REVIEW

Volume III Number 3 A PUBLICATION OF THE MARITIME LEAGUE July- September 1996

State of the art grain handling technology BoosTING PoRT APABILITY FoR GLOBAL TRADE

TERMINALS INCORPORATED

ian Terminal Incorporated, xce ptional lien! Services AT! combilws both world-class facilities the sole coJ1taine1· terminal mtd sen,ices to fully satisft; its growing and multi cargo oper. tor at 11tt 111 ber of c/ie11ts. Co11tainer berths A with /ugh ca1Jacity cranes supported by the South Harbor, Port of Manila, modt•m contai11er handling equipment live up to its commitm nt of ettsun• optimtt/11 services. progr siv growth a it invest billions of pesos into computerization, treamlining of operational procedures, pier and yard Computerization improvem nt, and acqui it-ion of new Utilization of lite world's leading high performance equipment and computer system strmglltetts AT/'s leadership 111 pori terminal computer!· expanding its he tarage along the zalion'tltal direclly /umefils pori users South Harbor. such as exporters mtd mtporlers.

Complementing thes efforts i th construction and operation of the US$40-mi!Uon Marivele · rajn Terminal, the fir t land-ba ed, mul~i· u er bulk grain terminal in th Multi-Grain Handling country. The Mrtrivelt·~ Grai11s Tmninal is the irst lmtd-ba ·ed, multi-grain terminal wlhe country. It ensures reduced Asian Terminal , Incorporated. ~p illage, Jas ter discharge rates and urmtl storage capacity of 160,000 Our respon e to acceleration port Ions. needs is to invest and provide excellent infrash ucture and ervice , further boosting Philippine port Development of a Complete Port capability for global trade. ATI invests ltent1ily em conlaim•r alUI mulfi·cnrgo Juuulli11g equil'/111'111 wltilt• it is expanding mul modrrmziltg Piers 3 a 111f .5 for im:rcnsed capncil ies nnd efficient operat ions. AsiAN TERMINALs · INCORPORATED

M~t c ll e dt San funds,o, outh Harbor J'ort Ar~a . Monila, l'hilipplnts J.el. No_!.'' (6321.52711051; 80 l'u No.: (6321 5272467 ·~-"'~~·-- '' -'------c 0 N T E N T s Maritime League

CARLOS L. AGUSTIN Chairman and President PRESIDENT'S PAGE Seizing the historic opportunity in Mindanao 4 Commo. DARIO T. FAJARDO DOMESTIC VICTORINO A. BASCO Fast ferries pass the test of seasons VICENTE A. SANDOVAL 8 PISA raises issues, cites steps lf"'-.:~~""':"'-ro:I!I _ _..""='S"_ DORIS TERESA M. HO to unravel them k .... ., , . - ..,_ CARLOS C. SALINAS MATIAS B. AZNAR III COVER STORY VICENTE F. ALDANESE JR. Phils. enters era of HERMINIO S. ESGUERRA Board a/Trustees state of the art grain handling 14 Editorial Board technology

CARLOS L. AGUSTIN OVERSEAS Chairman Is a 2nd ship registry necessary for the Philippines? 20

VICTORINO A. BASCO MANNING Vice-Chairman Schools strive for higher standard 22

VICENTE F. GAMBITO SHIPBUILDING DORIS TERESA M. HO European yards 23 EDGARS.GO compete for foreign DANTE LA JIMENEZ contracts Members Shipyards set modest growth rate Editorial Staff PORTS Multimodalism gaining Carlos B. Santos adherents Editor 'ZT ICTSI continues to ex pand MICT Eddie R. Cordova Associate Editor

Ruby M. Gonzalez Ma. Carmela I. Huelar Evelyn Z. Macairan Mirasol B. Ng Staffmembers

~ opinionJ ex;~ ty tJu, Wl'ikf':J Jo nol N/tct ~ o/ ik 'ff!a,.ifime ofsm;tu. WORD FROM FVR ., Modernizing maritime 30 The Maritime Review communications Rm. 309 Marsman Bldg. South Harbor, Manila NATIONALMARITIMEDAY 32 TeL No. 47-56-10 Fax 530-1199 PRESIDENT'S PAGE SEIZING 'IHE HISTORIC OPPORTUNITY IN

T h e Southern Philippines Council for Peace and Development (SPCPD) was created as a result of the July 23, 1996 meeting of the Government and MNLF peace panels in Davao City. Criticized by many, President Ramos explains the need forSPCPD.

MARITIME REVIEW Third Quarter 1996 4 any of our people are Part of this opposition is also being area, 44 members from the MNLF, and racked by anxieties and fed by preconceived biases or hidden fears 10 members from various sectors questions about what owing to ethnic or religious differences. recommended by non-government the recent arrangement The main remedy to the situation is organizations and people's organizations. for the establishment of accurate and timely information leading The tenure of the council and the M to better understanding of the issues. In assembly is three years. a Southern Philippines Council for Peace and Development (SPCPD), concluded by this effort, I appeal to you, the leaders of Third, the local government units in government and Moro National Liberation media, to lend your responsible hands. the area, including the ARMM, shall Front (MNLF) negotiators, portends for Let me therefore begin by discussing continue to exist and exercise their Mindanao in particular and the nation as here exactly what the agreement explic­ functions in accordance with existing a whole. itly states and provides for. laws. Thus, the functions, powers, and At one end, we hear encouraging sup­ responsibilities of local government units port that the agreement could finally break WHAT THE AGREEMENT PROVIDES and their officials will not be prejudiced, decades of conflict that had taken thou­ As described in the document arising and their local autonomy under the local sands of lives and open the way for the from the eighth meeting of representatives government code of 1991 will not be full and unimpeded development of that of our government and representatives of diminished. part of our country. the Moro National Liberation Front, the Fourth, there shall be established a At the other, we hear an outcry of fear panels reached key "points of consensus" special zone of peace and development in and suspicion that government may have for a peaceful settlement of the conflict. southern Philippines in the 14 provinces sold out the welfare of millions of our The agreement in the eighth meeting and all the cities therein covered by the compatriots in the region and that there­ calls for implementation in two phases. Tripoli agreement. fore the agreement has ushered only the During Phase 1, the primary points of Within the next three years, these prospects of a new phase in the conflict. consensus are the following: areas shall be the focus of intensive peace No day passes in which the SPCPD is First, the agreement calls for the and development efforts. Public and not denounced or defended. establishment of the SPCPD, a council that private investments shall be channeled to No day passes in which we do not will principally promote, monitor, and such areas to spur economic activities, hear petitions to postpone the agreement coordinate peace and development efforts enhance social equity and uplift the and replace it with another plan that will in the south. conditions of the people therein. take anothet round and years of negotia­ The council will be composed of a It is to be noted here that no new area tions. chairman, a vice-chairman, and three of autonomy is declared in the document. deputies representing the Muslims, the No new autonomous government is GRASPING THE MOMENT Christians and the Lumad, or indigenous formed or established, but only a These varied voices reflect the cen­ peoples, all of whom will be appointed by description of an area where peace and trality and complexity of the problem we the President. development efforts will be focused and face in Mindanao. This council is not a political prioritized. I understand the depth of feeling of governing authority; it has no police power Phase 2 provides for the establishment those who have expressed concern about or authority; it has no separate judicial of a new autonomous government. the change dawning on the region. personality; it is a transitory administrative First, through an act of Congress But I also fervently believe we have entity under the control and supervision amending or repealing the ARMM now with the SPCPD, a historic opportu­ of the President of the Republic of the Organic Act of 1989 (R.A. 6734 ), a new nity to achieve peace in our southern re­ Philippines. plan for regional autonomy will be gions, to mold lasting unity among our Second, the agreement calls for the submitted for approval by the people in people, and insure our nation's sustain­ establishment of a consultative assembly, the affectJd provinces and cities within able development. For the first time in a which shall serve as a forum for two years from the establishment of the generation, we have the chance to turn our consultation on issues and the council. collective talents and energies to the work recommendation of policies and programs The area of autonomy shall then of peace and sustained progress. to the President, the assembly is not a consist of the provinces and cities that vote All of us should strive to seize this lawmaking body. to join the new autonomous region. opportunity to break the shackles of the The assembly will be made up of 81 Second, a regional security force for past and create new hope for the future. members, composed of the council the autonomous regional government will Much that is being said against the chairman, the governor and the vice­ be established as provided by the agreement arises from misunderstanding governor of the Autonomous Region of amendatory law . This organization will or inadequate information of what it ex­ Muslim Mindanao (ARMM), the 14 be composed of the existing Philippine plicitly provides for and envisions. governors, and all the city mayors in the National Police units in the area of

MARITIME REVIEW Third Quarter 1996 5 autonomy, qualified MNLF elements, recognized the necessity of democratic accord. and other residents in the area who may consultation within the affected To repeat, the council will serve as be recruited into the force. communities as the formula for a coordinating arm for peace and These are the key provisions. The determining which provinces and cities development efforts in the affected areas. rest of the text concerns definitions of the will finally constitute the autonomous Its powers and functions derive from and powers of instrumentalities created, and region. are extensions of the powers of the details on the implementation of The idea of autonomy for certain President. initiatives. parts of our country has for some time now As for the consultative assembly, I would like to underline one more been recognized by our people. It is which the accord also envisions, it will be point that has often been forgoften in the embodied in the Constitution. And it has a forum for the discussion of issues rush of comment on the agreement: been tested, on one hand, in the creation affecting the region. It will have no power The powers and functions of the of the autonomous region in Muslim to legislate or to make laws that local council and the consultative assembly Mindanao and, on the other hand, in the governments must follow. are explicitly defined as "derivative and failure of the one in the Cordilleras in Some would prefer, of course, that extensions of the powers of the Northern Luzon. no council, no consultative assembly, no President." What is specifically new in the transition period for autonomous This means that the powers or agreement is , first, the platform for government is established at all. But this functions to be exercised by the council democratic pluralism under which citizens is the prescription of inaction. It would and the assembly are only those that could in the affected areas will choose or not prefer the certainties of conflict now -- to be within the authority of the President to choose to be part of a future autonomous the possibilities of peace and development give. Otherwise stated, these bodies region. in the not-too-distant future. cannot possess a power or function that is The other new element is the beyond the authority of the President to transition phase of three years, which GIVE PEACE A CHANCE delegate, or which only Congress by law calls for the establishment of the council Let us give peace a chance to do can grant to an agency. before the holding of a plebiscite on its work in the southern Philippines. For A PLATFORM FOR DEMOCRACY inclusion in the proposed autonomous only peace can become the stoutest shelter Necessarily, to reach this accord, region and the creation of an autonomous of democratic development. both sides had to accept the spirit of give­ government. This transition period is also Let us be worthy of our freedom - and-take. Without such accommodation a confidence-building measure for the - by assuming the burdens of peace as -- as we know well from all negotiations, MNLF, for Muslims and for Christians and · gallantly as we have taken up the burdens here at home and around the world, to end for Lumads within our democratic system. of war and bloody conflict. I realize it is natural for people to be anxious and apprehensive when they are trying something new. But, in the spirit 'I see the accord being negotiated as a road map of unity and reconciliation, let us cast aside to the future. A peaceful path away from the our fears and our small hurts. Together, strife and division that have gripped a major com­ let us look toward the vision of lasting peace and development for all the peoples ponent of our Republic for decades.' ofthe Philippine South. We live in rapidly changing times; and changing times call for innovative ways of dealing with conflicts and protracted conflict -- no end to strife is The council and this transition problems. possible. period are what many find objectionable Let me reiterate here that I On the part of government, we and disturbing. welcome the suggestion of the Catholic recognized the necessity of accepting Many reckless things have been Bishops Conference of the Philippines some of the provisions of the Tripoli said -- such as that government has (CBCP) that we enlarge the field of Agreement and subsequent understanding installed Mr. Nur Misuari and the MNLF consultation of the proposed SPCPD. made-- which the MNLF viewed as basic as virtual overlords over the provinces and Although we are accused of not to a settlement. This means fundamentally cities covered by the agreement; that the consulting with our Mindanao acceptance of the idea of an autonomous council is a provisional government; that constituencies, we have in fact held four government in the South, covering 14 existing local governments will henceforth peace summits in four key cities there provinces and all cities therein -- ifthey be under its control. Yet none of these between May and November last year. vote for inclusion in the area of autonomy. things are true. They exist neither in the We have also held four follow-up On the part of the MNLF, it letter nor in the spirit of the transitory consultations with Mindanao leaders

