are valueadding to people and the industry.

Commitment. IMOSTI is dedicated in providing value-adding services not only aimed in the satisfaction of its customer but also to the promotion and preservation of the industry and to the proper formation of personnel who are working and intending to work within it.

IMOSTI believes that the only way of measuring its success is through the positive contribution of services to its customers’ business and professional success and development of the industry.

Now Offering IMOSTI offers Dynamic Positioning Induction Course, Nautical Institute Approved Course Program, Dynamic Positioning Simulator Course, Nautical Institute Approved Course Program, Helicopter Underwater Emergency Training (HUET),

Hydrogen Sulfide Familiarization Course, Risk Assessment & Accident Investigation, Shipboard Safety Officer Course, Ship Handling & Maneuvering, OSV, Tugboat/Supply, AHTS Steel Maintenance Course, Blasting and Painting.

Offering Soon (OPITO Standard) IMOSTI will soon offer Basic Offshore Safety Inductions & Emergency Training (BOSIET), BOSIET Bridging Elements, Emergency Breathing System (EBS), Further Offshore Emergency Training (FOET), Helicopter Underwater Emergency Training (HUET), Tropical BOSIET, Tropical-EBS, Tropical-FOET, Offshore Fire and Emergency Response Course, and Offshore Lifeboat Operator.

offers and delivers training courses in Dynamic Positioning Basic Induction and Advanced Simulator courses under the authority and accreditation of the Nautical Institute UK.

Facilities & Equipment

Its Simulators include 8 Units Stand-Alone of Beier-IVCS Dynamic Positioning II System, 2 Units of Beier-IVCS Dynamic Positioning II System, 1 Full Mission Bridge and 1 Briefing Room.

For Offshore Safety, it includes 6-man Helicopter Underwater Egress Training Module, Olympic Size Training Pool, 16 Units of Sharks Airpocket plus Trainer, 16 Units of Vikings Transit Suit, 1 Unit of RFD Helicopter Life raft, Helicopter Rescue Hoist, 40 ft. Smoke Diving & Search & Rescue Chamber, Fire House, 3 Fully Air-Conditioned Classroom, a Medical Clinic and Dispensary.

Its accommodation includes dormitory with 60person capacity, cafeteria, lounge and recreation area and a 24-hour security.

IMOSTI is headed by Ms. Ma Cielito S. Ferias, general manager. Her administrative team includes Mr. Arnel N. Salasab, finance manager, Mr. Tristan Aris B. Diaz, administrative manager, and Mr. Reynald A. Tacuyan, training manager.

Other than the provisions for training offshore safety course, IMOSTI had invested in the NT-PRO 4000 Full Mission Bridge Simulator from Transas Marine full integrated with Beier-IVCS DP II system. Using this state of the art equipment IMOSTI

The International Maritime & Offshore Safety Training Institute is located at 1040 MPR Building Alhambra St. Ermita Manila 1000 Philippines. Its contact numbers are (+632) 524 7983 / (+632) 302 3168 and email address: sales@imosti.com. H

A decade of service to the world and Filipino seafarers

J-Phil Marine celebrates 10 years T

he J-Phil Marine Incorporated observes its 10th year of existence in the industry with a renewed commitment to better serve its fleet with utmost satisfaction while joining the industry players in supplying competent Filipino seafarers to the world maritime fleet.

Carrying upon themselves a theme, “A decade of service to the world, a decade of service to the Filipino people,” J-Phil Marine Incorporated president Chief Mate Eulalio “Leo” C. Candava is just too thankful for the contributions of their seafarers to the success of his company.

“As we observe our 10th year anniversary, we are so thankful to our seafarers for doing a good job onboard. The quality services they have rendered onboard contributed to what we have become now. And we vow to continue the good things my late father, C/E Jesus Candava, has started,” said C/M Leo. The president also lauded his staff for staying with them through thick and thin. “I also thank my staff for staying with us despite the odds. They too, contributed a lot to our company. We will never reach this far without them,” he added.

Like many of the leading manning agencies, the J-Phil Marine Incorporated was never spared from commercial pressures, among other concerns in the trade. In spite of that, the J-Phil Marine manages to do what they deemed is just and proper to gauge the interest of the principals and their seafarers as well.

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October–November 2008

“We also encounter problems. There were just too many opportunists in this business but we manage to play fair and square. It is a principle ingrained to me by my father. For as long as we are perfectly correct and in the right track, we accept full responsibility and we exercise responsibility to the fullest,” explained C/M Candava.

True to his words, the humble president endures all the pressures hounding every crewing leader in the industry. He considers every trial as an opportunity to seek room for improvement and treat every pressure constructively.

“If we never face every problem positively, we will never reached this far. We have overcome economic circumstances, we have overcome trial by fire, and we have overcome commercial pressures, among others. I am just too thankful that I have supportive and loyal staff, loyal seafarers, and supportive industry friends,” the president exuded.

From its humble beginnings, the company has grown modestly. Starting from three vessels, it is now servicing more than a hundred vessels from Greek, Arab, Asian, and American shipowners com-

By Jun G. Garcia

posed mostly of tankers and VLCC. It also provides crew for offshore, supply boats, towing and survey boats. It supplies over 1,887 highly-skilled and experienced seafarers.

