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VOLUME XII NO.6 ISSN 1908-0972
PHP120
DECEMBER 2017
PANAMA SPECIAL EDITION
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As Parallel Event in Panama IMO CELEBRATES WORLD MARITIME DAY
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On the Guinnes Book of Record THE LARGEST SHIP REGISTRY
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NATIONAL DAY IN MANILA
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PANAMA SIGNS MAJOR PACT WITH CHINA
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Historic Moments “PATH BETWEEN THE SEAS”
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Content
ABOUT THE COVER An ambassador promotes his country in a win-win framework with the host nation. H.E. Rolando A.Guevara Photo by: Ruby Baltar Layout by: Jhon Henson Ong
Alvarado is an iconic example, tying Panama’s strenght with the merits of the Philippines.
EDITORIAL BOARD Publisher
Lyn Bacani
Editorial Consultant
Creative Director
B. Cortes Lagac
Content Critique
Legal Counsel
Commo. Dante Jimenez
Eva Tan
Jhon Henson Ong
Atty. Manuel Obedoza Jr.
News and Feature Writers Coca H. Strobar
Ligaya Caban
Contributors Ms. Merle San Pedro
RAdm. Adonis Donato
Atty. Cristina Beltran
International Contributors
F R Chowdhury
Mark Millar
Richard Teo
Special Project Manager
Visayas Correspondent
Photographers
Production Assistants
Gel Miranda
Joamirica Tud Kevin Garcia
Boy Ilano
Ruby Baltar Joana Marie Tud
EDITORIAL OFFICE Tel. / Fax (632) 521-3633 Mobile (63) 906-491-2777
1732 Modesto St., Malate, Manila, Philippines marinoworldpublication@gmail.com
Published by Bacani & Associates Media Services Co. (BASMS) www.marino-world.com
Publisher Note
TWINING OF TWO NATIONS Geographical formation million of years ago were reversed between Panama and the Philippines. Land bridges formed in Panama to connect two continents while the Philippines lost land that connects to continental Asia. Yet, geography connects now these tropical nations: the Canal and vessels of Panama with the great seafarers of archipelagic Philippines. And the déjà vu of history, culture and aspirations will but twine the two today and the future. Before the colonialists, both are already users of metal and soil, proven by the pottery at Monagrillo (2500-1700 BC) and the monolithic sculptures at Barriles (Chiriqui); similarly, by gold burial masks and potteries and ancient rock writings at Piit, Majayjay, Laguna. Rodrigo de Bastidas first explored the isthmus in 1501, Ferdinand Magellan “discovered” the islands the Chinese calls Liu Sung. Vasco Nunez de Balboa hacked control just as Miguel Lopez de Legazpi did. Santa Maria la Antigua del Darien was founded like the Ever Loyal City of Cebu. Spain stayed for 300 years, Panama administered via Columbia, the Philippines via Mexico. But Spain never gained total control. Dutch and English pirates attacked settlements, with Cimarrones (freed slaves) and Indios de Guerra (native rebels) puncturing the Crown. Muslims of Mindanao, Dagohoy of Bohol and Tarik of Pampanga, and
pirates, kept Guardia Civiles busy. The First Cry for independence was Grito de las Villas delos Santos, like Andres Bonifacio’s Unang Sigaw sa Pugad Lawin. Political challenges frustrated rising public expectations, forcing people to the streets. Cruzada Civilista resulted to 600 injured and 600 arrested by the “Dobermans” of the military. The Philippine parallel, Edsa People Power, was nerve-wracking but relatively bloodless. Cruzada and Edsa were led by loyalists who turned-coats, Col. Jose Pedro Antonio de Fabregas delas Cuevas; in Manila, the tandem of Minister Juan Ponce-Enrile and Gen. Fidel V. Ramos. Panama and the Philippines are unitary presidential Constitutional republics governed by elected key officials at the Executive, Legislative with a Judiciary. Behind the facade of freedom is the commercially-oriented oligarchy and multinationals of advanced economies. Both won defining victories on sovereignty against the United States, Panama on the Canal and the Philippines on Clark Air Base. Yet, both are still chained by foreign money even on what both claim as national achievements. For one, their economies crank on the US dollar, with Panama balboa just in coins and the peso in local markets. Culture brings the two instant rapport, Panama of sizzling Latino and the
Philippines of romantic Castillian. Ah, basketball! Panama leads with players at US-NBA and Harlem Globe Trotter. Well, Gilas-Manila is king of Southeast Asia hoop. In boxing, Panama has the legendary Hands-of-Stone Roberto Duran, holder of four world championships just as the idolized Manny Pacquiao, even elected Philippine senator. Tri-linguals, multi-culture and multiethnic as the Ngabe, Kuna, Embere, Bugle, Wounaan, Naso Tjerdi and Bri Bri so with the Tasaday, Maranaw, Badjao, Tausug, Bontoc, Igorot, Benguet and Dumagat plus over 80 more. As Millennials would put it, Panama and the Philippines are BFF, best friend forever. The Canal and the Registry and Filipino seafarers are mutually complimentary. As Panama develops mining and services, the Philippines has experts and experience with her globally-distributed overseas workers (OFWs) and resident migrants. All told, the twining of Panama and the Philippines is not just economic aspirations. It is a lesson for mankind on leveling up values. Small and exploited, the two are slowly inching on the world stage by maximizing what they have, regardless of the past and in spite of the current. Viva, Panama! Mabuhay, Pilipinas!
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H.E. Juan Carlos Varela Rodríguez
AS PARALLEL EVENT IN PANAMA
IMO CELEBRATES WORLD MARITIME DAY by Coca H. Strobar
Panama hosted the International Maritime Organization’s World Maritime Day Parallel Event, October 1-3 in Panama City. Major personalities graced the double event, like Panama President Juan Carlos Varela, IMO Secretary-General Kitack Lim, Panama Minister of Maritime Affairs Jorge Barakat. There were representatives from 172 States, of the international maritime world, several Ministers and Maritime Authorities of Asia, Africa, Europe and America. President Varela says, “Panama is proud to celebrate the Parallel World Maritime
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Day Event of the International Maritime Organization (IMO) in the framework of the festivities for the 100th anniversary of (Panama’s) International Ship Registry.” He adds, “We have joined efforts to consolidate our nation as a maritime logistics country, creating a service platform that integrates different government plans, programs and dialogues in coordination with the private sector…” The Administrator. Minister Barakat detailed the importance “… of maritime transport in achieving
‘free trade flow’, taking into account that maritime transport accounts for approximately 80% of world trade; hence the international decisions and regulations that are issued in this matter, have a direct impact on how much of the goods are distributed throughout the world, through ships, for the benefit of the final recipients… Precisely all the threats that affect this industry represent a danger for the very subsistence of humanity; therefore, Panama pays attention to problems such as pollution of the marine environment, climate change, global warming, acidification of the oceans
and increasing its level, which must be treated with priority.”
areas to protect them and help governments protect world maritime trade.
The minister also underscored Panama as a world leader in flagging and aware of this, actively supports projects such as GloMEEP, known by its acronym in English, whose objective is ‘to support the adoption and application of energy efficiency measures for shipping’, one of the 10 countries that make up the pilot project and whose participation has been recognized by IMO Sec-Gen Kitack Lim.
Optimum and efficient port infrastructure, the development and strengthening of intermodal connections and nation-wide connections can boost and support the growing economy by promoting the maritime service. Here in Panama, I see that they are especially aware of this, of the benefits that investment in maritime infrastructure can bring to a country. “
The Secretry-General. Mr. Lim emphasized IMO’s commitment in helping achieve the goals of the Sustainable Development Goals, “Maritime transport and ports can play an important role in helping to create conditions for increasing prosperity and stability through the promotion of maritime trade. Our motto of this year: ‘Connecting Ships, Ports and People’, emphasizes that the port and maritime sectors can be wealth creators both on land and at sea” He continues, “For that trade to flow effectively, connections between ports, ships and people must be secure. IMO also helps Member States to improve maritime security by focusing on what civilian sectors can do in both maritime and port
IMO Sec-Gen Kitack Lim
Vina Del Mar. Mr. Luis Alberto Arroz, Sec-Gen of the Latin American Agreement of Viña del Mar, announced the Viña del Mar Agreement will hold the XXIV Meeting of the Committee and IX Meeting of Administrators of Information Centers and Technical Working Groups, “as we have the presence of Member States, who collaborate with the different Maritime Authorities, in order to coordinate effective supervision of foreign vessels visiting the ports of the region, in compliance with the current international agreements on safety and the environment.” Parallel event. Opening day was light and casual, essentially glad-handing, how-are-you, and the Panama Centenary Cup, a golf tournament.