MARITIME REVIEW Third Quarter 1996 (\ between April and May this year in spirit of reconciliation and THE LESSONS OF CONFLICT Mindanao and in Manila. I attended all accommodation, the killing will stop. Our experience of separatist conflict, these summits and consultations, except And that is and has always been our here and around the world-, should have for a preparatory meeting presided over first objective. taught us by now many painful lessons, by Executive Secretary Ruben Torres on If we bring to the people the spirit of lessons we wish we might have avoided 22 April 1996. sharing, giving, integrating and uniting, or learned at less cost. These earlier consultations we will not only rebuild the ruins; we will It should teach us that the grievance notwithstanding, I have invited the create a new structure of progress. For of one group eventually becomes the Catholic bishops to a dialogue within the Mindanao is truly our land of promise -­ deprivation of all. next few days and we shall be holding rich in natural and human resources. It should teach us that armed conflicts more consultations at various levels with Already we see today a bountiful future within our society are infinitely more various sectors intensively and regularly stirring in parts of the island that have not wounding than armed conflict with until the signing of a final agreement with the MNLF and beyond. Meanwhile, I have thanked the CBCP as I thank the Manila Overseas Press Club 'If we bring to the people the spirit of sharing, (MOPC) once more for providing giving, integrating and uniting, we will not only opportunities for democratic consultation. rebuild ruins, we will also create a new structure 1 do not think any of us wish our peace process in the South to be set back by of progress.' emotionalism, preconceptions and misconceptions that may be based on religious and ethnic differences. been devastated by the conflict -- the another country because we suffer from A WAY TO THE FUTURE Cagayan-IIigan Corridor(CIC), the Davao our own hands. I was not elected President to do Growth Center, and the South Cotabato­ Above all, it should teach us that we nothing about this conflict in the South that Sultan Kudarat-Sarangani-General Santos cannot develop in separation from or in has already cost us so much -- so much (Socsksargen) area. isolation of some of our parts, but only as lives, time, goodwill, resources, and Finally, if we bring to the forefront one country and one people together. opportunities that otherwise could have the spirit ofbrotherhood and solidarity, we It is time we made these lessons been harnessed for the tasks of shall finally become one truly cohesive impact on our present and future actions development. national society, enriched by the in and for Mindanao. No other course is My responsibility -- and the contributions of all the regions, cultures, more just and more democratic. No other responsibility of all who had led or who and traditions of our country. course is more liberating of the energies shall lead this nation -- is to create This is the way to the future, and I and prospects of our people and our conditions under which our people can believe this is what most of our people country, especially in Mindanao. work in peace, for the lasting progress of want, not tomorrow, but today. the country. This is what our Muslim brothers and I see the accord being negotiated as a sisters want, who all these years have felt road map to the future -- a peaceful path left out from the mainstream of national (The President's Page of Maritime away from the strife and division that have life and progress. League president and chairman Carlos gripped a major component of our This is what our Christian majority L. Agustin which regularly appears on Republic for decades. wants, who seeks to do right by all the this page gives way to a speech of None of us can, of course, predict with minority groups in our society. President Fidel V. Ramos before the certainty the precise results of the changes This is what those who have had to Manila Overseas Press Club last July envisioned by the agreement still to be bear the burdens of bloody confrontation 11. While the Maritime Review mainly finalized. From where we now stand, we and violence throughout this 25-year focuses on maritime issues, the Southern can only see partly and, therefore, we hope conflict in the South-- soldiers, policemen, Philippines Council for Peace and fervently for the blessings that autonomy, and innocent civilians -- want. Development (SPCPD) is one issue peace, and development could bring to And this is what our leaders -- in all which should be a major concern of the Mindanao. the sectors of society -- should aspire to, entire nation. The SPCPD is expected Yet there are some things we can be because it is only through peace and only to carry out the Ramos government's certain of. If we -- Muslims, Christians in peace that we can develop and enjoy efforts to forge peace in Mindanao and and indigenous people alike-- bring to the the full potential of our beloved complete the often stalled development consultations and to the negotiations the Philippines. of the area.- Editor)

MARITIME REVIEW Third Quarter 1996 7 Fast ferries pass the test of seasons By Evelyn Z. Macairan Staffmember

During the wet season, rains stall land travel "When we analyzed it, we weren' t looking only at the Manila-Subic traffic, on the San Fernando-Lubao route. but the whole loop without adding too Commuters between Manila and Bataan much on the operational hours. Going to Bataan, we don't have to crisscross. It is take a ferry ride at the Pier of Lamao. inside the loop," he explains. The m/v Stella Maris started the Ma­ With the changing seasons, the ferry estas clog the streets, and the number of nila-Lamao run last August 2 with a spe­ service between Manila and Bataan has passengers swells because of vacationers, cial permit, valid for a month, preparatory stood the one-year test period; it will stay tourists, and investors. Commuters then to applying for a Provisional Authority as an alternative to land and air transport. have to take alternate transport mode: the with the Maritime Industry Authority (Ma­ Four ferries at present link Manila and ferry service. rina). Bataan via Manila Bay: m/v Neveen of "We see the potential. In an area where Grand Seaway also plans to add a roll­ Aleson Shipping Lines; m/v Blue Eagle of land travel has become an ordeal, people on and roll-off(roro) ship into the route to Blue Ferries, Inc. ; m/v Bullet Xpress II of will seek out alternative means of trans­ be able to ferry cargoes and vehicles to and Bullet Express Corporation; and m/v Stella port," adds Joaquin. from Bataan. With the roro, it can operate Maris of Grand Seaway Ferries, Inc. "By being there, we help alleviate the even during typhoon signal no. I and even Grand Seaway executive vice president traveling discomfort of people coming if waves reach 30 feet in height. for finance Alfredo Joaquin says, "For over from the lahar areas and in Olongapo and Joaquin indicates the need to promote a year, people are getting used to that al­ Bataan." the Manila-Bataan route. ready regardless of the season." Joaquin discloses that by the end of the "People are accustomed to traveling by During the wet season, rains stall land year Grand Seaway intends to earn a re­ land. It takes time for people to get used to travel on the San Fernando-Lubao route. spectable yield of about 15% to 25%. this kind of service. We have to educate Commuters between Manila and Bataan Although Grand Seaway has deployed the traveling public." take a ferry ride at the Pier of Lamao. only one fastcraft originally plying the By land, passengers from Manila take During the dry season, vehicular traf­ Manila-Subic route, it included Bataan to five to seven hours to reach Bataan. By the fic discourages commuters to take the San create a loop covering other destinations Bay, a fastcraft can ferry them to Bataan Fernando-Lubao road for two reasons. Fi- within Manila Bay, including Puerto Azul. in one hour.

MARITIME REVIEW Third Quarter 1996 8 Domestic

On September 7 last year, Marina in­ "We will seejc the opinion .of the De­ 4. The Manila Hotel could lose some augurated the Manila-Bataan Ferry Service partment of Justice to settle the issue, if business. at the request of Bataan Governor necessary," she says. 5. There is a historical value in that par­ Leonardo Roman who appealed for an With the Manila-Bataan ferry service ticular basin. emergency water transport service for becoming a permanent "alternative mode Agustin, however, considers these not those stranded in Bataan. This paved the of transport," a permanent terminal has to strong reasons because "we can prevent way for the establishment of commercial be put up at the Manila end of the route. these incidents from happening." ferry services between Manila and Bataan. The present terminal being used is the "It's just like the Megamall . Once you At that time, operators used wood­ terminal run by the Philippine Tourism Au­ establish a first class facility and you have hulled watercraft. The Bullet Xpress be­ thority at the Cultural Center of the Philip­ full control, no hawkers or illegal vendors came an instance passenger favorite, rel­ pines. will inhabit the area with the cooperation egating the wood-hulled ships to their But this is only a temporary terminal. of the Philippine National Police, City of former coastal trade. There is thus a need to look for a per­ Manila, Manila Hotel and the PPA." On July ·II, at the public hearing held manent site for the Manila terminal of the Agustin envisions a two-story termi­ in Lamao, the Sangguniang Bayan of ferry service. nal building with shops, restaurants inside. Limay and Limay Mayor Nelson David Chaired by Philippine Ports Authority To enhance the historical value of the criticized the Bullet service for "excessive general manger Carlos L. Agustin, the ferry Clipper Landing, a mini-museum can be fees" and questioned Marina's decision to service terminal committee is evaluating part of the complex, he suggests. deregulate the fastcraft service. all proposals and data before coming out Another site being considered by the At that time Bullet raised its fare from with a decision where to build the Manila committee is the Pasig River near the Del PIOO per passenger to Pl20. terminal. Pan Bridge. But one constraint is the draft. "The first thing to do is to determine if One suggestion was the historic Clip­ The Pasig River is six feet to seven feet the rate being imposed by Bullet is in ac­ per Landing Area at the back of the Ma­ deep and the ferry boats plying the Ma­ cordance with the deregulation policy. First nila Hotel. nila-Bataan route requires at least nine feet and second class accommodations are by But the management of the hotel and to I 0 feet. law deregulated," says Marina domestic the National Parks Administration rejected Another constraint is the presence of shipping office director Emerson Lorenzo. the proposal on five counts: squatters who must be relocated. As of press time, Marina is scheduled I. There will be noise, overcrowding, " There are pros and cons. In the to inspect m/v Bullet III. pollution similar to the North Harbor. Luneta, the only thing to construct is Citing a provision in the 1991 local 2. It will attract hawkers,jeepneys and the building. It's the cheapest," Agustin government code, David says it is a pre­ sidewalk vendors as some small ports did. says. requisite to get a two-thirds endorsement 3. It will add up to the already mon­ "In the Pasig River, we have to con­ of the Sangguniang Bayan before fran­ strous passenger and vehicular traffic in th,e sider dredging, relocation of squatters, and chises for commercial ferry operators in area. provision of a bus shuttle service." the Manila-Limay run. David also questions the basis of Bullet's rate by comparing it with cheaper rates of other ferry operators in the Batangas-Calapan, Oriental Mindoro run. The Board of Directors, Officers and In response, Bullet explains its rate Members of the compares with those other ferries in the Cebu-Ormoc or Cebu-Tagbilaran routes. Bullet clarifies that it is not monopo­ lizing the route as there are other which MARITIME LEAGUE commuters may choose to patronize. Marina franchising director Gloria V. symphathize with the family of Banas says that the Public Service Law does not require ferry operators to get ap­ proval from the Sangguniang Bayan so PACIENCIO M. BALBON, JR. they can be issued a Certificate of Public Convenience, or franchise for the ferry service. MEMBER, BOARD OF TRUSTEES Nevertheless, Banas says the Marina legal affairs office is still looking into the who passed away on August 4, 1996 franchise issue.

