MARINO WORLD MARCH-APRIL 2013 DIGITAL EDITION

US$8 €12 ¥200

VOLUME VIII NO. 2 ISSN 1908-0972

PHP120

MARCH - APRIL 2013

MARINO WORLD

1

Event

7th PPS: Abaya Pitches for PH

Cover Story Modernizing Manila North Harbor A Team Effort Says Barclay Ports UNCTAD Training Program for PPA Training MPTC Bold and Vibrant at 30 PSTC Sailing High and Mighty at 30 Manning Investing on Filipino Crew Shipping NYK Upgrades Japan-PH-ASEAN Services ISF seeks compromise on Visa

13 06 17 18 22 26 31 32 Content

ABOUT THE COVER Photo by: Jomelyn Tud & Jhon Henson Ong Layout by: Jhon Henson Ong

2

MARINO WORLD

MNHPI CEO Richard D. Barclay beams for a great job on track; with optimism for the country’s premier domestic port transforming into a world-class facility of expectations, of growth. And of national pride.

MARINO WORLD

3

Publisher’s Note

EDITORIAL BOARD Publisher

Editorial Consultant

Lyn Bacani

Creative Director

B. Cortes Lagac

Legal Counsel

Content Critique

Commo. Dante Jimenez

Eva Tan

Jhon Henson Ong

Atty. Manuel Obedoza

News and Feature Writers Coca H. Strobar

Ligaya Caban

Contributors

Comm. Tess Lora Dr. Alice Lamigo Capt. Rodolfo Aspillaga Capt. Ireneo Delos Santos

Ms. Merle San Pedro RAdm. Adonis Donato Capt. Edwin Itable Atty. Dennis Gorecho

International Correspondents

F H Chowdhury

Mark Millar

Circulation Jomelyn Tud Joamirica Tud

Marketing

Rosvie Corcuera

Address

EDITORIAL OFFICE

1732 Modesto St., Malate, Manila, Philippines

Emails

editorial@marino-world.com subscription@marino-world.com

Tel. / Fax

(632) 521-3633 www.marino-world.com

advertising@marino-world.com accounting@marino-world.com

Mobile

(63) 916-6307080

A COMMON GOAL This year in May, the maritime sector will again try to win seats in the Lower House via the partylist system. This, despite failures in past elections.

•

Again, we are a house divided with two contenders: AMOR SEAMAN (#65 on the ballot- Association of Officers and Ratings) and ANGKLA (#67, Ang Partido ng mga Pilipinong Marino); both believing they are the better alternative.

•

Whatever.

The Party-List System Act mandates 20% of House membership shall come from partylist nominees; one seat for any partylist gathering at least 2% of the total votes cast for the party-list system; and one extra seat in proportion to excess from the 2% benchmark but a maximum of 3 seats per partylist or groupings thereof.

In the elections of 2001, the Maritime Party got 98,946 votes; in 2007, the Seaman’s Party garnered 50,478 votes; and in 2010, three split the “maritime” vote: ALON 48,893, AKSI 26,805 and UFS 6,121 votes.

It does not take a rocket scientist to see the downward trend, to smaller totals in the fragmentation process. Pooled performance of 231,243 votes from 2001 to 2010 does not come up to a seat in Congress. Of course, there’s no telling this 2013.

Juiced off peripheral statements and personalities, AMOR and ANGKLA are clones in their principles and advocacy: promoting the seafaring profession and the maritime industry.

AMOR pledges: •

4

MARINO WORLD

A single maritime administration or Department of Maritime Affairs;

•

•

Separate OWWA funds of seafarers from land-based workers; Include plan displaced, disabled and retired seafarers in OWWA welfare fund; Admiralty Court, only for sea accidents and other maritime-related cases; Maritime bank to finance the development of the maritime industry.

ANGKLA advocates: •

Maritime Industry Regulatory Commission complement and enforce the single maritime administration; • Maritime high school to complement the K-12 Program; • More benefits for seafarers through the OWWA; • Finance livelihood programs and healthcare; • Simplify document renewal procedures with renewal centers in provinces.

Both groups have five nominees but roadshow only two: Chief Engr.

Christopher Maambong and Capt. Victor Alviola (Amor). For Angkla, the top two nominees are Atty. Jess Manalo and Capt.

Ronald Enrile. Subtle admission neither will get a third seat. But unwittingly triggers jousting on qualifications of nominees.

Amor claims its nominees are actual workers in the industry; Angkla counters a lawyer is a better legislator.

In a broader view, in the same elections, two party lists representing the Agriculture won three seats.

In broader realpolitik, the Philippines is an agricultural nation; not surprising that this sector elects three seats for its representation. But it is also archipelagic, more than 7,000 islands for a country

of 100 million people, a major portion eking a living from its waters. Its mariners serving mercantile maritime, a full third of the global total.

On top of 400,000 migrant seafarers and 300,000 domestic mariners, the Philippines ranks fourth largest ship-building nation in the world.

And the potential to be a global maritime power. But it has odds-and ends to fix; mostly in legislation and political will in implementing legislated reforms. A lot on the table, the party-list representation is a beginning of empowerment.

Via Amor or Angkla? Why not both?

Coops, urban poor, teachers, similar and a-similar interest groups have double representations. Why not the mariners whose problems are different from foreign seafaring and local crewing?

Let these concerns be directly addressed by Amor and/or Angkla, against the interests of 134 other party-list campaigners. Yes, a tough fight --- but always a window of victory for serving your peers.

It is not only the seafarers vote. But also of the corporate staff, the direct families, the community mariners revolve in. And perhaps, the advocacy endorsed by those wishing to support our maritime strength in the economic competitions of the world.

In a macro view, Amor or Angkla are not as important as to who but as direct representation in Congress. The sector may yet be politically weak in plying partisan and vested waters. But elections after elections will synthesize to wisdom with knowledge matured by experience.

Then one day, our ship will anchor to port --- progress and inclusive growth!

MARINO WORLD

5

COVER STORY Passenger Terminal Complex.

Relocation and security.

Mr. Barclay confirms the completion of the new passenger terminal 2nd Quarter of this year. The soft opening is by April, total works and facilities in May.

“Security is a big issue, of course. There has to be a relocation for the informal settlers,” explains Barclay.

Costing some P240 million, this passenger terminal shall be the country’s most modern, beams CEO Barclay. “…Its looking quite nice. And its certainly I think will be either marine or air terminals most modern in the country.

I personally think it looks better than NAIA 3.” quips Barclay.

MODERNIZING MANILA NORTH HARBOR

A TEAM EFFORT - BARCLAY

MNHP Officers with DOTC Sec. Abaya & PPA GM Sta. Ana

T

he Manila North Harbor (MNH) is one of the four main terminals that comprise the Port of Manila, and is the country’s premier domestic port.

MNH is dedicated to handling domestic passengers and local cargoes (containerized or not). Annually, It handles about 1.2 million passengers and 3,900 vessels.

Manila North Harbour Port, Inc. (MNHPI) is the contract holder for the modernization of MNH, a pivotal port. And CEO Richard D. Barclay may proudly underscore the minimal disruption to service and port operations undertaking this huge project.

“It’s a big commitment to service at the same time keep the modernization program going. Our challenge is to deliver that…” says Barclay.

The contract.

To improve port facilities and services to international standards, the Philippine Ports Authority (PPA) has developed and pursued a program to modernize the MNH. On November 19, 2009, PPA awarded MNHPI the contract to develop, manage, operate and maintain MNH for 25 years, renewable for another 25 years.

MNHPI is a joint venture between Harbour Centre Port Terminal, the largest bulk and break-bulk port operator in the country, and Petron Corporation, a subsidiary of San Miguel Corporation.

Petron is publicly-listed, recognized the leader in the fuel and oil sector.

MNHPI started commercial operations in April 12, 2010.

Recognized key.

Development, benefits.

Located along the shores of the Tondo District of Manila, MNH covers land of about 52.5 hectares.

The PPA Board approved the development program of MNH on September 9, 2011.

A key hub for domestic commerce in the country, MNH has a total quay length of around 5,200 meters enabling it to accommodate the various types of domestic vessels.

The program is responsive to operational demands of the domestic trade by addressing the needs of all port partners for vessel operations and movement of goods through the port.

In total, MNH has about 41 berths along its various piers and slips.

CEO Barclay estimates the cost of Phase 1 development to almost P6 billion; the whole project from P14 to P15 biliion.

6

MARINO WORLD

by Ligaya Caban Photo by Jomelyn Tud

Phase 1 started with the upgrade of Pier 16, advance reconstruction works and extension of Pier 4 to consolidate Ro-Ro and passenger operations. These also provide sufficient deep-water berthing facilities during Terminal I construction.

The upgraded container stacking areas now have modern container heavy equipment with three new cranes and four RTGs with another four arriving in June.

Sufficient provision for berths and storage areas handle non-containerized cargoes for vessels requiring deeper drafts.

The development program reduces vessel idle time, waiting for tide to berth while working alongside and eliminates vessel draft limitations thus maximizing load capacity and productivity.