International Chamber of Shipping - Improvements that Ship Registries could introduce to the regulatory process applicable to international shipping •
Mr. Lawrence Barchue, Director of the Department for Member State Audit and Implementation Support - IMO – IMO Challenges on the implementation of global standards against national or regional regulations
Presentations were moderated by Mrs. Jazmina Rovi, Morgan & Morgan- Panama The theme for Session 2 is “Focus on Port Activities” with: •
Mr. Ashok Mahapatra, Director of Maritime Safety Division of the IMO – Port Challenges to comply with new FAL Convention amendments and standards
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Mr. Santiago Garcia Mila, President – IAPH – Analysis of the global port system
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Mr. Jan Hoffmann, Chief, Trade Logistics Branch – UNCTAD – Measures that can be introduced to facilitate further shipment of goods
Moderator was Mr. Carlos Urriola, President of SSA International.
Monday, October 2, starts the serious business with Session 1, “The Role of the Flag States in the Development of the Maritime Industry.” Major speakers were:
Speakers in Session 3 were: •
Mrs. Mayte Medina, Chairman Sub-Committee on Human Element, Training and Watchkeeping (HTW)IMO - Implementation of the Manila 2010 amendments
• Mr. Tomas M. Avila, Secretary General of the Panama Maritime Authority - The Role of the Flag States in the Development of the Maritime Industry
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Mrs. Kimberly Karlshoej, Head of Trust, ITF Seafarers’ Trust - How to improve quality of seafarers’ life on board ships
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MARINA Administrator Amaro – see separate story in this issue.
• Rear Admiral John Nadeau, Assistant Commandant for Prevention Policy, US Coast Guard - The Role of the Port State • Mr. Peter Hinchliffe, Secretary General,
Moderator: Mrs. Katy Ware, Representative of UK to the IMO and Director of Safety, MCA who also facilitated the Q&A. A gala dinner (by invitation only) followed at the Central Hotel Panama, Casco Viejo. In the morning of the final day, featured speakers were:
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IMO CELEBRATES WORLD MARITIME DAY
Part of the High Delegation to the World Maritime Parallel Event.
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Mr. Jorge Quijano, Panama Canal Authority Administrator – The Expansion of the Panama Canal and the Green Route Mr. Jeffrey Lantz, Director of Commercial Regulations and Standards U.S. Coast Guard, Chairman for the IMO’s Council.
Thereafter, moderators of Sessions 1, 2 and 3 recapped the essentials of the
Passing Flag to Polish Transport Minister Marek Grobarczky, host for the 2018 World Maritime Day.
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proceedings. A closing remark was given by Mr. Kitack Lim, Secretary General of IMO. He awarded a trophy to Panama for hosting the event. The IMO Sec-Gen also handed the ceremonial Flag to the representative of Poland where the next venue will be. The acceptance was followed by the final remarks of Mr. Jorge Barakat Pitty, Minister of Maritime Affairs.
Participants were toured to Colon City in casual gear provided in the welcome kit. They were treated to lunch at the Arab Club, then to the Panama Canal Visitor Center at Agua Clara. On return to Panama City, cocktails reception was held at Hard Rock Hotel to close the event.
H. E. Juan Carlos Varela Rodriguez takes pride on maritime achievements of Panama, the yeoman job led by Minister of Maritime Affairs Jorge Barakat Pitty
PANAMA MARITIME AUTHORITY by Coca H. Strobar
Autoridad Maritima de Panama (AMP) is a pivotal agency headed by Administrator Jorge Barakat Pitty. Often, AMP is the face the world sees as maritime is second nature to this tropical republic. The synergy of her Shipping Registry (world’s largest) with her Expanded Canal (world’s biggest) spawns unlimited business that world investors and services are lining up to explore and exploit. Administrator Barakat is multitasking to answer multifarious duties on his plate. For one, hosting two major events: •
World Maritime Day in parallel with the 100th Year of The Shipping Registry
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Agreement of Vina del Mar, the Meeting of the Committee of Latin American Agreement in the Control of Ships by Port States.
Framework of action is a Five-Year Plan, parts of the whole package already operational: on-line platforms, technical certifications, registration procedures,
vessels monitoring and publications. In 2015, President Juan Carlos Varela visited Antwerp, Belgium, and saw the potential for increased cooperation with the Port of Antwerp. A year later, Administrator Barakat followed through, signing a MoU with Port Authority Chairman Marc Van Peel and CEO Eddy Bryuninckx. Year 2016 was frenetic on international initiatives: •
March, signing with Egyptian Transport Minister Saad elGeyoushi cooperation on maritime affairs, with exchange of technical delegations;
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June, with Turkish Transport Minister Ahmet Arslan on maritime trade, safety and security and opening a SEGUMAR office in Istanbul; andJuly, meeting with IMO Sec-Gen Kitack Lim to advise on Panama’s compliance of SOLAS amendments, among other concerns.
On the domestic front, a long-time dream may come true: a cruise port on the Pacific side of the Expanded Canal just as Colon serves the Caribbean side. Plans are serious on Perico Island, off Amador Causeway, the project budgeted at US$5.6-million completed in six months. To assuage client confidence, there is continuous and meticulous audits of Recognized Organizations (ROs) and Recognized Security Organizations (RSOs), cleansing off the list any not at par with Panama’s stringent standard. These sustain Administrator Barakat’s firm belief that “Training is key element” to back up Panama’s refutation of excellence as a flag State. With such team on Barakat’s leadership, President Juan Carlos Varela beams with pride and optimism, “Now more than ever, the world will find in Panama a strategic partner to do business and expand their horizons taking advantages of our main resources…”
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Administrator Marcial Quirico C. Amaro III
LEADS THE FUTURE TODAY by Coca H. Strobar
The Philippine Experience reflects a country’s navigation on maritime challenges and opportunities, a charter that synergizes private and public resources to compete on the world maritime market, volatile and on downspin today but tremendously promising as it was, as it is; more so, as it will be. These are in the power-point presentation by Maritime Industry Authority Administrator Marcial Quirico C. Amaro III at Session 3 (Challenges Concerning Seafarers) of the International Maritime Organization (IMO) World Maritime Day Parallel Event at the Megapolis Convention Center, Panama City, last October 2nd. The context is how seafarers cope up with the challenges of increasing regulations by Port State laws and international Conventions, Codes and treaties. Reference. The Philippine archipelago is about 7,641 islands, land of 298,170 square kilometers (115,831 square miles). Its 36,289 kilometers (22,549 miles) of coastline is fifth longest in the world. Latest total of Filipino seafarers is 695,742, both traditional and the hospitality sectors, about 17% of the world’s merchant marine officers and 35% of ratings. Traditional Filipino seafarers come from maritime higher educational institutions, senior high schools and bridging programs; non-traditional, from universities and colleges, maritime training centers, senior high school. From January to July, 2017, they remitted US$3,344,956,000 and S$ 5,578,000,000 (2016), both about 11% of national budget.
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Challenges. We seek three goals: Ship, system and human capital all fit for purpose. Global regulations impact on four major areas: internal audit, certification, port state inspection and vetting. The Integrated Management System implementation has five focus: Safety (ISM Code), Security (ISPS Code), Health (Occupational Safety and Health OHSAS 18000), Environment (MARPOL, ISO 14001), and Quality (ISO 9001) or simply, SSHEQ. On top, four Soft Skills are expected on health consciousness, self management, interpersonal skills and communication skills. Six direct challenges to seafarers are PSC (port state control) different interpretation of the rules, STCW COCs and COPs issuances, ECDIS, SOLAS Amendments, Ballast Water Convention, and MARPOL Amendments. Barriers are seen on disruptive technologies like maritime cyber security and emerging business models. Coupled with growing global maritime regulations, these are the negative effects on Filipino seafarers: •
Isolation and difficulty of seafarers to avail themselves of shore leave;
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Reduced time to join families after contract as they will have to complete other training requirements;
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Added financial burden for training or competency upgrading;
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Reduction of crew size because of shipboard technology;
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Criminalization of seafarers for
unintentional violation of environment laws; •
Increased administrative work to comply with Conventions;
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Attrition of Filipino marine officers in favor of land-based employment.