MARITIME REVIEW Third Quarter 1996 9 I ) s

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MARITIME REVIEW Third Quarter 1996 1fl DOMESTIC PISA raises issues, cites steps to unravel them

PISA wants the government to create a healthy environment through incentives similar to what Asian neighbors are doing. But the Maritime Industry Authority says sufficient incentives are available to domestic shipowners from the Board of Investments.

By Evelyn Z. Macairan Staffmember

The Philippine Interisland Shipping Second, PISA cites the urgent need to any responsibility and point an accusing Association (PISA) has been raising issues harmonize conflicting maritime authorities finger to one another during maritime ac­ afflicting domestic shipping and recom­ and their overlapping responsibilities. cidents," P1SA observes. mending ways to resolve them. "It has become a habit for government MARINA says this issue remains un­ First, PISA wants the government to agencies such as MARINA, the Philippine resolved for decades and this can be settled create healthy environment through incen­ Coast Guard, and the Professional Regu­ only by legislators who enact laws that will tives similar to what Asian neighbors are lation Commission to wash their hands of delineate functions of each government. doing. Singapore, for instance, provides low interest loans and tax incentives. Japan has a Maritime Credit Corpora­ tion to help accelerate construction of ves­ sels for domestic use at concessional in­ terest rate and government guarantees. The Maritime Industry Authority (MA­ RINA) says sufficient incentives are avail­ able to domestic shipowners from the Board of Investments. "If the shipowner imports a vessel and it complies with the age limit and meets other requirements, he may be given free import duties and taxes," MARINA says. For passenger ships, the age limit is 15 years. It used to be from 20 years. For cargo ships, the age limit is 10 years from the former 15 years. This incentive covers also importation of spare parts.

MARITIME REVIEW Third Quarter 1996 11 Domestic

PISA recommends that the Philippine Ports Authority encourage competition to push operators to become efficient. But PP A says this is being addressed by Executive Order No. 212, which has been held in abeyance until the guidelines are finalized and approved. Executive Order 212, which was signed by President Fidel V. Ramos in November 1994, calls for the privatization and demonopolization of ports. PISA raises the possibility that the on­ going revision of EO 212 would suit a par­ ticular sector. PPA denies this. "Should EO 212 be implemented, amended or scrapped? Only the President can amend or scrap EO 212," says Agustin. "For now we are committed to the mora­ torium on its implementation." A memorandum of understanding to defer the implementation of EO 212 was signed port workers opposing EO 212 staged a nationwide strike which crippled five major ports: Manila, Cebu, Cagayan Besides, pending bills in both Houses project, particularly Phase I, is already de Oro, Iligan, and Davao. of the Congress seek to create the Depart­ completed." Seventh, PISA also asks PP A to break ment of Maritime Affairs which to a large Fifth, PISA finds MARINA's require­ the "existing monopoly" in the pilotage extent will eliminate what the PISA calls ment to subject a ship with 500 gross reg­ service by allowing the entrance of other washing of i)ands and accusing finger. istered tonnage (grt) and below to a classi­ qualified harbor pilots. Third, PISA wants to stop the entry of fication society. With new harbor pilot groups, PlSA foreign vessels in the coastwise tanker ser­ "This is detrimental to the ferry boat says, shipowners will be able to negotiate vice. operators because classifying a vessel arrangements without having to deal with PISA points out that MARINA issued which has never been under class is next the "unscrupulously entrenched harbor pi­ special permits to foreign flag vessels in to impossible," PISA says. lot group." spite of the presence of idle Philippines­ In response, MARINA says it is revis­ "Under the free enterprise system, do­ flagged tankers. ing the Philippine Merchant Marine Rules mestic shipowners will be able to engage "The operation of foreign flag vessels and Regulations. the services of harbor pilots of their choice when Philippine flag vessels are available One of the things MARINA will have to reduce cost of operation, improve effi­ is a big blow to our sovereignty," PISA to look into is coming up with alternative ciency, and cut waiting time and delays on stresses. measures to satisfy safety requirements vessel arrival and departure." MARINA says temporary permits to such as maintaining a periodic inspection. This idea came about because "of the operate in local waters are issued to for­ Sixth, PISA prefers a healthy compe­ facts that only a single association of har­ eign specialized ships like LPG carriers at tition in cargo handling. bor pilots is mandated to render pilotage the instance ofthe Department of Energy. PISA recommends that the Philippine services to all vessels in all ports here in MARINA's role is mainly to ensure Ports Authority (PPA) encourage compe­ the Philippines.:" safety and check on the seaworthiness of tition to push operators to become efficient. The present system has made pilotage such specialized <;_arriers. It has been the common practice for service "inefficient, expensive and very Fourth ,"PI Sf,\ continues to reject the shipowners to provide equipment used in unsatisfactory," PISA says. Maritime Communications Project (MCP) cargo handling. Agustin says, "Pilotage is covered' by of the government for two reasons: the PPA officials say this issue of compe­ a law and PP A had gone all the way to the technology is obsolete and the project is tition is being addressed by Executive Or­ Supreme Court on that issue, which was over priced. der No. 212, but the order has been held in decided by the Supreme Court. Therefore But this issue is already moot and aca­ abeyance until the guidelines are finalized there is no possibility for other pilots to demic, government sources say. "The and approved. come in."

MARITIME REVIEW Third Quarter 1996 12 PISA also raises these issues: l. The Department of Public Works and Highways (DPWH) should repair and PISA asks PPA to break the existing maintain all roads and bridges leading to the ports. monopoly in the pilotage service. 2. Upgrading of cargo facilities, instal­ PPA, however, had gone all the way lation of lights, construction of passenger terminals in major ports, and dredging of to the Supreme Court, which decided rivers and waterways on a regular basis. But PP A says these are included in the issue in favor the United Harbor Pilots their annual maintenance budget. A major concern of PISA is the lack Association of the Philippines. of competent seafarers. PISA traces the decline in the avail­ ability of highly skilled, qualified seafar­ ers to the low quality of maritime educa­ "For instance, at the Philippine Mer­ It suggests the signing of an execu­ tion and training. chant Marine Academy (PMMA) foreign tive order requiring PMMA graduates to "If the Philippines does not get its act shipping firms immediately hire cadets render two years service on board domes­ together chances are we may loose the title after graduation," PISA says. "This leaves tic ships, before they can qualify for for­ of number one provider of seafarers to the the domestic shipping industry with less eign jobs. world to China and Indonesia," PISA says. qualified seafarers to man our ships." "This is the practice for medical and PISA says the shortage of competent Government should provide a package nursing graduates who are assigned to ru­ crew can be attributed to the aggressive of incentives to these graduates to encour­ ral service before they may be allowed to recruitment of foreign shipping companies. age them to work locally, PISA says. go out of the country."

@) NATIONAL MARINE CORPORATION THE EXPERTS IN BULK AND UNITIZED CARGO SHIPPING

SERVICES Coastwise & Far East Trading Ship Chartering Cargo Braking MANILA HEAD OFFICE 6th Floor, Magsaysay Bldg ., 520 T.M . Kalaw St. Ship Agency Ermita, Manila. Philippines P.O. Box 4034 Manila Tel. No. (632) 57-58-11 to 16 Operator · Owner of the following cargo vessels : Telex No. Eastern 63374 NMCORP PN MfV ISLA .\.ffi"o,TIANAO 4829.40DWT MfV ISLA LEYTE 6725.44DWT Fax No. (632) 521-01-49 MfV ISLA CEBL' 4829.40DWT MfV ISLA BOHOL 6634.24DW'T Cable : NMCORP MANILA MfV ISLA ~~TIORO 4829.40DWT MfV ISLAPA.!'\IAY 6634.24DWT Yf/V' ISLA PALAW AN 4829.40DWT

CEBU OFFICE DAVAO OFFICE IL!GAN CF=;cE ILOILO GEN. SANTOS CITY Door#5. OPASCOR Bldg. , Door#3. Leliosa Bldg ., Km 7. Door#4. 3&B Bldg .. ~oxasAve . 3rd Fir. Administration Bldg. Door #3.1NTERCO Bldg . Don Bernardo Benedicta St. Bo. Lanang. Davao City Manayahay, !ligan City PPA-ICPC LOBOC,La Paz. il01io City Makar, Labangal Reclamation Area. Cebu City Tel. No. (082) 234.{)416 Tel. No. (063) 8813709 Tel. (033) 775-34 Gen . Santos City Tel. No. (032) 99049 Fax No. (082) 640-40 Fax No. (063\ 8815463 Ceilphone (0912) 309-15953 Cellphone (0912)3143081 Fax (032)99553

MARITIME REVIEW Third Quarter 1996 13 COVER STORY I p ...... -..--...pines enters era of state ofthe art • handting technology

By Carlos B. Santos Editor 'The world-class technology and geographical advantages of the Mariveles Grain Terminal will spark a revolution not only in the domestic grains sector but also Undersecretary Cal, POAL chairman Sir Rupert Clarke, Asian Terminals presi­ in the international dent Eusebio H. Tan co, AT/ director Roland U. Young, AT/ vice president for corporate planning and business development Ramon R. Atayde, and AT/ EVP grains trade.' Richard D. Barclay, applaud the unveiling of the MGT marker.