According to Chief Mate Candava, since the inception of their company in 1998, J-Phil Marine Incorporated was envisioned to become the best alternative crewing agency. “Our modest growth is a manifestation of our continued and honest service to our principals and seafarers as well,” he claimed.

Founded in November 1998, J-Phil Marine remains firm in its mission to provide competent yet cost-effective seafarers who carry the company’s legacy of quality service, competency, honesty and professionalism.

J-Phil Marine Incorporated is located at 1977 A. Linao Street, Malate, Manila, Philippines. Its contact numbers are 632 3030179 to 81 / 632 5227947 / 632 4840020. You can also reach them at email address: j-phil@compass.com.ph. mate check

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Negros Navigation acquires major share from Aboitiz O

ldest local shipping firm Negros Navigation, Co. (Nenaco) is set to exit from its receivership days after acquiring majority stakes of the largest local shipping firm Aboitiz Transport System Corp. (ATSC).

The once debt-saddled shipping firm is targeting to exit its court-guided rehabilitation plan by the end of the year as the acquisition of ATSC enabled them to be liquid enough to pay its debts.

“We know that it will take some time before we can get the approval of the court, our desire really is to get out of rehab before the end of the year,” Tagud explained.

Nenaco chair and chief executive Sulficio Tagud, Jr., explained that the purchase of ATSC coupled with fresh investments from the KGLI-NM now permits Nenaco to pay its debts according to the schedules determined by the court.

“We have now the capacity to pay the remaining Php1.8 billion of our existing debt wherein Php1.4 billion will be converted to equity to be shouldered

by KGLI-NM [and] to be paid according to the schedule given by the court,” Tagud added.

Nenaco is currently under a 10-year court-appointed rehabilitation after it filed for bankruptcy in 2004.

They still have six years left to complete the program until 2014.

He added that they would do the exit while looking at the drawing board on how they will fully benefit from the purchase of ATSC.

“Exiting receivership will be our first priority in the 60-day due diligence period in our acquisition of ATSC,” Tagud said.

While there are plans to merge the operations of the two firms, they will as of the moment maintain each other’s operations considering that both has market niches and would benefit from it greatly instead of merging the operations of the two shipping firms.

Based on their business plan, KGLI-NM will maintain the current workforce and management of ATS except for the positions currently occupied by the Aboitiz family.

KGLI-NM will also operate ATS and Nenaco as two distinct and separate firms but will enter into a codesharing agreement with each other in vessel spaces and container yard as KGLI-NM will terminate lease agreements with a third party involving the operation of the facilities.

While there are plans to merge the operations of the two firms, they will as of the moment maintain each other’s operations considering that both has market niches and would benefit from it greatly instead of merging the operations of the two shipping firms.

KGLI-NM, which is the local subsidiary of Kuwaitibased KGL Investment Co., will likewise maintain and expand the operation of the logistics and supply chain business of the ATSC particularly the cold chain and container operations which is their priority.

According to Tagud, they will immediately deploy their planned acquisition of two 300-TEU dedicated freighter to the supply chain and cargo business of ATS once the sale is completed in the next 60 days.

“I think the acquisition of ATS [will] give us enough flexibility to service more market without added cost,” Tagud said.

ume of the country while Negros Navigation commands about 10% of the total passage market and 35% of the total freight market.

“With the under capacity in terms of cargo bottoms aggravated by the continuing grounding of the ships of Sulpicio Lines, we will be able to tap as many markets as possible that will result to about 60-80% vessel utilization compared to our existing 40-50%,” Tagud explained.

Nenaco is looking at ending 2008 lower than the Php298 million net income it posted in 2007 to around Php100-Php120 million as they expect to benefit from the ATS acquisition only by 2009.

“We are also looking at delisting ATS from the stock exchange once the sale is completed and will instead list KGLI-NM when time and economic conditions permit it within the next 12-24 months,” Tagud said.

To date, ATS controls about 70% of the long-haul passage market and about 30% of the total cargo vol-

KGL Investments, through KGLI-NM, offered to buy the controlling stake of the Aboitiz firm in ATS for some Php5 billion or about Php2.044 per share.

Aside from the shipping business, with huge surplus from its core business, is likewise looking at other businesses in the Philippines like port related business as long at it is viable and according to the vision of the company in the Philippines. H

Plotting Shipping’s Future Course

A

t this time of turbulence in the world economy and global finance and worrying indicators for shipping markets, leading shipping industry and finance figures will be sharing their views at Lloyd’s Shipping Economist’s 21st Ship Finance and Investment Conference organised by Lloyd’s List events and being held at the Café Royal in London on November 4 and 5.

aspects, Barry Wingate a director at HSBC Bank will explain the potential contribution of non-traditional finance sources and Gust Biesbroeck, global head of transportation at Fortis focuses on financing options for newbuildings. Peter Shaerf, managing director of New York-based AMA Capital Partners will present the differing challenges of alternative types of equity finance, while Philip Parr a partner at account at Moore Stephens will explain the latest position in the UK tax regime as it affects shipping.

Among key questions being asked at the event, which will be chaired by Michael Drayton, chairman of the Baltic Exchange, are whether shipping should be preparing for a significant downturn, what are the latest economic and trade prospects, will there be massive overcapacity, what will happen to ship values and how best should shipping companies protect themselves?