Yet, the burden is easier should compliance be a shared responsibility between the Flag administration, shipping company and the seafarers. For the Philippines, planning is seeing the future today --- the smartest of interventions. This is concretize by the 10-Year Maritime Industry Development Program released 01 June 2017 at SMX Convention Center over 700 shareholders of the Philippine maritime industry. The 10-Year program aims to: •
Provide a general framework and execution plan with corresponding budgetary requirements for the industry development program and beyond.
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Build, support and create opportunities for a collaboration between government and industry stakeholders in the formulation of short, medium and long term plans.
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Detail the commitments of different government offices involved.
Manpower developments are expected in ship building, repair and recycling, fishing and leisure, offshore, domestic and overseas shipping. For all the legalese and technicalities, Administrator Amaro seems to envision a pragmatic reality: A Happy Ship Is A Safe Ship.
Dr. Joseph Bien C. Abesamis with Secretary General Kitack Lim and Mrs. Jung Ae Do
IMHA AT IMO WORLD EVENT Dr. Joseph Abesamis has been tasked by the Intl Maritime Health Association (IMHA) to attend the 2017 World Maritime day 2017 at the IMO headquarters in London, England. This was last September 28th with a personal invitation from IMO Sec-Gen Kitack Lim and Mrs. Jung Ae Do. IMHA Director Abesamis rubs shoulders at the event with Ambassadors, Navy
generals and other UN and NGO representatives from around the world as they jointly work on the theme, “Connecting Ships, Ports and People” for a stronger contribution to the objectives of IMO. Sec-Gen Lim believes this “will help member states to develop and implement maritime strategies that address a wide range of issues, including
the facilitation of maritime transport, and increasing efficiency, navigational safety, protection of the marine environment and maritime security.” Dr. Abesamis feels IMHA should take part to contribute and work hand-inhand with IMO and other NGOs like ISWAN, ITF TK Foundations for the welfare and health of global seafarers.
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(L to R) Lic. Tomas Avila, Secretary General of Panama Maritime Authority; Lic. Fernando Solorzano, Director General of Merchant Marine; Natalia Ramirez Valero, Guinness executive; H.E. Jorge Barakat Pitty, Minister of Maritime Affairs; Lic. Alejandro Agustin Moreno, Deputy Administrator of AMP and Lic. Magdalena Carrera, Director General of Seafarers.
ON THE GUINNESS BOOK OF RECORD
THE LARGEST SHIP REGISTRY IN THE WORLD by Ligaya Caban
A small, barely-born tropical nation away from the hub of industry, that’s the reality. To exist is the charity; to survive, the behemoth challenge much like the warring nations in Eastern Europe and failed states in Africa. To even expect to lead is folly, given she has no inventory of market basics. But her mix of people and policy is the pivotal unknown --- so timely on events, so pragmatic on needs. Still, it’s miraculous: Panama leading the world in ship registry!
As if to crown Panama on the First Centenary of her Ship Registry, the coveted Guinness Book of Record declared it as “The Largest Ship Registry in the World.” Formalities on this honor was done at Casa Amarilla of the Presidential Palace of Panama. Maritime Affairs Minister Jorge Barakat Pitty received the recognition declaring, “It is of great pride for all Panamanians” as he acknowledges the leadership of President Juan Carlos Varela Rodriguez. The Guinness Book is arguably the largest, circulated in over 100 countries and translated in 23 languages as of latest count.
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The Registry has over 8,000 vessels registered, about 18% of the world’s fleet, administered by a team of 2,000 local collaborators complemented by some 200 inspectors worldwide. The industry generates over $1,000- million guaranteed by mortgage from about one million ship transactions. Average age of Panama flagged fleet is nine years. Panama was re-elected as Category “A” of the IMO List of ten most powerful maritime countries: China, Japan, Italy, Greece, South Korea, Russia, UK, Norway, USA and Panama. ________________________________ Slow but sure. Under the presidency of Ramon Valdes, Law 63 of December 15, 1917 created the “Ship Registry,” Chapter One provides for nationalization of ships. Owners are issued patente (license) after proving nationality that subjects them to Panama laws. By then, she enrolled merely short sea vessels, flagged a puny fleet of small national boats. The Registry was timely with war clouds forming between Axis and Allied powers. Both alliances may conveniently employ diplomatic niceties when their vessels are flagged to other Sovereign States
(therefore, leaving room to deny or demand as interests dictate). The first registration of foreign interest is the Marjorie, 40-tonne, three masts and three sails powered by Wolverine motors owned by investors from Balboa and sold to Americans of Cuban ancestry. By August, 1919, Canada’s Zafiro was Panama flagged as Belen Quezada; US’ Pacific Freighters followed in 1922 as the first group with seven vessels. United American Lines registered two, The Reliance and The Resolute. Law 54 of December 11, 1926 mandated any Panama flagged vessel shall be seized when engaged in piracy, smuggling or deals with nations at war with Panama. The law encouraged owners, United Fruit registered 13 in 1929. Norwegian whale catcher ships were Panama flagged in the 1930s; Standard Oil of New Jersey (ESSO) registering 25 tankers from its Baltic subsidiary in 1935. Earlier in 1932, Mount Athos was the first Greek ship registered by M. Kulunkundis in London. In Buenos Aires, Aristotle Onassis registered in 1938 his Onassi Penelope and Onassi Socratis. By 1939, Lloyd’s Register Book of Shipping says Panama fleet at 159, with 717,625 gt.
Demands mount. The Mossad (underground arm of Haganah) transports refugees from the Black Sea and Adriatic ports to Palestine aboard Panama-flagged Greek ships. Maritime lawyers in Panama and New York have started pointing advantages of being Panama-flagged. By September, war broke out in Europe. The US revised its Neutrality Act and transferred 63 to Panama out of 267 registered to foreign flags. By 1945, over 150 Panamanian vessels were sunk or captured, about 1,500 crew lives lost. After WWII in 1946, US sold 1,113 Liberty Ships to foreign flagged companies. Greeks like Onassis, Niarchos and Kulunkundis bought in, formed corporations in Panama where the ships were registered. Pivotal policies. In 1948, a conference in Geneva formed the Inter-Governmental Maritime Consultative Organization (IMCO). By 1958, it came into force and Panama joined by December. By 1982, the name changed to International Maritime Organization (IMO), an agency of the United Nations on maritime concerns. Panama passed Law 40 in 1956 allowing provisional registration of titles, mortgages and cancellations thereof in Panamanian consulates. A year later, special Public Registry Auxiliary Books were sent to main Consulates to implement Law 40. Lloyd’s records the upswing of the Panamanian Ship Registry: 1965, 692 vessels at 4.25 million gt; 1968, 798 ships at 5.09 million gt; 1970, 886 vessels at 5.64 million gt. In 1973, the National Assembly passed two laws, viz: •
Law 11, (January 25) adding Article 3 on Law 8 of 1925 on bareboat charter registration of foreign vessels; and
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Law 83 (September 20) establishing the Double Registration System which allows enrolment of foreign chartered ships, to which a patente for special navigation is issued.