Asian Terminals, Inc. has catapulted Transportation and Communications Asian Terminals is also the operator the Philippines into an era of state-of-the­ Undersecretary Primitivo C. Cal, the guest of the container terminal and multi-cargo art technology in grains handling with the of honor and speaker at the MGT open­ piers in South Harbor of the port of Ma­ formal opening of the Mariveles Grain Ter­ ing, was among the first to commend Asian nila. minal (MGT) in Bataan last June 20. Terminals for taking the initiative in com­ "The MGT's world-class technology Regarded as the first land-based multi­ ing up with a modern grains terminal and and geographical advantages will indeed user bulk grains terminal in the Philippines, for giving the country the much-needed spark a revolution not only in the domes­ the MGT is also one of the most modern push into the central nerve of Asia's bus­ tic grains sector but also in the international complexes for grrains handling in South­ tling grains trade. grains trade," Cal stresses. east Asia.

MARITIME REVIEW Third Quarter 1996 14 'The formal opening of the Mariveles (;rain Terminal is a clear indication of Asian Terminals' firm commitment to the development and improvement of the major gateways in the Port of \1anila to make it more comn>etitive and be at oar with lvorld-class oorts.'

\ "With the MGT's faster unloading rate at the South Harbor of I ,500 metric "The formal opening of the MGT is a clear rate, grain importers will now be able to tons to 2,000 metric tons per day. indication of Asian Terminals' firm com­ avail themselves of economies of scale. Barclay also disclosed that Asian Ter­ mitment to the development and improve­ Hopefully, the projected savings of several minals has already accepted shipment dis­ ment of the major gateways in the Port of dollars per metric ton will start a chain re­ charge notice for I 00,000 metric tons of Manila to make it more competitive and action that will eventually result in lower grains for July; 130,000 MT for August; be at par with world-class ports." prices of grain produce." and 120,000 MT for September. The Poal chairman adds, "The MGT Asian Terminals executive vice presi­ The MGT has handled some 212,656 was a dream come true for Asian Termi­ dent Richard D. Barclay, who delivered the MT of various grain produce since it be­ nals. A dream that was more than a dream , program's welcome remarks, says the en­ gan its commissioning and pre-commer­ it was actually a vision. That vision is what thusiastic market response will allow Asian cial operations in February 1996. the Philippines would now be realizing as Terminals to achieve a better-than-ex­ "At the rate the MGT has been receiv­ the MGT formally ushers in a new era in pected return on investments from the ing grain shipments, it can meet its target grains handling technology." MGT on just its first year of operations. of 1.2 million MT of grains for its first year Asian Terminals president Eusebio H. The MGT can guarantee a discharg­ which will mean a realistic growth rate of Tan co, who introduced Cal as the guest of ing rate of 10,000 metric tons of wheat and 5% per annum," Barclay explains. honor and speaker. Undersecretary Cal was 7,000 metric tons of soyabean meal per day Sir Rupert Clarke, chairman of P&O a former classmate of Tanco in a British which is five to six times better and far Australia Ltd. (Poal), one of the major school several years back. greater than the current average unloading shareholders of Asian Terminals, remarks, Among the directors and officials of

Four days after tlte facility was officially launched, the MGT achieved its fastest unloading rate with the handling of another panamax vessel, tlte mlv Tanglaw. MARITIME REVIEW Third Quarter 1996 15 Cover Story

Asian Terminals who were with Undersecreatry Cal during the marker un­ veiling were Eusebio H. Tanco, Richard With the formal opening of the MGT, D. Barclay, Roland U. Young, Atty. Nilo B. Pena, Gen. Lisandro C. Abadia (Ret.), grain importers and traders are assured and Asian Terminals vice president for cor­ of a superior and efficient discharging porate planning and business development Ramon R. Atayde. Sir Rupert Clarke was alternative, as the terminal can handle also with the group that unveilect the MGT marker. all types of grain products, including Capt. Bonifacio C. LomOtan, Asian Terminals vice president for general op­ soyabean meal. Asian Terminals' vision erations, was the affair's master of ceremo­ nies. of establishing a "Grains City" with the Aside from Undersecretary Cal, among the many prominent local officials MGT as the core, got a big lift when present during the affair included Bataan Governor Leonardo Roman. Hui Shung Philippines Corporation Key officials of the Philippine Ports Authority, Bureau of Customs, National broke ground last July 13 for its Food Authority, Bataan Export Processing Zone and shipping lines, as well as several soya bean meal crushing plant which grain importers and traders were also present during the affair. it has begun pre-commercial operations in core, got a big lift when Hui Shung Philip­ While the formal opening and bless­ February which also marked the last stage pines Corporation broke ground last July ing rites were going on, the MGT was si­ of MGT's commissioning. 13 for its soyabean meal crushing plant multaneously completing its commission­ With the formal opening of the MGT, which will eventually rise near the site of ing with the handling of a second pan am ax grain importers and traders are assured of the terminal. grain ship. a superior and efficient discharging alter­ The MGT can perform pierside dis­ The m/v Alexia, carrying 52,500 met­ native, as the terminal can handle all types charging and barge offloading of either ric tons of yellow corn from Argentina of grain products, including soyabean bagged or bulk grain cargoes simulta­ consigned to the National Food Author­ meal. neously. ity, was the seventh grain ship and the sec­ Asian Terminals' vision of establish­ It is also capable of storing substan­ ond panamax to dock at the facility since ing a "Grains City" with the MGT as the tial amount of bulk grain shipments in its

Undersecretary Cal (secomlfrom rigllt) is flanked by A TI officials (third ami second from left), and Stella Marie Mercado, including vice president Ramon R. Atayde (right), director Gen. Asian Terminals manager. Lisandro C. Abadia (third from rig lit) and Mr. and Mrs. Barclay MARITIME REVIEW Third Quarter 1996 WE SPAN THE SEAS•• WE BRIDGE THE ISLANDS••• WE BRING YOU THERE

SULPICIO LINES SHIPPING SCHEDULE DEPARTURES FROM MANILA CEBU PRINCESS OF THE ORIENT TUESDAY 10AM FRIDAY 8 PM PRINCESS OF PARADISE WEDNESDAY 10AM FILIPINA SUNDAY 10AM NASIPIT PRINCESS OF PARADISE WEDNESDAY 10AM (VIA CEBU) CAGAYAN PRINCESS OF PARADISE WEDNESDAY 10AM (VIA CEBU/SURIGAO/NASIPIT) (DIRECT CAGAYAN) SATURDAY 8 PM ILOILO/ZAMBOANGAIDADIANGAS PRINCESS OF THE PACIFIC TUESDAY 10AM CATBALOGAN/TACLOBAN TACLOBAN PRINCESS WEDNESDAY 10AM TACLOBAN TACLOBAN PRINCESS (DIRECT TACLOBAN) SUNDAY 9AM MASBATE/CALUBIANIBAYBAY MAASIN/SURIGAO PALAWAN PRINCESS WEDNESDAY 8 PM PUERTO PRINCESA ILOILO PRINCESS THURSDAY 10AM SUNDAY 2 PM ESTANCIA/ILOILO/ZAMBOANGAICOTABATO COTABATO PRINCESS SATURDAY 3PM SURIGAOIDAVAO FILIPINA PRINCESS SUNDAY 10 AM (VIA CEBU) ORMOC/MASBATEICEBU CEBU PRINCESS FRIDAY 10AM TAGBILARAN/DIPOLOG/ILIGAN DIPOLOG PRINCESS WEDNESDAY 12 NN DUN(AGUETEIOZAMIS PHILIPPINE PRINCESS WEDNESDAY 12 NN

BINONDO: 415 San Fernando St., Binondo, Manila Tel. Nos. 241-9701/07.241-9801/05 Fax:242-2898 MANILA TERMINAL: Pier 12, North Harbor, Manila Tel. Nos. 252-6271 to 75

MARITIME REVIEW Th ird Quarter 1996 17 Cover Story What proved to be the 20 corrugated steel silos each with a cility began its commercial operation with capacity of 5,500 MT or at its 50,000 MT­ the handling of a third panamax grain ship. operational highlight of capadty warehouse for transit storage and The MGT received the mlv Tanglaw eventual bagging operations. on June 24, the eighth grain ship to dock the MGT's handling The warehouse is further divided into at the facility and the second pan am ax that five bays with each bay having a capacity the term ina I handled in a span of I 0 days. of the m/v Tanglaw is the of I 0,000 MT. The mlv Tanglaw followed the Four semi-automatic bagging ma­ panamax mlv Alexia which arrived and fact that the terminal was chines are also located inside the ware­ docked at the MGT on June 16. house each with a rated capacity of 40 MT Carrying 45,003 MT of impo.rted yel­ able per hour. low corn from the United States consigned Although the terminal had trial opera­ to the National Food Authority (NFA), the to achieve its fastest tions in November 1995, the lYIGT offi­ MGT began the unloading of the mlv cially began its commissioning and pre­ Tanglaw at 2 p.m. of June 24 and the dis­ average unloading rate of commercial operations last February 19, charging operation was completed at 7:43 15,767 MT per day in when it received and discharged 26,361 p.m. of June 27 or about three and a half MT of imported yellow corn shipment days. spite of 11.5 hours of from the mlv Labe which was consigned What proved to be the operational to the National Food Authority. highlight of the MGT's handling of the halted The commissioning of the MGT en­ mlv Tanglaw is the fact that the terminal tered into its penultimate stage in the was able to achieve its fastest average un­ operations due to a strong middle of May when it simultaneously re­ loading rate of approximately 15,767 MT ceived and discharged 45,000 MT of im­ per day inspite of 11.5 hours of halted op­ ·down pour. ported yellow corn from the panamax ves­ erations due to a strong downpour. sel mlv Hanjin Casablanca, and II ,000 The MGT achieved an average un­ its commercial operations with a big bang," MT of Indian soyabean meal shipment loading rate of 13 ,846 MT per day for the explains Barclay. from the smaller mlv Feng Yang, which mlv Alexia. This proved to be a fitting cli­ "The terminal's unloading rates ob­ incidentally highlighted the terminal's max to the terminal's four-month commis­ tained on the mlv Tanglaw and the m/v flexibility and operational efficiency. sioning and pre-commercial operations. Alexia are indicative of better things to Meanwhile, four days after the formal "The MGT passed its commissioning come for local grain traders and importers," opening and blessing of the MGT, the fa- with flying colors and it certainly started he stresses.

