BusinessMirror December 21, 2019

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ROTARY CLUB OF MANILA JOURNALISM AWARDS

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A broader look at today’s business n

Saturday, December 21, 2019 Vol. 15 No. 72

EJAP JOURNALISM AWARDS

BUSINESS NEWS SOURCE OF THE YEAR (2017, 2018)

DEPARTMENT OF SCIENCE AND TECHNOLOGY

2018 BANTOG MEDIA AWARDS PHILIPPINE STATISTICS AUTHORITY

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AS a Sports Tourism awardee and a suitable venue for various sports-related activities, Clark has seen its readiness to conquer the international stage with its hosting of the recently concluded 30th Southeast Asian Games in the country.

CLARK’S A LARK

THE Freeport is also being poised as a Meetings, Incentives, Conferences and Exhibits (MICE) destination with its growing number of hotel rooms, conference sites, and exhibition centers. PHOTOS COURTESY OF CDC

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By Ashley B. Manabat

OME to many of the country’s biggest businesses and multinational companies, Clark continues to be one of the most preferred investments and tourist destinations in the Philippines today.

Like the mythical phoenix rising from the ashes, so is Central Luzon’s tourism industry, as worldclass facilities are now being built and operated within the Clark Special Economic Zone (CSEZ). Also, the government’s vision to have a sustainable tourism industry is now being realized by facilitating integrated multi-industry growth areas in Clark, as emphasized by Department of Tourism (DOT) Secretary Bernadette Romulo-Puyat.

“The national government is aiming for a more resilient economy by building regional growth centers across the country, and part and parcel of this outlook is ensuring the availability of public infrastructure and facilities to enable and support the economic progress,” the DOT chief said. With its growing number of locators and attractions, the Freeport has proved its potential to be Continued on a2

Nearly three decades after its conversion from a US military base to an economic zone, the CSEZ emerges as a preferred business, leisure—and, after the successful SEA Games, a sporting—destination.

A major shipping change is coming, and so are higher fuel prices By Firat Kayakiran, Jack Wittels & Rachel Graham

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The cost of shipping a twentyfoot box-load of goods from Latin America to Europe could rise by $26, according to IHS Markit, a consultancy. A week-long ship cruise could go up by $130 per cabin, the firm estimates. Add 5 cents onto a crate of bananas. It’s still too early to say exactly who the biggest winners and losers will be among refineries because there are thousands of variables that shape their profit—more than 600 grades of crude, and many ways of setting up the plants.

Bloomberg News

DEFINING moment in the history of the oil-refining and shipping industries is at hand.

In fewer than two weeks, thousands of ships the world over will be forced to use fuel containing less sulfur in order to comply with global rules set out by the International Maritime Organization (IMO). Those who don’t could face penalties and even imprisonment. Ports are deploying drones to—literally—sniff out wrongdoers. The regulations are having a profound effect on oil refineries and the cost of seaborne trade looks set to rise. What’s the big deal? For decades, shipping has been the oil market’s dumping ground for a pollutant blamed on aggravating human health conditions, including asthma and causing acid rain. That’s because refineries have struggled to eradicate it when

turning crude into fuels. Even so, when the regulations were mandated back in October 2016, they came as a shock to many observers who had expected a later start date. While a panic about getting ready has subsided, there’s clearly still work to do—as a slump in the price of non-compliant fuel demonstrates. “IMO 2020 is the most fundamental and dramatic product specification change the oil industry has experienced, with an impact on both shipping and refining,” said Torbjorn Tornqvist, the chief executive officer of Gunvor Group, one of the world’s largest oil and gas traders. “It has the potential to change every product and crude differential out there.”

PESO EXCHANGE RATES n US 50.6300

Safety concerns

THE Northern Jubilee container ship sails into New York Harbor on November 3, 2019. PETER FOLEY/BLOOMBERG

THE shipping industry has been consistent in flagging a safety concern about the rules. As yet, there’s no single global standard. The new fuel must simply have certain properties—including sulfur and other important metrics—that don’t exceed specified levels. But the lack of a single global product means refineries can make a compliant fuel in different ways. It’s thought that some will essentially be low-sulfur crudes that are careContinued on a2

n JAPAN 0.4634 n UK 65.8949 n HK 6.4966 n CHINA 7.2225 n SINGAPORE 37.3819 n AUSTRALIA 34.8689 n EU 56.3208 n SAUDI ARABIA 13.4981

Source: BSP (December 20, 2019 )


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