Lloyd’s Register figures on Panama’s Registry zoomed in 1975 at 2,418 vessels,
13.66 mgt; in 1978 at 3,640 ships, 20.74 mgt. The influential Panama Maritime Law Association was formed in 1979; in January 17, 1980, the Directorate General of Consular and Maritime Affairs to oversee registrations, safety, seafarer accreditation and income from the consulates. More than chance. Much is admired of Panama’s success. But her forward-looking policies may unfairly be considered just marketing techniques. Lloyd’s Register declared Panama as early as 1993 as the world’s largest merchant marine in number of ships and tonnage. There is much labor in the achievement, so much depth and street-smarts demanded, from industry protocols to business competitiveness. Firstly, Panama gives serious attention to international conventions by ratifying instead of the usual procrastination of member states. Like in 1975, she ratified three Conventions: Law 16 on oil pollution casualty (INTERVENTION), Law 20 on load lines (LL), Law 18 against dumping waste. In 1977, two Conventions: Law 6 on tonnage and measurement of ships (TONNAGE), Law 7 on safety of life at sea (SOLAS). Consistently, in 1981 against marine pollution (MARPOL) and Law 4 of May 15 on the very important STCW (operational seamanship), to 1996 with Law 38 on law of the sea (UNCLOS III).
doable even in consular offices. Law 36 of July 13, 1995 offered the first incentives to owners registering ships in Panama. It gave multi-tiered discounts dependent on age, type, size and number of vessels. Law 57of 2013 allows as much as 50% discount on fees, to lapse 2015 but extended to December, 2017. Resolution 106-113DGMM of 16 November 2015 allows 50% discount on e-ship that has demonstrated its Efficiency Energy Design Index (EEDI), acknowledging owners’ investment in reducing carbon emission footprint. The next century. The Registry is on its first centenary from Law 63 of 1917 reforming the fiscal code, yet with only three definitive: 1) Register in the Republic, 2) Secure a patente of nationality, 3) Navigate with the Panama flag. Little known is Law 32 of February 26, 1927 has laid the cornerstone based on corporate laws of Delaware, USA. Panama made it clearer and simpler, particularly waiving off territorial tax, allowing meaningful discounts vis-à-vis performance and market forces, cutting red tapes to ease the tailspin of the industry, offering incentives to visionaries of e-ships and newbuilts.
It was also in 1977 that SEGUMAR was established as a technical office for The Registry, inaugurating an office in New York (See separate article on SEGUMAR elsewhere in this issue).
Panama first led in 1993 with 5,564 ships, pegging 6,184 vessels in 2000. Arguably, Panama will always be the world’s largest in ship registry, exacted in 1993, repeated in 2000, expected to similarly trend by simple logarithm that the larger the base, the greater the increase. In 2016, The Registry has 8,136 vessels totaling 222.1 mgt.
In December 2008, The Registry passed the IMO voluntary audit confirming it had no breaches of international conventions nor codes. IMO auditors verified and confirmed Panama’s flying colors with 12 Conventions, 15 Codes, 135 mandatory Resolutions of IMO.
In direct income, The Registry pulled in $160-million for Panama; with some $250-million indirectly to the national economy. Five nations contribute some 75.8%: Japan-46.2%, Greece-11.2%, South Korea-7.5%, China-6.6% and Taiwan-4.3%.
By 2011, the Paris MoU uplifted Panama to the “White List” (even already in the White List of IMO-STCW as early as 2005).
The Registry has leveraged on the Canal, bisecting but unifying the country in opportunities and growth. But being the largest is less meaningful than giving the best of her people to the world --- in turn, leveling up with better infras, services, education and quality of life for the nation.
Secondly, Panama keeps pulse with the global industry, to anticipate needs and ply towards a win-win situation. The Registry offered the Double Registration System,
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Portion of Expanded Canal
DRIVING FORCE OF PROGRESS
PANAMA CANAL AUTHORITY by Ligaya Caban
Canal de Panama (acronym ACP comes from the original Spanish name) is an autonomous public entity headed by Administrator Jorge L. Quijano. Almost, Panama Canal is the story of the nation --- so tiny, even ignored --- yet, vigorously grows with guts and gumption as the global leader in her chosen field: merchant maritime. Inception. Charles V of Spain showed interest in the 16th century for a passage that connects the Pacific with the Atlantic. By the 19th century, the idea resurfaced in Europe due to the trans-isthmian railroad built by the US in 1855 and Ferdinand de Lessepes completed the Suez Canal in 1869. A French naval engineer, Lt. Lucien Napoleon Bonaparte Wyse, got a concession from Columbia but sold it back to Lessepes. Compagnie Universelle du Canal Interoceanic (CUCI) started work with Lessepes. But costs and diseases in the area frustrated the effort. As a proactive move by US on world war murmurs, its Congress authorized in 1902 to
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build the Canal. In 1903, US bought CUCI for $40-million and gave Panama $10-million for the concession. Leaps and bound. The Panama Canal Company, a USgovernment agency, engaged the US Army Corps with 60,000 laborers from West Indies and Caribbean islands. It took 10 years and $387-million, completed ahead of schedule, below the budget. John F. Stevens and Col. George W. Goethals are credited for the engineering modern wonder of the world. By 1968, an average 65 ships cross within a day. The US Navy hydrofoil Pegasus made it in two hours 41 minutes on June 22, 1979. The bulk carrier Fortune Plum was the millionth to cross on September 4, 2010. On August 15, 1914, the US steamer Ancon was the first to transit at Gaillard Cut (now Culebra Cut), the narrowest point of the new Canal. There were so few spectators, mass media focused on war drums in Europe.
At the June 26, 2016, inauguration of the Panama Canal Expansion, 5,000 were at Agua Clara lock, 30,000 at Cocoli lock. Andronikos won the lottery to be the first to transit, renamed Cosco Shipping Panama (9,443 teu, 48.26 mtr wide, 299.98 mtr length). The Lycaste Peace of NYK Line made the first commercial transit; Neopanamax Hanjin Xiamen, the 100th to ply the new lock. Panama President Juan Carlos Varela, considered most maritime-oriented, was head-high, quoted the event is “(N)ot partisan but a national achievement of all Panamanians.� And with basis. The Expansion was completed by 36,000 Panamanians with only 4,000 other nationals from 79 countries. The Panama Canal now connects 144 routes, reaching 1,700 ports in 160 Port States to service global demands of the 21st century and beyond. Another dimension. The Canal is an indispensable business facility. But more, it now takes equal importance on environmental concerns.
Tourists at Visitor Center in Agua Clara
In a century, it has reduced 650-million tonnes of carbon dioxide (CO2). The Expansion may reduce 160-m tonnes CO2 in ten years. ACP continues with the “Green Connection Award”, an initiative to recognize excellent environmental stewardship and reduction of greenhouse gas emission. The first awardee last July 25th is Shell-chartered Marian Gas Apolonia plying from the US Gulf coast.
This is in tandem with major discounts on fees when qualified on Energy Efficiency Design Index (EEDI) and Environmental Ship Index (ESI), both based on nitrous oxides emitted and CO2 emission reduced, too, by using liquefied natural gas (LNG). Strike the iron. Recovery of the world economy is sluggish but shifting to Asia. President Varela points “our most precious
commodity (is) our geographic position (which) will consolidate Panama’s role in global maritime trade.” On top are excellent business infras like her air hub, telecommunications, financial and legal services, ports, solid economy and democratic stability, with clear rules to international investors --- great opportunities offered by the Expanded Panama Canal.
Panama flagged: “K” Line’s pure car carrier
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H.E. Guevara Alvarado with Cambodia Ambassador Tuot Panha and DFA ASec. Ma. Andrelita Austria.
PANAMA NATIONAL DAY IN MANILA by Ligaya Caban
November is arguably Panama’s most important month with four events celebrated: on the 3rd, independence from Colombia; on the 4th, Flag Day; on the 10th, the “first cry” of independence from Spain and on the 28th, full independence from Spain. 2017 is more special, marking the centenary of the Panamanian Ship Registry, the largest in the world. Earlier in October, Panama was festive on this, hosting maritime stakeholders and international organizations. In Manila last November 16th, Panama Ambassador to the Philippines, H.E. Rolando A. Guevara Alvarado, led the twin celebrations of 114th Independence Anniversary and the Ship Registry Centennial at the Luzon & Visayas Ballroom of the Sofitel Philippine Plaza Manila, Pasay City. The glittering ballroom was filled with the diplomatic corps, government officials, Panamanians in the country and executives of shipping and maritime companies. Ambassador Guevara opened by congratulating the Philippine government in the successful hosting of the 2017 ASEAN Summits, as well as its Armed Forces for restoring peace and order in Marawi City.
