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VOLUME VII • No. 3 • ISSN 1908-0972


MARCH 2012

WOMEN power

 EMSA No Concern  Subic Underutilized?  Industry on Ransom Ban  PH Ship Registry  Key to LPG Carriers  Hanjin Diversifies MARCH 2012




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How can your seafaring crews avoid getting distracted with concerns overavoid their health, How can your seafaring crews gettingtheir families back home, and their future prospects distracted with concerns over their health, their - while atyour theirseafaring duties onboard? How can crewsfuture avoid getting families back home, and their prospects distracted with concerns over their health, their - while at their duties onboard? families back home, and their future prospects Shipowners and ship managers want their crews to focus their full attention on the work whilewhile at their onboard? at- hand theirduties ships are on the high seas. But worries about their personal situations,

such as their maintenance, or their the well-being their families so far away, Shipowners andhealth ship managers want crews to of focus their full attention onand the their work long-term future toward retirement, sometimes become distractions for seafarers at hand while their ships are on the high seas. But worries about their personal situations, while on duty - and distractions can cause ineffi mistakes accidents. Shipowners and ship managers want their crewsciencies, to focus their full or attention on theand work such as their health maintenance, or the well-being of their families so far away, their at hand while their ships are on the high seas. But worries about their personal situations, long-term future toward retirement, sometimes become distractions for seafarers such their maintenance, the well-being ofand their familiesor soaccidents. far away, and their Looking after Seafarers’ Well-being with Retirement Plans while onasduty -health and distractions canorcause ineffiHMO ciencies, mistakes

long-term future toward retirement, sometimes become distractions for seafarers while on duty - and distractions can cause inefficiencies, mistakes or accidents. Ascent Insurance Management AgencyPlans Inc. (AIMAI) provides Looking after Seafarers’ Well-being with HMO and Retirement full health maintenance coverage to seafaring crews of interLooking after Seafarers’ Well-being with HMO and Retirement Plansand Asia. national manning clients based in Europe

Ascent Insurance Management Agency Inc. (AIMAI) provides More thanmaintenance 20,000 members underto HMO plans of our clients full health coverage seafaring crews of interAscent Insurance Management Agency Inc. (AIMAI) provides have benefi ted from AIMAI’s comprehensive HMO coverage national manning clients based in Europe and Asia. full health maintenance coverage to seafaring crews of interfor the past five years -- even for some pre-existing conditions

national manning clients based in Europe Asia. More members under HMOand plans of our clients whichthan other20,000 HMO providers do not cover. have ted from AIMAI’sunder comprehensive Morebenefi than 20,000 members HMO plansHMO of ourcoverage clients And for long-term retention of good-performing crews, we for the past fi ve years -even for some pre-existing conditions have benefited from AIMAI’s comprehensive HMO coverage have packaged a Retirement Plan benefit for officer-level crew which providers do some not cover. for theother past fiHMO ve years -- even for pre-existing conditions

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We can customize HMO, retirement plans and insurance We can customize HMO, retirement plans and insurance coverage to suit your particular needs, big or small. coverage to suit your particular needs, big or small.

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MARCH 2012


100% Full Attention to the Work At Hand Cover Story 5

On Women’s History Month MARITIME’S WOMEN POWER

How can your seafaring crews avoid getting 8 Impeachment Delays MLC Ratification (Part II) distracted with concerns over their health, their 9 EMSA No Serious Concern families back home, and their future prospects - while at their duties onboard? ABOUT THE COVER Shipowners and ship managers want their crews to focus their full attention on holding the work Women major Shipping at hand while their ships are on the high seas. But worries about their personal situations, maritime posts – such as their health maintenance, or the well-being of their families so far away, and (Clockwise) Dr.their Mary Lou 14 Industry Against Ban on Ransom Payment long-term future toward retirement, sometimes become distractions for Lacson-Arcelo seafarers (Iloilo), Ms. Candice Go-Gotianuy while on duty - and distractions can cause inefficiencies, mistakes or accidents. (Cebu), Ms. Merle-Jimenez San Pedro (Bicol), Ms. Carla Education and Training Looking after Seafarers’ Well-being with HMO and Retirement Plans Salinas-Limcaoco, Ms. Doris 16 Vision to Excel with Filipino Seafarers Magsaysay-Ho and Ms. Oben-Nazareno (all Ascent Insurance Management AgencyCristina Inc. (AIMAI) provides of Metro crews Manila). few of full health maintenance coverage to seafaring ofAinterthe prime movers of varied national manning clients based in Europe and Asia. expertise competing well in plans of our clients a tough industry. GovernmentMore than 20,000 members under HMO have benefited from AIMAI’s comprehensive HMO coverage 18 PH Ship Registry for the past five years -- even for some pre-existing conditions which other HMO providers do not cover. And for long-term retention of good-performing crews, we have packaged a Retirement Plan benefit for officer-level crew so that, together with HMO coverage benefits, the clients’ Ports senior crews remain stable in their workforce. 20 PPA Income Approaches Two Billion

22 Cargo Up But WeSubic can Underutilized customize HMO, retirement plans and insurance

coverage to suit your particular needs, big or small.

Shipbuilding 21 Hanjin diversifies against competitions Penthouse A81, Zeta Bldg., Salcedo St., Legaspi Village, Makati City, Metro Manila, Philippines Tel. (632) 810 7707 • 810 7349 Fax: (632) 810 6848 Cellphone: (63920) 9400852 Gallery Website: Email: 24 Women Managers in the Maritime Sector-Asia

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MARCH 2012






here is this well-worn cliché that behind every man’s success is a woman … nudging he is wrong! Well, most of the time - maybe. Given today’s less constricting society, women are beginning to blossom in every field of life; be it in outer space as astronauts or in blue waters as oceanographers. They shine in politics and in technology, even in prize fighting where just recently a Filipina reigned champion.

from the Asian model of women subjugation. A social study a few years back even concludes that about 80% of big business in the Philippines were started or established by women, then voluntarily relegating themselves to being “treasurers” to give the men the macho image of the presidency. This validates Filipinas are essentially demure. They do not command, they just control.

In our local maritime scenario, we have ratings and executives. Women are in the full spectrum of the industry; overwhelming in land-based administrative and support work. And becoming visible on-board be it engine, watch or command.

In the Philippines as the Manning Capital of the World, many women are holding key positions with expertise demanded by the industry like business management, administration and auxlliaries, education and training, and the technical aspects of engine, command and crisis leadership.

This is small wonder with the permissive culture of the Filipino on gender equality. We gather from our historical epoch that we hosted a matriarchal past – from warrior princesses to babaylan priestesses. This differentiates our islands

In 2005, a study conducted by Caliper (Princeton, New Jersey management consulting firm), and Aurora (London, women advocacy) identified characteristics that distinguish women leaders from men when it comes to qualities of leadership:

Women leaders are more assertive and persuasive, have a stronger need to get things done and are more willing to take risks than male leaders. The study adds women were also more empathetic and flexible, stronger in interpersonal skills… enabl[ing] them to read situations accurately and take information in from all sides. These women leaders are able to bring others around to their point of view... because they genuinely understand and care about where others are coming from… so that the people they are leading feel more understood, supported and valued. On top, women are managing hearth and health of the family left behind. As mother and as lover, they dominate in another plank the hankering of men at sea, listless on moonless night and cold in the void of the voyages. Thus, comes another cliché: the best man for the job is a woman. And we have just begun!


