me I> s

sailing across barriers

'lJomestic Sliipowners .9Lssociation G/F Stanford Tower Condominium 1870 M.H. del Pilar St., Malate, Manila Tel. Nos.: 521·4231, 521·4084, 521-8101 Fax No.: 521 ·5817

Alberto Gothong Enterprises, Inc. Lapu-Lapu Shipping Lines Corp. Sulpicio Lines, Inc. 71 F. Gonzales St. M.J. Cuenco Avenue Don Sulpicio Go Bldg. 415 Cebu City Cebu City Sn. Fernando St. Binondo, Manila

Cebu Ferries Corporation Lorenzo Shipping Corporation WG&A Philippines, Inc. Pier 4 North Reclamation Area 6/F Birch Tree Bldg. 12/F Times Plaza Bldg. Cebu City 825 Muelle dela Industria St. U.N. Avenue cor. Taft Avenue Binondo, Manila Ennita, Manila

George & Peter Lines, Inc. Negros Navigation Company Batangas-Mindoro Ship Operators Lim Bldg. D. Jakosalem St. Pier 2 No rth Harbor Association Cebu City To ndo, Manila Tenninal 2 Bldg. Batangas International Sta. Clara, Batangas City CONTENTS

8 DOMESTIC SHIPPING • Ship operators renew their efforts to push for reforms under the new administration

lia Quiambao reports on the success of the country's first international port operator Phividec begins to promote development of the Mindanao box port •ATI reports a record throughput for 2000 amidst crisis 14-16 MARITIME REGULATION • Bjorn Flam tackles the increasing problems of stowaways and how to deal with them 18-20 MARINE INSURANCE • A law firm says it has persuaded Panama Maritime Court to revert Filipino seamen's claims to the National Labor Relations Commission • Imelda Cerillo explains the rule on vessel seaworthiness in cargo insurance policy 21 -22 MARINE SAFETY • The Philippine Coast Guard presents its plans and programs in acquisition and deployment of SAR vessels 24 LABOR • Ruth Mercado tackles the role of NGOs and Church apostolate in promoting seafarers welfare 25 MANAGEMENT • The International Shipping Federation issues guidelines on employment practice

REGUCARS 05 Chairman's ~ 24 League Update Page ~ 25 Mail Boat 06 News Update 28 Maritime Issues j 7 Case 30 Word from FVR 23 Lex Ma

FRONT COVER

A call to level the playing field

The Maritime Review is published on behalf of the Maritime League and is supplied to members as part of their annual membership package. However, the opinions expressed by the writers do not necessarily reflect those of the Maritime League_:..------. Certi fied by: Recognized & Accredited by: I!(@ ~ ...... :;:-.'!! __..,...... ,...... ,.. \\~tJ ....- ...... ,.. __.. TESDA

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_}f~ . PHILIPPINE MERCHA~T MARINE SCHOOL 1.Y,f[ OF LAS PINAS CITY

COURSES OFFERED: ADMIS ION REQUIREMENTS: ./ BS in Marine Transportation FRE H MAN ./ BS in Marine Engineering (A graduate from High School) ./ BS in Customs Administration a. Form 138 duly accomplished a nd ./ BA in Port Management signed by school authority ./ Computer ecretarial b. Certificate of Good Moral Character ./Associate in Marine E lectronics c. 2 pes. 1 Y2" x 1 Y2 " pictures ./Marine Electronic Technician Course TRANSFEREES ./ Reefer Technician Course ./ Basic Seama n Course a. Honorable Dissmissal ./ Purnpma n Tanker Vessel Course b. Tran cript of Records c. 2 pc . l Yl" x 1 ~" pictures ./ Marine Welding Course d. Certificate of Good Moral Character ./ Machinery Repairman Course

FOR PARTICULARS, Inquire now at the Registrar's Office, PMMS-LPC, San Antonio Valley Road, Talon I, Las Pinas City • Tel. 805-0239/41 Loc. 15 or 805-0243. Maritime League Chairman CARLOS L. AGUSTIN Chairman's Page

business-like, on time for meetings and Thanks. The scheduled Maritime endsw her orking day after most people League fellowship lunch meeting with the have gone to bed. I can not promise I will PCG hosted by the Commandant, PCG at always stay late at night, but I wi/1 start the HPCG Wardroom on 28 Feb 200 I was my day early. I will be 011 time for a successful event with more than 100 meetings and it will be all business during attendees, including at least 83 members my watch. There will be time for fun, but (some unfortunately failed to register). ln CONGRATULATIONS. On behalf of I intend to make work f un. addition we had 25 new inductees. Since the Board of Trustees and the 2. Being accountable. I have the new honorary chairman, Sec membership of the League, 1 wish to always made myself responsible for my PantaleonAlvarez was out of town, he was express our sincerest congratulations to actions. This will not change. And I hope represented as inducting officer and the newly appointed President's men in you will do the same. speaker by USEC Agustin Bengzon of the League: Justice Secretary Hernani 3. Being transparent. Because I DOTC, one of the original members of Perez (sorry, friend - forgot to mention have no hidden agenda, I will have the League. last issue the first one appointed by 110thing to hide. What you see is what you The PCG gave a detailed briefing PGMA), National Security Adviser Roy get and all I can promise you is that in about the PCG and its projects after which Golez (replacing ML member Alexander the PPA there will be transparent Commo Reuben Lista provided more Aguirre), DND Secretary Angelo T management. information. One of the two original Reyes, new PN ChiefVicrorino S Hingco 4. Being frugal. We have a national honorary co-chairmen of the League, and PPA General Manager Alfonso Cusi. budget deficit ofabout P220 billion. The former DOTC Sec Oscar Orbos, who was Agustin Bengzon likewise continues to gowmunent ~d/1 set a target of reducing supposed to give the Closing Remarks, be an Undersecretary of DOTC joined by this toP 145 billion by the end ofthe fiscal was tied up with ailing Cardinal Sin and another Leaguer, Art Valdez (already yem: We in the PPA must do our share to arrived after the lunch meeting. The mentioned last issue). We're proud of all contribute to this target. I am sure that closing remarks was given in his stead by of you. basic necessities and benefits due each new National Security Adviser Roilo The latest two appointments took a and everyone ofyou will be satisfied but Golez, likewise a maritime person (former little time, as the failed designation of my management will be frugal. l am PES executive, DOTC assistant, another Maritime League member, asking all ofyou to be frugal. MARINA Deputy Administrator, PNSC General Lisandro Abadia, was set aside 5. Consulting. l will welcome President, Postmaster General and 3-term because of certain issues that 1 thought anybody who wants to discuss issues with Parafiaque congressman). were already settled. Well, 1 suppose me. We will set mutually acceptable Commo Lista, on suggestion ofUSEC that's how the ball bounces, so they say. schedules for these dialogues with you, Bengzon, agreed to make the occasion the O n AI Cusi. There was some with the shipping and port community annual anniversary fellowship meeting, murmuring of "conflict of interest" when and with any social grouping that may since the League was formed on this the appointment of Alfonso Cusi was be affected by our intended policies and month exactly I0 years ago. rumored for a few weeks. For those actions. Thanks again to the PCG and interested, herewith is a portion of Al's 6. Empowerment. I would like our especially to Trustee Reuben Lista for the speech during the low-profile turnover organizational structure to work. Each one successful event. rites at the Philippine Authority on ofus has a role. That is why we are here. I Mindanao Container Termina l. 28 February 2001: can not do everything by myself. I cannot While waiting to see Defense Secretary ...All my working life has been with be everywhere at the same time. I do not Eduardo Ermita at his Camp Aguinaldo the transportation industry and with the think I can match the record of visitation office last 20 February, I chanced upon private sector. This is indeed a challenge, and inspection of the nationwide ports three long lost friends who surprisingly the beginning of a new chapter in my established by GM Johnny. But if all of are in the business of ports development: careet: you believe that we can be the best that Retired PC Brig Gen Triunfo P Agustin, I have no hidden agenda in joining we can be, then, I do not think I have to retired Army Brig Gen Donato Quintos, the PPA. My objective is to be able to help check each and everyone of you. and current Administrator Gabriel B the present administration and contribute 7. Being truly God-fearing. We call Evangelista of the PHIVIDEC Industrial whatever capabilities and expertise, if we God by many names. But whatever we call Authority (PIA). They briefed me on the may call it, which /may be able to offer. Him let us be truly prayerful. It does not th ings being done for their project, a JBIC­ The President herself has laid the matter what religion we tum to. But I funded $92.6 million port development ground work for the leadership style she believe we must do our best to go back to for the PIA at its site in Tagoloan, Misamis wishes to be practiced and which I will basics.. let us rediscover our values. Oriental, some 20 kms from the center of follow in the course of my duties: Sounds good to me. For those of us Cagayan de Oro City. This will definitely I. Leading by example. Our who know AI quite well, we believe he outshine the busy Cagayan de Oro port of President starts work early. She is will perform with flying colors. the PPA.:__ ----- NEWS BRIEFS Maritime update

OWNERS 'ERODE' SEAFARERS' RIGHTS

SHIP owners and flag states have eroded the oldest and most enduring traditional seafarer's right to 'maintenance and cure,' by cost-cutting to address tight margins, a leading US seafarers's advocacy group told the Connecticut Maritime Association conference. Cruise lines, open registries and the world' major supplier of seafarer labour, the Philippines, are bringing the right to free medical care into line with ~hore-based labour laws, said Centre for Seafarers' Rights director Douglas Stevenson. Changes to Panama's labour code in 1998 also changed seamen's rights, setting time limits on medical care provil,ion. Stevenson also criticised the that the virtual Baltic would also be launched the outcome as a satisfactory compromise as Philippines Overseas Employment m July. Baltic Exchange CEO Jim Buckley said it allows countries that want to include Administration's new ~tandard employment he "hoped''the ~ystem would work. "It would re~>ponder protection in their laws to do so contract, which "wiped away centuries of be arrogant to say now that it will," he without preventing others from ratifying the maintenance and cure" and replaced it with commented. convention. Asked why this convention workers' compensatory-based scheme. differed from others that do allow responder Stevenson's speech was part of a discussion WG&A GETS SLIP WAY immunity, an lMO spokesman pointed out that on recruitment and retention of ocean-going CONTRACT those conventions were backed by officers and seafare~. compensation fund\ from which claimant~ WG&A Philippine,, the country's largest could be paid. The bunker convention will not domestic shipping operator, ha' been awarded OWNERS ESCAPE PRE-PAID have a fund, so other sources of compensation the contract to o~rate the marine slipway at PILOTAGE must be available. the Manila orth Harbour. The contract with INTERNATIONAL shipping lines have won the Philippine Ports Authority shall take effect a temporary reprieve from paying a ten per cent until June or until the government turns over PPA URGED ON pilotage fee direct to the Philippine Ports its operation of the domestic terminal to the TRANSPARENCY Authority, possibly even before pilot services winning bidder. But with the protest and delay~ A GROUP of port users has urged the have been performed. A court order that the modernisation that the port has PhiUppine PortS Authority (PPA) to be more temporarily stops the PPA from collecting its encountered, it will take years before the transparent in deliberating on petitions for due hare of gross pilotage fees direct from project gets to ~>tart, giving WG&A an cargo handling rate increases as the group the owners, as proposed, rather than from a advantage to operate the facility indefinitely. pressed for a roll back of the 10 per cent hike pilotage association. The PPA is legally entitled Under the agreement, WGA will lease the area it approved recently. The Coalition for Port to ten percent of the gross income of the pilots for a monthly fee of PhP 12.15 per sq m (lower Modernisation (CPM) said the increase that it contracted, but was reportedly having than the PhP18.50/month 10 years ago), or a took effect la~t February was "railroaded by difficulty collecting payment. It had intended total of PhP886.950 a month. Some years ago. the PPA despite the objection from port users extracting the payment before or dur.ng PPA tried to enforce a PhP50/sq m rental rate who were caught unaware." In its letter to PPA docking, sources said. at North Harbour. saymg that surrounding real general manager Alfonso G. Cusi, the CPM c~tate values indicate such a "reasonable" said the "public hearing was a farce and the E-BROKING CUTS rental rate. PPA Board approved the rate increases in cargo COMMS COSTS CLAIM handling even before the formal opposition NO PROTECTION FOR papers could be submitted." Port users from SHIPBROKTNG via e-commcrce can reduce BUNKER SALVORS international lines, ship agents and shippers current transaction communications by were not given enough time to state their THE Convention on Civil Liability for Bunker between 30 and 40 per cent, according to opposition. "We urge you as PPA general dot.com operator LevciSeas. Sales and Oil Pollution Damage will not give salvors manager to en,ure that a more transparent marketing director Nie l ~> Conradsen told a immunity from pro!>ecution. IMO delegates process may be conducted whereby all the sceptical but interested audience at the discussing the propo:.ed convention in London affected panie' are allowed to ventilate their decided instead to support an optional Connecticut Maritime Association Shipping posit1on," CPM requested Cusi. 200 I conference that improved efficiency resolution that "urges states ... to consider the would allow brokers to add more value and need to introduce legal provision [to protect) ITF CHALLENGES EC free them up from "acting as a post office". persons taking measures to prevent or mmim•'e Conradsen said initial studies at BP, a the effects of oil poUution." A French propo-.al OVER CREW PAY Leve!Seas investor, showed the platform to replace the word '1mmumty' in the draft THE ITF intervened last week after reduced the number of e-mails, phones, faxes resolution with 'protection' was accepted by discovering that the crew of a ship chartered and telexes from 450 to 300 in every voyage, the meeting. Alfred Popp, who chaired the by the European Commission to deliver food from pre-fixture to post fixture. The LeveiSeas 'Committee of the Whole'-which is workmg aid was being paid below ILO-agreed rates. is scheduled to go live in July. Delegates heard through the convention's details - described Some crewmen on the 1973-built, 34,093 6•March ·/~ew NEWS BRIEFS