AND BLESSING FORMAL OPENI~~ THE ~\ MARIVELES GRAIN

POAL chair Sir Rupert Clarke (upper left photo) welcomes guests to the landmark event not only for A TI but also for the local and international grains trade. A special portion of the ceremony was the presentation of a clock (lower left photo), symbolizing the start of the revolution of the grains trade, by an official of Mitsui & Co. Ltd. to AT/ president Eusebio H. Tanco and EVP Richard D. Barclay. Mitsui recently gained a seat in the AT/ Board of Directors. Culminating the opening ceremony of the MGT was the guest tour of the facility includ­ ing the 50,000-metric ton capacity 5-bay warehouse (above). MARITIME REVIEW Third Quarter 1996

1~ MARITIME CALENDAR

Preventing Collision at Sea Conference Sept. 22-25, 1996 Dalian, China

IMTA 21st Annual Conference Sept. 22-25, 1996 Vancouver, Canada

World Maritime Week Sept. 23-27, 1996

Philippine Maritime Day Sept. 27, 1996

Maritime Forum Sept. 27, 1996 Philippine Plaza Hotel

Maritime Safety Month October 1996

The 2nd South African Shipping Conference Oct. 9-1 1, 1996 Durban, London, UK

Mare Forum '96 Oct. 10-12, 1996 Rotterdam, Netherlands

Philippine Coast Guard Day Oct. I 0, 1996

Practical Issues on Maritime Law Oct. 15-16, 1996 LLP!Hong Kong

Construction Disputes Seminar October 28-29, 1996 Oriental Hotel, Singapore

Seatrade Tanker Industry Convention October 29-30, 1996 London, UK

CHINA PORTEX '96 Oct. 30- Nov. 2, 1996 Shanghai, China

Ausmarine '96 Nov.4-7, 1996 Esplanade Hotel, Fremantle,Australia

Shiprepair & Conversion '96 Nov. 5-6, 1996 London, UK

IAPH 41st Anniversary Nov. 07, 1996 Tokyo

IBJ 1996 Congress Nov. 7-8, 1996 Singapore

Seairade Asia Pacific Cruise Convention Dec. 4-7, 1996 Singapore

Gastech Conference & Exhibition Dec. 3-6, 1996 Vienna, Austria

The Business-Environment Partnership Dec. 6-7, 1996 Marriott, Singapore

CORROTEX Philipppines Jan. 22-25, 1997 SM Megamall

IMDEX ASIA 97 May 6-9, 1997 World Trade Center International Maritime Defence Singapore Exhibition & Conference

20th World Ports Conference May 31-June 6, 1997 London, UK

Hong Kong Reversion to PRC June 30, 1997

We encourage readers to submit articles such as speeches, technical papers, feasibility studies, etc. for publication in this magazine. We also welcome your thoughts, comments, observations and criticisms on any item published here. Address your letter to: The Editor The Maritime Review Rm 309 Marsman Bldg. South Harbor, Manila Or, fax us your message at 527-4753 or 527-4844

MARITIME REVIEW Third Quarter 1996 19 OVERSEAS Is a 2nd ship registry necessary for the -Philippines?

By Ma. Carmela I. Huelar Staffmember

don-based International Transportworkers 'A second Philippine Federation (ITF), and the Filipino Ship­ 'Which Filipino owners Association (FSA), whose mem­ ship registry will bers have sister companies engaged in shipowners are we manning agency. trying to lure back lure Hong Kong­ As early as 1992, FAME headed by based shipping its president, Vicente F. Aldanese Jr., has to register in the been very vocal in calling for the setting companies to relocate up of a second Philippine registry. Philippines when we FAME has in fact already submitted their offices at the its proposal to various agencies in the in­ do not even have dustry-- the Philippine Overseas Employ­ Subic Bay Freeport ment Administration (POEA), the Depart­ big vessels that and register their ment of Labor and Employment (DOLE), flagged out from and the Maritime Industry Authority (MA­ ships there.' RINA). our country?' FAME in a position paper says set­ ting up a second ship registry and relax­ ing the bareboat charter program will lure The past few months saw the debate foreign shipowners to flag out to the Phil­ He says with the second registry the over the proposal to set up a second Phil­ ippines. Subic Bay Metropolitan Authority ippine ship registry heating up with influ­ Aldanese refers particularly to ship­ (SBMA) should also develop into a world­ ential players in the country's manning in­ owners with registered fleet in Hong Kong class homeport. dustry clash in their ideas as to its viabil­ which by next year will be returned to "This will help persuade Hong Kong­ ity. China. A lot of shipowners would be look­ based companies to relocate their ships to The move to set up a second Philip­ ing for an alternative port and the Philip­ Subic Bay Freeport," he says. pine registry was spearheaded by the. big­ pines could be one. Accordingly, a second ship registry gest among three manning groups, the Fili­ Aldanese also observes that Singapore can attract easily some 2,000 foreign ships, pino Association for Mariners' Employ­ is getting crowded and too expensive for double the already employed seafarers of ment (FAME). shipowners that many are nor looking for 25,000 to 50,000 at an average of25 Fili­ Later, the United Filipino Seafarers a possible transshipment area where they pino crews per ship, and raise the dollar (UFS), a group of militant seafarers, joined can relocate their offices. earnings of Filipino seafarers, he points the fray. Nelson Ramirez, UFS president, out. Opposing the idea of a second regis­ shares this belief and adds that second reg­ Ramirez further believes that the sec­ try are the Associated Marine Officers' and istry will help the Philippines gains more ond registry will enable the country to ex­ Seamen's Union of the Philippines revenues and generates more employment pand its maritime edge and heighten the (AMOSUP), a local affiliate of the Lon- for Filipino seafarers. transfer of shipping technology.

MARITIME REVIEW Third Quarter 1996 20 Overseas

Once foreign ships decide to dock try should first give outsiders a clear view already says that you are not the benefi­ in the Philip'pines, these ships will not be of what kind of policy on shipowning the cial owner," he explains. tagged as flag of convenience, he says. country adopts. As regards the premise that a second "This means they will not be interdicted He says, "There is a need for the coun­ Philippine ship registry will enable the by the ITF." try to explain to ITF officials the differ­ Philippines to lure shipowners from Hong AMOSUP, which is affiliated with ence between a beneficially owned vessel Kong and Singapore to relocate to the Phil­ ITF, says otherwise. and the bareboat charter policy on ippines, Oca points out, "It is quite a hard AMOSUP president Gregorio S. Oca shipowning that the government through task at the moment." Jr. warns that a second Philippine ship reg­ Marina is implementing. "The only reason Norway and other istry "is not beneficial to the country and "They should be made to understand Scandinavian countries set up the world's is not viable with the kind of system we that the country's flagged-vessels do not first second ship registry is to get back ship­ have here." fall under beneficially owned but under the owners who flagged out their ships," he Oca adds that it will only give the ITF bareboat charter policy." says. a strong reason to declare the Philippines A bareboat-chartered ship is a Philip­ "In this case which Filipino shipown­ an FOC state. pine-flagged ship manned by Filipino sea­ ers are we trying to lure back to register in Oca disclosed that members of the farers. Otherwise ITF will immediately the Philippines when we do not even have ITF's Fair Practices Committee have time declare it an FOC ship. big vessels that flagged out from our coun­ and again wanting to declare the Philip­ Oca says, "It's high time we made a try?" pines an FOC country because of its al­ position explaining to these guys that we The proposed second ship registry in ready liberalized bareboat charter rules. have a bareboat charter policy here. We the Philippines, Oca stresses, allows ship­ In an earlier meeting with industry of­ have to have a reasonable basis to explain owners to employ non-domicile crews to ficials, Oca showed a letter from the ITF that a bareboat chartered ship is not ben­ compete· with FOC vessels. London, demanding an explanation from eficially owned by a Filipino company and Besides the Philippines has more bu­ AMOSUP on the alleged noncompliance manned by an all-Filipino crew and trans­ reaucratic red tape than other countries , of certain agreements between AMOS UP actions are done on a ship to ship basis." Oca observes. and a vessel with ITF policy. Carlos C. Salinas, president of the Fili­ "Shipowners do not like to go through The ITF points out that the vessel un­ pino Shipowners Association, says the a lot of political intricacies. If they can't der question is not beneficially owned in bareboat charter is also known as demise have their licenses in a matter offew days, the Philippines and therefore "considered charter. they might as well transfer their ships to an FOC." "As such, the charterer is the owner such countries as Liberia and Panama Oca stresses that instead of trying to of the sh ip but he cannot sell it. The fact where they can get their licenses in establish a second shio registrv. the coun­ that vou are a demise owner of the ~

MARITIME REVIEW Third Quarter 1996 21 Manning Schools strive for higher standards Training schools are receiving increasing international recognitionfrom owners, operators and agents worldwide following a recent change in the exa1nination procedure.

Maritime training is changing in the Until two years ago, the pass rate was Citing the example of the pro­ Philipppines. in the region of 95% to 98%. grammed in collision avoidance which No longer are young men just plucked "It used to be easy to take an examina­ was started three years ago at the request from the islands, given a ticket to Manila tion and pass," says Captain Angel Penalosa, of a major tanker operator, she adds that and a berth on one of the interisland trading manager of the Manning & Recruitment the center has gained popularity from ship­ vessels short of a crew. Division of the Manila-based Malayan Tow­ owners as courses are geared directly to As the supply of seafarers has turned age & Salvage Corporation. owners' needs. into a multi-million dollar business, so have This changed dramatically under the She also admitted that the jungle loca­ the education and training of seafarers be­ Aquino government when controlled com­ tion of the school meant that students had come a much more complex affair. puterized examinations were introduced, little choice but to concentrate on their The main impetus towards improve­ making the learning process all the more courses. ments in the training of officers and ratings difficult. In addition to the independent private comes from the International Maritime Or­ Pass rates fell dramatically to the region training schools, an increasing number of ganization. of 15% to 20%. "You're lucky to get 25% operators run their own courses to suit their Manning agents in the Philippines re­ passing now," adds Penalosa. needs. port that they are increasingly turning to It may be bad news for the students and Josephine J. Francisco, the president of schools which use IMO courses even though even owners in the short run, but the tight­ NYK-Fil Ship Management in Intramuros, this is not compulsory. ening of examination rules has undoubtedly says the role of in-house training is particu­ "The IMO curriculum isn't the curricu­ increased the standards in operation at the larly valuable in regard to the promotion of lum, but it helps," says Michael Estaniel, maritime schools. cadets. "There is no upgrading without train­ president ofTrans-G lobal Maritime Agency. One training center which is frequently ing," she explains. He adds that the looming February 1997 mentioned by Manila's operators and agents The improvement in maritime training deadline for owners to meet the requirements in reference to quality maritime training is in the Philippines does not come without a of the amended Standards ofTraining, Cer­ the isolated International Development and cost. tification, and Watchkeeping is one of the Environmental Shipping School (Idess). Clearly the stringent examination main reasons behind focusing on internation­ Located in the Subic Bay Freeport procedures have reduced the pool of quali­ ally recognized training courses. Zone, on a site that was once used for the fied seafarers for owners and the more But, this is not easy, as only five out of storage of ammunition by the US Army, the sophisticated training courses are costing Ill maritime training schools in the Philip­ school focuses its courses towards the oil, students and even owners a lot more pines use the IMO curriculum. chemical and gas tanker industry. money. Training schools in the Philippines are, The company's administrator, Liza But most agents and operators in the however, receiving increasing international Lim-Lansigan explains that the company Philippines agree that this is the only way recognition from owners, operators and moved out of Manila in I 994 because ex­ forward. agents worldwide following a recent change pansion offacilities in the capital would have -Reprinted from Fairplay in the examination procedure. proved difficult and very costly.