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MARCH 2012

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On Women History Month

Maritime’s Women Power By Ms. Lyn Bacani

How Event Evolved. As claimed by Jone Johnson Lewis, Europe first celebrated In March 8, 1911 the International Women’s Day. Back then, women’s rights were political hot potatoes. More so suffrage, the right of a woman to vote. But with the economic depression of the 1930s and War II, women’s rights went out of fashion. In the 1950s and 1960s, women’s movement began to revive with the classic from Ms. Betty Friedan: “problem that has no name” — the boredom and isolation of the middle-class housewife who often gave up intellectual and professional aspirations.

to increase consciousness and knowledge of women’s history: to take one month of the year to remember the contributions of notable and ordinary women, in hopes that the day will soon come when it’s impossible to teach or learn history without remembering these contributions.

Philippine tradition. In most Asian countries, women are normally subjugated even in mundane

Being a initial compendium, our data on the named ladies will be cryptic. We do not have the space and specifics to elaborate on the range and repercussions of their work in business and the community. But as in finding classics in music, they are “all-time favorites.”

By the 1970s, schools were targeted resulting into many universities including in their syllabi the fields of women’s history and the broader field of women’s studies.

On the Roll. Things snowballed, primarily with a bipartisan resolution in the US Congress establishing National Women’s History Week. It encouraged even wider participation in Women’s History Week. Schools focused for that week on special projects and exhibitions honoring women in history. Organizations sponsored talks on women’s history. In 1987, Congress expanded the week to a month, issuing a resolution every year since then. The U.S. President has issued each year a proclamation of Women’s History Month.

The second, they are current movers of major proportion be it directly in business or in support of it. Thirdly, this is a partial list since there are a lot more we do not know. And thus, could not identify. The truth is, Marino World has just initiated a perspective. When things are in full cycle, women in maritime media may be noticed and listed. And so… (ahem!).

Women’s issues and women’s history again blossomed in the 1960s with “women’s liberation” activism almost universal.

In 1978 in California, the Education Task Force of the Sonoma County Commission on the Status of Women began a “Women’s History Week” celebration. The week was chosen to coincide with International Women’s Day, March 8.

benchmarks: our choices are outstanding ones, arrived on research and synthesis of opinions. The final few could stand scrutiny of objective experts, not by sourgrapers or cry-babies.

In Manning Business.

daily grind. But the Philippine tradition veers away from the regional milieu in that its history is replete with women impact, although not yet to an ideal level.

Ms. Doris Teresa Magsaysay-Ho - CEO, Magsaysay Maritime Corporation, spawning Magsaysay Institute of Shipping, Magsaysay Training Center; Acquired the National Maritime Corporation in 1986; Former president of Philippine Interisland Shipping Corporation.

We have reigning princesses and warrior women, prayer ladies and armed rebels --- Princess Urduja, Melchora Aquino and Gabriela Silang of the revolution, readily on recall. Before the US could even have a women nominee, the Philippines already has installed two women presidents; one by revolution and the other, by elections. It appears the directory of women leaders in the local maritime industry reflects the upward mobility of the Filipina women. They are in management positions; the trend going up every year even if the global trend shows a downward graph.

Our current roster.

The President’s Commission on the Celebration of Women in History in America met through the 1990s. One result has been the effort towards establishing a National Museum of Women’s History for the Washington, DC, area.

Any attempt to compile anything always attract dissenters against the entries, more so when these are ranked. Marino World sees no exception in its effort to highlight women who are main players in the maritime industry.

The purpose of Women’s History Month is

However, we stand firm on three

Multi-awarded , recipient of Entrepreneur of the Year 2004. Considered the first Filipina to win the Socially Responsible Entrepreneur award in 2003. Named the Most Charitable Force at the Philippine Tatler Ball 2005 for both her business and philanthropic endeavors. Ms. Doris is a daughter of businessman Robert Ho and MARCH 2012



Anita Magsaysay, an international artist. Hon. Carla Salinas-Limcaoco – ViceChairman and Executive Managing Director of Philippine Transmarine Carriers (PTC) established in 1979. Her Excellency is the Honorary Consul to the Philippines of the Swedish Government.

Foundation : Arevalo in 1973, Bacolod in 1974, Molo in 1976, and Puerto del Mar Training Center in Guimaras in 1995. From a review center in May of 1931 to a premier maritime university today - on helm is a woman, Dr. Mary Lou L. Arcelo, a worthy bearer of a heritage of vision and faith.

tradition. Ms. Rizabel Cloma-Santos - President of PMI Colleges, the oldest and the largest private maritime school in the country. PMI is the first to acquire its own training ship, named after its legendary founder, the iconic Admiral Tomas Cloma.

Education Leaders. Ms. Merle-Jimenez San Pedro - Daughter of retired Commander in the Philippine Navy, Engr. Jaime C. Jimenez who founded in1975 the Mariner’s Polytechnic Colleges, now a leading institution in Bicolandia. Ms. Merle is MPCF’s Executive Vice President and President of Mariners Polytechnic Training Center. She is the Auditor of Women in Maritime Philippines (WIMAPHIL) and past President of the Philippine Association of Maritime Training Centers (PAMTCI).

She is the Founder and President of Women in Maritime Philippines (WIMAPHIL) in partnership with various agencies like the United Nations, State agencies and nongovernmental organizations of different advocacy . Hon. Limcaoco is a daughter of Philippine Ambassador to Spain Carlos Salinas who also sits as PTC Chairman of the Board. Ms. Ana Maria Cristina Oben-Nazareno - Daughter of Atty. Reginaldo Oben who established Wallem Shipping Philippines (WSP) and Wallem Maritime Services (WMSI) in 1976.

Ms. Candice Gotianuy - Daughter of Atty. Augusto Go, founding Chairman of the University of Cebu (UC). Candice is Chancellor of UC which maintains partnership with several organizations of foreign shipping companies offering scholarships and training programs. From a modest start in 1964, UC evolved into a world-class university in Asia Pacific; now with five campuses: the Main Campus with Admin offices and most colleges, Engineering and Education Campus, the Lapulapu and Mandaue Campus (UCLM), the UC-Maritime Education and Training Center (UCMETC), and the UC - Information and Communication Technology Center (UCICTC).

Ms. Cristina is the President of WMSI and Vice President of WSP. Former president of WISTA Philippines, an organization affiliated with the Women’s International Shipping & Trading Association (WISTA).

1972 was a signal year when his youngest daughter took over management. Dr. Mary Lou did not blink, making even the inside union accept her with open arms. And she reciprocated their trust, leading expansions to various campuses as JBL College



MARCH 2012

Engr. Felix Padilla is the first Filipino to graduate as a Naval Architect and Marine Engineer from the Massachusetts Institute of Technology (MIT, USA). He returned to share his knowledge and to establish NAMEI in Mandaluyong City, Metro Manila.