A session on the booming offshore sector will feature presentations by Rune Juliussen of Pareto Securities in Norway, on investment opportunities, with lawyer Arun Velusami of Norton Rose looking at aspects of project finance.

Dagfinn Lunde, member of the board of managing directors of DVB Bank SE, Rotterdam branch will give a keynote address outlining the latest position in shipping market and lending cycles and other challenges owners faces such as higher operating costs and unstable exchange rates. He will suggest what can be expected going forward.

The latest view of the world economy will be presented by senior economist at HSH Nordbank.

Cyrus de la Rubia, who will also attempt to give an outlook for 2009.

Steel production is a crucial indicator for the dry bulk shipping market and Gavin Montgomery, a consultant at CRU Group will outline current trends in the steel market and its future outlook. John FLEET STREET

By angela williams Stansfield, president of Lloyd’s Register Asia will explain the impact of the economic crisis on Asian shipbuilders, while Philip Bailey, managing director of Theisen Securities will look at the effect of shipping asset values.

Prospects for the major shipping sectors will be covered by consultant Fred Doll on the dry bulk market, Jefferson Clarke of Poten & Partners in the US on the tanker market and Paul Dowell of broker Howe Robinson on the container market. George Xiradakis, managing director of XRTC in Greece will explore potential new investment opportunities in shortsea shipping.

An industry panel will offer answers to what strategies owners should adopt in the recession. Panel members include Claus Peter Offen, chairman of German owner CP Offen.

Turning to shipping finance, Ted Petropoulos, managing director of Petrofin Bank in Greece will discuss the effects of the credit crunch on finance for shipping and the future outlook. On more specific

As the crewing shortage bites and crewing costs escalate, Douglas Lang, managing director of ship manager Anglo-Eastern UK will offer a banker’s guide to the crewing crisis.

A specialist panel of owners and bankers will suggest ways that owners can protect and promote value in the current market. Participants include Simon Booth, managing director at Citigroup, UK, Michael Kirk, vice president investment banking at US-based Dahlman Rose and Tobias Konig, managing partner at German KG firm Konig & Cie. On the evening of November 4, Lloyd’s Shipping Economist will be hosting its annual Shipping Finance Awards at the Café Royal.

In addition to this main two-day conference, the Lloyd’s Shipping Economist Ship Finance Week 2008 in London will include a one-day International Financial Reporting Standards in Shipping Forum,

led by Moore Stephens, on November 3, and a twoday seminar on Obtaining Finance and Security for Shipping on November 6 and &7 both at the Courthouse Kempinski Hotel.

For more detailed information on these programmes and on registering for the events please contact: Angela Williams, Marketing Manager, Lloyd’s List events – telephone + 44 (0) 20 7107 5758 or email: angela.williams@informa.com. H

In addition to the main two-day conference, the Lloyd’s Shipping Economist Ship Finance Week 2008 in London will include a one-day International Financial Reporting Standards in Shipping Forum, and a two-day seminar on Obtaining Finance and Security for Shipping on November 6 and 7.

October–November 2008

11

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Subic invites stakeholders to use container terminal S

ubic Bay International Terminal Corp. (SBITC), a subsidiary of International Container Terminal Services, Inc. (ICTSI), and the Subic Bay Metropolitan Authority (SBMA) are urging importers and exporters in Northern and Central Luzon to use the newly-opened container terminal at the Subic Bay Freeport.

“We are inviting businesses and industries in the area to use the Subic container port. The strategic location of Subic to their manufacturing plants means a significant decrease in transport costs and faster delivery time of cargo,” said Atty. Ferdinand Hernandez, SBMA senior deputy administrator for operations to stakeholders during the North Luzon Area Business Conference recently.

“Also, our new container handling facility in Subic complements the Philippine government’s over-all infrastructure development plan for the Metro Lu-

SBITC is investing to further improve terminal operations and to construct other support facilities. Additional container handling equipment will also be purchased.

zon Urban Beltway, especially the requirements of seaborne trade in Northern and Central Luzon,” he added.

SBITC, the operator of Subic’s New Container Terminal-1 (NCT-1), and SBMA have been jointly marketing the Subic Bay Freeport as the prime trade link in Northern Philippines “With our strategic location, world class port infrastructure, competitive port tariffs, and the expertise of an international port operator, Subic is ready and positioned to serve industrial locators in the region,” Hernandez said.

The Subic container terminal, located at the Freeport’s Cubi Point, was developed through funding provided by the Japan Bank of International Cooperation. SBITC holds the 25-year concession for the operations of the port.

The terminal has an area of 13.16 hectares and an annual capacity of 300,000 TEUs (twenty foot equivalent units). The berth is a 280-meter wharf with a controlling depth of 13 meters, and is equipped with two post-Panamax quay cranes.

The terminal has an area of 13.16 hectares and an annual capacity of 300,000 TEUs (twenty foot equivalent units). The berth is a 280-meter wharf with a controlling depth of 13 meters, and is equipped with two postPanamax quay cranes.

The terminal design ensures optimal terminal operations and utilization of container handling equipment and facilities especially terminal space. Over 80 reefer stations are installed in the container yard, while the gate has six truck lanes for the smooth f low of trucks coming in and going out of the terminal.

SBITC is investing to further improve terminal operations and to construct other support facilities.