DWT MariaM were receiving $3SO a month. Panamanian to assume the function for hi gher would also have to pay the authority R$8 per A Goncalves of the EC"' EuropeAid Co­ fees. The consulate has also opened its office full box moved through the port, port authority operation Office. told the ITF: "If any on Saturdays to accommodate application of president Sergio Kano said last month. international regulation~ are violated by the crewmembcrs bound for a weekend flight to ship operator. there are adequate bodies to deal their ships. Panama ambassador to the INSURANCE POOLS WORRY with that It i., not up to the Commission to Philippines Juan Carlos Escalona said that the ASIAN OWNERS controlu." The ITF commented: "Thankfully, office. is now the only consulate in town that PROPOSED amendments to the Athens a li ttle later ~omconc else in the office agreed opens on weekend assisting seafarers. The Convention could leave ship owners vulnerable that providing [relie f] shouldn't involve seaman's license will be valid for five years to large P&l cash calls in the event of excessive abu,ing the rights of seafarers." An ITF instead of the former eight months to one year. passenger claims. A meeting of the Asian m-.pector will meet the Cyprus-registered, CRUISE LABOR TALKS Shipowners Forum (ASF) Ship Insurance Greek-operated ship in Greece and seek to have Committee in Hong Kong on March I i HIT STALEMATE the crew covered by an ITF agreement. The highlighted the concerns. The possibility oi operators said that they would pay the ILO TALKS between the ITF and two major P&l clubs forming pooling arrangements could minimum until the end of March. Florida-based cruise lines on union leave owners exposed if passenger claims representation on their ships have broken exceeded the current $4.25Bn limit. "Because SINGAPORE PROPOSES down. The ITF says Disney and Carnival cruise of the mutuality of the insurance, one passenger JV FOR SUBIC lines will not allow collective bargaining ship incident could result in additional calls THE Philippine government is seriously agreements similar to those at other lines. The from all other owners under P&I cover," considering an offer to form a multi-billion JTF targeted Disney and Carnival, which according to Arthur Bowring, director, Hong dollar joint venture to develop the seaports and together employ over 24,000 seafarers. when Kong Shipowners' Association. The commjttce airports of Clark and Subic into major logistics it first opened a Cruise Campaign Office at Port stressed the need for a solution meeting both hub and transshipment point in southeast Asia. Canaveral in mid-2000. Most lines serving the the desire for proper passenger compensation The offer, which was made by the Singapore North American market are registered in and the availability of insurance. government investment holding arm Temasek Liberia, Panama or the Bahamas and although Holdings, has been dubbed as a signature they serve the US or Canada market, arc not APEC PUSHED ON ISM project that can quickly transform the subject to US employment laws. ITF cruise STANDARDS perception of the Philippines as a \\hole." campaign co-ordinator Jim Given says he TRANSPORT ministers from thcAPEC (Asia accord ing Rufo Colayco former chrurman of want~ to fight rampant e'ploitation that e ;!li -.ts Pacific Economic Co-operation) countries will Clark Development Corp. Tema~ek ha' been on many pas-.enge r -.hips. eftecuvely tummg be a.sked to promote a "concentrated inspection keen on developmg and managing jointly the crew into indentured labour. Cruise hnes deny campa1gn" on the ISM Code to a standard set two former US naval bases with the Philippine any suggestion that crew arc exploited or of guidelines for a th ree-month period from government, including the highway network mistreated. July 1, 2002. The recommendations, by a port that would link the two special economic state control working group which met in zones. Preliminary discussions with both SUAPE BOX TERMINAL Sydney in March, could be used as a model government officials as well as private sector GOES TO ICTSI for ongoing ISM-focused port state control executives in Singapore indicate a high level ICTSI has won the concession to operate the inspections in the Asia-Pacific region. The of interest, according to Colayco in his letter container terminal at Suapc, Brazil, after working group recommended that regional to the Department of Trade and Industry. tabling the winning bid of R$350M ($169M) administrations encourage uniform inspections for the 30-year deal. The Philippines-based by APEC members and throughout all regional IMOTO CONSULT GOVERNMENTS operator's bid beat that of the favourite, a local MOUs and also support standard inter-MOU ON PIRACY consortium, by about $27M. Suape, in the data exchange systems. It also sought north-eastern state of Pernambuco, handled implementation of an assessment/audit A regional agreement on co-operation against 62,500 TEU last year and is said to be capable programme to ensure uniformity within the marine piracy and armed robbery has been of handling over 500,000 TEU within the next Tokyo MOU and across MOU boundaries. mooted following lMO talks in Singapore with ten years. lCTSI must undertake to install two APEC transport ministers support the concept officials from I J Asian and Pacific Rim mobile cranes after year two and a Panamax of targeting vessels at high risk of being sub­ countries. lMO has been invited to undertake crane after year six. The winning operator standard. consultations with regional governments. While not committing to a time frame, lMO maritime safety division director Efthimious E Mitropoulos said that the mood suggested this should come about soon. The meeting identified lack of regional co-operation as one of the main factors hindering concerted action against piracy, which has led to escalation of attacks. According to IMO statistics, 55 people J were killed last year in piracy attacks.

PANAMA REFORMS LICENSING ROLE PANAMA Consulate in Manila has instituted a one-day processing in the application and release of licenses to thousands of Filipino seafarers serving on Panamanian-flag vessels. The scheme is intended to stave off accusations that the consulate had encouraged delays so as to favour a private firm set up by another Maritime Ship owners add res

DOMESTIC shipping operators have were being completed. renewed their effort~ to address the In determining workable industry's concerns with the assumption of solutions to their the new administration. Representatives of problems, the shipping the Philippine Inter-i~land Shipping lines have agreed to Association, Domestic Shipowners appoint representatives Association, Philpesta and Lighterage to the working group, Association of the Philippines presented which shall work closely their vision of the shipping indu~try geared with their government toward globalization, leveling the playing counterparts. The field and the development of the country's working group started port system. by addressing the The industry's recent meeting with resolutions reached Transportation and Communications during the National secretary Pantaleon Alvarez and Shipping Congress held Undersecretary Art Valdez resulted in the in September 2000 formation of a working group composed of They group ha' abo representatives from the private shipping been reque~ted to group and government sector that would deterrrune the agenc•e~ determine both immediate and long term of government that concerns. The immediate concerns will cap should be included in the the first I 00 days of the Macapagai-Arroyo existing Multi-sectoral Task Force on Inter­ Undersecretary Valdez suggested that the administration, which immediately buckled island Shipping so that solutions could be concerns be broken up into maritime down to work as members of the Cabinet facilitated. administration, education and training, maritime convention and legislation, maritime safety and pollution. This is in accordance with the breakdown of worlong groups provided in the framework of the Vital concerns multi-sectoral task force for the maritime industry. A POSITION paper recently submitted by are! ~ome of the i s ~uc s that confront the local It is said that government representatives PISA and Filipino Shipow ner ~ Association shipping sector Filipino ship owner' ure were keen to give priority to port notes the potential of Philippine shipping to taxed on fuel, ~hilc foreign 'hip O\\.ner~ modernization, which could be possibly become a "global player competinf bunkenng in the Philippine' are not. Filipino achieved withm the first I00 days of the aggre!>~ively in dome~ tic trades as well as in 'h•p owne r~ must pa) import dut) for ' Pare present admimstrauon. PI SA and DSA the region and world w1de." They believe part\ and steel plate,, 'A-bile foreign line<, representative uggested to secure the port that through this potential the mdustry can n.:ce•"ing spares 10 Ph1hppine ports are duty area that would begin from the gates leading ach1eve its viability and competitivenes~ free. Vessels imported into the Philippines to the terminal, clearing the area and the once urgent action is undertaken jointly are subjected to import duty. access roads, and provide ample parking between the private sector and the Filipino owned vessels trading in space for trucks and other vehicles. government. Globalisution for the Philippine Philippine waters pay 10 per cent VAT on Government and private sector 'hipping industry should be mterpreted as gro~~ freight revenue as well as a corporate representatives agreed that in addition to Filipino ship owners With h1gh standards of mcome tax of 32 per cent Foreign flag cargo what may be identified as a visible safety, competing reg•onally and worldwide. vessels calling Ph1hppine ports pay 2.5 per achievement for the ftrSt 100 days, the other "Both private sector. 'hip owners and cent tax on gros\ Philippine billings covering concerns of the domestic shipping industry sh1ppers, and government agencies mu't export cargo and a three per cent common that be "doable within the first 100 days" urgently work hand in hand towards creating carriers tax. shall likewise be addressed. an environment that will allow shipping Filipino ship owners can only avail of During the working group's meeting on companies to become more efficient and financing only from banks that have high cost February 22, 200 I, DOTC instructed PPA to competitive in our dome,tic. regional and for foreign currency. Foreign banks with meet with the shipping lines to discuss worldwide markets. access to low co't fore1gn currency would 1ssues involving clearing the area, ~ecuring " It 'hall be vital all the ways neces,ary to not lend to Filipino \hip owners under 1he the gates, fixing the traffic flow, and level the playmg field between the Philippine current Phihppme ~ortgagc la'A-s. Identifying parking areas and truck holding and its regional shipping competition We Successful rnant•me nations ha'c clear areas. This means that the Philippine realize that the country ha~ adopted a policy policies supportmg thc1r 'h•ppmg mdu,try. National Police and the representatives of of libcralisation and globali~ation. We also The support come' in the form of clearly the City of Manila had to be involved to realise that all export and manufacturing defined laws including those on foreign address the traffic problem. PPA officials sector' are making effort' to improve their investment and mortgage,. ta>. incentive.c;, believed that with proper coordination, new competitive advantage. A reliable. committed acccs' to finance indudmg eqUity, and simple arrangement could be implemented and \hipping service I'> an important component delineation of juw.dlction by government. sustained so that congestion could be that needs to be available.'' A clear policy i' requtred thai Phihppme checked and port security could be I ligher operating co\t~ \Uch as taxes, fuel, \hipping is a v1tal •ndustry that must be enhanced. import duty and lack of available financmg supported. say PlSA and FSA.