Union Officer. Ms. Maria Socorro Oca-Robles - Daughter of Capt. Gregorio Oca who founded the largest union of Filipino seafarers, the Associated Marine Officers’ and Seamen’s Union of the Philippines (AMOSUP). Marissa is the Administrator for the AMOSUP Shelter Program operating in Dasmarinas, Cavite. She also served from 1981-1995 as Hospital Administrator at the Seamen’s Hospital in Intramuros, Manila.

The latter was founded in UK in 1974 with over nineteen (19) national associations. It attracts more women to the industry and supports women in management by enhancing competence for success. Dr. Mary Lou Lacson-Arcelo - Daughter of Master Mariner Juan Bautista Lacson, founder in 1931 of a marine review school, morphing in 1948 as the Iloilo Maritime Academy (IMA) which was to become the John B. Lacson Foundation Maritime University (JBLMU).

Dr. Ma. Celedonia Padilla-Patag – President of the Naval Architecture and Marine Engineering Institute (NAMEI), ably managing the institution founded by her father in 1947.

Dr. Arlene Abuid-Paderanga – President of Asian Institute of Maritime Studies (AIMS), founded in 1993 in Pasay City, Metro Manila, by her father with his associates. Her passion is to build and promote the Museo Maritimo to showcase the nation’s rich maritime heritage, culture and

She is the founding president and executive director of the Gig and the Amazing Sampaguita Foundation (GASFI) to promote bonding of seafarers and OFW families (Overseas Filipino Workers) through reading. GASFI simply encourages daily reading to a child for 20 minutes at bedtime.

Training Executives. Ms. Karen Avelino of Philippine Center for Advanced Maritime and Simulation Training, Ms. Marlene Jante of Meridian International Maritime Training Center, Ms. Norma Blasquez of Southern Institute of Maritime Studies, Ms. Maricel Ferias of Far East Maritime Foundation, Ms.

Ferlinda Eusebio of TRAM Integrated Training Solutions and Ms. Presca Lee Lugo of National Maritime Polytechnic.

Other Managers. We should also name senior crewing managers trusted by ship owners like Ms. Josephine Francisco of NYK-Fil Ship Management, Ms. Arleen Asuncion of Aboitiz Jebsen Crew Management, Ms. Evangeline Sawad of Maersk-Filipinas Crewing, Ms. Mailyn Borillo of Torm Shipping Philippines, and Ms. Rosalinda Cruz of BW Shipping Philippines.

are Secretary Rosalinda Baldoz of the Department of Labor and Employment (DOLE), Administrator Carmelita Dimzon of Overseas Workers Welfare Administration, Executive Director Liberty Casco of the Maritime Training Council (MTC), Chairperson Teresita Manzala of the Professional Regulation Commission and Chairperson Dr. Patricia Licuanan of

Concern on Trend.

the Commission on Higher Education. Now PRC Commissioner Jennifer Manalili was the former Chief of the Philippine Overseas Employment Administration and Ms. Len Bautista-Horn was the former Administrator of the Maritime Industry Authority.

Second Highest. A Philippine broadsheet recently published that the proportion of women occupying senior business posts in the Philippines ranked second-highest globally in 2011. This was quoted from a report by Grant Thornton, an international accounting and consulting firm.

Government Officials. Key officials of government agencies concerned with the maritime industry

On a global scale, the proportion of women holding senior management posts has been on a steady decline since 2009 contrasting with the Philippine trend.

Tracking started in emerging markets such as Brazil, Russia, India and China (BRIC) and then Southeast Asia.

At the international front, Ms. Brenda Pimentel is the Regional Coordinator for East Asia of the International Maritime Organization (IMO).

Ranked with the achievers are Ms. Carmen Rebusi of IMS Philippines Maritime Corporation, Ms. Caroline Toledo of Trans Orient Maritime Agencies, Ms. Minda Laman of Sealanes Marine Services, Ms. Gloria Almodiel of Crew Benefit, Ms. Edna Ranara of Elmira Shipping, Ms. Analisa Giannopoulos of Friendly Maritime Services, Ms. Rosemarie Aaron of Senator Crewing Manila and Ms. Teresita Malagiok of Technomar Crew Management.

“This year, 64% of Filipinas in senior management were either chief finance officers or holding senior finance positions, up from last year’s 54%,” says the report.

Marivic Españo, Managing Partner and CEO of Grant Thornton’s local partner, Punongbayan & Araullo (P&A) says they are encouraged that dynamic economies are leading the pack in terms of welcoming women in the boardroom.

The roster should include Ms. Jane Sy of Stolt Nielsen Philippines, Ms. Rosalinda Caballero of Net Ship Management, Ms. Brenda Panganiban of Bouvet Shipping, Ms. Evangeline Racho of Elburg Ship Management, Ms. Victorina Hernaez of Crewtech Shipmanagement, Ms.Desiree Sillar of Bright Maritime Corporation and Ms. Yolanda del Pilar of Hoegh Fleet Services Philippines. We also have Ms. Sonrisa David of PAL Maritime Corporation, Ms. Mercedes Ravanopoulos of Michaelmar Philippines, Ms. Josephine Roldan of Crew Care, Ms. Anonietta Mabelo of Marsaman Manning Agency, Ms. Victoria Miranda-Plaza of Seafarers Shipping Agency, Atty. Imelda Barcelona of Agile Maritime Resources and Ms. Corazon Guese-Songcuya of Maine Marine Philippines.


Based on its International Business Report (IBR), Grant Thornton says Filipinas in key business positions grew to 39% last year from 35% a year earlier. This increase on Filipino women occupying leadership positions in business puts the Philippines second to Russia, along with Thailand and Botswana, in the list of countries with the highest percentage of women in the boardroom. As with previous years, the survey looked into the roles women play in senior management. In the Philippines, the trend showed more female business leaders taking on responsibilities involving

“So it is a point of concern to see the proportion of women business leaders shrinking in these countries. Hopefully this doesn’t signal a further drop-off in the coming years to the point where women are under-represented globally,” Españo says. She warns the falling numbers globally should alert business leaders and get them to start asking why women are not as present at the top and what can be done about it. While the Philippines depicts a positive reverse from the global trend, Filipinas in the merchant maritime sector continue to upgrade the percentage of formal boardroom inclusion. Arguably, in-laws and bloodline are still the major doors to management positions in the Philippines, But just because they are family do not mean incompetence. The opposite might just be the better verdict since they have been acculturized and with in-depth understanding of the business. Outsiders may very well take advantage of our open, dynamic economy. Leverage by acquiring educational enhancement and focus on a sector for core expertise. Marino World sees opportunities are much wider than critiqued by belly-achers. Access to management may be quipped as tribal and highly restricted. But as Marino World has noticed, a major block of Filipinas are captains in their own rights and expertise. And if they are not yet formally installed, it is a given that they influence so much the judgment and direction of the other gender. As often said, Mona Lisa freezes things with her smile. MARCH 2012



Part 2. Maritime Labor Convention of 2006.