Additional container handling equipment will also be purchased as the throughput of the terminal increases in the coming years.

SBITC’s shipping line clients include American President Lines, Wan Hai Lines and Tasman Orient.

ATI to expand presence in Manila and Batangas ports P

ort operator Asian Terminals, Inc. (ATI) is expanding the capacity of its terminal in Manila and Batangas in its bid handle more cargoes and at par with competitor and business partner International Container Terminal Services, Inc. (ICTSI).

ATI said they are expanding the capacity of their terminals, specifically South Harbor in Manila, as the port is already reaching saturation point after posting record highs the past two years.

million TEUs. This year, the company has already spent some Php1 billion for the facility to expand its container yard and modernize its cargo-handling facilities.

ATI executive vice president for technical Ernst T.A. Schulze said they expect their Manila port to handle at least a million twenty-foot equivalent units (TEUs) in the next five years the reason why this early they are making the necessary investments.

ATI is also looking at further modernizing its own port systems, including the purchase of an automated gate process, which will ease up traffic congestion caused by the cargo trucks.

“We are confident that times will change for the future and ATI will keep on investing. We are looking at expanding our presence (in the Philippines),” Schulze said.

Based on their plan, ATI is expanding their South Harbor capacity from 825,000 TEUs to 1

The master plan of the South Harbor includes expansion of the container yard towards the southern portion, and conversion of the south side berths of Pier 9 into a container berth with ship-to-shore cranes.

12

October–November 2008

At the moment, the company is implementing a management shake-up in a bid to harmonize the operations of its main facilities in Manila and in Batangas.

ATI, which holds the temporary license to operate both two phases of Batangas Port, said that it is currently moving people from one place to another in order to promote efficiency on its main operations in Manila and in Batangas.

Current container division officer Sean Perez will be given a new job to have more hand on the market to lure more shippers as well as callers to call at the two ports, the company, which operates Manila South Harbor, said.

The company is preparing for volume to flow at the Phase II of Batangas Port, a facility that it temporarily operates, after the government agencies are helping them to market the terminal to locators near the area in a move to decongest Manila ports.

ATI, partly owned by Dubai Ports World, started operating the port in 1991 after the Philippine Ports Authority required the three companies-Marina Port Services Inc., Ocean Terminals Services Inc., and 7-R Port Services Inc.-- then operating the South Harbor to merge and integrate themselves, with ATI emerging as the surviving entity.

The master plan of the South Harbor includes expansion of the container yard towards the

southern portion, instead of the original plan to reclaim portions in the northern part of the port, and conversion of the south side berths of Pier 9 into a container berth with ship-to-shore cranes.

The phased developments will ensure that there will be efficient handling of container cargoes in the South Harbor as throughput volume increases during 2005 and 2022. H

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Subic Bay to become best transshipment and service hub G

overnment is fast-tracking the development of Subic Bay as the best transshipment and service hub of the Philippines, according to Augusto Santos, deputy director general of the National Economic Development Authority (NEDA).

Santos explained that Subic is the last piece to the proposed economic triangle involving Clark and Batangas Port.

He added that major improvements are already completed or almost complete like the Subic-ClarkTarlac Expressway that is already operational.

“Subic is already ready through the Subic Bay International Terminal to accept traffic. Road links are also being improved to further boost the attractiveness of the port to businesses in Central and Northern Luzon,” Santos said.

“Government is also studying the possibility of linking the area through rail from Metro Manila and Luzon to complete the multimodalism,” Santos added.

Also, businessmen are pushing for the development of the Batangas-Clark-Subic Economic Corridor in their bid to bring in more cargo to the country.

The businessmen, who are members of the Philippine Chamber of Commerce and Industry (PCCI), said the corridor when develop will greatly reduce congestion specifically at the Ports of Manila and redirect sea traffic more to Batangas and Subic and air traffic to Clark.

PCCI presented their proposal to president Arroyo during the closing of the Philippine Business Conference organized by PCCI held at the Manila Hotel last week.

“We are seeking for the further development of the Batangas-Clark-Subic Corridor as transshipment and logistics hub by supporting the shift of cargo traffic from Manila to the Ports of Batangas and Subic,” PCCI said in their proposal.

“This move will decongest Manila, reduce cost and improve competitiveness,” the group added.

To date, Government is also constantly improving the infrastructure within and along the corridor in its bid to get spillovers from Singapore, Hong Kong and Taiwan in the near term.

Batangas Port, one of the 10 ports being groomed by the Philippine Ports Authority to be at par with global standards by 2010, has also been aggressively marketing its facilities since 2005 particularly those from locators of the Cavite, Laguna, Batangas, Rizal, Quezon (Calabarzon) economic corridor.

Batangas is targeting some 30-40% of the current volume of the locators. The frequency of shipments of Calabarzon locators with the Manila ports is 4 to 5 foreign vessels a week.

Batangas can only accommodate one at present.

But when phase 2 of the development is finished, they can have 2 medium-sized foreign ships or 1 big vessel at any given time.

Top direct callers of Batangas Port are NYK, Trans Orient, and Ben Line.

In Subic and Clark, government is currently addressing three vital aspects before aggressively push to market the Freeports to the international market that include automation, standards and conformity and law enforcement procedures that will all fall under trade facilitation.

It is likewise making massive infrastructure projects to make the two ports attractive to logistics service providers involve in the international trade.