MARITIME REVIEW .,.,Third Quarter 1996 Shipbuilding

European yards compete for foreign contracts

By far the most successful of the UK yards is the A&P Group, which took the shine of the German repair industry.

For many years, the European vessel arrives at Southampton this month ity at the A&P yards has been spread shiprepair and conversion scene has been from her workbase in the Caribbean. A through the four facilities. But importantly dominated by the big names in Germany four-week stay at the UK south coast port for the cruiseship business, Southampton and Holland; Malta Drydocks, Kvaerner will allow considerable interior refurbish­ received a new $4 million steel and in Gibraltar; and Lisnave in Portugal. ment to be undertaken. pipework shop which will allow an im­ Practically all of them are still en­ As well as Southampton, A&P' s provement in steel output leveling at joying a respectable workload, and all are yards are located on the south coast at around 10 tons per day. aware of the improving market position Falmouth and Chatham, and on the UK' s On the northeast coast, A&P Tyne has of UK yards, and the need to offer a wor­ northeast coast on the Tyne at Wallsend. won through its offshore company, A&P thy product to remain competitive. These strategic locations allow con­ Offshore, a near $15 million contract for The UK yards of the past survived centration on individual ship types, with a major part of the conversion of the tanker mainly on a handful of local contracts, in­ Southampton's big share coming from the Dagmar Maersk into an FPSO vessel. creasingly coming from lucrative, but lim­ passenger ship and local ferry business. The six-month project will entail the ited sources such as the Royal Fleet Aux­ Falmouth taking its own fair share of manufacturing and fitting of some 2,000 iliary. the ferry business through the Irish Sea life extension brackets, module support Today's UK yards that are succeed­ outlet, and to a lesser degree the cross foundations, and the installation of the ing are comreting and winning work in Channel sector. moonpool structure. the international arena. Chatham's with its Medway and close A&P will also overhaul the accom­ In some cases, work is being secured Thames location, has carved a niche in the modation areas to cater for a larger crew in the face of competition from the big local market through shortsea and dredger number, and carry out oveerhaul work on players that have enjoyed near total mo­ work. the vessel's MAN/B&W slow speed die­ nopoly in their own specialized sectors for The Tyne has achieved success in the sel engines. many years. tanker and off-shore business through A&P does not have the entire, north­ By far the most successful of the UK closeness to the North Sea oil industry. east UK coast repair and conversion mar­ yards is the A&P Group, which took the A&P Group increased its sales turn­ ket to itself though. shine off the otherwise polished German over in 1995 to more than $100 million, The-old established names on the repair industry recently, when it secured and over $15 million was invested during Tyne, the Tees, and to a lesser extent the the repair and refurbishment work for the the 12-month period in new facilities and Humber, are now mostly long gone. Cunard liner, Queen Elizabeth 2, and the equipment. But the name ofTyne Tees Dockyard old stalwart of the Caribbean cruise indus­ Productivity at the yards was up more needs little introduction. Rising from the try, Norway (ex-France) in May. than 30% on the previous year, and over ashes of the former Swan Hunter yard, the Work on Queen Elizabeth 2 will be 200 vessels underwent repairs. More than new look Tyne Tees, now in its second undertaken at Southampton during No­ half of these vessel.s were foreign-owned. year under a new guise and aggresive man­ vember at a cost fixed on contract items First quarter turnover for 1996 hit the agement approach, has just secured the at around US$18 million. Work on Nor­ $50million level with 60 vessels docked. conversion and refurbishment of two way is expected to commence when the Investment in improving productiv early-80s built ice strengthened

MARITIME REVIEW Third Quarter 1996 23 Shipbuilding

Antwerp Shiprepair containerships, acquired by Andrew Weir Shipping for Bank Line operation, from Russia's Far Eastern Shipping Company ·(Fesco). Tenders were invited towards the end of 1995 from yards in the Far East, north east Europe and the UK for the work, but after careful consideration of the avail­ able alternatives, the owners de~ided to opt for Tyne Tees. Andrew Weir acquired four of these vessels in 1995, and the first two have al­ Removal of a 55-ton bulbous bow ready gone through drydock work at Cammell Laird, the established name in shiprepair on the UK west coast, and a yard that seems to have pulled through the doldrums to regain its worthy poisiton as one of the big shiprepairers -on the UK's Irish Sea coastline. The name of Harland & Wolffe is usu­ ally linked to shipbuilding, but the yard's Belfast-based repair and conversion exper­ tise is now a strong name in the industry. The grounding of the tanker Sea Em­ press outside Milford Haven in February Repairs on hatch cover arrangement Line boring of main gearbox has been extensively documented, but as the legal aspects of claims against the ness, and as such Belfast is home to much 31, 1995, Swansea Drydocks achieved a benefical owner, Seatankers Management of the local ferry repair work, particularly net profit of L20,000 compared with a in Cyprus continue to climb, and payments from such established names as P&O loss ofL660,000 in the 12-month period from the International Oil Pollution Con­ European Ferries and Stena Sealink. 1994/1995. While this profit level is vention begin to make the mark, a deci­ But Harland & Worlff is not having obviously small, it is important because sion on the vessel's future still has to be it all its own way. Across the water in the it does denote a considerable turnround confirmed. Bristol Channel, Swansea Drydocks, now on the previous year's loss. Signifi­ What is certain is that cost of repair wholly owned by U gland International cantly, while in 1994 around 25% of the work necessary to bring the vessel back Holdings Pic, is making its name in the vessels repaired at Swansea were owned to seaworthy status could be more than business as well. by companies in the Ugland group, only $30 million, and that is after Harland & Swansea, dormant for years until 4% ofthe total 1995 were thus owned. Worlff has undertaken initial work such Norwegian shipowner, Andreas Ove Over the English Channel in Belgium, as tank cleaning and hull inspection to Ugland decided to inject finance and man­ Antwerp Shiprepair NV is making a posi­ ascertain the real benefits to the owner. power into the facility, initially picked up tive effort at recovery. It is 18 months Sea Empress arrived at the Belfast a lot reefership work in the early 90s after since the yard was re-launched after the yard in early April after much wrangling, takeover. bankruptcy of the previous company in and there is little indication she will move Much of this work came from 1993 . until much legal and operational wran­ Ugland's own reefership fleet that com­ The management says jobs executed gling is undertaken. prised several ageing units from the de­ over the past six months give it confidence Harland & Wolff is prime positioned funct Polly Peck group, acquired when the that the volume of business in 1996/97 will to carry out the rest of the repair work, if nadir empire crashed following allegations increase. the shipowner decides it is worthwhile. of various wrongdoings. The yard has the required facilities, But the yard will have to fight off strong Today, Swansea is enjoying a new such as gaving docks capable of accom­ competion from such established repair­ breath of life, courtesy of some aggres­ modating vessels up to 180,000 dwt and ers as Lisnave and Dubai Drydocks if it is sive marketing and a new approach to re­ cranes with lifting capacities up to I 00 to be sure ofthe icing on the cake. pair work. tons, and it is focussing its activities on Much of Harland & Wolffe's work of In its latest annual report, Ugland the potential market of 16,500 vessels course comes from vessels transitting the International Holdings Pic says that for which call at the port of Antwerp annu­ Irish Sea during normal commercial busi- the nine-month period ended December ally.

MARITIME REVIEW Third Quarter 1996 1.:1 Shipbuilding

Over the past 18 months the yard has of an efficient tank cleaning facility just strategy and the idea that if an owner com­ carried out some 400 jobs, including 100 inside Grand Harbour, Valletta at mits one ship to the yard he will commit drydockings and many voyage repairs. Ricassoli. more if sufficent financial incentives can These works have included rudder instal­ Unlike its shipbuilding compatriot, be given. lations, welding cracks in A-frames inside Malta Shipbuilding, which seems to have There is not a lot the competition can main engines, overhaul of engines and line never-ending problems in securing con­ do to stop price dumping in this respect. boring of main gearboxes of dredging ves­ tracts and even being paid for what work After all, it is not a case of dropping prices sels. Steel jobs have included the renewal it has undertaken over the last few years, to gain contracts, but more a case of drop­ of the entire bulbous bow section of a Malta Drydocks has achieved incredible ping prices to get further contracts. This 100,000 dwt tanker, the conversion of success in a competitive market with 're­ may be a thin dividing line, but then the hatch cover arrangements and various bow turn custom' very much an important fac­ shiprepair industry is so competitive, most and bottom damages. tor in its overall achievements. things go as long as they are legal. Antwerp Ship Service Centre, the Malta openly admits its biggest com­ Greece is the home of shipping in holding company and owner of the petitor is only a few days steaming away Europe, but a questionable center for 300,000-square meter site is promoting the at Lisnave in Portugal, and Valletta man­ shiprepair of late, even given the big facility as a 'full ship service' concept. agement is right to believe the big threat names such as Hellenic, Elefsis and Through leasing contracts with a number lies here in the southern parts of the Por­ Neorion have reigned supreme in the of companies it now offers everything tuguese coastline. country for years. from general ship supplies to sludge re­ Lisnave has had its problems in the At Elefsis Shipyards, Astir Manage­ ception and lifeboat repairs. past with its workforce and sporadic strike ment Ltd., the company formed by the For years Malta Drydocks has re­ levels that have caused concern for the Peraticos maritime group in 1992 to take tained the top slot as one of southern future. But this year, industry observers over and operate the yard is sueing anum­ Europe's largest and busiest shiprepairers, believe Lisnave will achieve positive op­ ber of state banks and insurers alleging t)1at despite having one of its graving docks erating returns and improve on last year, it was misled over the Elefsis yard condi­ out of service because of a tanker explo­ the first time since 1991 that the yard has tion and the contracts it would be under­ sion, the yard has managed to keep its recorded a positive cash flow. taking when it took over in mid-summer leading role. Biggest achievement for Lisnave in that year. Athens will be the center for Malta Drydocks has worked at near recent months has been the securing of a the first hearing of the case. full capacity throughout the last 12-month five-year repair contract for 80 Russian­ The search goes on to find an period using what limited facilities it has, controlled ships in what is expected to net independednt manager for Hellenic Ship­ and has not shown any significant down­ around $10 million per year. Lisnave has yards, although it looks as if the UK 's tum in its workload because of the prob­ always believed in this block booking VSEL could come out tops. lems with the graving dock. The yard has always relied heavily on tanker traffic passing through the Medi­ terranean eastbound on ballast voyages back to the Middle East. Despite a tanker market that seems susceptible to commer­ cial criterion, the number of tankers using the yard has changed little from its high standing in recent months. Malta, through its close geographical location to the North African coastline, has always been an attractive repair cen­ ter for the countries with their borders on the Mediterranean coastline and their own limited provision of adequate repair facili­ ties. This trend continues, with Libya in particular providing some worthy repair contracts for the yard. One of Malta's biggest attractions is of course it cost competitiveness and its undoubted ability to keep to tight time schedules for vessel re-delivery. Helping this is the provision A&P will repair and refurbish the Queen Elizabeth 2 during November