2008, US$3.4B in 2009 to US$3.8B in 2010.

he MLC 2006 will become valid and effective if concurred in by two-thirds of all the members of the Senate (Section 21, Article VII, 1987 Constitution.) This means it forms part of Philippine law by virtue of transformation. By an act of the legislature, the convention rules may be transformed into Philippine law, to be applied or enforced as part of Philippine law. The MLC 2006 is an important new Convention that was adopted by the International Labour Conference of the ILO at a maritime session in February 2006 in Geneva, Switzerland. It sets out seafarers’ rights to decent conditions of work and helps to create conditions of fair competition for shipowners. It is intended to be globally applicable, easily understandable, readily updatable and uniformly enforced.

On the other hand, the Philippines as a flag State has a registered fleet comprising around 1.4% of total world tonnage.


The MLC, 2006 has been designed to become a global legal instrument that, once it enters into force, will be the “fourth pillar” of the international regulatory regime for quality shipping, complementing the key Conventions of the International Maritime Organization (IMO) such as the International Convention for the Safety of Life at Sea, 1974, as amended (SOLAS), the International Convention on Standards of Training, Certification and Watchkeeping, 1978, as amended (STCW) and the International Convention for the Prevention of Pollution from Ships, 73/78 (MARPOL). Between 1920 and 1996, a total of 39 Conventions, 29 Recommendations and one Protocol concerning seafarers have been adopted by the ILO. The MLC contains a comprehensive set of global standards, based on those that are already found in 68 maritime labor instruments. It modernizes the global  standards to: (a) set minimum requirements for seafarers to work on a ship; (b) address conditions of employment, accommodation, recreational facilities, food and catering, health protection, medical care, welfare and social security protection; (c) promote compliance by operators and owners of ships by giving governments sufficient flexibility to implement its requirements in a manner best adapted to their individual laws and practices; and (d) strengthen enforcement mechanisms at all levels, including provisions for complaint procedures available to seafarers, shipowners’ supervision of conditions on their ships, the flag States’ jurisdiction and control over their ships, and port State inspections of foreign ships. The new Convention will likely  achieve the aim of near universal ratification because the Convention was adopted by a record vote of 314 in favour and none against (two countries abstained for reasons unrelated to the substance of the Convention), after nearly two weeks of detailed review by over 1,000 participants drawn from 106 countries. Countries that ratify the Convention will require ship owners to put the standards in place before allowing seafarers aboard. And ratifying countries will have the right to inspect vessels for compliance before port calls are allowed. The Convention gives these countries the right to deny ships that are not compliant from sailing onwards. This applies to ships regardless whether the countries they are registered in have ratified the Convention or not. The Philippines will definitely be one of the major beneficiaries of this convention. The Philippines is considered as the major supplier of maritime labor globally. Per Philippine Overseas Employment Administration (POEA) data, there were 330,424 Filipino seafarers deployed abroad in 2009 comprising almost 30% of the global maritime labor force. Although deployed Filipino seafarers has decreased from 2006 (274,497), 2007 (266,553) to 2008 (261,614), the dollar remittances have been constantly increasing from US$1.9B in 2006, US$2.2B in 2007, US$3B in



MARCH 2012

Given the vast Philippine coast line (twice the size of the United States and nearly three times more than China), Filipinos have natural maritime instincts that place them at an advantage over other nationalities. Foreign shipowners are known to prefer Filipino seafarers for equally important qualities: dedication and discipline, industry, flexibility, loyalty, English language fluency, adaptability, positive work attitude, law-abiding, and problem-solving capability.

The Philippines can benefit from ratifying the Convention as a labour supplying state, flag or port state. The maritime labour convention is a good reference point for the Philippine’s formulation of laws and policies responsive to the conditions and contexts of seafarers. Ratification can serve as basis for technical assistance. When the Philippines does ratify the Convention, for example, manning agencies are mandated not to deploy seafarers aboard ships that don’t follow the new Convention. On the other hand, if the Philippines does not ratify, ratifying countries will not allow Filipinos aboard their ships – unless the Philippine government certifies that manning companies are complying with the new standards relating to wages, social security and so on. The disadvantage non-ratification by the Philippines is that shipowners will have to bear the responsibility for checking the Convention’s requirements on the recruitment and placement of the seafarers. Out of the nine (9) IMO conventions where the Philippines is a signatory, it has ratified only four (4) conventions, namely SOLAS, STCW, MARPOL, and SUA. On the other hand, out of the 27 ILO conventions, the Philippines has ratified only seven conventions, namely No. 23 - Repatriation of Seamen (1926), No. 53 -Minimum Requirement of Professional Capacity for Masters and Officers on Board Merchant Ships, No. 76 – Wages, Hours of Work and Manning (Sea) Revised (1949) ; No. 138- Minimum Age for Admission to Employment; No. 165 - Social Security for Seafarers and  No. 179 -Recruitment and Placement of Seafarers, (1996) and No. 185 - Seafarers’ Identity Documents (2012).

The Philippine Instrument of Ratification on ILO C185 (Seafarers’ Identity Documents Convention) was recently deposited last January 19, 2012 at the ILO Headquartes in Geneva. This convention provides seafarers with a valid seafarers’ identity document that will facilitate their entry into ports for temporary shore leave or when joining their ship or transferring to another ship. As the foremost seafarer-supplying country, it behooves upon Philippine social partners and stakeholders to determine the passage most beneficial to our national interests. It is now incumbent upon the Philippine government to ratify MLC2006 in order that it will be one of the thirty ratifying countries required for the convention to take effect. _______________________________________________________  Atty. Dennis R. Gorecho – BScience-Economics (1991, Dean’s Medalist). Bachelor of Laws (1998, UP-Diliman). Admitted to the bar,1999. Head, Seafarers’ Division-Sapalo Velez Bundang Bulilan law offices. Lecturer, paralegal seminars on Legal Rights of the Seafarer by the Apostleship of the Sea (AOS). Drafts legal documents like the revised POEA employment contract, the Implementing Rules and Regulations of the amended Migrant Workers Act.