To date, Subic Bay and Clark are set to launch a one-stop-shop automated system by January next year in its bid to harmonize all procedures and lure more foreign direct investments to the zones.

The two Freeport zones are now conducting pilot testing the new system with select locators and expect to have a soft implementation of the new system before the end of the year.

In the next five years, Asia-Pacific traffic is expected to account 26% of the entire global traffic. From this, air traffic is expected to grow 8.7% starting this year and about 8.4% a year after or an average of about 8.5% in the next 5 five years. World air traffic, meanwhile, is expected to grow 6% starting this year to 2016.

In global shipping, it is expected to maintain its current levels and grow modestly until 2016. About 50 million twenty-foot equivalent units (TEUs) of the 310 million-TEU global traffic will come from Asia wherein the Philippines will handle about 2 million TEUs. Subic is expecting cargo traffic at the port to increase three folds the current capacity of the existing terminal with provisions of huge back-up areas for expansion once the other half of its two new container terminals become fully operational this year. Break-bulk cargo operations is expected to take a 40% increase annually.

Clark, on the other hand, is set to receive some Php40 million to make it a gateway airport. H

Bureau of Customs to enhance detection procedures on cargoes T

he Bureau of Customs (BOC) is slowly putting in place the needed infrastructure to detect hazardous/injurious cargo in preparation for the implementation of the national singlewindow (NSW) at the end of the year.

It added that they are also slowly automating the detection procedure in order to identify such cargoes even before it arrives at any Philippine ports.

to detect such cargo the very reason why they are accelerating the process and hook it up to the NSW project for testing.

It is also in accordance to the proposal of the BOC provided under the Customs and Tariff Modernization Act (CTMA).

“Yes, we don’t have the capability to detect such cargo now, but most of the process to detect such will be in place before the end of the year and will be enhanced as we go on,” Arevalo said.

BOC deputy commissioner Alexander Arevalo explained that as to date, the BOC has no capability

“It will be tested initially with the 40 agencies attached under the NSW scheme starting first with

port side

the agencies under the Department of Agriculture,” Arevalo said.

“By December 31, the BOC is targeting to start with the procedure both the NSW and the detection process,” Arevalo added.

To date, the Philippines and Thailand are testing the live exchange of customs data that is a prelude for the full implementation of the Asean single-window transaction (ASWT) scheme between the two countries at the end of 2008.

The live exchange of customs data is between the Port of Manila (POM) here and the Port of Bangkok in Thailand. The result of the live testing will be used as model for Asean countries in designing their own SWT in time for the planned Asean economic integration by 2015-2020. H

October–November 2008

13

buckyard Irrefutable measurement of bunker fuel oil T

wo years ago BP Marine Fuels embarked on a research project to investigate the feasibility of using metering technology to measure the delivery of bunker fuel oil to ships. The company’s goal was to provide irrefutable measurement. The SIBCON conference in Singapore, the world’s largest bunkering port, was the venue for the international launch of a new bunker fuel oil metering solution. The innovative solution is sponsored by BP, developed by Invensys Process Systems (IPS), and in the future, administered by the International Bunker industry Association (IBIA).

For the first time the accurate measurement of all bunker fuel oil delivered to ships can now be guaranteed, much in the same way as a petrol pump measures the delivery of petrol to a car. The benefits are far reaching, including increased efficiency and improved safety for personnel, and it is hoped that the technology will now be adopted throughout the worldwide shipping industry.

The metering of bunker fuel oil represents a series of difficult technical challenges, but BP believes that by employing advanced technology, the arcane practice of manually measuring or “dipping” the amount of bunker fuel oil on a fuel barge will be consigned to the past. Ship owners can, for the first time, reconcile the volume of bunker fuel oil delivered without the requirement for inspection. The system is simple to operate and has the added benefit of increasing the overall efficiency of the bunker fuel transfer process, with the possibility of eliminating conventional paperwork in the future.

BP appointed an independent consultant to evaluate all available technologies. Initial conclusions suggested that ultrasonic meters were both economical and reliable, but the industry view was that Coriolis

clear just prior to disconnection. This practice prevents the spillage of bunker fuel oil on the deck when the hose is removed. Air entrainment can even be caused by the way in which the barge tank is filled.

For example, drop loading and splashing can all contribute to this problem. Once air is entrained within the bunker fuel oil it can take several hours for it to come out of suspension - the temperature and hence the viscosity of the product is the key variable.

Following the successful evaluation of the Foxboro Coriolis meter, the next stage was to develop an open skid standardised design which would house the meter. The development team believed that a half TEU container-sized skid could be designed so that it could be easily connected and disconnected from the barge deck. Creating a lock and load system with a barge having a pre assigned mounting area where the skid would be secured to the deck was essential. The barge flanges would have to connect to the meter lines with simple and quick-mounting arrangements, plus two or three plug-in connection points for power and data. The skid had to be simply transported by lorry so that the Foxboro Coriolis meter could be periodically maintained and tested. It was essential that the integrity of the meter was not compromised and that the system was both visible and secure. If a spot check were to be conducted on the accuracy of the Foxboro Coriolis meter, the skid would have to be removed from the barge quickly and replaced with a skid carrying an alternative so a skid design was approved and manufactured by IPS. Future skids will comply with the same design, ensuring that the same basic layout is replicated throughout the world.