8•March-Aprii2001•Maritime Review A R u I A VIEW

I .,I

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It's a tiny space, ten stones h1gh. Only the most developed and operated by International Container highly skilled operators are allowed occupancy, day and Terminal Services, Inc. (ICTSI), a Philippine-based port night. Nothing beats the v1ew from here. It's a look at operator: global trade in progress, bolstenng the economy of the See the world from this perspective, and share ICTSI's Philippines. fervent optimism at it approaches the new millennium. Views such as this, from a quay crane at the Manila International Container Terminal, are the same as can be International seen from the seven terminals around the world that are Container Terminal Services, Inc. Into the New Millennium with its Vision of Excellence. www.idsi.com

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KUllA. PHILIPPINES I UUOS AllES . U 6 UTIU H U Cl UI. KUICO UUCN I, PUISTU OAKKAK , SA UDI AUIIA UHU•OA, "U ICO PORTS ICTSI: From Manila to the world Cecilia Quiambao reports on how the country's first international port operator became one of the leading players in box terminal concessions

INTERNATIONAL Container Terminal unknown ICTSI gained Services Inc. (ICTSI) has succeeded in making the approval of various an impression in the world's port container governments, thereby business as it expanded its operations from a getting its growing stagnating port in the Philippines into--various portfolio of managed terminals spanning three continents. ports. These include the Established in Manila in 1988 after obtaining concessions to operate the the contract to develop, manage and operate Karachi International the decrepit Manila International Container Container Terminal, the Terminal (MICT), ICTSI currently operates Dammam Container ports in the Philippines, , Mexico, Terminal in Saudi Arabia, Tanzania, Pakistan, and Saudi Arabia. the Ensenada Intemational This year, it begins to operate the A2 Terminal in Mexico and Terminal in the Laem Chabang Port in the Dar es Salaam Thailand. The firm has also won an container port in Tanzania. international tender for a contract to develop Overall, lCTSI has and operate the Swape port in Brazil, which is reported handling 2.15 being eyed as a hub for cargoes going in and TEUS in 1999. Abcsamis out of and the Caribbean. says the firm's container ICfSl's Mexican subsidiary has also submitted handling business should the highest bid of $7.5 million for the grow by I0 per cent in 2000, and by another dominated by a few huge outfits," Abesamis concession of the Progreso container terminal 10 per cent in 2001. ·says. "But we would like to grow steadily, in in Yucatan, Mexico. Compared to competitors like PSA Corp. size financially. We do not think in terms of " It's true we've gone far. Some Ltd .. Hongkong International Tcnninals (HIT), having dominance. It's not within the companies remain in their first project for a and P&O of Australia,lCTSl is still ~mall. But immediate possibilities to be as big as HIT or long time before they ventured out. We started it could already be classified as a mid-level anything like that." Abesamis is confident that going out very quickly. When we were six player in the international container business. their management can grasp what it takes to years old we had our second project. That's Abesamis says ICTSJ is next to the run a huge port or to have a series of huge ports. the way we developep," according to ICTSI Stevedoring Services of America (SSA) in But it takes a lot of financial resources that the executive vice president Edgardo Abesamis. terms of the number of containers handled group does not have at the moment. Though In 1994, ICTSI won its first port terminal annually, or is practically fifth in worldwide JCTSl posted a PhP59.4 million net income in operations contract outside the Philippines in standing. SSA has cargo handling and related the first three quarters of 2000, this was 86% Argentina, where it now operates Tenninal 5 operations in the US, and like ICTSI, it has less compared to the income it posted in the in Puerto Nuevo. A year later, it bagged operations in Africa, Asia and , same period last year. The firm said the decline another terminal operations contract for the handling in excess of eight million boxes was a result of its having to place a higher put specialized container terminal in the port of annually. premium accretion on its $130 million Veracruz, Mexico. "We're a relatively small company as convertible bonds floated in 1997. In subsequent years, the previously financial resources go because the industry is Abesamis said the firm has reasons to believe that most bearers of the notes will not convert into equity as ICTSI stock value has fallen since 1997 compounded with a weak stock market. lCTSI outstanding debt now stands at $ 153.4-million -reason enough for it to expand at a prudent pace. "We're slowing down expansion at this time by limiting ourselves to projects that require very little to start up," Abesamis explains. ICTSI recently turned its back on plans to participate in the international tender to develop and operate Japan's Hibeki port due to lack of funds and partners needed to undertake the terminal development that could run into in excess of $100 million. But the firm also has another reason to expand cautiously. In 1999, ICfSI had to cut its losses by making the difficult decision to pull out of the second port privatization project it won in Argentina, the port of Rosario, after a series of violent labor strikes. It posted a consolidated loss of PhP1.3 billion that year. 1O• March-April 2001 •Maritime Review PORTS ... earnings despite Japan to lead forex losses Mindanao box port INTERNATIONAL Container Terminal GOVER:\',\1E'\T has begun promoting the networks, holding areas for lorries, weighing Services, Inc. (ICTSI) reported aconsohdated development ·'thecontainer port in Mindanao bridges, greeneries and provision of four audited net income of PhP31.3 million for with an in\ttation to pre-qualify in the tender container yards. Building facilities will house 2000, a reversal from the loss ofPhP1.3 billion to undertake the project that will be funded by the port's administration, terminal operations, recorded in 1999. loan from Japan Bank for International Co­ workshop, control towers, among others. The Positive growth was a result of strong operation (JBIC) The project to build the contract also involves dredging of about operational performances of container Mindanao Container Terminal in Tagoloan, 350,000 cu. m. of spoils and filling/reclamation terminals operated by the company in the Misamis Oriental, expected to be undertaken of about 500,000 cu. m. Philippines, Argentina, Mexico, Saudi Arabia, by Japanese contractors, costs $92.6 and wtll Phase two of the project will include the Pakistan and Tanzania. The loss in 1999 was begin in December this year. e"

PUBLICLY lbted port operator and logistics subl>idiary Aries Arrastre Service Inc., general capacity ship-to-shore crane and two units of provider Asian Tenninab Inc. (ATI) reported cargo throughput rose 18 percent last year to rubber-tyred gantry cranes. These equipment a net income of P541 million from revenuel> 552.269 MT from 468,082 MT the year before. will be in operation by the middle of this year. of P2.93 billion in 2000. Last year's profit was Batangas also booked 3,322 containers last 29 percent higher than the P418.22 million year compared to 711 in 1999-its first year of Last year's capital expenditures posted in 1999, while revenue~ grew 14 percent container handling operations. amounting to P470 million went into new from the previous P2.56 billion. facilitie~. pier rehabilitation and the expansion In a statement, the company said that the Meanwhile. bulk grain shipments passing of storage areas. A spacious new South Harbor "difficult business environment tempered an through ATI's Mariveles Grains Terminal- the Operations Center building was also otherwise l>trong performance l a~ t year." ATI country's most effi cient discharge point for inaugurated, integrating the port's felt the combined effects of ~uccc~sivc fuel wheat, soybean and corn import~ grew 19 administrative and operating units as well as price increases, high interest rates and the percent laM year to a record ?.23 mllhon M r 'hipping line branc h offices under a single continuing peso depreciation. "Despite these Although traditionally driven by Port of facility. Thi\, together with the new holding pressures, however, the cargo hand ling Manila revenues, ATl was able to maximite area for 250 trucl.s adjacent to it, further business was Mi ll fundamentally driven by the the potenti al contributions from its diversified enhances customer convenience in the receipt growth of world trade a) commerce expands business units. The four-year-old venture into and release of export and import cargoes. and barriers to trade are reduced," the company third-party logistics generated significant new In August 2000 ATI launched an online said. business last year from major multinational information service, ATI WebTrack, shifting "The company remains ideally pol>itioned clients from ATI's Mrategy to integrate cargo the old electronic Client Access System from to take advantage of this trading boom," it handling and supply chain management a dial-up to an Internet-based platform. This is added. "Our committed long-tenn investments services. the first cargo-tracking facility of its kind in are expected to achieve trong levels of organic More companies saw the advantages of the country. enabling South Harbor clients to growth. Moreover. the clo~e affi hat ion with the outsourcing their non-core activities, such as monitor real-time vessel status and cargo global network of P&O Ports, an ATI warehousing and inventory management. to movements via the Internet. WebTrack shareholder. fuels our continuing drive to attain ATI. Logistics likewise became the veh1cle for compleme nt~ a previous e-commerce initiative world class productivity levels." ATI 's participauon m maJor Jndu,tnal \enture,. m conjuncuon with the Bureau of Customs­ Full-year volume at South Harbor La~t May. ATI garnered one of it~ b1ggeM the On L1ne Release System (OLRS) for Container Terminal, the company's flagship logistics contracts to date for the management computer-to-computer clearance of cargoes. business. hit a record 577.4 12 TEU, of the offshore supply bn.'>e of Shell's $4-billion The company is expected to sustain the representing a 7.4 percent growth from the Malampaya gas-to-power project. This is central role of information technology in the 537,439 TEUs handled in 1999. With reputed to be the Philippines' biggest single management of its terminals. Deployment of improvements at South Harbor in full steam, foreign investment. world class IT solutions in recent years has the company's non-containerized cargo Affirming its commitment to provide resulted in more productive and efficient terminal is expected to strengthen its exi~ting superior service, ATI plans to invest about P1.2 operations-from vessel loading, container yard market share of about 88 percent of Port of billion in 2001 to further upgrade its facilities planning and equipment control to warehouse Manila volume. and meet growing demand. For improved management and cargo monitoring. Other ATJ-run ports fo llowed this rising container hand ling and stacking, it has placed trend. At the Port of Satan gas operated by ATI an order valued at $6 milllon for a new 40-ton

rUJl•:f!JUf 'J~JUI/I!J U! :J~U /1 Hur!J~r Dt~ri!!Jifl!lf 1f!Jrwlm.JJ Ill! u t !J!) ~,cl 511,4•12 ·r.eu 1t1 ~uuu

12•March-Aprii2001•Maritime Review Is the reader aware?

The Philippine Overseas Employment Administration (POEA) has from 1984 to 1998 annually assessed the performance of licensed overseas recruitment agencies, both manning agencies and landbased providers, and in recognition of exceptional performance, various cri teria and significant contribution to the national economy , presented the top performers w ith special awards. From 1998, the POEA management decided that the Technical Committee on Agency Performance Evaluation of the POEA would require a longer period to thoroughly evaluate the performance of the licensed overseas recruitment agencies and the awards are now prese nted every two years.

Of the 360 licen sed manning agencies involved to one degree or another in the deployment of about 200,000 seafarers on international oceangoing vessels, below are th e winners for the year 2000.

AGENCY RECOGNITION 2000

TOP PERFORMERS 1. Arpaphil Shipping Corp. 2. CF Sharp Crew Management, Inc. 3. Dolphin Ship Management, Inc. 4. Magsaysay-Mitsui O.S.K., Inc. 5. Orient Ship Management Phils., Inc. 6. Pacific Ocean Manning, Inc. 7. Sea Power Shipping Ent., Inc.

AWARDEES O F EXCELLENCE 1. Career Philippines Shipmanagement, Inc. 2. Magsaysay Maritime, Inc. I • 3. Micronesia Manpower Resources Corp. 4. NYK-Fil Ship Management, Inc. 5. Philippine Hanse Ship Agency, Inc. 6. Philippine Transmarine Carriers, Inc.

Congratulations to all thirteen awardees on their Agency Recognition achievement, on their demonstrated leadership in the recru itment of seabased personnel and on their role in the country's overseas employment programme.

Compliments of: Pandiman Philippines, Inc. MARITIME REGULATION Rising stowaway problems BY BJORN FLAM, vice president of Skuld Bergen