MARITIME REVIEW Third Quarter 1996 25 Shipbuilding

Development Bank of the Philippines and Maritime Industry Authority for the mod­ Shipyards ernization of ship operators' vessels. The 1995-1998 plan for the shipbuild­ ing industry seeks to attain these modest goals: 1. Development of a shipbuilding and settnodest ship repair sector capable of meeting the modernization program of the Philippine merchant fleet and the national government' s vessels requirements and having adequate resources and facilities for groWth goals the construction and repair of foreign-flag vessels. 2. A modern shipbuilding and ship By Arthur U. Salagan repair sector with technical expertise based Staffmember on a properly oriented research and devel­ opment program. The Philippines has a total of 180 ship­ The basic incentives given to shipyard 3. A competitive shipbreaking sector yards with varying facilities. But, only operators are embodied in Executive Or­ that would promote the Philippines as a about 70 are operating facilities ranging der No. 226 as amended by RA 7918. shipbreaking center in the Southeast Asian from slipway with a capability of I 00 gross The fiscal incentive also provides tax region. registered tons to a graving dock of credits on locally fabricated capital equip­ 4. A favorable business climate that 200,000 grt. ment equivalent to I 00% of the value of will attract foreign investment. Investment in shipyards tends to national internal revenue taxes and costum In January 1995, Marina issued MC concentrade on the construction and main­ duties that would have been waived had 95 revising the previous implementing tenance of slipways, shipbuilding ways, these been imported. guidelines for licensing shipbuilders, ship and buildings/repair berths. Additional deduction of as much as repairs, afloat repairs, boat builders and Equity in a shipyard ranges between 50% of the wages corresponding to the shipbreakers. P24,000 and Pl .02 billion. This wide di­ increment in the number of direct labor for The development of the shipbuilding versity indicates the need for further skilled and unskilled workers can be made industry in the Philippines may take quite strengthening the capital base of the sec­ available if the project meets the prescribed sometime. tor. ratio of capital equipment to the number Meanwhile, consultation between Philippine shipyards continue to ex­ of workers as set by the Board of Invest­ Marina and Philippine Association ofShip­ perience brisk business in ship repair and ments. builders and Repairers and the in building fishing boats. A major assistance available for the Shipbreakers Association of the Philip­ Newbuilding is rare . Recently, shipyard sector is the Domestic Shipping pines, Inc. continues for the growth of the Kepphil Shipyard Incorporated reported Modernization Program. A partnership of shipyards. the construction of a tanker for Terban Marine Corporation. Designed and built by a Filipino, this brings to two the number of certified Filipino-made tankers that have a capacity of 4,900 dwt. Also, the FBM-Aboitiz will open its shipyard in C~bu for the construction of fastcraft for domestic use and two other Philippine shipyards continue fastcraft for export to Singapore. Investment in the shipyard sector, like to experience brisk business in ship any venture capital, entails risks and un­ certainties. repair and in building fishing boats. However, the current legislative agenda, the abundance of skilled workforce, and the pool of competent managerial expertise provide the needed stability for gaining market momentum.

MARITIME REVIEW Third Quarter 1996 26 PORTS Multiinodalisin gaining adherents Today, multimodalism is the byword and the most accepted system of moving and handling containerized cargoes worldwide, says Secretary Lagdameo.

By Mirasol B. Ng Logistics experts say an efficient na­ Staffmember of viability and profitability of Asean ports tionwide transport system for the archi­ on a global scale. "Today, multimodalism pelago like the Philippines hinges on velop a multimodal transport system to im­ is the byword and the most accepted sys­ multimodalism, which involves the use of prove cargohandling services in the coun­ tem of moving and handling containerized two or more means of transport at sea, on try," Transportation and Communications cargoes worldwide," Lagdameo said. land, and in the air. The goal is to move Secretary Amado Lagdameo urged at a "It even spawned a totally new busi­ goods and people between islands fast and recent gathering of A sean port authorities ness in shipbuilding and port facilities in­ economical. in Manila. cluding handling equipment," he said, not­ Multimodalism may mean transport­ Lagdameo stressed that only by hav­ ing that the concept was new and strange ing goods by ship, unloading them on a ing an efficient transport system can the way back in the 70s. port, transferring them by rail, and haul­ pre

MARITIME REVIEW Third Quarter 1996 27 Ports

The route, Agustin says, will connect caused by container trucks to and from the ties which will be completed before the Pantao port in Bicol down to Central piers. end ofthis year. Visayas. Central Visayas will tap its ports Last April, the ICTSI commenced "A TI will invest state-of-the-art con­ in Balarnban and San Carlos and then con­ groundwork on its railway project that will tainer and cargo handling equipment and nect them with Dumangas and Culasi ports connect the MICT to its lCD in Laguna. facilities for the lCD and will provide in the Western Visayas. The project, which would cost P48 transfer, storage, stripping, delivery, con­ The ambitious project wiTI likewise million, entails the construction of an ex­ tainer/chassis repair, bonded warehouses call for the massive infrastructure devel­ tension line to the existing lines of the to our clients at the Calabarzon and opment of the ports ofCulasi, San Carlos Philippine National Railways in Tutu ban, Batangas port area," Barclay explains. and Balamban in Visayas to accommodate Divisoria and connect these to the MICT's The lCD will be eventually linked by the projected domestic and international Berth 5. rail to South Harbor in Manila. trafficonce the plan goes full blast. The extension is the last segment of The rail project will be a joint ven­ P,P A has initially earmarked some P80 the rail system ICTSI wants to develop to ture between A TI and John Holland Con­ million for the rehabilitation of these ports. link the MICT to its lCD in Cabuyao, La­ struction (Philippines), Inc. Agustin says the project will also rely guna, and establish the MICT-Cabuyao "Upon completion of the proposed on RoRo-type facilities that will link by railway line. The;: P500 million lCD is lCD, A TI will have an efficient system for water northwestern Cebu with the north­ slated to be completed this December. transporting containerized cargoes be­ western part ofNegros Island. ICTSI president Enrique Razon Jr. tween Manila and the Calabarzon indus­ The agency, however, has not yet says the lCD is designed to decongest the trial estate where many multinational com­ completed its blueprint involving the use MICT which has been suffering from traf­ panies put up bases of operations," he says. of railways to complement the operations fic bottlenecks. "A smoother movement Industries that are based in the of the "multimodalized" ports. of cargoes will commence once the lCD Calabarzon area account for more than Aside from this, PP A is also pursu­ and the railway system becomes opera­ 30% of foreign and domestic cargoes ing the upgrading and modernization of tional," Razon says. handled at the Port of Manila. major roads found along or linked to ports, On top of the actual cost of the lCD Manila's main domestic port, North which service roro vessels. and the extension line, Razon discloses Harbor, has also been introduced to semi­ The project under the Pan-Philippine that ICTSI will also spend another P357 mutimodalism with the government's plan Highway RoRo Terminal Network calls million for the purchase of new locomo­ to link the Light Rail Transit (LRT 2) to for the improvement of RoRo ports in tives, machineries, and other rail equip­ the port area's passenger terminal. Matnog, Sorsogon; San Isidro, Northern ment. " Using an LRT, a passenger can Samar; Lipata, Surigao del Norte; and A TI, meanwhile, has already acquired board a ship without having to take a bus Liloan, Southern Leyte. a 20-hectare property for undisclosed price or jeepney in going to the North Harbor," In Metro Manila, the country's big­ in Calamba, Laguna for its planned lCD. PPA's Agustin says. The NH-LRT2link­ gest operators of international ports have A TI executive vice president Richard age is expected in 1999. already rolled out their blueprints for a Barclay says the lCD will be constructed Hopes are high for a "multimodal way multimodal system that will largely de­ in phases. of life" which will eventually snowball pend on railway transport. The first stage involvs a Pl60 million and trigger a full shift to multimodalism. The International Container Terminal outlay in logistics and warehousing facili- Services Inc. (ICTSI) and the Asian Ter­ minals Inc. (A Tl) are currently develop­ ing inland container depot (JCD) outside Manila that will be directly connected by The Manila-Cebu Corridor Intermodal rail to their respective ports in Manila In­ ternational Container Term ina! and South Transport Plan will effectively reduce sea Harbor. With the system in place, cargoes un­ travel time of passengers, says loaded in MICT and South Harbor will be directly transported by rail to their ICDs PPA GM Agustin. where the cargoes will be picked up by cargo haulers for final delivery. The system is laudable. It will relievet Megtro roads of the horrendous traffic

MARITIME REVIEW Third Quarter 1996 ''HI ICTSI continues to expand MICT

The expansion and development program of International Con­ tainer Terminal Services, Inc. (ICTSI) for the Manila International Container Terminal (MICT) is proceeding as scheduled. CTSI has recently awarded the of quay cranes at the MICT to nine, six construction of the spur lines that will contract for the design of Berth of which are post-Panamax. At present, connect the MICT to Radial Road R-1 0. 6 to Maunsell Pty. Ltd. of Berth 5 is equipped with one post­ DMCI is expected to complete con­ Australia, who was also the Panamax and one Panamax crane. struction in December. projectI manager for Berth 5. Like Berth In the Container Yard, ICTSI Upon completion of this area, 5, Berth 6 will be 300 meters, and have a recently put into operation two more the MICT's stacking capas; ity is expected draft of 14.5 meters. It will have a back brand new Mitsubishi rubber tired to increase from 17,000 to 21 ,000 up area of 11 hectares. gantries (RTG). Another two will be TEUs, and its annual throughput Meanwhile, Berth 5 is being delivered in June this year, brining to 21 capacity to 1.5 million TEUs. outfitted with two more brand new the total number ofRTGs at the MICT. -work at the site of the inland Mitsubishi post-Panamax "super" quay Several minor equipment will container depot (lCD) in Laguna is cranes. also be delivered in June: two Kalmar likewise ongoing, including the fencing, These new cranes are the empty reach stackers, which can stack of the access road to the depot. fastest cranes in the world today, with seven containers high; 12 Ottawa yard Construction of the marshaling main hoist speed of 80 meters per minute tractors; and 14 chassis. yard and the spur lines that will connect (loaded), and trolley travel of220 meters Meanwhile, construction of an the lCD to the main tracks of the per minute. The first one is scheduled additional stacking area of eight hectares Philippine National Railways i·s being for delivery in July this year, and the located behind Berth 5 has begun. undertaken by Victorias Milling Corp. other one in December. The two new Undertaken by D.M. Consunji, Inc. (VMC). VMC is expected to complete quay cranes will bring the total number (DMCI), work in this area will include these by December.