The difficulty in measuring bunker fuel oil is caused principally by air retention, but the Foxboro Coriolis meter has the ability to “see” the entrained air and therefore accurately measure the mass of bunker fuel oil. There are a number of reasons why air becomes entrained in bunker fuel oil. meters, the alternative metering technology, were very unreliable and expensive. Also, some doubt was expressed by industry experts that Coriolis meters would be adversely affected by the vibration present on bunker fuel oil barges. However, after detailed discussions with BP’s own exploration and production, as well as refining and chemical divisions, it was suggested, based on their extensive experience, that Coriolis meters were in fact more economic and likely to be far more reliable. In order to arrive at a definitive solution, BP developed a basic statement of requirements, which, in the company’s view, defined the ideal metering technology.

The statement of requirements stated that for single phase flow, an accuracy of 0.1 percent was required and for two-phase flow an accuracy of 0.5 percent was required. An invitation was then sent to potential partner / vendors to submit details of those metering products that complied with the basic statement of requirements.

This prompted four vendors to put forward their Coriolis meters for evaluation. An initial review determined that only one vendor, IPS, was able to meet the requirements. As a result, the company’s Foxboro Coriolis meter was evaluated at the National Engineering Laboratory. IPS funded the trial with the aim of gaining endorsement of the system within the bunker fuel industry and IBIA.

proval of the port, would be purchased together with a licensing arrangement managed by IBIA. Each year an annual fee would be paid to maintain the integrity of the Foxboro Coriolis meter. Barge owners would recover their capital investment and the integrity management charge through a surcharge on the bunker fuel oil supplied.

It is believed that in time customers will express a preference towards those operators supplying bunker fuel oil through the new metering system. BP Marine Fuels CEO, Graeme Alexander said, “Our efforts and those of our technology partner IPS, have now resulted in a bunker fuel oil metering system that can truly claim to provide irrefutable measurement results. We now hand over the baton to IBIA to encourage the rollout of the technology worldwide.”

Don Gregory, Director Sustainability & Fuel Technology at BP Marine Fuels said, “We have taken this initiative to drive forward the use of technology within the bunkering industry to develop, with our partners, a metering system that is both accurate and reliable. However, it has always been BP Marine Fuel’s intention to hand over stewardship of the metering technology to IBIA and encourage its widespread adoption for the benefit of all stakeholders in the bunker industry. This approach to bunker delivery will further enhance MPA’s reputation as a beacon of best practice worldwide.

toring of bunker fuel oil deliveries from multiple ships worldwide and will therefore be of interest to ship owners and charterers, in addition to port authorities. The principal benefit for the barge operator is a faster turnaround, which in turn should improve cash flow and reduce working capital.”

About IPS (Invensys Process Systems) Invensys Process Systems (IPS), headquartered in Plano, Texas, is a global technology, software and consulting firm leading significant change in process manufacturing, plant optimisation, business operations and enterprise performance. IPS clients are some of the world’s most important industrial organisations — companies that operate large oil refineries; plants that process chemicals, gas, LNG, power, pharmaceutical and minerals; and pulp and paper mills. IPS solutions, used at over 50,000 locations across the globe, include field devices and controls from Foxboro and Triconex, advanced applications from SimSci-Esscor, operations management from Avantis, and the world’s first truly open enterprise control system, InFusion.

The company’s nearly 7,000 employees integrate these capabilities to create solutions that impact and increase efficiency, boost productivity, and accelerate performance. These results help industrial companies run safer, operate more efficiently, and extract useful knowledge from their operations to make faster, better decisions. To learn more about IPS, visit www.ips.invensys.com.

The Invensys Group (www.invensys.com) is headquartered in London and is listed on the London Stock Exchange (ISYS.L), with approximately 25,000 employees working in 60 countries. H

“In the future, irrefutable measurement data captured by the Foxboro Coriolis meter can be transferred to a central location where bunker fuel oil expenditure and usage can be monitored centrally.

This type of data interchange allows real-time moni-

The marinisation phase of the trial was to ensure that the results obtained in the laboratory could be replicated in the “real world” and so a Singapore Maritime Port Authority (MPA) nominated barge and the BP barge ”Pride” have been assigned to run tests. To date, there have been fifty deliveries, all of which have shown a high level of consistency with barge “soundings.” Although some initial problems were experienced in the field, these were addressed and resolved by IPS as they continued to evaluate the performance of the Foxboro Coriolis meter. The next step will be for IPS to develop a Bunker Receipt Issuing Equipment (BRIE) which will record data in order to produce an electronic delivery note, an important development on the road to a fully automated custody transfer and accounting system.

If adopted by bunker fuel oil barge owners, the Foxboro Coriolis meter, which would have the ap-

The difficulty in measuring bunker fuel oil is caused principally by air retention, but the Foxboro Coriolis meter has the ability to “see” the entrained air and therefore accurately measure the mass of bunker fuel oil. There are a number of reasons why air becomes entrained in bunker fuel oil. Bunker fuel oil is highly viscous and this can cause the pump to draw a heavy vacuum on the suction side. In some circumstances this can draw air into the gland of the pump. Fuel oil remaining in the bottom of the tank may draw air as the tank is pumped dry or stripped. Compressed air is introduced into the transfer hose when it is blown

14

October–November 2008

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editorial A wake-up call

Seafarers should understand economic crunch

D

ear Seafarers, For a time, you could have enjoyed the effect of the shortage of officers. You could have been earning so much that you were able to provide more than enough for your families. Yes, you can say, you did not plan it that way. However, there are those who really compromised loyalty in exchange for lucrative salary scales.