IN July 1999. the Maria Rosa arrived at Genoa by the owner's P&l Club. At with a general cargo from Tunisia. Local police Skuld, we have something ~potted eight Mowaways trying to escape from like 150 stowaway cases a trailer juM after it had been discharged. The each year, some of them police in si~ted that the Mowaways be placed involving many individuals. back on board the ship, although the ship was Although the number due to shift to dry dock in Genoa for routine of cases has not fluctuated maintenance. much, the cost per case is The stowaways were locked in two cabins "eadily rising, from $3,900 and three wmchrnen were hired. A~ the vessel in 1997 to $5.800 m 1998 was shifting under pilotgae. the 2n.~ Mate saw and $6,800 in I999 - a ri~c smoke coming from the cabin containing five of nearly 80% in two year;,. stowaways. The two guards were seen near However, 11 i~ not ju~t the cabin but had their mind on the other things. the question of money. One of them was talking on his mobile phone There are tmmediate while the other was having a smoke and practical problems-how are enjoying the view. Neither of them had the you to identify the key to the cabin. stowaways? What Evencually the key was found and the nationality are they? Willlhe cabin was opened. The smoke spread rapidly authorities allow them to up the stairway to the bridge, which then had disembark? Can guards be to be evacuated. Tugs were called and hired? The Clubs have built fortunately managed to reach the ve\sel quickly up a great deal of experience over the years in the trade of human beings. and manoeuvre her into berth. and are able to provide a great deal of practical Chinese triads are behind a growing It ~eems that the fire may have been assistance. One of the first priorities after operation that typically involves ~etting up started as a risky attempt to gain attention or finding stowaways should therefore be to false shipping company which ship sealed escape. If that was the plan, it went badly ensure that the Club is notified without delay. container in Hongkong or Mainland China. wrong. All five stowaways were found dead. Inside will be between 15 to 25 stowaways, This tragic and dramatic scenario auracted STOWAWAY BUSINESS usually from Fujian province. who will have much publicity in the media throughout p:ud an ud~ance ol around S 15,00 each. For Europe. Blamed was placed on the crew, who Nowhere ., tmmunc lrom the nsk of prcfcrcm:c: the contamcrs will be soft topped, was criticized for failing to take proper care of stowaways. but there are \Ome definite hot so the \towaways can cut their way out on the stowaways. No one pointed out that they spots The~e ~ay ;,omething about the nature arrival. Some are well c:quipped for their two­ were trained as seamen, not prison guards. The of the trade m stowaways - and sometimes week joun1ey with beds. food, water, toilets, police, who had refu~ed to accept responsibilil)' trade is very big business. radios and even mobile phones. Mo~t are not for the stowaways insisted on them being Firstly, Jet's look at the "traditional" so lucky and deaths occur. returned onboard, now showed a great deal of stOwaways. Africa remains the main problem Many have been found in the Long Beach, interest. The master was taken into custody area. There are some variations in the pattern, Seattle and Vancouver areas. Many are thought and, although the authorities have still not according to the positioning of refugee camps. to end up in the East Broadway area of completed their enquiries, the master still may civil unrest (such as that seen in Sierra Leone). Manhattan. In January this year, the US face charges for manslaughter. freedom of travel and drug traffic routes to authorities reported one consignment of 246 The surviving stowaways and the Europe. On the east coast, Tanzania, stowaways back in China where they await jail relatives of those who lots their li ves are MolUillbique, and Kenya are the main problem sentences. bringing claims against the shipowner. areas at the moment. while on the West coast. For those that avoid detection, Life is still the danger is spread from Nigeria all the way hard. They probably still have to find the P & I PERSPECTIVE up to Morocco. South Africa ha~ recently also remainder of their fare, which may be as much developed into problem area. However, the as $40,000 or $50,000. If they have problems The cost in some stowaway case~ can be ri~k for stowaways is something ship officers in paying, their families in China may well alarming. Recently, a well-known US operator should be conscious of in all Afncan port . suffer the consequences. It is hard business was asked how much the cost would be if five This is pretty much the traditional made even uglier by the use of stowaways as stowaways were found on one of the ships at a stowaway trade, with young men escaping couriers to smuggle drugs. US port. The answer was $20, 000 per from pOverty and dreaming of a better life in Australia and New Zealand also suffer the stowaway. If the stowaway seek asylum on the west. They make their own way alone or same organised smuggling from the Far East arriving in the US, the owners can cod up in mall groups. with no ouhide help and take countrie such as Vietnam. paying for support and security until the asylum their chances without much planning. It has application is processed. There have been ~omelhing in common with poor migrants from IMO GUIDELINES several cases where final bill presented to the Europe in the last century, who could not afford ship owner approached $400,000. In addition, the price of a $5 ticket to take them to America. The P&I Clubs have built up a great deal fmes may be 1mposed on the carrier. However, there are altogether different of expenence and information. They share data Many of the extra cost caused by the trades which ~pring up when unscrupulous which is now being channeled by the Clubs, presence of stowaways on board arc covered individuals sec thatlhcre is money to be earned SIMCO and the International Chamber of 14•March-Aprii2001 •Maritime Review MARITIME REGULATION

Shipping (ICS) to the International Marittme responsibilities ofthc various parties involved. Don't rely on shore guards. Tlluminate and Organisation (IMO). The problem is that these are only guidelines, watch shore gangs/stevedores. Consider issuing The IMO has recognized the problem they have no legal force. However, they do set identification (badges, passes, arm bands). of stowaways for a long ttme .. nd pa~sed a out a clear all ocation of responsibilities of the Watch during loading cargo. Seck and listen to Stowaway Convention as long ago :tS 1957. part1e .~ mvolved such as the Master, shipowner local advice. Do not advertise auractive The problem of stowawa)' I' an international or operator. the country of the first scheduled destination'>. one. The country in \\hic:h the stowaways port ofcall after di\covery of the stowaway, the Before \ailing do search thoroughly. embarked, where ther arc found. the \"essel' c:ounuy where the 'towaway embarked, the Place~ to watch are cargo areas. locJ...er,, crane flag state, the country of which they are country of which the 'towaway is (or claims to housing, bilges, lifeboat-.. funnel . among others. citizens. ma) .111 be in\"oh ·c:d. Thi be: ) a national. the \'C"er, flag state and Collect and count idenuficauon i"ued to international problem really need visi tors. international solution. The problem is that Container operations. Be aware of high­ ind1v1dual governments faced with The problem is that individual risk trades (especially Far East to U.SJCanadia11 stowaway;, on a boat in on their port' often governments faced with We~t Coast). Seck local information and lia"c have only one concern-to get rid ol them a-. stowaways on a boat in on their with local agent<, and terminal operator<:. Be soon as possible. Perhaps we should therefore ports often have only one careful about containers collected from/loaded not be surpri'ed that the 1957 Convention did in 1n.,ecure area~ . Be wary of unknown shippers not receive support and has never come into concern-to get rid of them as (If necessary. seek references and make force. soon as possible. enquiries). Pay particular attention to soft top However, IMO continues its efforts. conta111crs, Reefers wi th high temperature and With support from SIMCO and the watch out for containers arriving at the last International Chamber of Shipping, countri es of transit during repatriation. The minute. Check ~ea t s carefully. In vestigate stowaway cases are being reported, with 509 responsibilities of the first three are also differences in declared and acrual weights. Use cases recorded in1999, the latest year where diSCU\Sed here. whatever special aids arc available locally. figures are available. A >.urvey i' being carried During the voyage. Just after sailing, out of national laws as well a' the pracucal LOSS PREVENTION search again - it may be an option to return to ways in which different countries handle the disembark them if you've just left. Ensure problem. The aim is that another attempt will While in port. Be aware of high-risk ports regular patrols are made. Watch out for be made to introduce a convention. and and car~()(;' and plan ahead. In watchkeeping 1>uspicious signs like food missing, lifeboat, established common Mandards for port 1dcnttf) poss1hlc entry points such as gangway. Mores raided. noise. smells. security. anchor cham' & moonng hncs Iro m small boats Special aids that can be used are X-ray In the meantime, in 1997 the IMO or canoes. Lock-up! Close and locJ... door areas machines. Guard\ (don't automatically trust introduced guidelines, setting out the where access is not required. local secunty per,onnel ). dogs. CCTV, Heat (I) GOLDIE GITI( £N6IN££RIN6 AND CONSTRUCT/ION

HomerS. Guintu General Manager

3368 Harvard Street Pinagkaisahan, Makati City Tel. No. 882-0252 Fax No. 882-0239

Maritime Review•March-April 2001•15 MARITIME REGULATION seeking cameras, carbon dioxide, microphones. But the best protection is a diligent, motivated Be careful about containers collected and well-trained crew! from/loaded In insecure areas If you find stowaways, first priorities are to isolate/separate, search, confine, deal with urgent medical needs (e.g. if dehydrated). Afterwards, search the ships-pay particular attention to the areas where stowaways already found (docs & drugs). Notify the P&I Club or correspondents (it is important to get specialist help), owners, agents at port where embarked (this maybe relevant to establishing identity), agents at next port, authorities, check stowaway's documents. Treament of stowaways. Do not put to work. Provide adequate food and water. Be humane but not friendly. Do not use force unless necessary. Remember they maybe violent-take care. Remember- they may have drugs. Remember - making them too comfortable may lead to suspicion you are an accomplice; if they appear in a bad way, you may face allegations of mistreament. The Interview. A questionnare should be completed. (Contents can be provided by the Club). The stowaway should complete the questionnare himself- persist event if he claims welfare and safety of the stowaway until identification of the stowaway and the to be illiterate. Take a photograph- needed for embarkation. establishment of his or her nationality/ identification and travel documents. If possible The ship owner's responsibilities are to citizenship take fingerprints- these can be sent by e-mail ensure that the existence of, and any relevant 4) To assist, as necessary, in establishing as a very effective method of identifications. information on, the stowaway has been notified the validity and authenticity of a stowaway's Repeat the interview a few days later- see what to the appropriate authorities at the port of documents; changes. Remember they may be trying to embarkation, the next port of call and the flag 5) To give directions for the removal of build up asylum status, not just economic state. To comply with any removal directions the stowaway to port embarkation, country of refugees. made by the competent national authorities at nationality/citizenship or to some other country Once in port, make sure the P&l Club the port of disembarkation. to which lawful directions may be made, in correspondent is ready for your arrival. Co­ Responsibilities of the country of first co-operation with the ship owner and his operate with the authorities, ensure an extra scheduled port of call after discovery of the nominated representative; close guard is kept. Attitude of the authorities: stowaway (port of disembarkation) are: 6) In co-operation with the shipowner and generally they should help, accept the 1) To accept the stowaway for his representative to discuss repatriation or stowaways being landed. Do not always in examination in accordance with the national removal arrangements or directions with the practice - as the Italian case illustrates. master/shipowner or their appointed representatives, keeping them informed, as far IMO GUIDELINES Remember stowaways may as practicable, of the level of detention costs be trying to build up while keeping these to a minimum; The Ma~ter's responsibilities are to make every asylum status, not just 7) To consider mitigation of charges that might otherwise be applicable when effort to determine immediately the port of economic refugees. embarkation of the stowaway. To make every shipowners have co-operated with the control effort to establish the identity, including the authorities to the satisfaction of those nationality/citizenship of the stowaway. To laws of that country and, where the competent authorities in measures designed to prevent the prepare statement containing all information national authority considers that it would transportation of stowaways; relevant to the stowaway, in accordance with facilitate matters, to allow shipowner and his 8) To issue, if necessary, in the event that information specified in the standard document named representative and the competent or the stowaway has no identification and/or annexed to these Guidelines, for presentation appointed P&I Club correspondent to have travel documents, a document attesting to the to the appropriate authorities. To notify the access to the stowaway. circumstances of embarkation and arrival to existence of a stowaway and any relevant 2) To consider allowing disembarkation , enable the return of the stowaway either to his details to his shipowner and appropriate and provide, as necessary and in accordance country of origin, to the country of the port of authorities at the port of embarkation, the next with the national law, secure accommodation embarkation, or to any country to which lawful port of call and the flag state. Not to depart which may be at the expense of the shipowners directions can be made, by any means of from his planned voyage to seek the or agents where: (l) a case under 3.1 is transport; disembarkation of a stowaway to any country unresolved at the time of sailing, or (2) national 9) To hand over the letter to transport unless repatriation has been arranged with authorities are satisfied that arrangements have operator effecting the removal of the sufficient documentation and permission for been made and will be effected for the early stowaway; disembarkation or unless there are extenuating return or repatriation of the stowaway by other 10) To take proper account of the interest security or compassionate reasons. To ensure mean~ (which may be at the expense of the of. and unplications for, the shipowner or agent that the stowaway is presented to appropriate shipowner or agents), or (3) presence on board when directing detention and setting removal authorities at the next port of call in accordance would endanger the safe operation of the directions, so far as is consistent with the with their requirements. To take appropriate vessel; maintenance of control, its duties or obligations measures to ensure the security, general health, 3) To assist, as necessary, in the to the stowaway under the law. 16•March-April 2001 •Maritime Review CASE DIGEST RUBEN DEL ROSARIO Requirement to prove disability claims

AT issue before the 1:\'LRC is the kmd of illness contracted while m the performance being a notarized document. The denial evidence required to prove a cla1m for of hls duty. Ab-.ent the'e pertinent evidence made by the complainant of the validity of disability benefit!. under the POEA Standard there is no bam to a"'ard the claims the documents in the form of Affidavit of Contract. The NLRC held that claims for provided m the aforecited contract Denial is a weak form of defense. In compensation under the contract nrc to be provision". addition to said affidavit of denial, there established by substantial evidence, The 'eaman never presented a medical must be presented clear and convincing particularly, in the instant case, by u medical cenificate or report to prove his illness or evidence substantiating said denial. None report or certification issued by the company disability gradmg. In fact, he failed to was presented in this case. The complaint is designated physician who treated the seaman complete hi' treatment with the company­ therefore dismissed for lack of merit. of his injury or illness, or that the injured de~i~nated physician, which disqualified seaman is rendered disabled as a result of h1' him from receiving any benefit. Eugenio Aguviva, Jr. vs. Va r Orient injury or illness contracted while in the Further, the NLRC also held the hipping Agency and Great Marvel Marine performance of hls duty. Ab!.ent 'uch rcpon validity of"Rcceipt and Quitclaim" signed Co. Ltd., September 18, 2000. NLRC NCR or certification. there can be no cla1m for by the parties based on the principle of CA No. 023058-00 NLRC-NCR OFW (M) benefits. presumption of regularity of its execution 98-07-0791 Facts