MARITIME REVIEW Third Quarter 1996 29 Word from FVR . . Modernizing maritime communications

The inauguration of first phase of the Maritime Communications Project (MCP) is another milestone towards Philippines 2000. This project undertakes the establish­ ment of a public coast station and a port station in Metro Manila to be kn_own as the Central Coast Station. The statjon is composed of three main sites: 1. The operation center located in Mandaluyong City. 2. The transmitting station in Taguig, Metro Manila. 3. The receiving station based in Balagtas, Bulacan. The completion of this project and its subsequent operationalization strengthen and expand the delivery of communication service constitutes an es­ among our elite a higher sense of social maritime mobile services to the country sential means for stable and effective man­ responsibility. such as : one, distress and safety commu­ agement of ports, ship operations and ca­ Modernization is also about equality, nications; two, ship movement service; lamity situations. equality in opportunity, equality in access three, port operations service; and four, In this day of expanding economies to the benefits of economic growth, equal­ public correspondence. and globalization, the call for moderniza­ ity in practice, and not merely in abstract It is also expected that this station will tion has never been as urgent. theory. And it is about citizens sharing a initially serve as the backbone for the in­ Modernization, however, is much belief in how the national community coming implementation of the Global more than the advancement of technology should be developed, for what purposes, Maritime Distress and Safety System as it encompasses the larger, wider, more and for whose benefit. (GMDSS), in consonance with the Phil­ complex process of nation building of in­ Raising the political capacity of the ippine government's commitment to the tegrating potentially conflicting groups state means increasing the quality of lead­ International Maritime Organization's within society into a competitive but ership and the effectiveness of the bureau­ (IMO) Safety of Life at Sea ('So las) con­ peaceful union founded on their shared cracy, the police, the judiciary, and all of vention. interests. It is the forging of the sense of a the other institutions of government. common identity and value-based solidar­ Modernization is also about achiev­ CALL FOR MODERNIZATION ity, without which we cannot have a co­ ing sustainable development. Develop­ Because the Philippines is an archi­ hesive and orderly national community. ment suited to our geography, and consis­ pelago with an irregular coastline, mari­ Modernization involves a profound tent with the carrying capacity of our en­ time transportation assumes paramount reform of the state to raise its political ca­ vironment, our soil, water and atmosphere. importance in national economic develop­ pacity and to strengthen its social com­ Modernization means enhancing human ment. mitments. It means empowering ordinary development that preserves the organic For a country that depends a great deal people enabling them to have a say in how balance between nature and humanity. upon sea and land resources, our maritime they are to be governed and instilling It is a pervasive sense of crisis that

MARITIME REVIEW Third Quarter 1996 I I I II

has set us on this path toward growth When a ship is in distress in the high communications and meteorological mes­ and modernization. Our protracted po­ seas, the upgraded communications fac ili­ sages and warnings will be enhanced litical and economic crisis over this last ties will enable the coast station to through efficient communications be­ generation has created among ordinary promptly inform the Philippine Coast tween the coast station and the ship sta­ Filipinos the consensus that we must cast Guard (PCG) which, in turn, will take tion. aside accustomed ways that no longer charge of the coordination of the rescue Efficient operation of ships, closer work. activities. client-operator rapport and reduction of The speedy and effective means of unnecessary transportation costs will re­ ENHANCING MARITIME SAFETY communication between vessels in or sult in a smoother and faster business at­ The provision under this project of a around the port and the port master, will mosphere. means of communication between the contribute to a smooth liaison with the coast station and the ships plying our maritime traffic control, the anchorage CLOSING islands, will greatly enhance safety in the area designation, and such other similar Indeed, this project will make a great transport of people and goods, thus activities: thus, increasing the efficiency contribution to the growth and develop­ minimizing the loss of lives and proper­ of port operations. ment of the national economy and to the ties, especially during stormy weather Protection oflife and properties at sea social welfare of our citizens throughout conditions. and timely delivery of distress and safety the archipelago.

;I;

MARITIME REVIEW Third Quarter 1996 "1 FVR Proclaims Sept. 2 7 National Maritime Day MARITIME LEAGUEHOWSFORUM'96

The maritime industry will now have a day of its own to celebrate, as President Fidel V. Ramos has declared Sept. 27 this year and the last Friday of September of every year as National Maritime Day. The Ramos proclamation, made last Sept. 6, was in response to an earlier request by the International Maritime Organization (IMO) for all member nations to celebrate the World Maritime Day. The National Maritime Day, according to Ramos, will be an opportunity for all players in the maritime industry to come together and focus on a more outward-looking maritime policy "to cope with the dynamic demands of the water transport industry." The President also noted in his proclamation the tremendous growth of the Philippine maritime industry during the last few years, which is further He added: "There is an ever-growing concern expected to be globally competitive in due time. for the unrestricted development of the local maritime "It is fitting and proper to focus public attention industry as a major factor in the thrust for sustainable on the vital role being played by the maritime industry economic development which will propel the country in the development of global shipping, " Ramos said. in its quest to become a newly industrialized country by the year 2000 and beyond." In his proclamation, Ramos also directed all government agencies, and public and private institutions to "give full support to the event and to extend the necessary assistance in the observance thereof." Consequently, the Maritime League, composed of private and government sectors of the Philippine maritime community, will hold on Sept. 27 at the Westin Philippine Plaza, a maritime forum to discuss important developments affecting the industry. In a press statement, Philippine Ports Authority (PPA) General Manager and Maritime League Chairman and President Carlos L. Agustin said this forum will likewise update participants on the policies which govern the trends and direction of the maritime industry. BY THE PRESIDENT OF THE PHILIPPINES

PROCLAMATION NO. 866

DECLARING SEPTEMBER 27, 1996 AND THE LAST FRIDAY OF SEPTEMBER OF EVERY YEAR, AS NATIONAL MARITIME DAY

WHEREAS, there is an ever-growing concern for the unrestricted development of the local maritime industry as a major factor in the program thrust for sustainable economic development that will propel the country in its quest as a newly industrialized country by the year 2000 and beyond;

WHEREAS, the Philippine maritime industry has grown tremendously during the last few years and is expected to be globally competitive in due time;

WHEREAS, there is an imperative need to evolve a strong and outward-looking maritime policy to cope with the dynamic demands of the water transport industry;

WHEREAS, it is fitting and proper to focus public attention on the vital role being played by the maritime industry towards development in global shipping; and

WHEREAS, the International Maritime Organization (IMO) in its Circular No. 1884 dated II July 1996 has requested all !member nations to celebrate World Maritime Day during the week of23 to 27 September 1996.

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby declare September 27, 1996 and the last Friday of September of every year as National Maritime Day.

All government agencies, and public and private institutions are enjoined to give full support to this event and to extend the necessary assistance in the observance thereof.

The Shipping and Ports Advisory Council in coordination with the private sector through the Maritime League, shall plan for activities related to this proclamation.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the Republic of the Philippines to be affixed.

DONE, in the City of Manila, this 6th day of September in the year of Our Lord, Nineteen Hundred and Ninety-Six.

THE MARITIME FORUM'96 Westin Philippine Plaza 8:00AM-1:30PM 27 September 1996 Sponsored by: 1. International Container Terminal Services, Inc. 2. Asian Terminals Incorporated 3. Domestic Shipowners Association 4. Filipino Shipowners Association 5. Philippine Register of Shipping 6. Phil. Interisland Shipowners Association 7. Phil. Chamber of Arrastre & Stevedoring Operators

Organized by the Shipping and Ports Advisory Council and the Maritime League pursuant to Presi­ dential Proclamation 866 dated 6 September 1996. Sir:

I am Lieutenant Naval Intelligence Officer and U.S. Naval Academey graduate with expertise in leadership and mangement. I am seeking employment opportunities. Enclosed is my resume for your review against any of your current employment requirements. In the event you do not currently have an active assignment that is approprate, I would appreciate your retaining my file for review against future search - assignments. Besides holding a physical oceanography degree and minor in general engineering, I have a great deal of experience in computers (application), operations research (analysis) and communication systems (COMSEC). I also have acquired a vast knowledge in technology transfers, joint-ventures and military-industrial infrastruc­ tures in Asia/Southeast Asia. My expertise in operations management, research analysis and general engineering will make me an asset to any company with these requirements.

I am currently stationed at the Office of Naval in Washington, D.C. Traveling is not a a problem and I would prefer to be based in a corporation out of this area. I am seeking an assignment preferably in Asia or Southeast Asia, but initial location is negotiable.

Should you be in the market for someone with my skills and leadership in operations and engineering, I would appreciate hearing from you. Finally as of September 15 , 1996, I will be relocating and can be reached at: 136 Booth Cir., Ocean Springs, MS 39564, Ph : (601 ) 872-0304.

Sincerely,

Edward Keith Jackson Lieutenant, U.S. Navy 501 North Arm istead St #201 Alexandria, VA 223 12 Home: (703) 256-2 171 Work: (30 I) 669-3366

Editor's Note: Th ose interested are advised to write LT Jackson directly.

Editor:

Many years ago, in fact from 1924 to late 1926, I lived in Canacao. My father was a Chief Pharmacist stationed at the Naval Hospital there. I have fond memories of travels to and from Manila, to Lake Taal, and other areas.

I have photos, books, and memories I would like to share. Do you know of anyone who might be interested in corresponding with me in regard to my participation in a very small fraction of Philippine history? I promise not to be a pest

Sincerely,

Cdr Buton Parke, USN, ret. 2567 Elderberry Drive Clearwater, FL 34621-2207.

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