While not all of you are taking advantage of the crisis, the shipping industry will always be thankful to those who remained loyal to them despite the odds. The shipping industry will always commend those who bear with them and stayed with them in spite of desperate efforts of poachers who lure officers with ten thousand faces of Benjamin Franklin.

Leaving your company in exchange for big amount of money to serve another fleet will soon come to an end.

Your ‘ridiculous’ demands will soon be over simply because the shipping industry is also beginning to feel and endure the economic crunch.

According to Mr. Constantinos Galanakis, CEO of Elvictor, some 170 vessels will be held in Greece and another 500 ships will also be held from the other parts of the world. This translates to some 15,000 seafarers to be displaced from November 2008 to January 2009. If the crisis continues,

then some 50% will be laid back. The industry will collapse.

If you are reading the news, then you should know by now that the impact of the world financial crisis is also hurting the shipping industry.

News report said one of the biggest players in the shipping industry was bankrupt. Corporate bankruptcies are starting to increase in the US following the deterioration of credit quality. Banks may not be trusting each other at the moment. Hence, the huge risk remains.

No one can tell by now on how long or how deep the slump will be but we can predict its impact. Reports said the shipping stocks have eroded to some 60%. Equity markets lost 40% of its value and the bulk market has seen virtual freefall. The turbulence in the world economy is an indicator for shipping industry to worry following the escalation of crewing costs, the shortage (of officers) crisis, and the decrease in charter hires.

an increase in fuel cost and an increase in salary scales will also affect the cost of commodities being transported by you. Then this will be endured by the end-users – the consumer group where your family belongs.

Supposed you remain stubborn and still seek higher wages despite the call for consideration and in spite of the growing crisis, then don’t be surprised if one day, the shipping companies will close their doors on you. Don’t be surprised if one day when you wake up, there will be no jobs for you.

But then again, to those who remained loyal and faithful to their respective agencies, rest assured that you will still have secured jobs and brighter future ahead of you.

During a recent radio interview over Buhay Marino radio program, Capt. Constantino “Jun” Arcellana, shipping expert and former chairman of the board for marine deck officers of the Philippine Professional Regulation Commission, said bulk carrier charters went down to almost 10% compared to some five months ago.

This is a vindication to the statement of Mr. Galanakis that many vessels will surely be laid up.

So our dear seafarers, while we are already immune to crisis, let us spare the stakeholders at this time of economic slump. The shipowners are not only there to do business but they also provide employment for hundreds of thousands of Filipino seafarers. This means hundreds of thousands of families are fed and given education.

You and the shipowners should be partners in making the world economy move. Let us not forget that

MR. Jun G. Garcia Managing Editor Harborscope

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Maximizing the welfare of seafarers to keep them loyal T

he present scarcity of officers prompted industry leaders to offer packages to keep the seafarers in their backyards.

While others would resort to offering very lucrative salary scales to attract officers, rational crewing agencies would rather maximize welfare packages of crew at sea and ashore.

Speaking before the Maritime Manpower Optimization conference in Renaissance Hotel in Kuala Lumpur, Malaysia on October 13 and 14, Rear Admiral Adonis B. Donato PCGA MM, president of OSM Maritime Services has talked about “Maximizing on board welfare of crew at sea and ashore.”

He admitted that as president of OSM, his primary concern is to find the balance and harmonize the basic Employer-Employee relationship or to be more specific the Shipowner - Seafarer working relationship.

Rear Admiral Donato, who also heads the Masters and Mates Association of the Philippines, Inc. (MMAP) - well-known legitimate professional organization of marine deck officers in the Philippines & the only duly accredited association by the Philippine Professional Regulation Commission with 35,000-strong membership and growing, said that he has almost heard and learnt every single concern and appeal from our deck officers.

And having heard the same from their counterparts – the Marine Engineer Officers Association of the Philippines, Inc., - made him believe that they both share the same sentiments and common concern – welfare.

Maintaining Balance The sudden upsurge of new buildings and the natural attrition of European Senior Officers due to retirement age without ready replacement have resulted to a situation inversely proportional. As a result, the world shipping fleet resorted to Asian seafarers and notably, the Filipino seafarers remained the dominant choice.

“Sad to say, the shortage crisis prompted manning companies in the country to engage themselves in massive recruitment campaign to increase its pool of officers even resorting to cut-throat competition, at times offering unreasonably high salaries in a very lucrative fashion just to get the best catch. And before these manning

By Jun G. Garcia agencies knew it, they are now being engulfed in a precarious situation they themselves created,” the rear admiral stated.

As an aftermath of the unlikely practice, instead of manning agencies doing the rigid screening and interview among seafarer applicants, the reverse became the rule. “The applicant seafarer/officer is now the one doing the question interview before accepting the job vacancy, like asking how much is the salary scale, the other benefits like standby pay, return bonus, etc. In short, we now have somehow become a seaman industry – meaning, it is the seafarers who are shopping around for the shipping/manning company who can give them the highest bid,” he added.