EMSA NO SERIOUS CONCERN By Coca H. Strobar Labor Secretary Rosalinda Baldoz categorically assures stakeholders there is no serious concern on the EMSA issue. This should assuage maritime interest to breath easy on the EMSA bogeyman which speculated suspension of jobs from European Union flagged vessels. Secretary Baldoz cites, “Sa ngayon, wala akong nakikitang serious concern na maaapektuhan ang ating seafarers kasi ang understanding ng audit is very progressive na kung may mga findings at may mga suggestions sila how to address findings, basta very willing at very committed ang concerned agencies and Philippine Government na implement corrective action at ma meet natin ang ating obligation under STCW, Wala akong nakikitang dahilan para magkaroon ng agam agam o alalahanin ang ating mga seafarers, yun ang ating iemphasize, the bigger consideration would be on how willing we are, how open we are, to accept findings and the need to improve and to correct any findings in the system, and I think napadala namin yung ganong ka klarong mensahe, I think they appreciate that.” (For now, I see no serious concern that our seafarers will be affected. Our understanding is that audit is progressive and if they have findings and suggestions on how to address (their negative) findings that very willing and very committed our concerned agencies and the Philippine Government to implement correction action for us to meet our obligation under STCW. I see no cause for our seafarers to doubt nor worry, this should be emphasized. The bigger consideration… and I think we have sent that clear message…) The European Maritime Safety Agency (EMSA) team arrived in the Philippines on March 7 and stayed until March 14th. It came to verify improvements conducted by maritime-related

agencies as the Philippine compliance to the Standards of Training, Certification and Watchkeeping (STCW). Heading the EMSA Team was Dr. Jaime Veiga with Capt. Antonio Hevia Rodriguez to verify if the improvements made by the country’s maritime training inspectors are sufficient in addressing EMSA concerns. In effect, the current EMSA team is on first assessment mission. An earlier inspection by EMSA in 2010 showed the possibility of non-compliance by the Philippines on the STCW Convention. It spawned fears that recognition may be withdrawn by the European Union on STCW certification issued by the Philippines. Should recognition be withdrawn, Filipino seafarers cannot work on board European-flagged vessels. While Filipinos may still board other flagged vessels, the European Union is a major source of crewing and employment for our local seamen. Philippine authorities reiterate the country’s position that consultations must be continued after this second inspection to further address the concerns of whatever the EMSA mission would have. The European delegation reassessed the Maritime Training Center (MTC) program, course review and approval and monitoring, measurement and evaluation of all training and assessment. The Commission on Higher Education (CHED) was reassessed on its program and course review and approval, on board training and its monitoring, measurement and evaluation of all training and assessment. The Professional Regulation was evaluated on assessment of competence and assessors’ qualification and training. The Technical Education and Skills Development Authority (TESDA) inspection was

Baldoz: Audit is progressive. focused on quality standards system. The EU delegates also assessed the New Simulator Center of the Philippines (NSCPI) and the Philippine Centre for Advanced Maritime Simulation and Training (PHILCAMSAT) on its quality standards system; governmental accreditation, monitoring, applicable national regulations on education and training as well as the course design, review and approval, training, monitoring and supervision; examination, admission of students, the issuance of diploma and documentary evidence. They also checked the condition of training facilities, maintenance record, use of equipment and simulators and competency assessment using simulators. The inspection was basically designed to validate the implementation of measures and the progress made as indicated in the Philippine report to Directorate General for Mobility and Transport (DGMOVE) submitted in  August 2011 as per deadline given by EMSA itself. The STCW Convention provides a basis for the EU Member States to recognize certificates of seafarers from non-EU countries.

Secretary Baldoz welcomes this follow-up visit as an opportunity for the Philippine government to prove efforts to continuously improve its maritime education, training and certification system. It can be recalled that the visit of EMSA inspectors in the country in 2006 and 2010 revealed some deficiencies in areas relating to maritime administration, especially the monitoring of maritime education and training institutions (METIs), quality standards system, requirements for seafarers certification, requirements for on-board training, implementation of the Management Level Courses, and the improvement of the maritime training institution equipment and facilities. In August 2011, the Philippines submitted its report on the corrective actions the country has taken. On January 2012, updates on the status of such corrective actions were likewise submitted to EMSA. Secretary Baldoz expects a month for EMSA to transmit to the Philippines its official finding. Be that as it may, the labor secretary bats for the continued crafting of systems and improvements by concerned agencies. She believes in MARCH 2012



Paying Back the Industry



he dove is a symbol of peace. And for Ms. Diane De Leon, it is also a medium of hope. For DOVE is acronym for D Legacy of Vital Education Foundation which funds scholarship grants to poor but deserving junior merchant marine cadets. And this, among DOVE’s many other charities.

Ms. De Leon recalls the why: “We have a deficit of 17,000 marine officers to supply the global fleet,” invokes two years ago by a president of a seafarers association. Sparked by such need, DOVE bridges the future for Ship Captains and Chief Engineers.

To Qualify. The criteria, however, separates grains from chaff, viz:

The foundation is solely underwritten by a generous percentage of the income of Ascent OFW Benefits and Insurance Management Agency where Ms. De Leon is president; also an insurance broker for more than 20 years,

Must be entering 3rd year in Bachelor of Science and Marine Transportation (BSMT) or Marine Engineering (BSMARE);

A heart filled with goodwill is easy to touch as proven by the impetus to establish DOVE.

Or ordinary farmers/marginal fishermen;

From indigent families of aging parents;

Or raised by a single mother.

DOVE shoulders the full tuition fee, board and lodging, and monthly allowance. Since its establishment in 2008, DOVE has sponsored 30 scholars from Bohol, Dumaguete and Davao. Some of them are already salaried, working on-board. To inculcate the ethics of paying back to the industry, each of the former scholars already working apportion a part of their salary for the upkeep of other scholars. DOVE still picks the tab for other expenses to keep and enlarge the scholarship chain.

Caring Ever. Ms. De Leon never considers the job done even after the placements. Like a doting mother, she maintains communication lines with her wards – ready with advices, keen on motivation and other

sharing of a truly caring family. In fact, she often proxies for parents during graduations of scholars, the biological parents being unable to due to health, finances, distance and other why-nots. While it saddens her that the real members are not together in a moment of filial pride, she savors the “gift” of being able to pitch in as a substitute member of a family now on track to better times.

Keeping the Crew. For 22 years now, De Leon has been servicing HMO/ insurance packages of the seafarers and families. Her main client is TSM Shipping Philippines, one of the country’s largest manning outfit. Of course, she also services other manning agencies thereby becoming a

HMO/Insurance Coverage





*occupational security *health maintenance *financial stability

For you. For loved ones. For always



Ascent OFW Benefits & Insurance Management Agency, Inc. Penthouse A81, Zeta Bldg., 191 Salcedo St. Legaspi Vill. Makati City Tel: (63.2) 810-7707 (63.2) 810-7394 Tel/Fax: (63.2) 810-6848 Email:



MARCH 2012

lead insurance provider with some 25,000 seafarers. And growing, and growing. When ship owners ask Ms. De Leon on how to keep their seafarers, her answer is always the same: “You have to take care of their families because Filipinos are generally family-oriented. They are going out of the country because they want to uplift their standard of living, to give them good education, food on the table and to take care of their health.”

Why HMO? With such large portfolio of clients, Ms. De Leon can shop around with strong leverage. But she picks HMO since the beginning because HMO is the best, in her estimation. For one, just present the HMO card and you are immediately attended to by health professionals. Ascent OFW Benefits and Insurance Management Agency brokers only providers which are in compliance with the Maritime Labor Convention (MLC) 2006 and Republic Act 10022 of the Philippines. She assures HMO/ Insurance packages are very competitive: with very wide coverage at minimal premium because she has negotiated these with the insurance providers. With her usual block of 25,000 seafarers, it is easy to understand why she can demand best terms for the seafarers. There is no secret deals, just for all “…not be greedy,” asserts Ms. De Leon.