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Ties that bind. The Ambassador noted maritime is the strongest tie between Panama and the Philippines. He cited particular strengths, the Panamanian Ship Registry as world largest, Filipino seafarers as the largest crew on Panama-flagged vessels. He recalled the Memorandum of Agreement between MARINAPhilippines and the Panama Maritime Authority (AMP) as the latest in the maritime relations of the two countries, signed last July at the inauguration of the expanded Panama Canal. In his words, “The shipping industry has become by far the strongest area in which both countries have focused their mutual efforts – providing the world shipping community the best service possible in terms of vessel registration under Panama flag and the development of the well-known Filipino seafarers.” The Ambassador announced AMP’s opening of a SEGUMAR office in Manila where the Consulate General directly prints seaman’s books. He quipped in Pilipino, “Dito na kayó sa Maynilà!” meaning they can be served in Manila rather than going else where in Asia. Abstract. H.E. Rolando A. Guevara Alvarado
acknowledged U/Sec Amelita Austria of the Foreign Affairs of the Philippines and H.E. Tuot Panha, Ambassador of the Kingdom of Cambodia and vice dean of the diplomatic corps here. He explained November is Panama’s Independence month where they dress in red, blue and white as in the colors of the national flag. He notes in 1973, Panama established diplomatic relations with the Philippines. Over the years, ties have grown stronger in diplomacy, politics & commerce, sharing common heritage and democratic values. With almost three years as ambassador to the Philippines, he recognizes significant in the relations with the Philippines the shipping industry as the strongest area. Both countries have focused efforts in providing the best service, Panama in vessel registration and the Philippines, in the well-known development of Filipino seafarers. He highlights, “The Panamanian vessel registry has maintained its world leadership since 1993, thanks to the friendly, safe and reliable registration procedures.”
Gov. Chavit Singson and Mayor Lani Cayetano
TDG Chairman Roberto Delgado with Bravo editor Elizabeth Victoria
Diplomats, stakeholders and other guests PANAMA SPECIAL EDITION
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PANAMA NATIONAL DAY IN MANILA
Chinese Ambassador Zhao Jianhua and Magsaysay CEO Doris Ho
Ambassador Guevara Alvarado and Ambassador Salinas and wife
The Ambassador recalled last October, Panama celebrated the 100 years of the ship registry and hosted the World Maritime Day Parallel Event attended by major companies and officers from shipping and international trade. Among the notables are IMO Sec-Gen Kitack Lim and Dr. Marcial Amaro III, Administrator of MARINA-Philippines. Seafarers. He believes the Philippines continues to be the leader in providing seafarers to the world’s fleet contributing significantly to inward remittances. “Filipino seamen are world class workers preferred by most shipping employers. This can be attributed to their quality of work, their loyalty, their sense of decency and their adaptive nature in any working environment. On top of that, Filipinos have a good command of English.” He details that last year, a landmark agreement was signed by the Panama Maritime Authority and MARINA Philippines, on the mutual recognition of license certificates of seafarers with exchange visits already of high level delegations; with more in the pipeline like sharing information, strategies and best practices.
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His Excellency underscored the full implementation of the Seafarers Automated Application System (SAA) and for the merchant marine services. This on-line platform simplifies the procedures, increases efficiency and minimizes cost for users while upholding transparency and security.
do business with Panama, as we are the gateway to Latin America.
He took pride of the expanded Panama Canal, recording notable increases in the transit of vessels compared from the previous year.” Now, larger Neopanamax vessels can cross through the expanded canal.”
“A los Panameños que hoy nos acompañan en este día tan especial, aunque seamos tan pocos aquí en Filipinas, en nombre del señor presidente y vicepresidenta de la República de Panamá, les envío un sincero mensaje de fraternidad, y los mejores deseos de una armoniosa convivencia con los filipinos, quienes siempre han hecho gala de su hospitalidad y de su don de gente. Gracias por compartir con nosotros esta velada.”
And more. Panama ranks third on travel and tourism among Latin American countries. It has become an ideal country to retire and to do business for its stable political condition and sustained economic growth. Her mining industry is starting to flourish, reflected on the deployment of over 1,000 expert Filipino workers to Panama, on top of Filipino nurses, caregivers and other services. “Panama looks forward to strengthening the commercial ties with the Philippines. We invite the Filipino community to
Let us bring closer “the Bridge of the Americas” and “the Pearl of the Orient”. The Ambassador was sincere in addressing his co-nationals in Spanish:
He also thanked sponsors, with special mention of Magsaysay Maritime, NYKFIL Ship Management and Philippine Transmarine Carriers, the marine cadets who made the gala event extra special. The Ambassador was grateful to his embassy team; proposed a toast with well-wishes to President Rodrigo Duterte, the guests and the Filipino people, and to the continuing friendship between Panama and the Philippines.
PANAMA SIGNS MAJOR PACT WITH CHINA by Ligaya Caban
Panama President Juan Carlos Varela Rodriguez seals the cooperation with China President Xi Jinping.
China grants “Most Favored Nation” status to Panama, a major Customs and tariff privilege that positively affect import-export relations of both countries. This is provided for in the Maritime Cooperation Agreement signed between Panama Minister for Maritime Affairs Jorge Barakat Pitty and Transport Minister Li Xiaopeng of the People’s Republic of China (PRC). The protocol was in the presence of President Xi Jiping and President Juan Carlos Varela on the latter’s first visit to China since opening diplomatic relations announced June 13, 2017 and breaking ties with the Republic of China (ROC, on Taiwan or Formosa) island government.
upon arrival at ports of China. This places Panama on competitive edge with other countries granted preferential rates and a gigantic impact as Panama has the largest merchant fleet in the world. A multiplier effect is also created on trade, particularly maritime transport and logistics. Panama will be able to register shipping companies and Chinese vessels directly in the main cities of China, including the registration of naval mortgages and property titles. Expectedly, the cooperation will accelerate development of the country’s logistics system and serve as a vehicle for the exchange of information on the
merchant marinas of each country. There will be reciprocal recognition of seafarer titles issued by Panama and China, as well as crew temporary disembarkation at ports in China and Panama. To immediately walk the talk, Panama opens a consulate in Shanghai, complemented by a Ship Documentation Technique Office (SEGUMAR). This is the technical liaison between the Panamanian administration and the maritime security authority of China, ensuring compliance with all safety regulations on vessels under the Panamanian flag.
Relations of Panama begun with the Qing Dynasty in 1909, the modern phase in January 2, 1922 with the Beiyang government. Chinese Civil War broke in 1949, Panama recognized the ROC in Taiwan, in spite the claim of PRC it is integral to mainland China. Forced to choose by the One-China policy, Panama broke relations with ROC on July 26, 2017 in favor of PRC. Aside from PRC being a world economic leader, it is the second largest user of the Panama Canal and the largest supplier of goods at the Colon Free Zone. On top of mainstream economic benefits, vessels registered under the Panamanian flag will receive preferential rates (and pay lower rates)
Minister Jorge Barakat Pitty and Transport Minister Li Xiaopeng, at the signing of the Maritime Cooperation Agreement.