The container yard for Phase 1 alone will have 1.2 to 1.3 million capacity.

There is advanced reconstruction works and extension on Pier 10-Southside to provide sufficient deep-water berthing facilities for Lo-Lo vessels during Terminal 1 construction.

The present berths of MNH support small ships with smaller volumes.

The new design allows the terminal to accommodate bigger vessels planned by shipping lines, through reclaimed slipways and merging piers.

Designed by the same architect of St. Luke’s Global City, this terminal is adjacent to Pier 4 for better safety, security and comfort to the passengers and the public.

“We’ve been trying to get the arrival section area (since) there has not been proper arrival area for the passengers in the past…airconditioned, proper comfort rooms.. short walking distance to taxi, proper taxi, private car, and bus parking adjacent to the ticketing area for those getting tickets, those with extra or special baggage, for proper x-ray.

Not only that, also for well-wishers, for people to sit down with their families for goodbyes or welcomes…which the present facilities do not have now.”

This is fantastic for Tondo to have a modern facility like this which could hopefully help attract some of the travelling public back from the air side, ” details Mr. Barclay of their modernization commitment.

It has been observed that between 2005 and 2010, there was a massive shift from sea passage to air traffic but in the last 24 months, there is a noticeable satisfaction that translates into over 1.2 million passengers which is a huge patronage by any standard.

Asked by Marino World if such improvements levy additional fee for passengers, Barclay was forthright and factual: “We’ll look at it as passenger terminal service fee… with all the facilities going in and the extra security, safety supplement, worldclass amenities… any increase is quite minimum compared to air (terminals).

We’d like to look at it in terms of value for money.”

One of the most densely populated in the world, Tondo is northwest of Manila.

Primarily residential-industrial, Tondo is one of the poorest and most underdeveloped districts of the country. Many of the city’s informal settlers are found in this area.

With the expected full utilization of the new and consolidated passenger terminal complex Roll-On, Roll-Off and Passenger (Ro-Pax), operations shall be consolidated in the piers/areas surrounding the new PTB complex.

In particular, Piers 2, 4, 6 and the area commonly referred to as the “Triangle Area” of the MNH. As a consolidated Ro-Pax area, the removal of non-port related activities is critical to the efficiency of the operations, given anticipated volume of 230,000 TEUs per annum. Then 1.2 million mixed destination passengers yearly.

“That triangle area is very important for the port to address. By the end of this year, we hope to see that triangle cleared of all informal occupants so that we can clean it up and develop it. We need that for our Ro-Pax operations. ..The vessels run like an airline, they got to arrive on time, they got to go back on time.. so the planning has to be very efficient to make sure the cargo is received on time, the inbound cargo is delivered on sequence,” explains Barclay.

There are approximately 768 families to be relocated by the National Housing Authority and the PPA as mandated government agencies for the relocation activities.

“There’s a lot to do, I hope they can do more than a hundred a month. Sana, I hope before the end of the year, step by step.”

Clearly, the CEO of MNHPI is a humanist, attuned to the pragmatics of the community: “We have to bear in mind that a lot of these people have been here for a long time. We can’t just say, “get out.”

They have families there, the children go to school.. There are almost 20 Informal canteen operators along Marcos Road (used to be the boundary of North Harbor). A lot of informal settlers work for those businesses. We had karaoke bars, 15 of them and substantial buildings, businesses have been running here for a long time.

“Fortunately, they understood the benefits of what we are doing for the port and in general, for our country’s economy,” expounds Barclay.

MNH is advancing towards achieving International Ship and Port Facility Security (ISPS) accreditation with the installation and introduction of modern facilities, systems, procedures.

Mobile area roaming, aided by highdefinition CCTV cameras throughout the port help contain the situation and minimize problems.

World-Class!

MARINO WORLD

7

MODERNIZING MANILA NORTH HARBOR

Infrastructure, traffic.

MNH provides entry and exit gates and processes to avoid traffic queuing from the main port access road, made worse by metro-wide truck bans.

Barclay adds, “The main concern is to work with the government; PPA on infrastructure, proper connections to ports, to minimize the traffic issues.”

He thinks landside infrastructure affects them and port operations, too.

Port operators may build new berths, container storage areas, the likes. But there has to be the landside infrastructure like roads and highways.

Barclay says there are recent awards of contract to connect them with the highways. He hopes that will progress quickly since there must be a link from the port area to these highways.

MNHPI is working with now with DOTC via the PPA; so with other port operators like ICTSI and ATI. Mr. Barclay further observes: “…Port traffic comes along the same road, from

north; from the south, partly along across Del Pan bridge, Bonifacio Drive and around via Manila Hotel where traffic is heavy; along a highway which is tourist site (historical Intramuros), we need to look over the next immediate turn how we can connect up with flyover type system to overcome the traffic issues. There’s a heavy truck ban as well, so the more we can improve that for the government, the better productivity for trucks too It’s not the port charges which are expensive; it’s the landside movement…”

Staff development.

A key consideration in modernization is providing seminars including training and awareness for MNHPI employees and as well as shipping lines and port users to achieve optimum benefits and productivity from the new systems and processes.

“I think what’s good about this project is also providing career paths. We are providing good career paths for our employees. We have a lot of trainings.

This modernization is not just handling cargo and not just putting systems to

COVER STORY

international standards. We also like to ensure the welfare of our employees, especially our direct-port workers.

Also, we have our own developed system for helping our customers and then we have an international system which give the first domestic port globally to introduce it… for optimizing on terminal planning, ship planning and working close to our system.

MNH is a key hub for domestic commerce in the country.

Our customers now don’t need to come to the port. If they want, they can look up to their laptop, own password to identify where the cargo is; decide should they hurry up and get it out or what they want. All these require training of people, as well.

For example, our first 3 cranes will be operational in May 2013, 8 RTGs

by June 2013, and support equipment require engineering and mechanical skills. We are creating employment opportunities so people can have career paths. They can educate; I feel education is one of the most important things we can do to provide for the future.

Sad to say, it’s not much more than 40% of children are in high school. We have a recruitment, management training

Photo by Jhon Henson Ong

8

MARINO WORLD

MARINO WORLD

9

MODERNIZING MANILA NORTH HARBOR

Annual Domestic Volumes

program where we recruit our protegees.

Young people are very keen. They’ve been working in our berth utilization occupancies, helping to develop our long range plan.

It’s good to see how dedicated they are.

We’re just recruiting more now so they can join our team,“ assures Mr. Barclay.

Teamwork.

MNH has continuous dialogue with all partners - the PPA, shipping lines, shippers, consignees, trucking associations, pilots, tug operators, union leaders and other stakeholders to address concerns and suggestions.

“We do it as a team effort; we also have a commitment to the PPA. We’re working very closely with PPA which has been very supportive. So are the shipping lines.

have a very good management team here, very supportive. Young team, very dedicated and to work with them is an honor.

It has to be a real team effort. We have a terrific board (of directors): “our Chairman is Michael Romero. a strong We have and supportive board.

Being a sports-enthusiast, Mr. Romero understands the value of teamwork.

They have a lot of confidence placed on our work; we report to them regularly,” comments CEO Richard Barclay of MNHPI. On the spot.

And Mr. Barclay brings to the table years in port management.

He has been in most aspects of maritime and port management. Arriving in Manila in 1991, he managed Asian

Terminals (ATI) which grew to a listed company.

During his helm, ATI modernized the South Harbor, expanded operations at the Batangas Port, General Santos, Mariveles Grain Terminal and developed an inland clearance depot at Calamba, Laguna.

In 2006, Barclay was appointed Chairman of P&O Ports for East Asia Region.

Economic Stimulus.

Down the line, Mr. Barclay hopes that the company’s efforts and improvements will provide the country with a modern port; reliable and efficient in the delivery of services and a stimulus for economic growth. Indeed, the development of the port is a welcome sight and a symbol of positive transformation.

We have regular sessions with them, at least every two months. We call it port partners session where we invite them. We present an update on our program; we get their responses because we are building the port to move their businesses” assures CEO Barclay.

Dedicated management.

“I feel very pleased, I feel very privileged to have an opportunity to work with Manila North Harbor and to participate in modernizing the port. We

10

MARINO WORLD

Barclay expounding on the project. At his right is Atty. Mark Vincent Escalona, SVP for Corporate Affairs.

MARINO WORLD

11

Event

7th PH Ports and Shipping Conference “With a favorable business climate, democratic atmosphere, and a clean government… we are very confident… (on what) we offer and we look forward to mutually beneficial partnerships.”

This is unequivocal optimism from Transport and Communication (DOTC) Secretary Joseph E.A. Abaya as he keynotes the 7th Philippine Ports and Shipping Conference.

This was at The Peninsula Manila, tail-end of January, this year, and participated in by about 400 local and international ports and shipping executives.

Abaya gave an overview on what DOTC has so far achieved under the Aquino administration, as well as projects in the pipelines related to shipping and sea transport.

He highlights the Government’s 5-year CAPEX program, the half-a-trillion peso Transport Infrastructure Buildup Plan that aims to upgrade the country’s transportation network on land, air, and sea.