Complainant was emp1c _:ed 115 a second engineer in the MV Bil( G. \\'hlle the vc"cl was in Shanghai. Chma and \\hile it was Charterer: No liability on coa being transferred to nother shipyard, the engine of the ve,,d 1; functioned While 0~ 19 December 1987, MT \t•cror. a between Marinduque and Oriental Mindoro. the complamant wa ~ repamng 11d '""~me, tramning motor tanker owned and operated All the crew members ofMV D01ia Paz died. he !.eriously injured hb left hand. by Vel: l r Shipping Corporauon, left Limay, Only 24 of an estimated 4,000 passengers, Complainant was hospitalized at Shanghai's Bataan at about !Hlc 1 ' enrnute to many of "'hom. were not in the passenger Seaman's Hospital and was later repatriated. Masbate, loaded with 8,800 barrels c manife,t. ~urvived after having been rescued ln the Philippines, seafarer was medically petroleum products owned and sh1pped by from the burning waters by vessel\ that attended at the expense of the manning Caltex Phippines Inc. under a charter party rcsp()nded to the di~tress calls. Among those agency. However, he failed to complete his contract between them. who peri~h cd were Sebastian Canezal, 47, required treatment wi th the company­ On 20 December 1987, at about 6:30 and his daughter, Corazon Canezal, II , both designated physician but all egedly a.m., the passenger ship MV Dona Paz, a unmanifested passengers but proved to be on completed his treatment in the province. He passenger and cargo vessel owned and board the vessel. later filed a complaint before the NLRC operated by Sulpicio Lines Inc, left the port On 22 March 1988, the board of marine seeking disability benefits, unpaid wages, ofTacloban headed for Manila with a inquiry in BMI Case No. 653-87 after and sickness benefits, damages and attorneys complement of 59 crew members and investigation found that the MT Vector, its fees. Labor Arbiter dismissed the complaint passengers totaling I ,493 as indicated in the registered operator Francisco Soriano, and its for lack of merit. Coast Guard Clearance. owner and actual operator Vector Shipping The main issue of the case before the At about 10:30 p.m of20 December Corporation, were at fault and responsible NLRC is the kind of evidence required 1987, the two vessels colhded in the open for the collision with MV Doiia Paz. proving a claim for disability under the sea within the vic1mty of Dumali Point POEA standard contract for seafarer. NLRC affirmed the decision of the Labor Arbiter and held that a disability claim under the POEA Standard Contract for seafarer must be proved by substantial evidence, particularly the certification issued by the company designated position. The NLRC held that: " It muM be emphasized, however, that although clearly stipulated in the aforccited contract (POEA approved Revised Standard Employment Contract Governing the Employment of Filipino Seafarers On Board Ocean-Going­ Vessels) claims for compensation under the contract are subject to be established by substantial evidence, particularly in the instant case, by a medical report or certification issued by a company-designated physician who treated the seamen, of hls injury or illness, categorically stating the recent status of the seaman's injury or illness, or that the injured seaman in (sic) rendered disabled as a result of h1' injury or Maritime Review•March-April 2001•17 MARINE INSURANCE - Panama begins to revert claims suit

A PANAMANIAN Jaw firm has persuaded where ships transit to trade and get to be Philippine government is in "solidarity" the Maritime Court of Panama to revert a arrested once a complaint is filed, Panama between the manning agent and the employer, claims suit to the Philippines that was filed finds no other cause to assume jurisdiction making the agent liable for the employers' by a Filipino seafarer against a foreign ship on the claims suit. actions to protect the Filipino crewmembers. owner, signaling the start of all other cases of Panama Maritime Court's declining to The latter may therefore bring their Filipino seamen pending before Panama to hear the case also follows a landmark claims against the local agent before the face the same fate. Panama Supreme Court decision last NLRC without the foreign ship owner being De Castro & Robles, the Panamanian December that recognised the validity of a summoned. it says quoting the Maritime Jaw fim1 that successfully persuaded to try release executed by a Filipino crewmember Court decision. and settle the claims suit before tile National or his heirs. The High Court ruling found the Moreover, the manning agents are Labour Relations Commission (NLRC) of release valid for the totality of the claim, and required to post a performance bond the Philippines, declined to identify the therefore no new claim can be brought in corresponding to the amount of the claims parties in the case. But it says the tirst of Panama. suit. If the bond is not sufficient, the award such case involves a suit against the vessel in "We were able to persuade the Court could be executed against the property of the rem for personal injuries suffered onboard. that the NLRC had been Created for the crewing agency and/or property of their Lawyers representing Filipino seafarers purpose of providing a speedy resolution to directors and partners who arc also liable had argued that tort claims from seafarers all claims by (Filipino) crewmcmbers against with the agency. fell outside the jurisdiction of the Philippines their employers," says De Castro & Robles. The Panama Maritime Court imposed despite having the contracts approved by the The law firm has argued that the some conditions before agreeing to transfer Philippine Overseas the case, to wit: that a time bar Employment Administration defense is not pursued; that (POEA). defendants appear voluntarily; Panama court has become and that the matter resolves on one of the most sought forums the merits. not on technicalities. in settling those claims from "The court will retain the Filipino crewmembers who bond posted in Panama, and if have suffered illness, injury or the conditions are not met, it will death on board because of the ' retake' jurisdiction of the matter amount involved which is and hear the case," according to usually five to ten times than the order. It stated that the the contractual benefits motions regarding 'forum non stipulated in the POEA conveniens' will be heard on a approved contract .. Other than "case to case" basis. the famous Panama Canal,

On February 13, Teresita Canezal and Caltex and Vector entered into a contract of convinced of its seaworthiness. Sotera A. Canezal, Sebastian Canezal's affreightment. A coa may be either a time MT Vector is a common carrier. In this wife and mother, respectively, tiled with the charter, wherein the leased vessel is leased to case, the charter party agreement did not Regional Trial Court, Branch 8, Manila, a the charterer for a tixed period of time, or convert the common carrier into a private complaint for "Damages Arising from voyage charter, wherein the ship is leased for carrier. The parties entered into a voyage Breach of Contract of Carriage" against a single voyage. In both cases, the charter­ charter, which retains the character of the Sulpicio Lines. Sulpicio Lines, in turn, party provides for the hire of the vessel only, vessel as a common carrier. Thus, the filed a third party complaint against either for a determinate period of time or for a carriers arc deemed to warrant impliedly the Francisco Soriano, Vector Shipping single or consecutive voyage. In both cases, seaworthiness of the ship. For a vessel to be Corporation and Caltex. it is the ship owner who will supply the ship's seaworthy, it must be adequately equipped On 15 September 1992, the trial court store, pay for the wages of the master of the for the voyage and manned with a sufficient rendered a decision dismissing the third crew, and defray the expenses for the number of competent officers and crew. The party complaint against Caltex. On appeal maintenance of the ship. If the charter is a failure of the common carrier (MT Vector) to to the Court of Appeals interposed by contract of affreightment, which leaves the maintain in seaworthy condition the vessel Sulpicio Lines on 15 April l997, The Court general owner in possession of the ship as involved in its contract of carriage is a clear of Appeals modified the trial court's ruling owner for the voyage, the rights and breach of its duty prescribed in Article 1755 and included Caltex as one of those liable responsibilities of ownership rest on the of the Civil Code. for damages. owner. The charterer is free from liability to In this petition for certiorari to the third persons in respect of the ship. Supreme Court, petitioner Caltex seeks to The charterer of a vessel has no Ruben T. Del Rosario is a managing reverse the Court of Appeals decision, obligation before transporting its cargo to panner ofDel Rosario & Del Rosario Law holding petitioner jointly liable with the ensure that the vessel it chartered complied Offices and of its PANDIPHIL Claims operator of MT Vector for damages. with all legal requirement~ The duty rest\ Depanment. He is former president ofthe upon the common carrier s1mply for bemg Maritime Law Association of the DECISION engaged in "pubhc ~en1ce". Clear!)'. as a Philippines and is an accredited maritime mere voyage charterer, Caltex had the right to arbitrator. Del Rosario is correspondelll The charterer has no liability for presume that the ship wa!) seaworthy as even ofseveral P & I Clubs. damages under Philippine maritime laws. the Philippine Coast Guard itself was 18•March-April 2001 •Maritime Review MARINE INSURANCE Implied warranty of seaworthiness Imelda A. Cerillo, partner of Del Rosario & Del Rosario, explains how the rule of vessel seaworthiness has always been attached to the assured of a marine insurance policy over cargo

SECTION 113 of the Insurance Code of the liable for the insured value of the lost shipment. insurance, and was required to look for a Philippines provtdes: "In every marine On appeal,the Court of Appeals absolved reliable common carrier that kept its vessels insurance upon a ship or freight, or upon the insurer of its liabmty after finding that there seaworthy. The cargo owner might have no anything which •., the subject of marine was a breach of the implied warranty of control over the vessel but he has full control insurance, a warranty is implied that the ship seaworthiness by the cargo owner-assured. in the choice of the common carrier that will is seaworthy." The appellate court said that the insured cargo transport his goods. In general, every voyage policy of marine was lost due to "perils of the ship" and not The Supreme Court commented that in insurance carries an implied warranty that the "perils of the sea." "Perils of the ship" was marine insurance cases, what was insured was ship is in all respects seaworthy, and such not a risk covered by the marine insurance perils of the sea which extended only to losses warranty can be excluded only by clear policy in issue. The Court of Appeals agreed caused by sea damage or by the violence of provisions of the policy. If the policy contains with the trial court and found that the Mable the clements, the purpose of marine insurance a waiver of this implied warramy. the matter I 0 was not seaworthy because she had a leak. was to protect against such contingencies and of seaworthiness cannot be raised by the inl.urer The Court of Appeals further found that one forseeable damages. In the present case, without showing concealment or misrepre­ of the hatches of the barge and as the barge however, the Supreme Court found that the sentation by the assured. In a voyage policy, was not provided with the necessary cover or cause of the loss was the unseaworthiness of the assured is the shipowner. tarpaulin. the ordmary splash of sea waves the ship, which was a peril of the ship. The brought more water tnside her. sinking the marine insurance policy in the present case did CARGO AS INSURED barge. not provide for coverage of perils of the ship. The cargo owner appealed to the Supreme Section 99 ( I) (a) state!. that goods. Court anainst the decbion of t 'le Court of Case 2 cargoes and merchandise arc included tn Appeab to ab~olve the in~urerofliability. They In a more recent case entitled The marine insurance. Where cargo is the subject contended the implied \.\ arranty of Philippine American General Insurance Co. of marine insurance, the implied warranty of seaworthiness in the Jn surancc Code applied Inc. l' Court ofA ppeals and Felman Shipping seaworthiness attaches to whosoever is only to the shipowner-assured who must see Lmes. 273 SCRA 262 ( 1997). the Supreme insuring the cargo. whether he be the shipowner to it that his barge was reasonably fit to Court again was asked to rule on whether the or not. The fact that the unseaworthiness of complete the voyage. As a mere user of the implied warranty of seaworthiness applies to the ship was unknown to the assured carrier's services, they contended that they had marine insurance over cargo. (particularly when the assured is not the no control over the barge and had no In this case, cargo owners loaded on board shipowner) is immaterial. This is because the knowledge of its unseaworthiness. the MV Asilda soft drink bottles to be Jaw provides for an implied warranty of The Supreme Court rejected the argument transported from Zamboanga City to Cebu seaworthiness in every ordinary marine of the cargo owner-assured. The Supreme City. The shipment was insured under a marine insurance policy. Thus, it becomes the Court ruled that the implied warranty of cargo insurance policy. The vessel left port in responsibility of the cargo owner-assured to seaworthiness in marine insurance attached to fine weather. She sank the following day look for a reliable common carrier that keeps whoever was insuring the cargo whether he is bringing down with her the entire cargo. its vessels in seaworthy condition. While the the shipowner or not. The Supreme Court The cargo owner-assured was able to cargo owner-assured may have no control over further said that the fact that the recover from its insurer who in tum filed suit the vessel, he nonetheless, has full control in unseaworthiness of the ship was unknown to against the carrier under the principle of the choice of the common carrier that will the insured was immaterial in ordinary marine subrogation. The insurer alleged that the transport his goods. insurance. It was held that the cargo owner sinking of the vessel was due to its had an obligation to comply with the implied unseaworthiness as she was put to sea in an Case 1 warranty of seaworthiness in a marine unstable condition. The case of Roque v. Intermediate Appellate Court, 139 SCRA 596, (Nov. 11, In marine Insurance cases, 1985) is the landmark case that put to rest any what was Insured was perils doubts on the binding effect of the implied of the sea which extended warranty of seaworthiness of the vessel in a only to losses caused policy of marine insurance where the property by sea damage or insured is cargo. by the violence In that case, a common carrier entered into of the elements a contract of carriage to load and carry on board the barge "Mable 10" about 422.18 cubic meters of logs from Malampaya Sound, Palawan to North Harbor, Manila. The cargo owners insured the logs. 811 pieces of logs were loaded. The shipment never reached its destination because the Mable 10 sank with the 811 pieces of logs. The assured-cargo owner tiled suit against the carrier and the insurer to recover the lost shipment and lost profits. The trial court held the carrier and the owner jointly and severally Maritime Review•March-April 2001•19 - MARINE INSURANCE