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HISTORIC MOMENTS
PATH BETWEEN THE SEAS by Eva Tan
Republica de Panama is a nation of destiny --- born of the schemes of foreign interests saddled on a stratified people. Yet, Panama patiently built institutions inspired by nationalism and observant on what of her heritage could compete on the world stage. Now, superpowers that once dictated are cueing to earn her favor in commerce, banking and maritime. Also, as logistical hub for business, a pivot for geo-politics, neo- warfare, integrity of the environment, climate of the globe. In the beginning. There is a panama tree (sterculia apertala) but myths and practice give various roots to the name. Official school textbooks teach a mix of three: “a tree” with “many butterflies” near an “abundance of fish.” Yet, the Kuna word “bannaba” (distant or far-away) still claims as real origin of “panama”. The isthmus of Panama formed three million years as a land bridge between south and north America peopled by Chibehan, Chocoan and Cueva, the latter the largest of about 200,000 natives. Pottery dug at Monagrillo dates 25001700BC. So are monolithic sculptures at Bariles (Chiriqui) that prove a preColumbian culture. Comes the paleface. In 1501, Rodrigo de Bastidas sailed westward from Venezuela to explore the isthmus; followed by Christopher Columbus who founded a short-lived community in what is now Darien. Defining exploration was in 1513 when Vasco Núñez de Balboa commanded a torturous trek from the Atlantic to the Pacific, carving a “path between the seas.” More Spanish explorers would follow Balboa’s footsteps to Panama. In 1519, Balboa’s rival, Pedro Arias de Ávila, founded Panama City on the Pacific
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coast. The Balboa path became Camino Real (Royal Road) with whispers as Camino de Cruces (Road of Crosses) due to many gravesites along the way. Spain stayed for 300 years (15381821) with the sword and the cross. But Spain never had total control, the colony being beset by raids of Dutch and English pirates, Cimarrones (African slaves who waged guerilla warfare) and the indigenous Indios de guerra (war Indians). Nonetheless, Panama remained a vital transit point of gold from the Viceroyalty of Peru (the conquered Inca Empire) to Spain, becoming the second most important city of the Spanish Empire in the Americas. In 1671, Panama City was sacked and burned by the Welsh pirate Henry Morgan. It was rebuilt several kilometres away, where modern-day Panama City stands. In 1717, the colony was then placed under the Viceroyalty of New Granada (modern-day Colombia), in response to attempts of other European powers trying to conquer the Spanish colonies. Spanish-American war. In Azuero, the encomienda system (huge land grants to favored persons) was ended and replaced by smaller parcels to the agitated poor, amid rage of the powerful landed gentry. The first public demand for independence was on November 10, 1821, the Grito de Las Villa de los Santos (Cry from the Town of Saints). It failed initially without the separatists at Panama City. Unified under Col. José de Fábrega, independence from Spain was achieved in November 28, 1821. Panama merged with the former colonies of Nueva Granada, Ecuador, and Venezula, forming the Republic of Gran Colombia, with the great Latin American liberator, Simón Bolívar, as its president. This country dissolved in 1831, leaving
Panama and Nueva Granada as the Republic of Colombia, with Panama as a province. Within the Thousand Days War (1899-1902) agitations on land rights were led by Victoriano Lorenzo. In parallel dynamics, US decided to build the Canal on the isthmus. Colombia rejected the Hay-Herran Treaty on January 22, 1903. Thus, US shifted support to the separatist clamor of Panama. By November 3, Panama separated from Colombia to be a unitary, presidential, democratic republic. A year later, Manuel Amador Guerrero, chief doctor of the Panama Railway and revolutionary leader, was elected as the young nation’s first president. Young nation. Panama ratified the Hay-Bunau-Varilla Treaty with US granted “as if it were sovereign” in a zone 16 km (10 miles) wide, 80 km long where the US will build a Canal, then administer, fortify and defend it “in perpetuity” completed in August 15,1914. Even with the universal principle of pacta sunct servanda (agreements must be kept), the treaty was amended by the TorrijosCarter Treaty of September 7, 1977 conferring by December 31, 1999 full control of the Canal to Panama. Not surprising because in the 1950s, the military has shown open dissatisfaction against the rich; the next decade demands to amend the H-B-V Treaty. On Oct. 11 1968, the army ousted the democratically-elected president, Arnulfo Arias, in a coup d’état. Soon after, Colonel Omar Torrijos, the army’s commandant, assumed control of the country as “Maximum Leader of the Revolution”, while appointing figurehead presidents. Torrijos was considered a progressive for his programs of land redistribution, public infrastructure, and public education. He became one of the few
Latin American leaders who visited Cuban leader Fidel Castro; on the other hand, he suppressed leftist labor groups and clamped down on the press back home.
in the ouster and capture of Noriega, and the swearing into office of opposition leader Guillermo Endara, who had won the presidential elections in May of the same year.
Torrijos died in a mysterious plane crash in 1981, and was succeeded by Gen. Manuel Antonio Noriega, his chief of intelligence. Like his predecessor, Noriega kept the title of “Maximum Leader”. His rule was believed to be very corrupt, engaged in money laundering, arms deals with the Contras (right-wing guerilla rebels) in Nicaragua, and in illegal drug trafficking.
The United Nations estimated property and infra damage upwards to $2-billion, displaced 20,000 residents, mostly from the already impoverished El Chorillo district. Some quarters condemned the US “invasion” but most Panamanians are happy with the US “intervention.”
In 1987, Cruzada Civilista (Civic Crusade) went public but was repressed with 600 injured, 600 detained, tortured and raped. Noriega weathered US sanctions while the economy plunged 25%, hugely indebted to the International Monetary Fund (IMF) and the World Bank (WB). In 1988, two grand juries in Florida convicted Noriega of drug trafficking. The following year, December 1989, the US mounted “Operation Just Cause”, a massive military invasion of Panama. Involving around 24,000 US troops, it resulted
A Vibrant Nation
On February 10, 1990, the Endara government abolished the military, and established in its place, the Panamanian Public Forces, an armed police and internal security force, with air and maritime contingents. Panama is the second country in Latin America to abolish its standing army, the first being its neighbor Costa Rica in 1948. The Electoral Tribunal quickly restored the civilian Constitutional government, recording peaceful turn-overs of the presidency: Guillermo Endara to Ernesto Balladares, to Mireya Moscoso to Martin Torrijos to Ricardo Martinelli and to Juan Carlos Varela elected in 2014 for a five-year term.
For the Benefit of the World
100 Years Serving the World
file:///D|/2017 MARINO WORLD/PANAMA SPECIAL EDITION/EDITED ARTICLES/18-19 HISTORY/72272_pa_flag_col_lg.gif[12/15/2017 5:50:21 AM]
PROUDLY PANAMA Very unique flag, recognized by Law 15 of 1949 to reflect political realities of the time, instead of cosmetic heraldry. Red-white-blue quarters of the rectangle are political sectors: the Blue Star the Conservative Party for peace and purity. The Red Star is Liberal Party for authority and law. Together, they are the new Republica de Panama. Philippe Jean Bunau-Varilla designed the first flag but rejected as too similar with that of USA. Manuel Encarnacion Amador crafted another. Maria dela Ossa de Amador made the model from where the present takes life and waves proudly with the Himno Istmeno, the anthem.
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PANAMA AND THE PHILIPPINES
Maritime Affairs Minister Jorge Barakat Pitty
MUTUAL SUCCESS IN UNITY by Coca H. Strobar
On his third visit to the Philippines as Panama Minister of Maritime Affairs, H.E. Jorge Barakat Pitty granted Marino World an interview on maritime concerns and Panamanian policies and priorities. While the Minister adheres to things official, his light-heartedness reflects that “This time, I’m here to celebrate with our friends, the Philippines people.” The Panama Shipping Registry (The Registry) its first centennial, Full celebrates project support
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leading the world in number of vessels and combined tonnage. In turn, Filipino seafarers are the most onboard Panama flagged merchant ships. After visiting Japan being the biggest user, he checks into the country for meetings with training centers, Joint Manning Group (JMG), and with MARINA. He wants to express gratitude and “to emphasize… we want to promote…more Filipino seafarers, onboard Panamanian vessels.” Minister Barakat acknowledges
Ambassador Rolando Guevara’s focus to integrate more academies, more training centers through The Registry. He points to the implementation of Seafarer Automated Applications (SAA), a full digital platform advanced, available worldwide, 24x7x365, with even e-payment. He says the Philippines is not just a pool of seafarers but may be a regional maritime hub, with upgraded port facilities for ship management, for
shipowners. Fact is, a SeguMar office in Manila will operate by October of this year. He first announced the plan before the JMG and it was prime news circulating within 12 hours! Minister Barakat confirms the close working relations of AMP with MARINA for mutual approach on the EMSA audit. He recognizes the Philippines has more resources to achieve the authorization; but a common approach may fast-track resolution. An agreement has been signed last year “to exchange information and experience.” The Registry Centennial. He is inviting senior maritime officials to Panama’s Maritime Shipping Week on October. “It’s not just a celebration, it’s an integration of different maritime forum”. One is the annual IMO parallel maritime event held in Panama, a recognition of “the importance of Panama in the shipping industry”. More, there are meetings with Intertanko committee, the port authorities of America, different general secretaries of various IMO agencies, meeting with the IMO and the Caribbean. Topics are global concerns of the shipping industry, currently and the future of the shipping industry, integrated by ships, ports but most importantly, people. Emphasized are talks on security and safety of navigations, implementation of international Conventions, as ballast water removal(BWM Conventions), ship recycling (Hongkong Convention). Minister Barakat points to talks on the seafarers, new opportunities like promoting more young people to study nautical courses, talk about marine environmental protection. He says a main objective is to promote eco ship, even awarding economic incentives for vessels reducing greenhouse gas emissions.