Among these big-ticket Capex projects are the P60-billion LRT 1 Cavite Extension, the 17.5 billion Mactan-Cebu International Airport project, and various multi-billion projects aimed at upgrading and rehabilitating other major airports, railroads, and seaports.

JICA study.

Abaya stresses the government is keen on continuously developing the efficiency of the ports and those identified as strategic for trade and commerce.

These include port terminals in Manila, Batangas and Subic ports.

He also mentions the study being conducted by the Japan International Cooperation Agency (JICA) to help decongest Manila by diverting trade to Batangas and Subic ports.

Batangas and Subic ports are underutilized: capacity utilization is only at 4.2% in Batangas and 5.6% in Subic.

Industry Authority (MARINA) to help in addressing trade logistics and transport constraints for commercial smallholders’ improved market access and integration.

Straight path.

“Because of the kind of business environment created by this administration’s “Straight Path” policy, a lot of other public-private partnership offers have come our way. The kind of sea change long needed by this country in terms of infrastructure is finally pouring in. And this infrastructure buildup is not only good for the country but also good for business.

“The study’s objectives are to determine projected cargo traffic volumes based on shipping patterns; and to propose policies, strategies and action plans that will shift container cargo traffic to Batangas and Subic,” reports Abaya.

Furthermore, the Secretary cited the Davao Sasa Wharf in Mindanao, a P4.04 billion project being structured under the Private Public Partnership (PPP) scheme.

The International Finance Corporation (IFC) proposes a cooperation agreement with DOTC, the Philippine Ports Authority (PPA) and the Maritime

ABAYA

PITCHES FOR THE

PHILIPPINES

by Coca H. Strobar 12

MARINO WORLD

Photos by Jomelyn Tud

MARINO WORLD

13

7th PH PORTS AND SHIPPING CONFERENCE

This emerging bullish environment is gradually showing that there is no better time to invest in the Philippines than now.

This administration’s resolve to weed out corruption in government and straighten out the conduct of public service has ushered in a new wave of confidence and optimism.”

Ratings up.

Secretary Abaya kept on a litany of positive signs: “Recently, Standard & Poor’s (S&P) upgraded the country’s creditworthiness from BB to BB+ with stable outlook, just a notch below investment grade. We had also received similar positive credit ratings from Moody’s Investors Service and Fitch Ratings.

Last May, we received our sixth upgrade from Moody’s barely in the first half of our six-year term. It has upgraded its credit rating outlook for the Philippines to positive from stable.

It said the government has continued to demonstrate prudence in its fiscal management, citing our low budget deficit relative to our rating peers, and a steadily declining level of debt relative to its economy.

Fitch, citing strong external finances, favorable economic prospects, and a track record of macroeconomic stability, maintained Manila’s long-term foreign currency rating at ‘BB+’, while local currency rating at ‘BBB-‘ and gave a stable outlook for both ratings.”

Human resources.

Abaya also assures the abundant supply of highly competent and able maritime human resources for efficient shipping and logistics operations.

He cites the Executive Order No. 75 signed by the President which designated the DOTC, through the Marine Industry Authority (MARINA), as the single maritime administration of the Standards for Training, Certification and Watchkeeping (STCW) for seafarers.

Abaya explains this strengthened the Filipino seafarer’s position in the world maritime community as the No. 1 provider of shipping manpower with more than 25% are Filipinos by ensuring our local maritime workforce are properly trained and qualified in accordance with the International Maritime Organization’s requirements.

“The Philippines is a maritime nation.

Its more than 7,100 islands and a number of natural harbors make this country a more ideal shipping hub for Asia.

It now has everything the shipping industry could need: from ports, shipbuilding facilities, manpower, and the perfect policy environment for the industry,” concludes Abaya.

Conference speakers.

These other speakers from the Philippines cued on the bullish lines of the Secretary on the growth of the country’s port terminals and logistic opportunities, viz:

•

Subic Bay Metropolitan Authority Administrator Roberto Garcia; • NYK Fil-Japan Shipping GM Daniel Ventanilla, Jr.; • Manila North Harbour Port CEO Richard Barclay; • Intl Container Terminal Services VP Christian Gonzalez; • Asian Terminals VP Sean Perez; • Oriental Port and Allied Services Pres. & GM Tom Riveral Foreign speakers are: UN Conference on Trade and Development, Human Resources Development Section/TrainforTrade Officer-in-Charge Mark Assaf; • Sarawak Malaysia Permanent Secretary of Infrastructure Development and Communications Safri Bin Haji Zainudin; • Indonesia Port Corporation HR and General Affairs Director Cipto Pramono; • Roland Berger Strategy Consultants Malaysia Managing Partner Anthonie Versluis; • Drewry Shipping Consultants Singapore Senior Manager Jason Chiang; • IHS Fairplay Singapore Senior Sales Manager Mark Windle; • ISL Applications GmbH Germany CEO Holger Schuett; • Konecranes Ports Thailand Regional Manager Jeffrey Foo; • NACCO Materials Handling Group Australia, Big Truck Business Manager for Asia Pacific Daniel Wedgewood; • Psion Pty Ltd. Australia Regional Sales Director Vani Saradhi Motamarri; • Sennebogen Asia Pacific Singapore Managing Director/CEO Roberto Bencina; and • Brieda Cabins Italy Sales Coordinator Mario Antonioli.

The sessions discussed macro and micro economic drivers in the ASEAN region, shipping and logistic strategies on growing challenges in the ASEAN region and best returns from technology and maritime solution investments.

GARCIA

SHUETT

FOO

WEDGWOOD

ROHRIG

PRAMONO

ZAINUDIN

BENCINA

VERSLUIS

BARCLAY

ASSAF

SARADHI

GONZALEZ

PEREZ

VENTANILLA

RIVERAL

CHIANG

WINDLE

•

Mark Millar and Mark Assaf chaired the two-day conference.

14

MARINO WORLD

MARINO WORLD

15

OPINION

NEW SUPPLY CHAIN STRATEGIES FOR THE ASIA

by Mark Millar

As a result of recent and rapid developments in worldwide commerce, we have witnessed supply chains evolve into complex international networks, which can no longer adequately be described using the linear concept of a ‘chain’.

The depth and breadth of complexity, connectivity and inter-dependencies involved in today’s international commerce has resulted in the emergence of ‘Supply Chain Ecosystems’ – globally inter-weaved, multi-layered networks of partners, suppliers, regulators, service providers and customers.

Amidst rampant globalisation and the never ending pursuit of low cost labour, these supply chain ecosystems have become elongated, complicated and frustrated with challenges arising from Velocity, Volatility and Vulnerability.

At the same time, the traditional growth consumer markets in Europe and North America are experiencing varying degrees of economic, political, social and fiscal uncertainties, which intensify the continual challenge of forecasting demand and result in high degrees of variability in our supply chains.

Meanwhile, with the inexorable rise of the ‘Chindia’ (China + India) powerhouse combined with the increasing economic prosperity and emerging consumerism throughout the ASEAN region, our presence here-and-now in “THE ASIA ERA” is unequivocally confirmed – at least through to year 2050.

The most important impact during 2013 will be a renewed supply chain focus that will move beyond the traditional performance metrics of speed, cost

16

MARINO WORLD

and quality and incorporate much more emphasis on five critical R’s of supply chain – Regional, Regulatory, Resilience, Rationalisation and Responsibility: Regional – with increasing labour costs, especially in mainland China, the volatility in oil prices, and the trend towards regional free trade agreements, companies will seek to rebalance their supply chain complexity by adopting a more regional approach – for example ‘Made in Asia, for Asia’. Hence, there will be some production that will migrate ‘closer-to-home’, or adopt near-shoring - such as Eastern Europe or Latin America. This will not however be a mass exodus from Asia manufacturing – largely because of the well-established supply chain ecosystems that service the Asia-Europe and Asia-America trades, but also because the potential in the Asian domestic markets is so enormous.

Regulatory – companies expanding their business activities in emerging markets, which are forecast to account for almost 60% of global GDP growth through to 2015, will increase the emphasis on having the expertise to capitalise on free trade agreements, whilst deploying due diligence to ensure full regulatory compliance in all relevant jurisdictions.

Resilience – following the unpredictable events that in recent years have caused massive-and-immediate disruption to supply chains (hurricanes, earthquakes, floods, accidents, social unrest and piracy) companies are seeking to develop supply chain resilience. A recent report identified that the greatest risk for global supply chains is ‘The Unknown’. Companies will be adopting combinations of what-if scenario modelling to stress test their existing supply chain ecosystems, and then develop strategies and tactics to build supply chain resilience and deploy

sense-and-response mechanisms in order to be prepared for, and equipped to react to, the unknown unknowns – “Expect the Unexpected!”.

Rationalisation – within the 3PL sector, we will see increasing consolidation amongst and between logistics companies, both at global and local levels, as providers seek to leverage scale economies, extend geographical footprints and expand service offerings.