dismissed the appeal thereby the usual implied warranty of seaworthiness sustaining the finding of the clauses had been waived to wit: "the trial court that there was a seaworthiness of the vessel as between the breach of the implied Assured and the Underwriters is hereby warranty of seaworthiness by admitted." The Supreme Court said that this the cargo owner-assured. admission of seaworthiness by the insurer The basis for the finding might mean one or two things: (a) that the of the Court of Appeals of the warranty of seaworthiness was to be taken as unseaworthiness of the vessel fulfilled; or (b) that the risk of unseaworthiness was that improper distribution was assumed by the insurer. The insertion of or stowage of cargo had such waiver clauses in cargo policies was in caused the vessel to be in a recognition of the reality that cargo owners top-heavy condition which could not control the state of the vessel. Thus, rendered her unstable and it could be said that the insurer had accepted unseaworthy for that the risk of unseaworthiness by virtue of such a particular voyage. The Court categorical waiver. Accordingly, if the ship found that the vessel was should sink by reason of its unseaw01thiness, designed as a fishing vessel the insurer was liable to the assured, with a and was not designed to carry subrogated right of recovery against the tort a substantial amount or feasor, in this case, the carrier. The trial court ruled in favor of the carrier quantity of cargo on deck. Therefore, when In summary, the state of jurispmdence in on the finding that the vessel was seaworthy. she was laden with heavy cargo on deck, the the Philippines on the rule of the implied Moreover, the trial court opined that even weight of the deck cargo decreased the vessel\ warrant y of seaworthiness in a marine assuming the vessel was unseaworthy, there metacentric height and rendered her unstable insurance policy over cargo has not changed. was a breach of the implied warranty of and unseaworthy for the purpose of carrying The rule remains that the implied warranty of seaworthiness by the cargo owner-assured, the cargo. Therefore, there was a breach of seaworthiness attaches to the assured of a hence payment was mistakenly made by the the implied warranty of seaworthiness. marine insurance policy over cargo. However, insurer to the cargo owner-assured. The insurer The Supreme Court sustained the finding when the terms of the insurance policy include naturally appealed against the decision of the of the Court of Appeals that the vessel was an expressed waiver of that implied warranty, trial court. On appeal, the appellate court unseaworthy and held that there was breach of the insurance company assumes the risk of reversed the trial court's decision by finding the implied warranty of seaworthiness. unseaworthiness by virtue of such categorical that the vessel was unseaworthy. Notwith­ However, upon further review of the marine waiver. standing this finding, the Court of Appeals insurance policy, the Supreme Court found that

J!31!C"t1 ) PHILIPPINE INTERISLAND ..--.-.::;;- SHIPPING ASSOCIATION

PISA held 1\$ Annuel General Membership Mealing on 29 Mereh 2001 . The following were eleeted es the ,_ omc.r. and "*1\bera of 1M Board of Oirectors for 1M ~r 2001-2003:

Ms. Oor1s Megtaysay Ho • PrMident & Chit! Operating Officer Mr. Comellw C. Oe Guzman· General MineOer Prnldent/ Chalnnen Nlllonal Marine CClfi)Or8tlon Board Olrector e.tangas Bay Canlenl, Inc.

Ms. Josephine G. U111nn • PretlcMnt Mr. Berttnm C. Ten Chief OpQtlng Officer VP· Unera 0ome1tic: Sl'tlpownera Asaociltlon Boerd Olreetor Negroe Navigetion Co .. Inc.

Mr. Cello . R~ Presldent Ma. Alnes llbrodo Manager· Pricing & Y1eld Manegement VP· Llghtertge llghtertge Asaociltlon of the Board Otrector Wi.lam. Gdhong & Aboltiz Phils., Inc. Phillpplnn

Mr. Gerardo M. Sentos Chairman Mr. Lawrence N. leonlo VP· Spedallzed Can'l«t Phil. P.troleum See T111naport Board Otrector Aaaodatlon

Ms. Kaye B. lcwenzana OpQtiont ManaQ« capt Romeo L. Melog PreMid VP· Fall Ferry/ Auddor El Greco Jet F.,_, Inc a-dOnctor lorenzo Shopping Corpcntoon

Mr. ~uin C. Garcia, Jr.. AAtstant Operlljonl Manager Mr. Car1 F. Fontanilla Senior Vice President Corpcnte Sec

Mr. Qulftmon A. Tan, Jr. Genetal Manager Mr. Eduardo G. Ente President Tre.urer Solid Sl'tlpplng Lines, Inc. Board Otreetor Manila Marine Tredel'll Cen'l«t. Inc.

Mr. Edgardo G. lacson Membe<, Aavocacy Commiltee P.R.O. Phil. PIIIOieum Sea T111naport A.. .

The members apprOYed the recommend8tlon lo create an ExeoutJ';e Commiltee and the fo41owing were eleCted es members of 1M Elcecuti'ie Committee:

Ma. Oor1s Mags8yNy Ho • President & Chief Opereting Officer Mr. Cello L. Reyet President l'reslclnl Chalrm.n National Marine CClfPOI'Itlon VP- llghtertge Llghtenlge Assoclatlon of the Philippinn

Ms. Joeephlne G. Uranza • President Mr. Gerardo M. Senlos Chairman VP· linert Oomee1ic Shipownert AMOCietlon VP· Specialized Cerrlel'll Ph~ . Petroleum See TIIMj)Ort Asaoclation

Ma. Kaye B. Lorenzlne • Operetiont Manager VP· Fnt Ferry El Greco Jet Fern.., Inc.

The immecl;.te pest Chairman, Mr. Carlos A. B~fe, was eppointed AcM.or to the Boerd and lo 1M Preaident/ Chairmen In recognition of his lrMIIuable aeMce to the a..ocialion.

UNIT lt02 PEN'n!OUSI! CITYLANO 10 TOWEI'I1 ..11 H.V . 0E1.A COSTA IT!I.EET COil AY f4.A AVI. aALCEOO Vlu.AGI, IMKATI CITY PH4UI'PtNEI TEL. NO. 817-62$3; TELEFAX (~ 817-632.4 ~L: lllsaOovo..,.,..c:om 20•March·April 2001 • Maritime Review -- MARINE SAFETY Geared for amission SAR 002, the EDSA II

The Philippine Coast Guard presents its development program and deployment plan in the midst of threats confronting the country's maritime trade

THE Ph1hppme' j, an arclupelagic state lying food security. at the cro:Mo... d s of As1a and the Pacific. The Contemporaneous United Nations Convention on the Law of the developments such as Sea or UNCLOS, has expanded our ~ovcrcign economic globalization, waters to about nine times our land area. Our technological advances in province... . mun icipaliue:. and b.uanga)., share water tran~port, and the the bles~ in g' of our lengthy coa,tline' incre:hing demand for More than n million vessels trnver.e our ea trc~n,JXm and marine coastal water' and sea lane' \pprcximately resources m.. e ~i-.e pomt 98 per cent of domestic trade depends on sea to the 'leed for a more transport. credible coa't guard that The Philippines is 12'h in the world in is capable of upholding our nauonal marine Office of the President and subsequently issued terms of fish production. Sixty per cent of our policy. Executive Order No. 477 on April 15, 1998 protein requirement comes from fi~h and other trnnsferring the Coast Guard to the Department aquatic resources. The fishing industry HISTORY of Transportation and Communication likewise provides many of our countrymen (OOTC) their means of livelihood. The constitution Wnh these as a background. we want to mandates the state to protect our vast marine proceed and relate about the humble begmning MISSION, FUNCTION wealth and to reserve its use for the Filipino of the coa\1 guard ~0 ~e can sec ~here we were AND ORGANIZATION people. before. where we are now and where we want Given these bountiful bles\ings, however. to be The mission of the Coast Guard is "to our country has to contend with a host of <;orne time m 190 I. the Bureau of Coast promote safety of life and property at sea: maritime threats. Gu trd and Transportation was created under safeguard the marine environment and The Philippines lie' m ~h at ''called the the American occupancy pursuant to Philippine resources; enforce all applicable maritime law\ typhoon alley of the ~ o rl d, ~h 1\;h makes our Commission Act No. 266. Initially, it was and undertake other acti vi tie~ in support of the country vulnerable to manume accidents as placed under the Department of Commerce DOTC Mission." indicated by the following statistics in year with mission to administer shipping and To accomplish the mis~ion, the coast 2000. promote sea safety. In 1905, it was renamed guard, with an authorized manpower of 3,986 Our marine environment is also prone to the Bureau of Navigation pursuant to personnel, seeks to improve its performance oil spills. Destructive methods of fishing such Philippine Commission Act No. 147. in five functional areas, namely: Maritime as dynamite and cyanide fi~hing are being In 1945. the Bureau of Navigation was Safety Administration wherein our goal is to wantonly perpetrated in our water-.. Coral abolished by virtue of the Philippine prevent or substantially reduce the loss of lives destruction, if not effectively addre,sed, will CommtsNMon Act o. 2308 wtth ns function and property at sea by ensuring seaworthiness continue to destabilize the marine ecological divided between the Bureau of Public workl. of ve ~\els and their compliance to safety balance. and the Bureau of Customs. regulatory standards, and maintaining aids to Compounding this is the rapid depletion The advent of industrialization and navigation, among others; Maritime Search and of mangrove forest, which serves as spawning accelerated influx of maritime trade in the Rescue wherein our objective is to be able to habitat for various species. Foreign fishing country called for the creation of Maritime effectively monitor distress signals and respond boats continue to encroach and feast in our Safety Agency. Hence. in October 10, 1967, to maritime accidents and disasters waters. congress passed and enacted into law Republic immediately afterdistres<, notification; Marine Various maritime law infringements Act 5173, creating the Philippine Coast Guard. Environmental Protection which seeks to deprive our country of substantial revenues and The PCG was placed under the Philippine eliminate environmental damage and natural hamper the growth of our local industries. Navy as one of its major units. The lighthouse resources degradation by preventing or Piracy in the high seas can putt he country service was also placed under the PCG. containing the discharge of oil, toxic in great humiliation if such crime can go scot Through the years, it was evident that the substances, garbage and non-biodegradable free in our own waters. By conservative PCG was organizationally misplaced under the materials into our waters; Maritime Law estimate. our country stands to lose more than Department of National Defense. Its Enforcement whereby the coast guard acts as PhP25 billion annually if these concerns or profe~sional and capability development as a a deputized agency to other government issues are not effectively addressed. This maritime safety organization was hard to come m"rumentalities in containing the flow of estimate is exclusive of unquantified caused under an establishment where the obviouo, illegal drugs, a l ien~. and contraband, by marine pollution, piracy, and drug thrust and priority is military. Time and again, suppressing illegal fishing, and enforcing all trafficking, among others. the need to separate and professionalize the other applicable maritime laws; and Maritime The Philippine Coast Guard strongly coaM guard has brought so many initiatives and Operation which is virtually the conduct of promotes the government Flagship Programs discusi>ions. So, on March 30,1998, then security operations in imports, harbors and vital particularly in the areas of economic President Fidel V. Ramos signed Executive waterways on one hand and the development development, environmental protection, and Order No. 475 transferring the PCG to the of community relations thru the involvemen1 Maritime Review•March-April 200 1•21 MARINE SAFETY ·-- of volunteers in the coast guard auxiliary and are ready for sea while other three are acquisition until year 20 I 0. The acquisition non-government organizations in the conducting repairs. Just added to this inventory plan also includes one hundred 182 units of 6- humanitarian undertakings of the coast guard, is the second of two 56-m Osprey class search 8-mr harbor rescue and patrol craft, which will on the other. and rescue vessel from Australia. These two greatly enhance the coast guard's in-shore The Coast Guard is organized into 10 coast SAR vessels (SAR 001 and SAR 002) have the capability. 1\vo multi-purpose ocean tugs and guard districts, which serve as the primary same special features- a helipad to 10 MAPOUATN vessels are also needed. The operating units. Fifty-two coast guard stations accommodate comfortably, a B-1 05 type phasing out of the six relatively very old coast serve as the districts' principal working arms. helicopter, it has a decompression chamber, a guard vessels will commence this year. Under the coast guard stations are 181 survivor area that can accommodate up to 400 The PCG capability development detachments. survivors and an Astern Ramp with five rescue likewise calls for a strong air component, which The operating units include Coast boats. Except for the two new SAR vessels is relevant to coast guard maritime operations Guard Operating Forces which operates, and one buoy tender, the other ships are in providing support and response capability. trains, equips, and maintains coast guard relatively very old, only 17 of 36 small craft A total of 24 aircraft are projected for surface, air and subsurface assets; Aids to and two of four aircraft are operational. acquisition within the period of I 5 years Navigation Command which develops, On-going projects include the various commencing 2001 that includes six fixed-wing establishes, operates and maintains maritime maritime safety improvement projects and maritime patrol aircraft, eight fixed- wing aids to Navigation for the promotion of safety policies being formulated toward the multi-role amphibious aircraft, one fixed-wing of life at sea; Marine Environmental designation of sea-lanes as shipping routes, and training aircraft, eight multi-role helicopters, Protection Command which prevents and the ships reporting system. and one training helicopter. investigates pollution of the sea, rivers and tributaries. ACQUISITION PLAN DEPLOYMENT PLAN The other units of the PCG include the Coast Guard Training Cemer which conducts To be responsive to the needs of the The objective of vessel deployment plan individual training and education to provide maritime community, the PCG formulated its is to stregically position vessels at the different uniformed and civilian personnel with the capability development plan that is based on coast guard districts, stations and detachments knowledge, skills and aptitude essential to the thorough study of both national and based on the density of maritime traf fie. accomplishment of the mission; Coast Guard international maritime environment and the The three 80-125-m vessels will be Support Facility which provides logistics, provisions of the national marine policy. Under strategically deployed in Northern Luzon, Palawan, and Southeastern Mindanao. Ten 55-65-m multi-role response vessels shall be deployed in the coast guards districts. The 35-45m multi-role response vessels will be di ~ tributed to all stations. The same d1stnbution applies to the 15-25-m vessels. All coast guard detachments shall have the 6-8 meter harbor rescue craft for use in minor maritime incidents within the harbor area. They will also be utilized for maritime law. Enforcement operations particularly against illegal fishing activities will be done within the municipal waters. The PCG has also planned for 10 MARPOL and aids to navigation vessels to be deployed to the districts. The ocean tugs, on the other hand shall be deployed where its service will be most needed. On human resource development, the PCG plans to expand the current PCG personnel strength to 9,177 in the long term. administrative and other support services to the this framework, the following are the This requires additional training facility to Command, Coast Guard Investigation and capabilities to be developed; the development/ provide the recruits with the necessary Imelligence Force which conducts intelligence strategy has the following components or training. and security operations and assist in the pillars. The PCG being a technical service conduct of maritime investigations and Coast Our 15-year material acquisition and requires specialized competent and skilled Guard Finance Center which administers the deployment plan is comprised of the personnel. Enlisted men on the other hand pay and allowances of personnel and various powwowing basic elements. will be required to undertake the essential claims of creditors. The PCG needs to develop an integrated courses. forces structure so that capability will be linked Indeed organization and development has STATUS OF AIR AND to mission accomplishment. This can be to be dynamic for the Coast guard to be FLOATING ASSETS achieved by acquiring a balanced mix of multi­ responsive to the ever-changing needs of the role response force compromising a fleet of maritime community. The 15-year Sad to say, the PCG today has very vessels supported by air assets. development plan is a key to the realization of meager capability to address the challenges, From 200 1 up to 2005, the plan is to our vision. Then and only then can we really opportunities, uncertainties and risks in the acquire three 80-125-meter multi-role response move onward and be able to attain our thrust, maritime environment. At present, PCG has vessels to compliment SAR 00 I and SAR 002. which we see fit for the time being to only nine vessels comprised of four lighthouse Fifty-two 35-45-m multi-role response vessels reasonably carry out the coast guard mandate tenders, two patrol gunboats and three search and likewise another set of 15-25 meter multi­ in maldng our ships safer and the glass cleaner and rescue vessels. Of the nine vessels, six role response vessels are planned for in support to the country's national interest. 22•March-April 2001 •Maritime Review LEX MARITIMA PRS: Class society as a symbol of sovereignty