IMO Sec-Gen Ki-tack Lim confirms his participation in the Maritime Shipping Week, so do major global stakeholders like the Gen-Sec and Chairman of ICS, of Intertanko, and others “to share the new vision of the shipping industry.” Logistics. Minister Barakat says Panama is Number Two on the Sepal studies and statistics of Latin America on import port facilities.” But we know that we need to continue this improvement and emphasize competitiveness,” he cautions. Panama has five port terminals, two in the Pacific and three in the Atlantic. Chinese investments are offered and projects must be on the umbrella of the Presidential Minister in order to integrate all the entities. Current principal target is logistics, the transport of cargo from Asia, funneled through Panama and deconsolidated to the world. In logistics and supply chains, Minister Barakat says Panama aims to be “the hub of America.” Expanded Canal. The Expanded Canal on its initial year has already yielded pleasant surprises. Planned basically for container ships, it is now catering to LNG and LPG vessels, primed by Japan and vessels plying from the east coast of United States to Japan. “So we have this new activity that we didn’t realized when we’re planning the Panama Canal expansion.” New agreements are needed, with transit by night. Panamax ships are coming, so are giant Neopanamax vessels, confirms Minister Barakat. Challenges. “I think that it is always important to look around” to be alert on the competition. He emphasizes The Registry
is not primed on revenues being a public entity; instead, “our own objective, that is always promoting global trade.” Additionally, “the exchange of knowledge and develop with our partners our countries, shipowners, ship operators, the manning companies…” The Minister sees new challenges arising from the opening of formal relations with China. Although he looks forward to the large investment and trade opportunities with the 2nd largest user of the Panama Canal, there remains much to be done. In particular, new facilities to be built, liaisons to be established, and the Panamanian embassy in Beijing to be made fully operational. Technology. The Registry seeks implementation of paperless operations; “we are confident that we will complete this soon.” The Minister promises to inaugurate in the Philippines its new e-platform on medical certifications --- “in real time, safe and secured.” He invites medical outfits in the Philippines to visit Panamanian consulate and be accredited. The amiable official closes the interview with positive perspective: “I want to thank the Philippine people for the confidence… that we are partners and we always try to develop safety navigations with the quality of the service that we provide the shipping industry.” And a common weal: “I think 2017 can move better that the previous years… the important thing is that both care and think and that we are family, in the future of our people.
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Ambassador Guevara Alvarado personally assists Filipino seafarers in the Panama consulate.
SAFETY AT SEA, MARITIME SAFETY
SEGURIDAD MARITIMA Under the Autoridad Maritima de Panama (AMP) of Administrator Jorge Barakat Petty, Seguridad Maritima (SEGUMAR) is the agency that details Panama’s commitment to world-class seamanship. Some translate SeguMar to securing life and property. Yes, that too. But essentially, to ensure competence for safety of life, vessel, cargo and other aspects of merchant marine. Created in 1977 to be the technical arm of the Panama Ship Registry (The Registry), SEGUMAR opened the first office in New York. The service network operates in Panama, Tokyo and Imabari (Japan), Seoul and Busan (South Korea), Istanbul (Turkey), Piraeus (Greece), Singapore and New York (with plans for Miami and Los Angeles, both USA). The latest addition is SEGUMARManila to amplify service in the Asia region, more likely Filipino seafarers who are a major block of the world’s
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merchant mariners. These are regional documentation hubs, on digital access all year, staff bilingual on the language of the area, auditing accredited training centers, issuing technical certificates, including those from The Registry like Bunker Convention (BCC), Passenger Ship Liability (PAL), Wreck Removal (WRC) and Continuous Synopsis Record (CSR) for any flag amendment or cancellation. For over 400,000 seafarers on Panama flagged vessels, SEGUMAR’s Seafarers’ Automatic Application (SAA) is available worldwide, on-line including e-payment. This guarantees transparency, speed, savings and security. About 29 Maritime Training Centers (MTCs) are rigorously audited before being accredited. Seafarers are given more options: updating records, avoiding forgeries as valid data are electronically banked, complying with
Codes, Conventions and Port State requirements. Deputy Director (for Merchant Marine) Margareth Mosquera heralds, “The Panama flag enters a new stage of digitalizing… to streamline processes, ensure security and provide greater convenience…” While reflective of The Registry, Year 2017 is a defining move with AMP contracting Pole Star Space Applications to monitor her vessels. PoleStar is the world’s largest, managing over 8,000 SOLAS-classed ships, on remote fleet monitoring, risk management, ship security, Long Range Identification and Tracking (LRIT). SEGUMAR has demonstrated success comes with determination and smarts; yet, must continue to outdo itself--24x7x365 --- to retain leadership in services and results. And uniquely, still raise net earnings for the Public Treasury.
(L to R) Visionary founders: Tagle, Marcos, Padilla and Sangalang
EXCELLENCE & COMPETENCY TRAINING
A RELIABLE PARTNER by Eva Tan
After the tool box meeting at EXACT building in Manila, Marino World was able to hack an interview with the four founders of Excellence and Competency Training Center (EXACT): C/E Ferdinand Marcos, Capt. Arsenio Padilla, C/M Rene Sangalang and Lcdr. Gil Tagle.
Sampaloc, Manila and in all its branches prominently in Cebu City (for Central Visayas) and Iloilo City (for Western Visayas).
ten, at least, to reduce costs but retain the exacting quality of courses and training.
It has practicum sites in Arayat (Pampanga), Lian (Batangas) and Guimbal (Iloilo).
They are products of the Phil Merchant Marine Academy (PMMA) and have extensive hands-on experience in seafaring, maritime entrepreneurship and management, each also with academe specialization. They decided to pool and fuse their distinctive aptitude and strengths to establish an educational training center that will provide quality simulator-based trainings, approximating actual maritime practice at reasonably fair costs.
By January, EXACT is expecting Panama may soon authorize accredited training centers to directly process applications and issue certifications so applicants need not travel to the main office of Panama. Based on rigid STCW and Panama standards, EXACT could issue two sealed certifications (like for basic training) for the Philippine MARINA and Panama AMP, both Port State authorities.
Excellence is second character to EXACT, reason why over 200 manning companies are satisfied in over 17 years of partnership. Qualified instructors on competency-based syllabus are backed by cutting-edge facilities like full mission bridges, ECDIS simulators in an environment of professionalism.
Accreditation. They confirmed Panama is very strict on documentation, taking EXACT about one and a half years earn approval and recognition. Documents have been reviewed twice over with rigorous assessment. Two auditors inspected EXACT facilities before being accredited as only the fourth in the Philippines. Panama accredited EXACT to deliver 20 courses in its main office in
A seafarer accredited is guaranteed employment aboard vessels of Panamanian flag. This advantage attracts aspiring merchant mariners from other Asian countries to study and train here for the convenience and lower costs. Instead of exploiting the situation, EXACT has controlled charges to a viable minimum in spite of added internal expenses. They know the weight of airline fares, boarding and other basic needs for the applicants and trainees. Hence, EXACT suggests groupings of
Commitment.
For the founders, the main thrust is competency and safety. Almost to a point of micro-management, things are reviewed during afternoon weekly toolbox meetings. Nothing is taken for granted to sustain best practices and adapt to industry trends, guided by IMO, STCW, Panama and Philippine policies and requirements. EXACT congratulates Panama on her celebrations, pledging to be a loyal partner for quality maritime education, training for safer navigation, for competent seafarers and cleaner ocean. Almost all Filipino merchant mariners have boarded Panama flagged vessels. In a touching “throwback,� C/E Ferdinand Marcos recalls buying his first calculator in Panama --- in 1977. PANAMA SPECIAL EDITION
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With President Duterte at Malacanan Palace
PANAMA AND THE PHILIPPINES
FOR THE PRESENT AND THE FUTURE by Coca H. Strobar
The teaming of Panama and the Philippines may be solidified by Panama’s Seafarers Automated Application (SAA) system. The innovation is fully implemented for on-line Panama License Applications for seafarers in its Manila Consulate per the regulations of the Directorate General of Seafarers of the Panama Maritime Authority. SAA also accepts Merchant Marine applications. On this new online platform, CT’s are released within the day of submission to the Consulate. Two to three hours after filing, color copies of the CT’s are sent by email to the shipping companies or crew manning; then, the original CT follows in the afternoon.