Within the customer segment, we will also see further rationalisation of their supply base of logistics service providers – with companies reducing the number of outsourced partners to a handful of best of breed providers, likely specialised by geography, transportation mode or specific service offering.

Responsibility – sustainable supply chains are firmly back on the corporate agenda, driven by proven trends that buyers are placing much more emphasis on the suppliers’ perceived environmental reputation when making purchasing decisions – both for consumers and also in the B2B world. Environmentally Responsible supply chains will incorporate particular emphasis on green initiatives, carbon footprint measurement, recycling and waste management programs.

There could well be progress towards the development of independent sustainability standards in the shipping and logistics sector for measurement and reporting of a supply chain’s carbon footprint.

I

UNCTAD Training Program for PPA

n a bid to improve port efficiency and increase value-added service, the Philippine Ports Authority (PPA) is set to adopt a training program for its junior and senior managers designed by an international entity.

According to GM Sta. Ana, the country is in the midst of challenges. It is on the crest of reforms and every sector, public or private, is expected to do its part in improving the country’s ranking in global competitiveness.

Dubbed TrainforTrade Training program, devised by the United Nations Conference on Trade and Development (UNCTAD), it aims to support port communities in developing countries in the quest for efficient and competitive port management.

“The port training program of UNCTAD is important to us because improving the efficiency of our ports depends largely on the knowledge and expertise of the people running them,” Sta. Ana stresses.

On February 1, Mark Assaf, UNCTAD’s Officer-in-Charge for Human Resource Development, met with PPA general manager Juan C. Sta. Ana and his officials, and representatives from the National Economic and Development Authority, Department of Foreign Affairs, Department of Finance, Department of Transportation and Communications, Philippine Coast Guard, Maritime Industry Authority and other ports and shipping stakeholders to discuss the program.

“A well developed and managed port is beneficial to trade, transport and tourism, and ultimately to our national competitiveness,” Sta. Ana adds.

Features of the program include • Worldwide Network-based structure; • Public-Private-Partnership model; • Sustainable training and capacity building modes; • Human Resources empowerment tool for talent management and local ownership;

• Powerful scheme to induce valueadded solutions in port communities; • Robust methodology for knowledge sharing; and • ICT advancement and High-end course on “Modern Port Management”.

This Certificate course requires 240 hours of training involving eight modules and dissertation. The modules include International trade and transport; Organization of a port system; Functioning of a port system; Future challenges to ports; Methods and tools of port management; Economic and commercial management; Administrative and legal management; and Technical management and human resources development.

The program is currently being implemented in different ports nationwide such as Ghana, Indonesia, Malaysia, Maldives, Namibia and Tanzania.

Unlock the power of your supply chain.

Gain access to a network of experts with over 100 years’ experience in Asia Supply Chain Operations

Tangible improvements in lead times, inventory & working capital

As we progress through year 2013, new supply chain challenges will surface, presenting many interesting and exciting challenges – and opportunities – throughout our supply chain ecosystems – adopting a pro-active approach to these critical five R’s will empower businesses to overcome the challenges and capitalise on the opportunities.

Infrastructure Master Planning

Industry thought leader Mark Millar has been engaged by clients as Speaker, MC, Moderator or Conference Chairman at more than 260 events in 20 countries and is recognised by the Global Institute of Logistics as “One of the most Progressive People in World Logistics” mark@markmillar.com

International best practices in benchmarking, evaluation and selection of your 3PL

Strategic planning & economic analysis for ports, airports and logistics parks

Sustainable Supply Chains

Environmental programs that reduce costs & enhance carbon footprint

Market Research and Intelligence

Expert research and analysis on all aspects of the global logistics industry

Logistics Outsourcing

Executive Search and Recruitment Mark Millar

High performance recruitment services for supply chain and logistics talent

M Power Associates is your gateway to empowering superior performance in supply chain and logistics, through an exclusive network of best-in-class business partners Contact Managing Partner, Mark Millar on enquiries@mpowerassociates.com

M.POWER

gateway to knowledge

TRAINING

Mariners Polytechnic Training Center

MPTC BOLD & VIBRANT AT 30

by Coca H. Strobar

prospects … to engage in a profession worth keeping and a source of pride.

And for this, I am proud to be in the company of my colleagues from PAMTCI who make change matter in maritime education and training.”

Current Board Chairperson Commo.

Dante La Jimenez adds, “What will happen to a graduate of our school after graduation, he’s very much concerned about the family …to be intact and a productive citizen, real professional seafarer.

Itutuloy po namin itong advocacy ng founder by way of not only promoting professional competence and to be safety conscious but at the same time gusto naming mabigyan ng kaunting kahulugan din ang social responsibility.”

(We shall continue the advocacy of the founder; we wish to give meaning to social responsibility).

Alliance for new advocacy

A

pioneer on its inception, now a forerunner in its sector – these are the differentiating marks of Mariners Polytechnic Training Centre (MPTC).

SEAMANgGALING as a flagship project is pragmatic application, guided by that mission of “Redefining Training at 30 Years and Beyond,” theme of the anniversary festivities.

Young and vibrant at 30 years, MPTC was a pioneer in Basic Safety Training course; now a forerunner in three core programs, Health and Wellness, Financial Literacy and Gender Sensitivity.

“Not just a celebration of our corporate life… but of our love as well for the maritime industry, particularly the seafarers… Mariners at 30 years metamorphoses into a training institution now with an advocacy.

The core offering is not a marketing ploy but a corporate commitment and a major component of project SEAMANgGALING, launched formally at MPTC’s Pearl celebration last February 27th at the Artic Bay, H2O Hotel of the Manila Ocean Park at Luneta, by the bay.

(W)e redefine training that is not mere compliant to standards but progressively dynamic that allows adaptation to the requirements of the ever dynamic shipping industry. It is training that is inclusively humane against training that is simply for competence,” explains Ms. Merle Jimenez-San Pedro, President.

This project is a holistic approach, and proactive, for the physical, emotional and social wellness of seafarers, focused on the global merchant mariners that Filipinos are these days.

A legacy.

18

MARINO WORLD

Ms. San Pedro attributes the SEAMANgGALING vision to her father, Jaime C. Jimenez Sr. The departed Commodore founded MPTC,

among other institutions.

“This is a continuing legacy of our founder,” adds Ms. San Pedro as she presents the new training programs framed on her father’s dedication to the welfare of seafarers.

MPTC was registered at the SEC on Feb. 27, 1983 when the country was on a spasm of political and economic turmoils. Regardless, Commo. Jimenez raised anchor and sailed against the wind-With his skills (engineer and naval officer); more importantly, fueled by his passion to lead and advocate for reforms.

And as the cliché goes, the rest is history.

In 1974, Commo. Jimenez also established Mariners Polytechnic Colleges Foundation (MPCF). It expanded with three campuses, now the premier maritime institution in the Bicol region.

Trustees of both MPTC and MPCF are of the Jimenez family: Mdme.

Eliza Lazaro Jimenez, Commo. Dante La Jimenez, Dr. Gabriel Jimenez, Dr. Marilissa Jimenez-Ampuan, Ms. Evita Jimenez , Ms. Nimpa Valdez-Jimenez and Ms. San Pedro.

“MPTC shall bring awareness on the three programs : first level on the awareness, second as a stand-alone training program, and lastly those that shall be integrated as subject matter relevant to the courses in the academic curriculum of students,” details Ms. San Pedro.

On a binge of nostalgia, she recalls, “During those years, I was a fence sitter in maritime education and training. I was simply observing and in my heart just obliging to a father’s wish that we have to get involved.

(I)t’s beyond my wildest imagination that 30 years after… I sit side-by-side with … masters and engineers… and positively influence seafarers and

Merle was President of the Philippine Association of Maritime Training Centers (PAMTCI); Dante a former president of the Philippine Association of Maritime Institutions (PAMI).

Additionally, Merle is a trustee of the Women in Maritime Philippines (WIMAPHIL); elder Dante is founding Chairperson of the Volunteers Against Crime and Corruption (VACC).

Partners.

MPTC is synergizing with new partners on its advocacy, viz: •

•

•

On health and wellness, Dr. Jaime Galvez-Tan, President and CEO of Health and Futures Foundation and former Secretary of Health On financial literacy, Ms. Mary Jean Ibuna, President of the Bank Marketing Association of the Philippines.

On gender sensitivity, Sis Mary John Mananzan of the Institute of Women’s Studies of St. Scholastica’s College-Manila.

Signing of the Memorandum Of Agreement among the partners was a highlight of the celebration.

MARINA OIC Nicasio Conti delivered the Keynote before a distinguished audience including: • • • • •

Mr. Jose Kato, Pres., Filipino Association for Mariners Employment; C/E Fred Haboc, Pres., Philippine Association of Maritime Training Centers; Dr. Beth Salabas, Pres., Philippine Association of Maritime Institutions; Capt. Jess Morales, Pres., PMMA Alumni Association; and Arch Thadeus Jovellanos, Pres., Society of Marine Engineers and Naval Architects.

Major clients from shipping/ manning agencies were given awards; as exemplary employees were publicly recognized for their long years of service.