Answers the Call. De Leon heeds the call of the Department of Education with its need for more than 500,000 classrooms but with a budget for only 41,000. Her DOVE foundation readily contributed. In a school site on top of a rugged mountain in

Baclayon, Bohol, DOVE Foundation constructed two school rooms . Before the DOVE contribution, the school offers only Grades 1 to 4. With the two rooms from DOVE, it now offers Grades 5 to 6, leading to a certification by DepEd as a full Elementary School. Ms. De Leon is so enthused she commits to constructing seven more classrooms this year. These are on top of DOVE’s building a training center for the Mangyans of Mindoro for agriculture and fishing.

The Ethical Base. What fuels this Diane, an exemplary woman? She was not manor-borne; in fact, a child struggling in a brood of twelve reared in hand-tomouth existence. “My father is a soldier, 12 children, nakatira sa Camp Aguinaldo. Kapag kakain may isang fried chicken pero gabundok ang …14 kaming kakain. Because of my upbringing, I can relate to them (the poor).” (… living in Camp Aguinaldo. When we eat a fried chicken, we are 14 to share). “I believe ang mga nagiging successful along the way, basically, I think kelangan masipag ka talaga.. at least 1 policy a month, ang nangyari I challenge 2 naman,, hanggang 1 policy a week…when I started I was able to get 700 of the pilots of PAL…I don’t know anybody there, I went to the Association and I introduced myself..1988 until now. namatay na iba, anak na lang inaasikaso ko..and the whole of SGV.” (… I believe those who become successful are the hard-working… closing at least one policy a month; but what happened I challenged two until one policy a week...1988 until now, a lot have died and I am servicing the children already…) “I am an example, when I became a widow..when I got

the insurance proceeds..I vowed to my husband’s grave, I’m going to make it grow…I am 27 years widow, I focused on how am I going to make this grow, to give my children the best education, food on the table, clothing..” “My only love is to be able to share it... how beautiful insurance is.” Ms. De Leon’s success could prod her to luxurious material excess. And she could easily afford such a lifestyle. But then, she states with quite a conviction: “Never entered my mind…” Diane even believes enough is so much. Perhaps a feedback (excuse the pun) of yonder days when a spring chicken is feast to fourteen mouths, hungry and denied. But a daughter rises from the hovel with grit and determination, working smart. That poverty will not taint her with bitterness. Instead, that sad past becomes inspiration to a golden heart shaped by sharing, reared in the pragmatics of being able to discern wants from needs. That’s why, maybe that’s why, her question is not who lugs a Hermes bag, not who wears a Rolex. Instead, she funds poor cadets, builds schoolrooms for the marginalized. Construct learning centers for the indigenous minorities. Among others acts of personal charities. After all, Diane’s psyche is as simple as her assertions: “… you cannot eat so much in a day, you can only be in one space at a time, ilan bang dapat na isuot na damit.” How many clothes do you wear? How many lives can you help, counters Diane? Yes, insurance is beautiful. More so in the wand of a magnanimous lady, Ms. Diane De Leon.

From page 9 pro-active protocols so that they may already have plans of action with timelines even before receiving the EMSA verdict.

The EU Market. The European Union (EU) remains a significant market for the deployment of Filipino seafarers. Around 80,000 Filipino seafarers are on-board EU vessels and should remain despite economic slowdown in the area. Ambassador Victoria S. Bataclan, head of the Philippine Mission to the European Union (EU) says the Philippines plays an important role in the global maritime industry as a leading supplier of seafarers. Yet, there are aspects in Philippine maritime training that EU needs to verify.   Ambassador Bataclan and Director Fotis Karamitsos of DGMOVE reassure the excellent relations between the Philippines and EU as they vow to resolve issues to prevent negative repercussions to Filipino seafarers. Both officials took the opportunity to renew Philippines-EU ties and note the importance, especially to their economies, of complying to international standards for training and certifying seafarers. Five EU member-states are top ship-owning countries employing majority of the Filipino seafarers. They control an aggregate total of 10,415 ships with 387,108,661 dwt (dead weight tonnage). Greece has 3,064 vessels with 169,426,690 dwt, 720 flag carriers and 2,344 foreign flagged. Germany has 3,522 vessels with 104,953,712 dwt; Norway has 2,027 vessels with 50,216,235 dwt; Denmark has 914 vessels with 31,595,523 dwt and United Kingdom has 918 with 30,916,501 dwt.  As warned earlier, failure to address EU concerns may jeopardize the employment of Filipino seafarers numbering 347,150, about 25.32 % in 2010 of 1.371 million seafarers worldwide MARCH 2012




ASIA KEY TO LPG CARRIERS London, UK - Drewry’s latest LPG Forecaster points to a strong domestic demand in Asian economies, balancing stagnanting orders from Western countries. Owners of LPG carriers can look forward to increasing trade in 2012 despite uncertain global economic environment. Another dampening effect is the mild winter in the northern hemisphere. Observers point out the LPG Forecaster view is reflected by the increasing supply from the Middle East. However, the near-term outlook for the spot market is far from certain. Infrastructural bottlenecks in developing nations could pose a downside risk. There is also a struggle over butane. Asian buyers have been demanding butane-rich LPG from the Middle East. This trend is likely to persist in the short to medium term as India becomes the largest importer of butanerich LPG. Yet, increasing domestic consumption, largely from expanding petrochem producing base, means that Saudi butane exports have been declining. This has come to a head with the

failure to renew term contracts between Middle East suppliers and Asian buyers. Unless contracts are signed soon, there may be greater market volatility with a significant increase in spot activity for larger vessels. In the medium term, Drewry expects the spot market in Asia to gain, albeit gradually, while the European spot markets might have to wait a little longer before achieving sustainable growth. More than half of global LPG consumption is in the residential and commercial sector, primarily for heating and cooking in homes and businesses. Demand from India and China is likely to be the driver of trade in the years to come. This is despite the increasing share being claimed by domestic suppliers in China and the threat by the Indian government to reduce or remove fuel subsidies. The latest edition of LPG Forecaster also includes a special feature on VLGCs exploring a detailed supply and demand side perspective, including an in-depth analysis for the largest category of vessels.

LPG Forecaster is published by Drewry Maritime Research. The report will be available in pdf format which can be downloaded from the Drewry website drewry. Drewry has over 40 years experience within the maritime sector, employing over 90

specialists across its international offices in London, Delhi, Singapore and Shanghai. It offers research reports and advisory services to assess the market and give knowledge to make critical decisions. Drewry is known for the quality of its analysis.



xperts see marked changes in the spot market for very large cargo containers (VLCC) in just a few years.

This is a pivotal insight for VLCC owners given the poor freight rates for voyages from the Middle East to major consumers east and west. Since 2005, there has been a 25% reduction in reported AG/West spot VLCC voyages from 291 in 2005 to 216 in 2011. Just 11 AG/West fixtures were recorded in January 2012. If annualised, the total would be 180, only 62% of the number recorded in just seven years earlier. The US, the world’s largest oil consumer and traditionally the major customer for Middle Eastern oil, has diversified its supplies of energy. This policy shift has important effects for the VLCC market. The reasons for this diversification are complex and reflect not only market evolution, but changes to US economic, fiscal, environmental, and foreign policy.