BY ATTY. VERGEL DE DIOS

The PRS is governed by a Board of shipping companies and their ships. Trustees, the composition of which is fairly The success of PRS as the firM and on ly representative of the cross-section of the accredited national classification society is maritime community, to wit: the technical now in danger of being jeopardized. Other professionals consiMing of naval architects, local cla\sification societies have been marine engineers, mechanical engineers, fonned and organized and arc being THE Philippine Register of Shipping (PRS) maritime lawyers, marine underwriters, accredited by MARINA to compete with is what Lloyd's Register of Shipping is for shipbuilder:. and shiprepairers, shipowners, PRS. the United Kingdom, the Amcncan Bureau and the government through the MARINA Whatever happened to the policy of of Shipping for the United States, Bureau and Philippine Coast Guard (PCG). having only one national classification Veritas for France, Nippon Kaiji Kyokai for In 1992, PRS was accredited by the society similar to that of other states? Thus, Japan, etc. Each state, which consider!. itself PCG as a classification society for the no Mtlte in the world has more than one a maritime country, has its own national domestic fleet and a Load line A<,signing national classification society. The reason classification society. Authority in 1994. It " also accredited to therefore i'> very obvious- classificati on of As an archipelagic country that do MARPOL 'urvcy for 011 pollution ve" els ,., a function of safety and safety depends on sea transport to connect 11\ more prevention. When the safety regulatory cnnnot be compromised. Once competitors than 7,000 islands, the Ph1hppincs is functions were tran~fcrrcd to :V1ARI NA in do 'uccumb to the pressures of shipowners certainly a maritime country and has to have \;ovcmbcr 1994. the latter continued to 10 cut on costs, this may lead to disastrous its own national classification ~oc•ety. In the recognize PRS. Through vartous circulars consequences! context of the development of national governing merchant marines of developing countries, importation of the establishment of a national classification vessels, MARINA society is a matter of sentiment regarded as has required a sy mbol of sovereignty, just like the right classification of to a maritime flag. vessels as a pre­ SIUD SIIPPIIIliiES CIIPIIIIIII This is the reason why in 1975, the requisite to nAMINAl omcE MAIN OHICE NAIIOTASCYICTS (;) PIER I , HQIITH IIAAIOR 411 $Nj FEANAHOO ST 42HOIITH8AY 80UI.EVAAO government through the Maritime Industry obtaining a CPC/ TONDO, w.N1.A II'IONOO, MANilA -"'t FCLI.Cl CAt- Authority (MARINA) proposed a project PA. Ttl Nos 24$<0$1$ .. ., Til Nol 2<1·tlll tel Hoi lt2 1114 called "Establishment of a Philippine PRS is still r-. No 24$-)(12J r-. No 242-2174 r., No 2n 7JII Classification Society". Somehow. for lack young compared to of adequate support, it did not push through. it~ foreign Reali7ing that government rccogmuon " counterpart, but crucial to the establishment and conunued smce ns formal patronage of a Philippine claNfication JauncJ Ill)< 111 1991, PORTS OF CALL DEPARTURE society, industry leaders thought that the the PRS has proven MANJLA best way to initiate such a project is to itself worthy of a MANILA TO OAVAO Every Tuesday, legislate it~ creation before its eventual true classification (3 X weekly di rect service) Thursday & spin-off into a private classification society. society. The Saturday Thus, in 1987, the Senate, introducing MARINA has 10:00 P.M a bill creating a Maritime Industry granted a Commission, included a provision for the substantial number MAN ILA TO GEN SANTOS Every Tuesday & Maritime Safety Office to serve as the of authorities to (2 X weekly direct servu:e) Friday nucleu\ of the cla~sification society that will operate on the basis to·OO PM ~pi n- off into a private classification society. of class certi ficatcs The bill provided for a two-year transition issued by the PRS. MAN ILA TO CAGAYAN OE ORO Every Wednesday & period within such the government would In its desire to (2 X weekly dtrecl serv1ee) Sa1uday train the nucleus team, through foreign­ continually improve 10:00 P.M. assisted training grants, in preparation for the quality of the I the jobs they would a!.sume in the private service, the PRS classification society. has applied for and Realizing the slow legislative grind, was awarded ISO Namts of Vtsstls: the private sector, through the initiative of a 9001certificate last group of naval architects and marine March 2000. PRS is Solid Ace Solid Lin'k Solid Sky engineers, went ahead in 1989 with the currently gearing Solid Bay Solid Moon Solid Star incorporation of a non-stock, non-profit itself to become a Solid Gold Solid Pearl Solid Sun classification society called the Philippine certifying body for Solid Jade Register of Shipping (PRS). ISM Code compliance by Maritime Review•March·April 2001•23 - LABOR In absence of government help