Value-added services.

Ms. San Pedro underscores the three programs under SEAMANgGALING are “value-added” services to their clients. Further, a special Audio Visual Presentation (AVP) simply entitled “Si MARINO, Si MARINA” provided the rationale for the adoption of the advocacy.

“What good does a seafarer’s promising pay bring to the family if, after some months he’s physically ill, financially drained and is confronted with a disintegrating family relations ?” she observes.

With the launch, Mariners’ becomes the first maritime educational and training institution to adopt a Gender Sensitivity program as CHED pushes for a more active GAD program.

Atty. Nicasio Conti commends, “There is no doubt that the vision of our late Commo Jaime … has contributed so MARINO WORLD

19

MPTC BOLD & VIBRANT AT 30

Capt. Leopoldo Tenorio, Marlow Navigation

Ms. Cynthia Dela Cruz, Veritas Maritime

Capt. Eulalio Candava, J-Phil Marine

much in the economic development and progress of the country.

She says MPTC now faces a new landscape in maritime education and training with much stringent standards and regulations in the amended STCW and more issues and challenges in MET, the shipping industry and even (the) close scrutiny of the EMSA.

services are regularly conducted to fisherfolks.

But MPTC is headstrong on its vision to be consistent with the requirements of the International Maritime Organization (IMO) through the Standards of Training, Certification and Watchkeeping of Seafarer’s (STCW) 1978, as amended.

Training facilities include theoretical site, EMI Center at Leveriza and Quirino, Malate, Manila; and the practical site in Lido Beach- San Rafael, Noveleta, Cavite.

I congratulate you for your relentless effort in ensuring that your trainers and assessors possessed the required qualifications to undertake training and assessment activities and for your initiatives to offer new training programs.”

Commitment to quality.

“Our commitment to quality safety training remains steadfast and unshaken as we strive to raise the level for competence in training for safety by the day. In this age of competition, our valued clients in the manning companies and walk-in seafarer-trainees for the past 30 years are living testimony to how we nurture real unadulterated training and we’re ever grateful to them,” underscores Ms. San Pedro.

For the task, MPTC has a pool of qualified trainers/assessors to make seafarers competent and competitive with the best in the maritime industry.

Outreach programs for neighboring coastal communities, extending survival firefighting and first aid extension

MPTC Quality Management System is certified by the Societe Generale De Surveillance (SGS) under ISO 9001:2008.

Those from the Bicol region may avail of these safety training programs.

Cadets of MPCF are trained at Mariners’ Training Institute (MTI) in Baras, Canaman, Camarines Sur. Conducted also in Rawis are Basic Safety, Engine and Navigational Watchkeeping courses.

Model MPTC staff recognized.

20

MARINO WORLD

MARINO WORLD

21

TRAINING

Heartwarming: Abuid Family receives recognition.

Philippine Seafarers Training Center

SAILING HIGH AND MIGHTY AT 30

by Eva Tan

“A tradition in seafaring,” a corporate tagline the Philippine Seafarers Training Center (PSTC) truly lives up to. Come lashing waves and cross-currents, it dares the odds, and sails with the good wind even on distressful times.

Fittingly on its 30th Anniversary, major officials confirm PSTC credentials: MARINA OIC Administrator Nicasio Conti and STCW Office OIC Director Butch Arceo award PSTC the Certificate of Program Accreditation on Basic Safety Training (BST).

This was March 18th, at the Ramon Magsaysay Hall, Roxas Boulevard, Manila.

And drama, there was. For while still on the podium for his remarks, OIC Conti surprisingly called to the stage the Abuid Family, practically the PSTC Board of Directors: Mme. Jayne O. Abuid; President Elisa Abuid-Cayab; Director Willie “Bong” Abuid; Director Arlene Abuid-Paderanga and Director Janet Abuid-Dandan.

The Abuids were predictably emotional; they now have the Certificate they have waited for so long with so much challenges.

The BST accreditation includes • •

22

Personal survival technique; Fire prevention and fire fighting; MARINO WORLD

•

Personal safety/survival responsibility; and • Elementary first aid.

The gesture relays OIC Conti esteem on the Abuids, “This is indeed an opportune time to honor the accomplishment of people who established this solid and credible maritime institution for the service of our countrymen.”

With the new accreditation, PSTC now offers 40 training courses.

Key partner.

Atty. Conti started his speech by recalling the country’s political and economic crises in 1983, the year PSTC was founded amid hardship and challenges, like: • • • • • • • • •

Assassination of Ninoy Dictatorial regime (later united the people) Super typhoon Bebeng Devaluation of peso twice Series of political persecutions, abuses Majority of Filipinos live below poverty line Graft and corruption Mismanagement of government resources And low per capita income.

Given the situation Atty. Conti remarks, “I congratulate you for having been able to establish and to withstand the challenges of the times. You were there planting the solid foundation of the maritime training center that will emerge as one of the most successful maritime institutions.

The new leader Elisa Abuid-Cayab, President.

Now a confidante of the family, Dalaguete points to the determination of the children to continue the founder’s legacy.

PSTC has expanded as a strong maritime institution which is now an important partner of the maritime and the seafaring industry of the Philippines.”

“The daughters and sons of Capt.

Abuid, they are the keepers, they are the providers, they have both in common with my years of service with them. They have very strong faith and consistent actions in achieving their beliefs and aspirations that’s why PSTC is 30 years now, confirms Dr. Dalaguete.

The Founder.

The vision.

Dr. Felicito Dalaguete reminisces on Capt. Willijado P. Abuid, PSTC founder.

Capt. Abuid established PSTC in response to increasing demand for quality training among Filipino seafarers to board international trading merchant ships. It was registered with SEC on March 18, 1983.

Dr. Dalaguete worked 25 years ago as PSTC assessor before serving as VP of Asian Institute of Maritime Studies (also founded by Capt. Abuid). The doctor is now a trustee of Philippine Association of Maritime Institutions.

He recalls when he asked what the three S the founder is talking about in PSTC, “The founder was very emphatic in saying, Serving the Seafarers with Standard.

PSTC has been sailing and living with its vision anchored from the principal foundation of humility, hardwork and dedication in serving the seafaring industry from which it is founded…”

Capt. Abuid retired as CPO of the Navy and a member of Technical Working Group (TWG) for National Seamen Board (NSB). In the ‘70s, it rules on the qualification and employment of Filipino seafarers in the global maritime market; of the original group which initiated discussions of a National Maritime Training System (foremost with the late Blas F. Ople).

A scholarship sent him to Japan to study Nautical Education Administration. His military education and maritime training

in the USA enabled him to be maritime educator and trainer at De La Salle, Adamson, FEATI, PMI, and PMMA.

PCGA Capt. Renato Palomo, was recognized exemplary service to the training center.

Among his awards include “Order of the Owl” (Best Instructor) and “Rifle Marksman.” In 2004, Capt. Abuid was conferred the Outstanding Seafarer of the Year Award (OSYA) by President G.M. Arroyo during the National Seafarers Week celebrations.

Engr. Willie “Bong” Abuid received an award for 30 years of service; president since 1995 until September, 2012.

In 1993, he established the Asian Institute of Maritime Studies (AIMS).

Supporters.

Movers in the maritime industry grace the PSTC celebrations like • • •

Capt. Rodolfo Estampador, Chairman of the Confederation of Maritime Manning Agencies; Admiral Ramon Liwag, former Coast Guard Commandant Capt. Arsenio Padilla, board of director of the Philippine Association of Maritime Training Centers.

Recognition.

Another highlight is the presentation of the Service Awards to employees who have faithfully worked for PSTC for 5, 10, 15, 20 and 30 years.

Ms. Elisa Abuid-Cayab replaced him as President, both reiterating commitment to the vision of their father for the institution.

Onwards.

PSTC started in 1982 as a Review Center, renting a small space in Recto, Manila. In 1983, it was registered with SEC offering the first four basic safety courses.

PSTC rented a resort in Calamba, Laguna to conduct swimming, survival and fire fighting courses.

Years later, built its own I-PSTC building in Quiapo district, Manila.

In 2000, PSTC received the ISO 9002 quality certification.

By 2005, it has acquired its own training site in Calamba, Laguna.

In 2012, the new II-PSTC building was completed which houses the state-ofthe-art simulators. It will here offer

MARINO WORLD

23

SAILING HIGH AND MIGHTY AT 30

First For Philippine Crew Management Company

PTC for ISO 14001 Certification

Willie Abuid recalls PSTC history.

commercial cooking and housekeeping courses.

With the enriched syllabi, PSTC also boasts of a high-caliber faculty which includes Vice-Admiral Fidel Dinoso, former president of Philippine Merchant Marine Academy, the premier maritime institution of the country.

PSTC is improving its training site in Calamba, Laguna arguably under the watch of Vice-Admiral Dinoso as Training Director.

Well, so much is ahead now from that little review center at pedestrian Recto.

But with determination, hardwork and deep prayers, the vision takes shape in

Filipinos on-board vessels plying blue waters.

The sun and stars of our flag glimmering in each of the seafarer’s heart.