MARCH 2012

The US Energy Information Agency (EIA) releases that increased domestic crude oil production reversed a long-term decline to grow from 5.18 million barrels per day (m bpd) in 2005 to 5.47m bpd in 2010.

Amid such trends, China has become the world’s second largest consumer of oil. With an extensive refinery building programme underway, it is in line to match US oil consumption within the current decade.

Meanwhile, oil imports from Canada rose from 1.6m bpd in 2005 to 1.97m bpd in 2010.

Consequently, the VLCC spot market has swung eastwards; in 2005, 20% of VLCC spot fixtures discharged in China; in January 2012, that had increased to 40%. Chinese oil refiners have swept into leading positions in the VLCC charter market.

More locally-produced oil will replace longhaul oil in a shrinking marketplace: the EIA 2012 Early Release Overview forecasts a 0.5% annual reduction in energy consumption per capita in the US between 2010 and 2035. High gasoline prices in the US have led to a reduction in domestic gasoline and diesel demand, with the US becoming a net petroleum products exporter for the first time in 2011 since the late 1940s. Despite overseas demand for petroleum products refined in the US, a number of East Coast refineries have closed, if they rely on imported crude, as these cannot compete with US Gulf refiners with access to cheaper West Texas Intermediate crude oil.

Discharges East of Suez now account for 85% of VLCC voyages out of the AG compared to 71% in 2005. Mark Williams, Braemar Seascope research director, believes this swing to the East is now firmly entrenched. He notes, “As Chinese refiners will probably add over 6m bpd of domestic refinery capacity in the next five years, their presence in the VLCC spot market is likely to increase further as China makes efforts to secure its energy supplies.”

Major Rise in Asia-to-Europe Box Rates London, UK – Container freight rates increased lately by 114% for westbound Asia-Europe corridor like the Shanghai-to-Rotterdam route. This is seen from the container freight rate assessment of the World Container Index (WCI), a joint venture between Drewry and The Cleartrade Exchange. Carriers in the key AsiaEurope headhaul trade had previously announced General Rate Increases (GRIs) in the region of US$700 to $800 per TEU (or US$1,400 to $1,600 per 40ft container) from 1st March. The World Container Index’s Shanghai-Rotterdam container freight rate subindex went from $1,276 per 40ft container on 23 February to $2,732/40ft on 1 March, a rise of $1,456. This is sourced from the World Container Index

assessed by Drewry at www. Drewry Director Philip Damas says, “The World Container Index assessed by Drewry tracks freight rates very closely and promptly and answers the question which everybody has been asking: will the huge General Rate Increases of carriers be accepted by the market?” Damas adds, “However, we will need to see whether these rate increases will stay or erode over time. Our view is that there will be a reduction of spot rates next week, but container shipping lines have withdrawn enough capacity from the AsiaEurope trade to support some net rate increases over a fair period of time.” “Some opportunistic shippers and forwarders brought forward the time of shipments of their cargoes to avoid the March 1st GRI,” Damas says.

The World Container Index is based on actual agreed freight assessments reported in the middle of every week by a number of industry players located in Asia, Europe and the US. The WCI is a 50-50 joint venture between research and consultancy specialist Drewry and Cleartrade Exchange, the leading electronic marketplace for OTC freight and commodity swaps.

The WCI is a global index which can be used by physical and derivative market participants to manage freight risk. The index reports individual market prices on major East-West container shipping routes. Prices for 11 individual routes and a composite index are reported each week covering trade in both directions between Asia, North America and Europe.

VESSELS URGED TO REPORT TSUNAMI DEBRIS Vessels transiting between Japan and North America are critical to tracking debris from the tsunami that devastated Japan on March 11, 2011. Ships are encouraged to submit observations and photos of marine debris, as well as reports of ‘no debris observed,’ to “NOAA is leading efforts to collect data, assess the debris and reduce possible impacts to our natural resources and coastal communities,” says David Kennedy, National Oceanic and Atmospheric Administration (NOAA) assistant administrator for the National Ocean Service of the United States. “Information from vessels operating in the North Pacific will provide vital documentation of the movement of the tsunami debris, and we appreciate the World Ocean Council’s help in reaching out to the ocean industry and vessel operators who can assist with gathering

this data,” Mr. Kennedy further explains.


Marine debris generated by that tsunami is predicted to move across the North Pacific toward North America and Hawaii. Forecasts indicate that debris remaining afloat could reach the Northwestern Hawaiian Islands during the current winter and arrive at the west coast of North America in 2013.

He adds, “Commercial vessels of all sorts provide a cost-effective platform for collecting ocean, weather and climate data where few other options exist. The World Ocean Council is working to coordinate and scale up this valuable role of industry observations through our ‘Smart Ocean/ Smart Industries’ program.”

However, there is still substantial uncertainty over exactly how much and what types of debris are still floating and where it is located. The initial debris fields observed soon after the tsunami have dispersed. The types of debris that may still be afloat include vessels, fishing nets and buoys, lumber, cargo containers, and household goods. “Reporting on the tsunami debris is an important and immediate opportunity for leadership companies to support the better understanding our changing oceans,” stated Paul Holthus, WOC Executive

The WOC is the only international, cross-sectoral alliance for private sector leadership and collaboration in “Corporate Ocean Responsibility”. Companies and associations are distinguishing themselves as leaders in ocean sustainability and stewardship by joining. Members include over 40 leadership organizations from a wide range of ocean industries: renewable energy, oil and gas, shipping, seafood, tourism, ocean technology, maritime law, marine environmental services and other areas.

MARCH 2012





he shipping industry has mixed reaction on the outcome of the recent Somalia Conference in Great Britain. There appears caution against any move to ban ransom payments to pirates. This is the core response of the International Chamber of Shipping (ICS) – the principal international trade association for shipowners representing all sectors and trades and over 80% of the world merchant fleet – on the outcome of the inter-governmental conference on Somalia hosted by the United Kingdom on 23 February. The shipping industry welcomes the commitments made to try to restore government and civil society in Somalia. The absence of a functioning state is one of the causes of violent Somali pirate attacks against international shipping. So far, more than 60 seafarers have lost lives and 4,000 seafarers taken as hostages. However, many believe addressing these issues will take years, if not decades.  The international shipping industry notes with some concern that the Conference outcomes do not appear to include any firm political commitment or new actions to eliminate or significantly reduce the scourge of Somali piracy in the immediate future.   Governments must task their military forces to take the attack to the pirates and ensure that the military assets required to do this are maintained so they can continue to defend merchant ships in the best way possible.  Little mention seems to be have been made to the obligations of governments under the United Nations Convention on the Law of the Sea to protect merchant ships and their crews from piracy. The industry fears that the current level of pirate attacks is something which the governments may be willing to continue to tolerate because ships are out of sight and out of mind, even though they transport about 90% of world trade.      Abdicating responsibility to private armed guards to whom, in the absence of adequate military protection, shipping companies are now resorting