Ruth G. Mercado tells how NGOs and Church apostolate most nautical cadets unprepared to tackle are taking the lead in the cause of seafarers' welfare the initiation of life at sea. Over the years, there is little sign that seafarers are concerned, much less aware, NON-GOVERNMENT organizations and services, dormitories, training centers, e­ that this culture of silence is hurting the church-based apostolate are responding to mail or communication centers, family industry and themselves real bad. Time and the needs and plight of seafarers where centers, recreation centers and commercial again, they have spied dark clouds, gale government is remiss or just plain centers. lt could be used as a one· stop· shop wi nds and swell s at sea, but they are indifferent. The phenomenon is Gonic as it for all seafarers." unable to adapt to a survival instinct of is insulting. Incongruous as it is Ideally it ~ ho uld have been that way grappling with loneliness, of lighting a preposterous. Yet while government enjoys long ago. Apparently the maritime industry lonely battle with deprived foreign exchange earnings from dollar has been quite lethargic, preferring to move companionships, of exposing exploitation remittances of seafarers constituting a big in an easy, drifting pace that not even a and of keeping up with the tall demands of share in the maintenance of the country's draft of a comprehensive program for the job. dollar reserves, they are stoical over the seafarers has been made. Surprisingly, it is This same culture of silence has seafarers' social, emotional and economic only now that focused approaches at dented yawning fissures among family well-being. In contrast, non-government addressing the issues of seafarers has been members of seafarers that those who are organizations and apostolate, who don't done with the formation of a Maritime unable to cope with emotional trauma stand to gain anything, not even financially, Party. A baby step yes, but rather actually find their families fractured for from seafarers are the ones working on procrastinated and delayed. good. Doriot illustrated a classic scenario. social programs aimed at genuine humane When a seafarer departs and is far from his growth for seafarers' and their families'. DEFYING THE CODE family for several months, he expects The other incongruity is that OF SILENCE warmth and the genuine feel of being welcomed back when he returns. To a Observes seafarer, there is nothing like the Santiago, "Church pasalubong of a safe return and renewed groups like the compani onships. Apostleship of the Instead the first thing his wife or Sea would always be sweetheart would greet him is looking for responsive to the the "pasalubong," It is as if himself and the plight of seafarers safety of hi s return are not as important as becau~e this is their presents from travel. Companionship binds mission. On the marriages and relationships and if after he other hand. returns even that is lost. the pasalubong government will ultimately won't mean anything. Dorio!, always pay lip who has counseled several seafarers service because they families, underscored, "it is usually on the may or may not have return that the crisis begins." the resources to Breaking the culture of silence entails support seafarers or counseling- something that non­ that these are government organi zations and church­ political decisions based apostolate have responded to with affected by several admirable tenacity - and venues to share government, while saying they are proud factors. If only the seafarers are organized their ideas and experiences no matter how that Filipino seafarers are among those in the truest sense of self-help association casual. Forums such as newsletters like the nationals preferred by foreign principals, by honest seafarer leaders, then we can Apostleship of the Sea, published by the does not have a government-run Seaman's hope that their welfare would be better Stella Maris Seaman's Center are all part Center to speak of. Disgraceful and handled by the seafarers themselves." of the solution. So far, no one is saying humiliating even, the Philippines is one of Self-help may seem the best help, there will be easy resolutions, but optimists the few countries in the world that does not sure. However, an intrinsic ethos in the hope to put up a Maritime Party and an have its own Seaman's Center. Says industry may be its biggest stumbling international Seaman's Center to bring the Maritime Party national chair Leo Santiago block. Stella Maris Seaman's Center port seafarer's issue to the limelight. in an online interview, "OWWA has chaplain Fr. Roland Dorio! calls this the In coming close to home, Santiago attempted to provide a seaman's house and "code of silence." A seafarer for almost 22 sounded off a more down-to-earth and center but it is not comparable to those years, Doriot found that seafarers are urgent call to seafarers asking them to available overseas. Government has been generally alienated from their jobs. "help themselves or the sector to empower remiss of its duty to local and overseas Adventures of voyages may sound itself. Urged Santiago, "it is easy to say seafarers, something that speaks for itself." romantic to those who have not taken to we need unity. Sad to say, the seafarers are Asked what he thinks an ideal life at sea, but seafarers hardly talk about the most di sunited sector in this part of the Seaman's Center should be, Santiago said, these adventures at all. They seldom talk world. For the sake of seafarers, let us "I am espousing for the establishment of a about their failures and successes and this unite and empower ourselves." Finally, Center where all the amenities wi ll be absence of sharing among experienced that should be the kickoff we have been housed. These include: ecumenical seafarers and apprentice mates has caught watching for all these years. 24•March-Aprii2001 •Maritime Review LEAGUE UPDATE League's new members sworn in A NEW batch of member\ of the Maritime PHILMAR, Pioneer ln,urJnce & Surety Trajano, commander-operating forces: Capt. League has sworn in during the recent joint Corp .• BIS Manila, Inc. and Smith Bell & Co. Rosendo C. Roque, commander-Finance. fellowship between the League and the Inc. were the companies that recently join m Cdr. Desiderio G. Yupano, pres.llead Philippine Coast Guard (PCG) held at the the list of the League's corporate membership. audi tor of Quality & Safety Management latter's headquarters on Febmary 28. PCG officers include Com mo. Danilo A Sy,tem' jointed as regular member while The new members. include II officers Abinoja, chief of staff. district commander­ Chief En gr. Christopher P. Muambong, pres. from the PCG, s1x mdividuallife members, Batangas; Commo. Herby F. Escutin, district ol Brilltant Seas Shipping wa~ sworn as an four corporate. one regular and assoc iate commander-Cebu; Commo. Domingo T. as,oclate member of the League. member. The s1x individual members are Atty. Estero. acting deputy commandant; Capt. J\1\o, Engr. Alfredo V. Gomez. pre,.­ Eliodoro Cmz, vice president and general Isidro P. Banaria, assistant director-project Aibatro\s Foundation Academy, son of the manager of Pier 8 Arrastre & Stevedoring management office PCG-DOTC; Capt. late Capt. Arturo G. Gomez and Mr. James T. lnc.; Usee. Crisostomo F. Abanes; Wil-Mar Emesto S. Caballero, support command; Capt. Pahati, pres.-Philsin Marine Technology A. Agaloos, police senior superintcndent-PNP Reynaldo D. Generillo, superintendent, Coll eges Foundation, son of the late En gr. maritime group; Capt. Octavio S. Maloles, Training Center; Capt. Antonio C. Lalisan, Benjamin A. Pahati received their certificate Chairman & Pres.-O.S. Maloles TI Real acting commander-Operation; Capt. Noel D. of life membership. Pursuant to the League's Estate: Capt. Eutiquio R. Reyes. Jr .• vice pres. Monte. project manager. PCG-DOTC; Capt. by-laws life membef\hip is transferrable for academic affairs-PMMS; and Mr. Clifford Elpidio B. Padama. commander-Maritime once and only once to a 'uf\i\ing spouse or M. Compa,, vice pres. for Operations-PMMS. Environmental Command; Capt. Reynaldo ch1ld

Transport and Communications Undersecretary Agustin Bengzon (extreme right) administers the oath [I') e,~~!i!;!~,! ~2~u~ ~~ u tk7~-

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26•March-Aprii2001 •Maritime Review ~ MAILBOAT Why the need for maritime party IMO should receive In 1998, we established a Manume Party to are wre .. eats for our representatives in the Review promote the well being of milhons of Fihp1no congress. We would probably need 300,000 to seafarers, their families and their counterpart'> 500,000 vote\ per \eat. Never belittle the power Thank you very much for providing the in the maritime sector. Why a 'eafarer-.' party of our would-be Party representatives as they Embassy with cop1es of The Maritime Review, in Congress? would advance the security of our jobs, the thepublication of the Maritime League. The Do you recall how many times our development of our industry, protection and Embassy refer!> to this publication for seafarer<; were humbled and taken for granted well-being of our worker<;, and that of their information on the Philippine shipping by our pohucos and bureaucrats? Seafarers, families. industry especially in aid of its representation much like the OFWs, have been living in We, of the Maritime Party, pledge you in the International Maritime Organization. It abnormal life on board ships. Wor<;e, on land, the~e and exhort you and your families and looks forward to receiving the succeeding they get a roundabout ride in this bureaucracy friends to get more votes. Together, let's ensure editions of The Maritime Rev1ew. that welcomes their billion dollar remittance that the votes of our Maritime Party are In the meantime, the Embassy suggests but ignores their plight. counted Remember, don't fail to write that the previous and succeeding editions of While 600,000 Pinoy seafarers can face Manume Party or '1mply Maritime in your The Maritime Review be furnished the Library up to the challenges of the seas, they are no ballots thi'> May 14. 2001 elections. Section of the International Maritime match to the challenges of bad politics For more information. please call or Organization, which has a section on without a strong party. Thus, the birth of the contact: MARITIME PARTY, Room 303, VIC publication'> by individual Member countries. Maritime Party through joint efforts of mostl y Bldg .. UN Avenue comer San Marcelino St., I noticed recently that there are no maritime mariners and allied professionals. Only if we Ermita, Manila; telefax: 526-0006, 338-4836 publications from the Philipppines in the IMO succeed in empowering ourselves can we hope or ccllphone 0919-318-0992 email: "leo j. Library. The Maritime Leaque may wish to to better our standing and our welfare in this santiago"

The family of the late Capt. Arturo G Glad to be aboard Gomez would like to express its sincerest thanks and appreciation for your sympathy and I am honored to be a member of the Ambassador Encomienda is given much condolence. Maritime League and will surely do my share of his time toward improving the DFA 's -Alfredo V Gomez to establish the League as the country's premier capability to administer our maritime maritime organi zation, and meet the goals for commitments as wtll as contribute in Mr. Alfredo Gomez has received the Ufe which it was established. developing the country's maritime Membership of the late Capt Gomez in -Alberto A Encomienda resources. As the Board of Trustees accordance with the By-Laws Secretary Genera, indicate, he is certainly a welcome addition - ed. Center for Marine and Ocean Affairs to the League. We need more members like Department of Foreign Affairs him - ed. Maritime Review•March-April 2001•27 - MARITIME ISSUES CARLOS L. AGUSTIN Is seamen's center needed? FORUM Host Leo J Santiago of the Traders navy sailors usc if there are no navy transient land-ba\ed workers, which was turned Maritime Forum has the following note on the facilities located nearby. When I was enroute down. If seafarers are not satisfied with the topic "Sui lding International Seamen's Center: reporting to the US Naval Academy at OWWA facilities, docs this mean that Issues and Implications" during its 9th March Annapolis in 1956, the Navy Air Transport perhaps the proposal should be revived, and 2001 breakfa~t forum at the Traders' Hotel. Coordinating Officer at the Federal Building OWWA should support a separate seamen's While the Philippine~ has continued to introduced me to the YMCA in downtown center? be the biggest supplier of seafarers San Franci co. where I stayed for three days With the premise and statements worldwide (read: Pinoy seafarers roaming to wait for a MATS flight from Travis AFB highlighted by the Forum Host. it would variou' ports overseas). the Philippine' also to Baltimore. seem that neuher OWWA. the United continue' to be remiss of its duty-to its own Here in Manila. the United Seamen's Seamen's Center and the various agencie' eafarers and that of other countries. Report~ Service Inc. of New York. a non-\tock, non­ whtch established their own Centers, such as had it that while there is not even one that profit charitable corporation organized in the AMOS UP, ha' not been widely remotely resembles an international State of New York, opcrJte\ a Seamen's disseminating their capabilities. seamen's center here in Manila or elsewhere. Center near the Philippine Nattonal Red Upon receiving the notice for the TMF To correct this anomaly, a church-based Cross headquarters in Port Area. This Center meeting, I thought that the Traders Maritime group is pushing for a seaman's center in the was run previously by Scandinavian Forum may well come out with a proper most convenient and accessible place in the countries (Denmark. Sweden and Norway) resolution to address this beneficial aspect of city - the Ri1.al Park or near it. The project is but turned over to the United Seamen's supporting our present-day heroes. The getting a lot of foreign support but not many Service after the buildmg burned down in proponent, Fr Sabino Bernardi came well support from the Philippine,· maritime and 1986, when the Scandinavians decided to prepared, together with a complete position government sectors yet. Is there really a need abandon the place. paper on "The Need for an International and for such seamen\ center? The lease of the property from the Ecumenical Seafarers' Center in Manila." The answer to the above can be both in Philippine Ports Authority is explicit as to its The meeting turned out to be full of support the affirmative and the negati ve. First of all, however, the premise of this exercise that "there is not even one that remotely resembles an international seamen's center here in Manila or elsewhere" is not entirely correct. Since many seafarers come from the provinces, it has been worthwhtle havtn • a facility to administer to the1r need,. However. because of the inherent nature of our seafare~ recruiting system. wh1ch I'> almost unique to this country. many agcnc1es have een fit to provide facilities for their own seamen. One of the largest Seamen':, Centers in Manila is that operated and administered for its members by the AMOS UP right at lntramuros. It would be interesting to sec the reaction and a report, if possible, from Capt Gregorio Oca on the status of their Center, which appears well organized and running quite smoothly. purpose: to operate "a Seafarer's Center to for the proposal, with some suggestions on Years ago we had occasion to do a pro\ ide ""holcsomc facihtlcs and recreatton unpro\ ing the dmft "resolution" prepared by seafarer's mission to Tokyo. Japan. Together to 'eamen and port fl\!I">Onnel of all Fr Bernardt. with Secretary Leonardo Quisumbing and nationalities." Perhaps it i-. high time to revtve the officials of POEA, OWWA, the Maritime The Overseas Worl\ers Welfare propo,al to remo\e the seafarers from Training Council, AMOSUP and DOLE, we Administration wa orgamzed several years OWWA and place them under a separate conducted a meeting at the Seamen's Center ago to address the needs of our overseas fund, since the contribution of seafarers to of the All Japan Seamen's Union in Tokyo, workers. Seafarers arc part of this group, and the economy " much more pronounced in whose facilities were quite excellent. From do contribute a lot. After the EDSA I spite of their lesser number, in terms of this point of view, it therefore appears that Revolution, OWWA acquired a faltering warm bod1es. than the overseas workers. the AMOS UP approach is a well-founded hotel in Pasay City and refurbished it as an Likcwl'e. l sugge~ ted that the sites to look at and correct one. OWWA Center. Its size and extent will dwarf should be either at lntrJmuros facing the In the United States. seamen avail of most seamen's centers in any country (the Luneta (stnce the seafarers seem prone to Centers organized by the religious. mostly biggest one I've een was in Odessa. in the asl\ forT. M. Kalaw Street) or the South Catholic priests (there were many eamcn of Ukraine, which wa.., part of a venue for an Harbor area. The lease for the United Irish, Polish, Greek, French and German international!MO-organi7cd and UNDP/ Seamcns' Service Center should be looked nationalitie~. and in those days majority USSR-supported seminar on maritime safety at abo. overall were Catholics). Also in many US and pollution prevention). There was an This could certainly be something that cities, they have Young Men's Christian effort before in splitting the contribution and the Maritime Party can look at, if the Party A~s ociation (YMCA) hostels, which even support mechanism between seafarers and gets off the ground.

28•March-April 2001 •Maritime Review ,_ ..

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