And Captain Abuid smiling. For indeed, PSTC is “a tradition in seafaring.”

Philippine Transmarine Carriers (PTC) marks another milestone by becoming the first Philippine crew management company to be recommended for ISO 14001 certification.

policy is implemented through five core programs, i.e. electricity conservation, water conservation, solid waste management, fuel conservation and paper conservation.

This achievement was confirmed following a thorough audit of PTC’s Environmental Management System (EMS) conducted by Det Norske Veritas, an international, third-party certification body last November 21-23, 2012.

Through this policy, PTC is committed to:

ISO 14001 is an international environmental management criterion under the ISO 14000 group of standards that aims to help organizations properly control the possible adverse impact their activities, products and services may have on the environment.

PTC’s EMS program is expressed in an environmental policy signed by Vice Chairman and CEO Gerardo Borromeo last June 26, 2012. This

•

•

•

Improving performance on a continual basis through environmental procedures established under the corporate EMS Developing environmental management plans which aim to further reduce the company’s environmental impact annually as well as measure progress over time; Communicating the PTC EMS program to all stakeholders and encouraging them to support this advocacy in order to broaden the

implementation of sustainable solutions in the years ahead; • Implementing innovative environmental policies and procedures that promote responsible consumption of energy and water, including efficient waste reduction practices that promote recycling and reuse of materials; and • Reporting, with urgency, all relevant incidents that run counter to the company’s stated objectives to minimize, if not prevent, any possible adverse effect on the environment.

The feat is a culmination of a year-long effort across PTC’s various business units working closely to establish, implement, promote and maintain the EMS initiatives expected to be sustained in the coming years with continual improvement.

MARINO WORLD

25

MANNING

No-holds barred.

Mideast-CTI

After the speakers, an open forum followed where junior officers threw in serious questions to their superiors.

Junior Officers’ Conference

INVESTING ON FILIPINO CREW

Mideast’s Mark Buchanan, Luka Amizic, Thomas Varghese and CTI’s Jeffrey Solon with Eduardo Jabla are among senior officers who clarified and issued advices on salary and benefits, grievances on-board and other complaints.

Yet the inspiring recapitulation was issued by Mr. Solon: “One thing for sure, you know that we are growing.

Keep ahead. Work hard, be an asset to the company and the company will definitely get back to you also.”

by Eva Tan Photos by Jomelyn Tud

Mark Buchanan, Mideast Fleet Personnel Manager.

Sustained Growth.

“Safety begins with teamwork,” a

core belief which reflects progressive management.

Exactly, the theme of Mideast Shipmanagement conference at the premier Sofitel hotel by the famous Manila Bay, the Philippines. For two days, February 28 and March lst.

And more importantly, for development of their junior officers; basically Filipinos on whom management is investing on individual career upgrade.

The continuous growth of Mideast Shipmanagement opens opportunities for the crew to train for better skills; to develop as leaders and senior officers in the mercantile maritime profession.

For only with excellent service can that growth be sustained; only with a worldclass crew can great services be rendered continuously.

About 50 junior officers participated in the conference supervised by key executives of Mideast and its manning agent, Centennial Transmarine (CTI).

26

MARINO WORLD

“We love coming to the Philippines.

We invested a lot of money here. We work with the CTI; we want to make it successful and have more senior officers who are Filipinos because we believe they are good workers,” confides Mideast Fleet Personnel Manager Mark Buchanan to Marino World.

During the conference, CTI Chief Operating Officer Jeffrey Solon urge the crew officers to consider the benefits to be gained in the growth of their career.

“If you are going to look at the bigger picture, you’ll improve, you’ll climb up the ladder. You become senior officers and you don’t worry about standard wages at all because you will be part of… permanent employment, back to back wages. You go for that, on the smaller scale!,” inspires Solon.

The Speakers.

President Patrick Browne, Flightdeck Safety Initiatives, discussed crew resource management, the balancing of the technical with human skills.

Manager Marcial Q.C. Amparo III, Marine Department, Corporate Technical and Engineering Services Group (CTESG) of Petron Corporation focused on Ship Inspection Report Program (SIRE), corrective and preventive actions onboard.

Mika Appel, Training Manager of Idess Maritime Centre (Subic) and Jarl Ullakonoja, Training Director of Wartsila Subic expounded on competence development and professional advancement.

“We work with CTI, we want the nature of work. We believe the future for our manning and I see it in the Philippines.” underscores Buchanan in reconfirming partnership with CTI. For over the years, CTI has been deploying competent Filipino crew to Mideast fleets of oil/product/chemical tankers, cargo, containers, bulk carriers and ROROs. CTI is manning a fleet of 42 vessels under Mideast. By April 2013, another 20 VLCC will be added. At tailend of

2.

2013 towards early part of 2014, four bulkers will be also added. An allFilipino crew is proposed to man from CTI. This is apart from new buildings: six ROROs last year and five bulk carriers at the end of this year.

Of these, Buchanan expects an increase Filipino crew to 300 and bring about a total of 1,400 onboard by 2014.

Cadetship Program.

Buchanan says the 92% retention rate of Filipino seafarers is very good; a result

CTI’s Jeffrey Solon emphasizes.

of the benefits and support extended by Mideast and CTI management.

Currently, Mideast is sponsoring 20 cadets from Davao Merchant Marine Academy. This year, it will also sponsor deserving cadets from various schools, increasing to 40 cadets for school year 2013-2014.

The doubling of the cadets may be triggered by the high retention rate of Filipino seafarers in Mideast employ.

Conversely, the retention is achieved by its fair and progressive management.

Hilbert Manalo, Surveyor of Lloyd’s Register Asia, spoke on the implementation of the Maritime Labor Convention 2006, preparing for its full implementation.

Mideast Training Superintendent Luka Amizic and Legal Counsel Lucio Espinoza detailed updates on training and legal matters, respectively.

While reviewing company reports to the audience, Mark Buchanan reaffirmed corporate policy on the upward development of Filipinos as senior officers.

8.

The Mideast-CTI Energy Pool.

MARINO WORLD

27

Opinion

Philosophy and Concept

MARINE CASUALTY INVESTIGATION

ANGKLA GETS MORE SUPPORT Ang Partido ng mga Pilipinong Marino or ANGKLA, kicks off the electoral campaign with overwhelmin¬g support of more than 85 solid maritime groups like manning agencies, training centers and maritime associations.

ANGKLA, the party-list, aims to protect the rights of seafarers, promote their welfare and their families through legislation and programs for the maritime sector.

“We are grateful to our supporters- the thousands of seafarers and their families, manning agencies, training centers, schools and the different associations for sharing our vision and having faith in us (as) … their voice in Congress.

It is from them- our supporters, our chapter heads, our volunteers, our youth leaders, that we get our strength.

Together, we can push for change and development in the Philippine maritime industry and make the country a maritime nation,” says ANGKLA Chairman and Nominee Jess Manalo, whose father is a ship captain.

ANGKLA held the campaign kick-off rally at the Seafarer’s Center in T.M. Kalaw, Manila. Dubbed “Isang Boses, Isang Sigaw,” it gathered hundreds of supporters clamouring for change.

At the rally, ANGKLA Nominee Captain Ronaldo Enrile laid out plans to provide better health and hospitalization benefits, insurance coverage, training and livelihood programs to the seafarers and their families.

28

MARINO WORLD

ANGKLA also proposes to set up transient houses for seafarers processing documents.

It will push for open Philippine registry that will help the more than 20,000 cadets, who graduate each year, get jobs. ANGKLA is checking how it can simplify the tedious process of getting documents from government agencies.

“We support ANGKLA unconditionally because we believe in the advocacy of having a genuine representation in the government for the seafarer and to the full interest of the maritime industry,” says Capt. Oscar D. Orbeta, President of Top Ever Marine Management.

On the legislative core, Atty. Jess Manalo underscores the urgency of reform legislations for the maritime sector. He unveiled a legislative roadmap before the Joint Manning Group or JMG. JMG is an umbrella organization of the country’s maritime associations. The move is towards a more unified and stronger local maritime sector; coming at the heels of a final audit by the European Maritime Safety Administration (EMSA) this April and October of the year.

“The maritime industry is not only governed by local labor laws, it is also governed by international standards, conventions and treaties. ANGKLA will see to it that our laws comply with these standards.

The seat in Congress will also allow the sector to advocate the needs of the industry to other lawmakers and government agencies as well as appropriate funds to the agency-incharge. But we cannot do all these alone. Every voice coming from various organizations like the JMG, entities and even individuals will be heard and will be taken into account before any law can be finalized,” says Manalo.

The plan was endorsed by Atty. Vincent Miranda, JMG Chairman, as he commends ANGKLA Partylist for the comprehensive agenda.

It is estimated 1 out of 4 seafarers in ships around the world is a Filipino. In 2010, around 400,000 seafarers left the country (POEA, 2010) contributing $4.3 billion (BSP, 2011) to the local economy.