According to him, what is alarming is that the long-time revered value among seafarers called “LOYALTY” is fast losing its meaning, as most seagoing officers tend to moonlight around the manning community and leave his long-time shipping company for a new one, for a “few dollars more.” The shipping or manning companies are now likewise being thrown unwillingly to the fight arena called “Survival of the Generous”.

He pointed though that despite this sad reality, the maritime world depends so much on shipping to carry out worldwide trading for the survival of humanity and the industrial and economical progress of every country albeit the rising cost of manpower, oil, and unstable economic concerns.

“We owe it to them. We need competent seafarers who will endure the nature, demands, and the sacrifices of the merchant marine profession. We need seafarers who will brave the rigors and perils of the sea as well as the internal safety on board and overcome nostalgic or homesickness for being away from home and country for a considerable length of time.

Yet they were still able to carry out their mission – delivering the goods in perfect condition and on time to its port of calls, and safely with the crew and the vessel itself,” he noted in gratitude.

The admiral, however, stressed that there should be balance. “Can one really exist without the other? I hope we appreciate the simple fact that the ship and the seafarer go hand in hand. The ship is represented by its Owner. Therefore, to be a one-complete whole force, the ship or shipowner and the seafarers should be working in tandem and in one accord in order to ensure success. For without these competent and highly skilled seafarers manning and taking care of these multi-million dollar worth of sophisticated vessels to its port of destinations, these vessels would just be likened to an expensive floating junk and much needed valuable cargoes would just be spoiled without reaching the receiver’s port.”

The Service - Profit Chain: Profitability is driven by Customer Loyalty Customer Loyalty is driven by Customer Satisfaction Customer Satisfaction is driven by Value Value is driven by Employee Productivity Employee Productivity is driven by Loyalty Loyalty is driven by Employee Satisfaction Employee Satisfaction is driven by Internal Quality Internal Quality is driven by Leadership Captain S. Bhardwaj Vice Chancellor, AMET University in India 16

October–November 2008

Needless to say, No Seafarers would Mean No Shipping Business at all.

Maximizing welfare While giving them higher salary would not really be the solution, the OSM Manila president stressed that “we must ensure the satisfaction of our employees. When the crew members onboard are happy, the higher the chances of profitability and we can look forward for our seafarers to embark for their next tour of duty as well. For Loyalty cannot be bought, it is earned!”

“How do we keep them loyal? Giving them higher salary scales beyond their imagination will only tempt them to become disloyal as the color of money will only worsen the present situation. Perhaps, giving them well-addressed welfare is far better than any color of money.

The sudden upsurge of new buildings and the natural attrition of European Senior Officers due to retirement age without ready replacement have resulted to a situation inversely proportional.

Well addressed welfare program being given today by major players in the industry to Filipino seafarers include medical insurance, pension and provident fund, educational and health facilities, provision for housing loans, car loans, and business loan for the seafarers’ wives, scholarship programs, among others.

The terms of employment become seafarer-friendly or family-friendly too. The contracts nowadays are shorter. Some are practicing rotation of crew ashore and onboard. There has been assistance from shore to reduce manpower requirements onboard. Some companies prefer relatives of their crew, while others are reducing the gap between shore and ship lifestyles.

Admiral Donato also mentioned training program as one of the welfare benefits. “If we want loyalty among our seafarers, we must also give loyalty in return. I am talking about a give-andtake practice here. To build up and create our own officers is still the best practice and the best solution in order to get rid of a situation where we will be at the mercy of the seafarers. This is an investment we need to take. A more structured and intense training will suffice the value we will get for the additional investment.”

“We need to invest on our people. It includes qualifying and promoting present junior officers to become senior officers; likewise qualifying and promoting the present ratings to junior officers, and giving more cadet berths will suffice. Again, Loyalty is never bought, it is earned! It has been said that GREAT people make GREAT things happen. Maximizing human capital investment may maximize return of investment too.”

Loyalty versus Contractual Basis Another important thing to discuss is the contractual status of our seafarers. The Admiral pointed out that while the seafarers are hired on a contractual basis, their insurance benefit stops the moment disembark the ship.

“This means when the seafarer arrived at the airport and was hit by a speeding car, then the company will have no liability or responsibility over him because his contract has expired. How can we keep him loyal then? Giving seafarers shorter contracts make them feel they are hired on a contractual basis. There is no security of tenure here. Hence, they are deprived of all the benefits due. Under Philippine labor law, the benefits of contractual workers are limited

than those of the regular employees. What benefit or assurance do our seafarers get?,” the admiral emphasized.

He strongly stressed during the conference that “while we are giving all these perks to our seafarers just to win their loyalty, I suggest we rather consider giving them regular or permanent employment contract with the same protection as the regular employees are receiving. From there, both ends are assured of loyalty and both interests are secured.”

The seafarers are traditionally considered contractual worker since time immemorial. Today, the nature of employment of seafarers remains contractual in nature and in legal parlance. However, the common practice from shipping firms lure seafarers with perks they can never imagine would happen in exchange for loyalty.

They are receiving the same perks that regular employees are getting. The regular employees are bound to serve the company for as long as their body will permit them to. From this nature, both interests are protected. Hiring them on a contractual basis with more perks than what is due to regular employees is really something to reconsider. H