Applications filed in the afternoon are released the day after. Since mid-October, “seamen books” or “full terms” are now printed directly in the Manila Consulate rather than in a regional office elsewhere. This very significant for the Consulate could expedite issuance directly and control its own flow of “urgent cases” without referring to any other offices. The Manila Consulate continues to give training to all companies which apply and receive the Resolutions from the Panama Maritime Authority to use the digital keys or token (“PKI”) to access the online platform of these services. In a recent interview, H.E. Rolando A. Guevara Alvarado, Panama Ambassador
to the Philippines, confirmed, “We are faster, more expedient. We can control the urgencies because we have direct control now of the printing, not only the CT’s but also the seamen’s book. Everything goes on line. We have to run the new technology. That would save time, more transparent, more efficient now. We want to have as much as possible all companies be automated. Because it’s not mandatory, you can do it as you please. We would like to encourage all to be automated.” SEGUMAR. With the SEGUMAR Office in the Manila Panama Consulate, technical and safety security documents and others related to vessels can be applied and issued directly from the consulate. No need now for shipping companies to apply in Japan, South Korea nor elsewhere. By January 2018, the Consulate General of Panama with the SEGUMAR in Manila will process and promote these services in the maritime community and industry in the Philippines. These starts with the Joint Manning Group (JMG), then to shipping companies through fora, briefings and special lounge meetings with shipping executives.
2.
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With MARINA Administrator Amaro III
The Ambassador adds, “We would continue working as hard as we can to facilitate the license application procedures and render the best service as
With the Joint Manning Group
possible in terms of license application in ship management and ship services and to work hand in hand with the maritime community to really elevate the standard and quality and processing time of the Filipino seafarers. That would give us more impact and visibility with the maritime community and also for the Philippines to continue to be the crewing capital of the world, largest producer of seafarers in the world. We would like to work on that.”
Panama combines with Philippines by providing the registry, the flag and the certificates. The Philippines provide the seafarers. Panama will also recognize new training centers, a good combination to serve the
getting jobs or being recruited. Maritime teaching institutions believe it will give their graduates added value by having the certification they are registered in the Panama Consulate. It’s a win–win situation: the graduates
Accreditation. Maritime training centers shall be recognized by the Panama Maritime Authority to issue maritime courses directly, according to IMO standards and regulations in force. “Our other crucial mid-term plan is also to visit all the possible training centers, colleges and universities in the Philippines to make agreement with Panama as to the mutual recognition.
With NYK Line President Tadaaki Naito
With NYK executives at NYK-Fil Manila
international maritime community.” Other initiatives are underway to increase the partnership of Panama and the Philippines in maritime. Panama aims partnership or association with maritime colleges and having their graduates register with the Panama Manila Consulate to bank the information in a special database. This ensures graduates will have their records safe in one ship registry. Not that all those registered can only work for Panama but it will facilitate
on an easier path to be hired; Panama gets more Filipino seafarers for Panama flagged vessels. Cooperation. Year 2018 will see exchange visits of high-level delegations to share information, strategies and best practices. Ambassador Alvarado publicly declares Filipino merchant mariners are important to the world economy, play a significant role in the Panamanian Flag Registry and are definitively welcome to join Panama in serving the world maritime industry. He assures the Embassy and Consulate General of the Republic of Panama, together with the Manila Regional Office for seafarers of the Panama Maritime Authority in Asia, will continue to provide the best and most efficient services in processing seafarer license applications.
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CEO GERARDO BORROMEO
THE SHIP IS A WORKPLACE by Coca H. Strobar
Philippine Transmarine Carriers (PTC) Chief Executive Officer Gerardo Borromeo notes while we are geographically apart from Panama, we share the vast Pacific Ocean and we “share a common interest in shipping”; Panama, the world’s largest ship registry, the Philippines the world’s largest provider of maritime professionals. “It’s a great partnership, it is a partnership of equal interest.” The industry has three elements in people, ship and cargo interacting within rules, laws, Conventions, treaties and bilaterals that govern each one of the three. Borromeo should speak with authority being the first Filipino president of the respected InterManager, an international trade association for the shipmanagement industry. On top, PTC provides crew to some 1,300 vessels worldwide, about 25,000 mariners. It is an achievement of over 38 years from the vision of Ambassador Carlos Salinas. Relationship. PTC business is not just about placing people. It is complete relationship between ourselves and our principals; ourselves and the seafarers. And not just
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the seafarers themselves but even their families to complete a dynamic system “to move the world.” The Philippines represents close to 30% of all working on international fleets, “We have to take that very, very responsibly. And that is why we’re proud to say, we’re moving the world.” Growth. When Ferdinand Magellan came, he exhorted his lieutenant, Sebastian Elcano, to leverage on having circumnavigated the world by bringing countries together. “The Philippines became the hotspot, the hub, not only for trade… but we also became shipbuilders of all of the galleons.” “How can we become the maritime service center of the world so that means shipbuilding, back office support, BPO support, and who knows maybe in the future we can even do much more in terms of logistics for this region. Crew management, there’s shipmanagement. We can probably become an adjudication center for maritime law and admiralty law.” Often, people say the sky is the limit. But Borromeo says “we are the limit. It’s up to us to dream. To dream what is possible” He is very excited and
thinks maritime is a global industry we are contributing to “allow this industry to move forward” whether aboard or ashore. Mutual need. The relationship continues as Panama registers more and more ships, there will be more and better Filipino merchant marines. Some 60-65% of maritime professionals on Panama ships are from the Philippines. That means, “the more they grow, the more opportunities for Filipinos.” CEO Borromeo repeats without a ship, there are no jobs for maritime professionals and seafarers. Therefore, “make sure that the ship is well-run, well-maintained, properly registered, properly classified.” A ship is a workplace which must be safe because working out at sea is a tough, difficult task. It’s a harsh environment, unforgiving. That is why, Borromeo points out, the IMO has required more than what has been done to ensure safe, reliable shipping on clean oceans. Thus, make sure the ship is first-class. It is the workhorse, mover of heavy cargo 24/7, in all hours, all over oceans on whatever weather and season.
PRESIDENT MARLON ROÑO
EDUCATION FOR THE MILLENNIALS by Ligaya Caban
Magsaysay Maritime President Marlon Rono is aware changing technologies and mindsets of new seafarers that “we have to prepare for…” because the shipping industry shall continue, a basis of the relationship with Panama, for one. To be proactive in the evolution, MOL/ Magsaysay Maritime Academy (MMMA) shall open on March for the School Year 2018-2019. The project is a joint undertaking of heavy weights: MOL and MMC --- Mitsui OSK Lines (MOL), Japan’s largest shipping company and Magsaysay Maritime (MMC), the Philippines biggest manning agency. MMMA shall operate by June, envisioned to be the leading private maritime higher educational institution in the Philippines and the Asia-Pacific region. It offers degree programs in Merchant Marine and allied courses. It is an extension of the Magsaysay Institute of Shipping (MIS) which has been providing training and scholarships to select cadets from all over the country. MMMA has state-of the-art facilities, sound curriculum and proficient
teaching faculty. MOL and MMC hope to strengthen Filipino seafarers as Number One choice in the global maritime workforce. Ceremonial groundbreaking was held March 8th, 2016, at Trinidad Avenue, Barangay Salitran IV, Dasmariñas City, Cavite, about 5 kilometers from the MIS campus, attended by senior MOL and MMC officers, government officials and maritime stakeholders. Phasing. The 13.5-hectare MMMA campus can accommodate 900 students. But only 300 qualified students will be accepted for 2018, then 300 each for 2019 and 2020 to total 900 in three years. Presently Magsaysay and MOL are sponsoring 150 cadets from eight maritime schools, up to 2020. The first year starts next year 2018, 2019, 2020...2018, 2019 will continue. Once there are graduates of the academy, MMMA will be on its own. Of the 300 MMMA cadets for 2018, MMC takes 150 while MOL takes the other 150 cadets, given over 4,000 high school students from all over have
signified interest to enroll. Commitment. President Rono recalls ten years ago the Panamanian Government and Panama Maritime Authority approached MMC to help the Panama Maritime University. On invitation of the Panama President, they flew to Panama and established an office there to liaison the grant to 10-15 Panamanian cadets annually for training at MIS and shipboard duties on MOL vessels. He points with pride some of these cadets are now ship officers. This program is just another implementation of Rono’s belief we need to look at the “…change of technology and as we all know the new seafarers is now at the door step, a millennial, that we have to accept that is going to happen. “ For a defining move, MMMA was established, morphing as one of the world’s largest merchant marine academies in the Asia/Oceania region --a major initiative in the company’s drive to ensure operational safety in their business. PANAMA SPECIAL EDITION
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THANK YOU FOR SUPPORTING THE NATIONAL DAY OF PANAMA
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PANAMA SPECIAL EDITION
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