The Joint Manning Group (JMG) is composed of five maritime associations: FAME (mariners employment), FSA (shipowners), INTERMAP (manning, shipmanagers), PAMAS (manning agencies) and PJMCC (RP-Japan manning). JMG has close to 300 manning agencies and pushes for the development of the local manning and shipping industry.

Those wishing to volunteer for ANGKLA may log on to www.angkla. org or fb/ANGKLAph.

F R Chowdhury is a former Director General of Shipping, Bangladesh. He is also an ExDeputy Chief Examiner of UKMCA, Maritime Administrator of Gibraltar and Maritime Adviser to GOP, Kingdom of Bahrain.

The International Maritime Organization (IMO) has been working for safer ships and cleaner seas. The term safer ships originally meant improvement in design, construction, material, equipment and training so that accidents and casualties could be reduced.

However, a new dimension has been added to the safety factor and that is security. Now security measures are needed to be in place against threat of security against piracy and terrorism because safety cannot be ensured without security. So the objectives of the IMO can now be better explained by saying safety and security in shipping and protection of the marine environment.

Investigation with in-depth analysis of reasons that led to any accident is vital.

This is the way to learn lessons and remove chances of similar accidents in future. Here we are talking about investigation with the sole motive of safety analysis. This is known as “safety investigation” and in some countries it is also known as “preliminary inquiry”.

It is not the purpose of safety inquiry to apportion blame or to punish anyone.

This inquiry does not require any judicial knowledge or overview. This inquiry is best done by technical experts, I mean marine experts. IMO being the safety custodian in international domain, IMO is interested in safety investigation.

However, IMO is not a sovereign government and it cannot conduct such inquiries. But IMO wants to know the outcome of all safety inquiries so that it can discuss on its floor about possible measures to prevent such accidents in future. This is why every international convention adopted through IMO (LL, SOLAS, MARPOL and STCW) has a provision requiring the Flag State to conduct inquiry/ investigation into any marine casualty on its ships and make the findings available. Similar provisions are also contained in UNCLOS-82. Such obligation sometimes falls upon Port States when such accidents take place within their jurisdiction.

Sometime the two administrations cooperate with each other or even conduct joint inquiry. IMO is not concerned about any criminal or other inquiry conducted under any national law. IMO is interested in findings of safety inquiry in case it leads to any discussion or debate on the floor of IMO for any change or amendment to standards relating to design, construction, material, training or even procedural matter.

National maritime law very commonly referred to as Merchant Shipping Act will reflect the provisions of all international instruments to which the State is a party. However, when making reference to casualty investigation it will evidently not make references under every relevant instrument but make one single reference. However, it is necessary to make certain points absolutely clear. First of all national legislation must make it obligatory on the part of the owner and master of every ship under its flag to notify the administration of any accident or casualty causing damage to any person, ship or its equipment or cargo or other ship or property or any damage to the environment. Similarly the law must also require every foreign ship having met or

come across similar incident within its waters to report to the administration.

The administration on receipt of such information shall arrange for a safety inquiry to establish the reason of such accident/ casualty. This will be done with a no blame attitude solely for the cause of safety and the report shall be freely available to all – ship-owners, seafarers, professional institutes and unions. All important investigation report may also be forwarded to IMO for its consideration. Anything beyond the safety inquiry is not a matter for IMO but for national law. The safety inquiry will be conducted without any prejudice to any right of any party to sue another party for any damage or claim. It shall not diminish the right of the Government to order any formal or judicial inquiry where it deems it necessary. The Government may also initiate legal action against any individual for any criminal negligence or gross professional misconduct.

However, it is better to clarify that whereas the results of the safety inquiry shall be available to all for the sake of safety and public benefit, it shall not be referred to any subsequent court proceedings and the administration shall not be obliged to produce a copy to the court officially.

However, a court may order for such pieces of evidence (like photographs, VDR recordings etc.), that may not be otherwise available, to be produced.

No deposition or statement made solely for the purpose of safety shall be produced nor the identity of the persons disclosed. There shall be no prosecution based on the report of the safety inquiry.

I should clarify that by referring to the administration we mean the department, directorate or other governmental agency (perhaps headed by a Director General) that looks after day to day administration of maritime matters. It

MARINO WORLD

29

MARINE CASUALTY INVESTIGATION

will be enough for the administration to conduct the initial safety inquiry.

The term Government will refer to the relevant Secretary of State/ Minister (not any civil servant) who heads that ministry. The law should give specific power to the Secretary of State/ Minister to institute a judicial inquiry when s/ he considers it necessary to do so. Such commission may summon witness, take deposition under oath and take punitive measures against anyone found guilty of an offence.

The judicial inquiry or its verdict has nothing to do with IMO or its convention. It is just the sovereign right of any independent state to take action as deemed necessary for the sake of good governance and rule of law.

The safety inquiry is viewed with lot of importance. Impartiality is an important factor as the inquiry is not held against any person or party. In some countries they think it is not appropriate for the administration to conduct the safety inquiry as it conducts the surveycertification of ships. How can it reveal its own weakness? This is why in the United States there is a separate body known as National Transportation Safety Board (NTSB) and in the United Kingdom there is Marine Accident Investigation Bureau (MAIB) to conduct such safety inquiry. Definitely they are one step ahead of others.

Shipping Now we shall do some case studies.

Supposing the watch-keeping officer fell asleep resulting to a grounding or collision. The safety inquiry will make a reference to the actual fact but concentrate on why the officer fell asleep. Is the rest period sufficient to prevent such incident and make recommendations to that effect? It is only a formal inquiry that can look into the conduct of the officer and decide if his/ her certificate should be revoked.

In case of a collision the ships may like to go for litigation (sue each other) for apportionment of blame and claim.

The insurance industry may not settle any claim unless the ship takes legal measures to reduce its burden.

However, it must be understood that the commercial world and the insurance industry will have more faith in a Flag State that has a rule of law. They would like to see that deterrent action is taken against professional negligence and misconduct.

It is now clear that national law (merchant shipping act) has to cover all aspects of maritime matters – registration, mortgage and lien, claim and arrest of ships, safety, security, training and certification of seafarers and manning of ships, environment and commercial (carriage of goods, chartering, carriage of passengers and their luggage, marine insurance both

hull/ machinery and P&I). It has to transpose all important provisions of international instruments and blend it with some national requirements.

In respect of casualty investigation it has to have clear provisions for safety inquiry under conventions and separate provisions for further litigation where necessary.

Safety investigation is for the purpose of discovering lessons which may be learned with a view to preventing any repetition. It is not the purpose of such investigation to establish liability or to apportion blame, except in so far as it emerges as part of the process of investigating the incident. The report shall be freely available for public benefit but will not be presented as evidence in any court.

The IMO guidelines and the EU directives emphasise on two points.

Seafarers must not be harassed during the process of investigation. Seafarers must always be treated fairly. Ships must not be delayed or detained solely for the purpose of investigation.

[This article does not provide any guidance to procedures for investigation.

It only clarifies the philosophy and concept of investigation.]

For any rejoinder, please contact fazlu. chowdhury@btinternet.com

BIBBY WINS MAJOR CONTRACT Bibby Ship Management (BSM) has won a prestigious contract with BP Exploration Operating Company. This is to fully manage four Regional Support Vessels (RSV) plus two new-build Platform Supply Vessels (PSV) for operation in the North Sea. This contract is a milestone for Bibby in its drive to build on its expertise in the management of offshore vessels. The contract will be managed from Aberdeen, involving more than 200 crew and support staff.

It runs for a minimum of five years valued at about £100 million.

The management includes eight Autonomous Rescue and Recovery Craft onboard the four RSVs; also the management support for the newbuilding and commissioning of the two new PSVs.

30

MARINO WORLD

These new vessels will have response and rescue capability, increasing BP’s fleet capabilities.

Mark Hardie, BP’s UK Logistics Infrastructure Manager, says, “This award is a key component of BP’s long term marine strategy and we look forward to working with Bibby Ship Management to ensure high levels of service to our offshore operations.

The five-year contract involves managing the existing Caledonian vessels as well as the two new high specification supply vessels which will be joining the BP fleet from 2014. The award is good news for the 200 crew and support staff involved in this contract.”

BSM sits within Bibby Line Group and able to draw on its 205-year history to provide effective business solutions for modern ship owners.

Sir Michael Bibby, Managing Director of Bibby Line Group, adds, “We are absolutely delighted to work with BP in providing full technical management and logistics services for these vessels in the UK North Sea. The award of this contract reflects the benefit of our investment in Bibby Ship Management’s systems and people to create a high quality ship management business with great safety awareness…”

BSM has a managed vessel portfolio that combines a Bibby-owned fleet with strong Third Party clients like BP. That enables expert staff to provide forward-thinking plans to owners.

In addition, BSM is able to supply crew and crew management services. It currently supplies crew to more than 200 vessels offering a wide range of additional services like training, accountancy and salary administration.

NYK Upgrades

Japan - Philippines - ASEAN Services NYK Line shall upgrade its Japan– Philippine-ASEAN services as a major response to consistent economic growth in the area.

The welcome news was confirmed by senior NYK officials attending the Port and Shipping Conference held in Manila at the tail-end of January, this year.

Initial details show five new loops and more feeder max vessels commissioned to various routes therein to handle burgeoning cargo volume.

NYK caters to demand.

Port rotations in the new PGS-1 and PGS-2 services have been refined to improve the transit time to Manila from Japan’s Kanto region (Tokyo, Yokohama, Kawasaki) and keep the transit time competitive from Japan’s Kansai region (Kobe, Osaka).

The links to the ASEAN market would further be intensified.

The two new services bring in eight Feeder Max vessels with an average size of 2,600 TEUs, enhancing PGS service which would be covered through two new loops strategically passing through Manila.

NYK Line has responded to the growing Philippine economy, ending strong in 2012 with a 6.6% GDP growth plus a conservative forecast of 5.9% in 2013.

The two new loops thru Manila will be complemented by NYK Line’s launch of new services linking Japan-Vietnam on the new LNS and VLS services; Japan-Thailand-India thru the new HLS services.

In total, NYK Line will launch five loops to upgrade service network in Asia.

NYK FilJapan Shipping is the Philippine shipping arm of the NYK Group handling container ships, car carrier ships, bulk carriers, cruise vessels, and project ships.

The NYK Group.

Nippon Yusen Kabushiki Kaisha (NYK) is a global leader in transportation.

By March 2012, NYK Group operates 838 major ocean vessels, as well as fleets of planes, trains, and trucks.

Ocean fleet includes 354 bulk carriers, 129 containerships (including semicontainerships), 121 car carriers, 85 tankers, 56 wood-chip carriers, 28 LNG carriers, 19 heavy-load carriers/ conventional ships, three cruise ships, and 43 other ships.

NYK’s revenue in 2011 was about $23 billion, employing about 55,000 worldwide. It is based in Tokyo with regional offices in London, New York, Singapore, Hong Kong, Shanghai, Sydney, and Sao Paulo.

MARINO WORLD

31

ISF SEEKS COMPROMISE ON VISA FOR SHORE LEAVE

T

he International Shipping Federation (ISF) proposes a pragmatic approach to visa requirements to port states to facilitate the right of seafarers to shore leave.

ISF strongly believes this is consistent with governments’ international treaty obligations.

ISF has made this proposal to the International Maritime Organization (IMO) Facilitation Committee, which next meets in April to consider its current review of the IMO Convention on the Facilitation of International Maritime Traffic (FAL).

The FAL Convention includes a blanket prohibition on port states requiring seafarers to obtain visas in order to enjoy shore leave.

The long established principle that, due to the special nature of their employment, seafarers should not be required to hold a visa for shore leave is enshrined in various international Conventions, including the International Labour Organization (ILO) Conventions 185 and 108, as well the IMO FAL Convention.

However, in a post ‘9/11’ world of heightened concerns about security and immigration issues, the ability of seafarers to exercise this right is increasingly being challenged.

Visas are now required in United States and Australia.

Seafarers are unable to leave their ships without visas within the Schengen area of the European Union, in spite of efforts by the European Commission to resolve these difficulties.

Problems also exist in Brazil, Singapore, South Africa and other countries.

“Despite the clear principle established by various Conventions, many port states do now require a large number of seafarers to obtain visas in advance in order to enjoy shore leave. This causes serious difficulties for seafarers – especially those operating in tramp trades that may not have the opportunity to apply for a visa in advance,” says ISF Director of Employment Affairs, Natalie Shaw.

Photo by Jhon Henson Ong

32

MARINO WORLD

As part of the ongoing review of the FAL Convention, several governments have supported proposals to add “visa number, if appropriate” within the information that port states can be permitted to request from ships.

While governments have argued that this information will only be used to assist the transmission of information about visas required by those seafarers who might wish to travel beyond the ‘geographical limits’ of shore leave, ISF thinks adoption of such an amendment legitimises the requirement of visas for shore leave by Parties to FAL, ISF believes this further undermines the fundamental principle that visas should not be required.

However, ISF’s priority is to ensure shore leave is facilitated. ISF proposes to IMO that governments should agree that when port states insist upon requiring visas for shore leave, they should make provisions for the seafarers to be able to apply for visas upon arrival in port, or very shortly before.

ISF will, therefore, propose that a new ‘Recommended Practice’ to this effect be included in the FAL Convention. If accepted, ISF will drop opposition to visa numbers requested from ships.

“While this involves a degree of compromise on our part, we do not want to cut off our nose to spite our face. In the event that such an amendment could be accepted by governments, this might make a significant contribution towards facilitating access to shore leave…”

Mrs. Shaw adds, “We want to break the impasse.” This, given puny progress in recent years.

The amendment proposed by ISF is consistent with the principles established in ILO Convention 185. ISF helped negotiate this at an ILO Tripartite Conference in 2003.

BWESPI HOLDS ARAB-PHIL SUMMIT The pre-summit orientation for entrepreneurs wishing Arab funding whizzes through at the historical Manila Hotel grand ballroom, almost the whole business hours of March 22nd.

It was organized by Bahrain World Economic Summit (Philippines) or BWESPI for select business and commerce organizations for a preview of business opportunities in Bahrain and other Gulf states for small, medium and large-scale business owners.

Some mariners were seen at the forum, given that BWESPI holds kind interests on the potentials of Filipino seafarers in doing business outside of the maritime ambit.

In tandem, BWESPI held last February 4th a successful road show in Cebu City gathering over a hundred Cebuano businessmen and government officials in preparation for the Summit.

BWESPI Chairman Roa Jacob Sevilla says he wishes to assist Filipino businesses participating in the ArabPhilippines Business Summit 2013.

Khalifa & Sevilla Roa claims he is the sole authorized Philippine representative of the Bahrain World Economic Summit (BWES) of the Kingdom of Bahrain.

BWES is chaired by His Excellency Shaikh Ebrahim bin Khalifa Al Khalifa, also Chairman of Board of Trustees of Arab Regional Centre for Entrepreneurship and Investment Training, United Nations Industrial Development Organization, Kingdom of Bahrain.

“The government of Bahrain and the Royal Family is looking at the Philippines as the next Singapore, because of the Filipinos aptitude, as well as our country’s natural resources. For them, our country is the prime candidate for business and economic ties…

This pre-summit … provide(s) an insight for business owners in the Philippines on how the Arab-Philippines Business Summit 2013 can help them tap more business opportunities and how it can facilitate the strengthening of economic relations (with)… Bahrain and the other member countries of Gulf Cooperation

Council (like)… Saudi Arabia, Kuwait, Qatar, UAE and Oman,” explains Sevilla.

To facilitate the interfaces, Sevilla’s group has collaborated with government and business organizations, including UN Industrial Development Organization (Bahrain), and the ministries: •

Industry and Commerce;

•

Interior-Customs Affairs;

•

Municipalities;

•

Agriculture Affairs;

•

Chamber of Commerce and Industry

In the Philippines, Sevilla claims endorsement by the Chamber of Commerce and Industry; and partnered with marketing and communications companies like Great Adventures & Concepts @ Work, Extant PR Systems, Outstanding Elderly Friendly Awardees of the Phil’s Foundation, Creator Marketing Consultancy W.L.L., and Sharif Artbits.

Myanmar Transport & Logistics Summit The Myanmar Transport & Logistics (MTL) Summit is all systems-go for May 12 to 15th, this year, at the nation’s capital – Yangon.

The international conference is of major consequence being of ministerial and C-level rating.

The Ministry of Transport shepherds the meet, a critical audience to reveal Myanmar’s national master plans The Ministry targets investments in logistics, supply chain and transport infrastructure catering to the economy’s growth and sectoral needs.

Union Minister of Transport, H.E. U Nyan Htun Aung, is slated to open the four-day summit with a keynote address. DICA

Director General Aung Naing Oo gives an update on the foreign investment laws.

Transport Department Director of the Ministry of Transport U Aung Ye Tun will share the master plan on the transport sector, covering inland waterways and river transportation development.

Vital sessions by senior representatives from Myanmar Port Authority, Ministries of Rail Transportation, Construction and Transport offer delegates firsthand updates on logistics infrastructure support, port development, rail network, road projects and airports & air cargo infrastructure.

Participants shall have updates on trade policies leading to AEC 2015, first-hand

notes from senior officials like: • • • •

U Aung Soe, Director of Trade, Commerce Ministry; Ms. Soe Soe Lwin, Asst Director, Finance, Revenue Dept; Customs regulations and reforms affecting clearance rate; and Capt. Aung Khin Myint, Chairman of Myanmar International Freight Forwarders Association on transport and logistics internal challenges.

High-level representatives from international companies will front sessions on supply chain management.

Additional data may be gathered at the official website, http://www.cmtevents. com/main.aspx?ev=130512&pu=220940 MARINO WORLD

33

Gallery

11th Asean Ports Association Sports Festival February 25 - March 1, 2013 Manila, Philippines

34

MARINO WORLD

MARINO WORLD

35

CONGRATULATIONS FROM

36

MUSEO MARITIMO

MARINO WORLD