MARCH 2012

in increasing numbers, is not a viable long term solution for eliminating piracy. Recent press reports might give the impression that the level of piracy off Somalia is decreasing, but the capability of the pirates is actually higher than it has ever been.  The shipping industry strongly supports the Conference’s focus on the need for apprehended pirates to be arrested, taken to a court of law and, if found guilty, be imprisoned, including the announcement to establish a new Regional Anti-Piracy Prosecutions Intelligence Co-ordination Centre based in the Seychelles. The shipping industry also welcomes the determination of governments to break the financial chain through legal action against criminal financiers investing in piracy. On this, ICS notes the commitment to establish an ‘international task force on pirate ransoms in order to understand the ransom business cycle and how to break it.’

community to eliminate piracy or rescue hostages means that shipowners have no option but to pay ransoms. The alternative would be for shipowners to abandon their crews to months if not years of appalling treatment – including torture and murder, which has already been the result when ransoms have not been paid.   Should ransom payments be prohibited or criminalised, many seafarers and shipping companies would understandably refuse to sail in the affected danger area. This has significant implications for the large proportion of world trade, including about 40% of world oil shipments, are transported via the Western Indian Ocean.    ICS strongly believes that effective compliance with Best Management Practices (preventive measures) by shipping companies, and recent military intervention with a more aggressive stance, has reduced the pirates’ rate of success.

However, the shipping industry would be deeply concerned by any suggestion that the payment of ransoms to pirates, in order to secure the release of seafarers being held hostage, should be prohibited or criminalised.

However, the current situation remains totally unacceptable, with about 200 seafarers still being held hostage in the most terrible conditions, with thousands more still having to transit the danger area in constant fear of their lives.

The primary concern of the industry is humanitarian. Shipowners have a duty of care to their crews and their families. In the event that seafarers are taken hostage, the inability of the international

ICS will continue to work to ensure that the problem of piracy retains sufficient political and public attention so that the crisis might be properly and decisively addressed in the immediate future.

UNCLOS STAYS, DEMANDS SHIPPING BODY When it comes to governing the oceans, shipping largely has its house in order, claims International Chamber of Shipping (ICS) Chairman, Spyros M Polemis in a major debate on oceans governance in Singapore last Feb 23rd and 24th.

industry. I can honestly tell you that the IMO is a model of efficiency, made up of experts from virtually every government in the world, who develop and adopt very complex regulations directly relevant to the protection of the marine environment.”

Discussing ‘Who Should Rule The Waves’ at the World Ocean Summit, organised by The Economist magazine, Mr Polemis outlines how any suggestion of radically revising the United Nations Convention on the Law Of the Sea (UNCLOS) would not be welcomed by the international shipping industry. 

ICS’s view is that there is no shortfall in governance so far as the international regulation of shipping is concerned. The shipping industry responsibly utilises the excellent facility that the sea provides for international transport – about 90% of world trade is carried by sea. 

Because of the delicate balance of rights and responsibilities that exists between flag states, port states and coastal states, the shipping industry is very reluctant to support a fundamental revision of UNCLOS.  Apart from enshrining the principle of global maritime rules vital to the industry, UNCLOS also establishes the right of all nations to freedom of navigation on the high seas and the right of innocent passage in territorial waters. 

Polemis: Shipping is probably unique.

regulate our activities - the International Maritime Organization. We have experience of many intergovernmental organisations that impact on our

Mr. Polemis informs the Summit that shipping’s environment performance is already comprehensively governed by IMO, a very efficient global regulator. The interaction between governments and the industry in relation to the work of IMO was just one of the pillars of the success story that is IMO.

It also deals with delicate issues such as the rights of all ships to use international straits which are of great strategic importance. Because UNCLOS addresses a number of other sensitive issues, not just affecting shipping, ICS believes it is very unlikely that governments would be willing to reopen what is a delicately balanced package. The shipping industry has a 100 years’ experience of international governance of its activities, and questions the premise that the UN Law of the Sea is no longer fit for purpose. Mr. Polemis suggests if there were other concerns on oceans governance, lessons could be learned from the shipping industry’s global regulator, the UN International Maritime Organization (IMO) with its successful MARPOL Convention enforced by 150 Flag States covering 99% of the world fleet. “Unlike many other activities involving the oceans, shipping is probably unique in having a specialist UN agency to MARCH 2012



Misuga Kaiun Maine Marine, MOC, Maine-Tech


Corporate officials happy in the dialogues with the crew.

By Ms. Lyn Bacani

“Eventually, Filipino officers are the

best,” proclaims Mr. Hisao Yokouchi, managing director of Misuga Kaiun Company, the principal of three vibrant firms operating in the Philippines. Getting there is on the teaming of the three: Maine Marine Philippines (MMPI, crew management), Manila Ocean Crew Management (MOC, Crew Management) and Maine-Tech Shipmanagement. The pursuit is determined, and serious.

Like the 18th Officers’ Dialogue of MMPI last March 5 to 9 at the Pan Pacific Hotel in Manila. For five days, about 50 officers bonded, learned and exchange views, to include those from its sister firm, Manila Ocean Crew Management. The Dialogue was relaxed and openly interactive. Seafarers discussed issues with the speakers and shared their own experiences at work.



MARCH 2012

But while the ambiance was easy, the affair was organized to details, like evaluation forms to rate even the speakers. At closing rites, all participants received certificates of attendance with gifts from main management.

Practical syllabus. Topics discussed include technical and regulatory aspects on Port State Control (PSC), bulk cargo handling, cargo maintenance and practice onboard insurance program and shipboard accident response and there were updates on International Maritime Organization (IMO) regulations, insurance program and shipboard accident response. Also on the scope are best management practices for protection against piracy and health management onboard. Leadership and teamwork techniques on board were clarified. So with ethical values and social attitude for better and professional inter-action among crew.

Walden Villapando Photos

No holds barred. A lively open forum sparked near the end of the Dialogue, between seafarers, ship-owner, ship managers and crew managers. Questions were asked on documentation, accounting, salary rates, financial assistance on training, career development and crew changes. Suggestions were welcomed, like establishing an office in Mindanao for better administration. Ways were discussed on how to shorten on-board contracts, a vane for seafarers who dislike being away for too long from their families.

Solid future. To date, Misuga Kaiun owns 18 vessels (bulk carrier, woodchip carrier and containers); and provides crew to 111 vessels of 3,000, overhelmingly Filipinos. About 20 new vessels will be added to the fleet, higher than the average additional ten vessels every year since MMPI established offices in Manila.

A recent acquisition is the M/V Maine Dream, a 58,100 m/t bulk carrier.

MLC 2006 compliance. Mr. Yokouchi is very proud to say last February 27 that, “ We have audit for ISO 9001:2008 and at same time conduct audit for MLC. We will get the certificate in the middle of this March and proudly cites the company’s certification on the Maritime Labor Convention 2006 (MLC 2006), making MMPI only the fourth firm to obtain such MLC 2006 certification in Japan on Class NK.”

Customer-friendly. Because Misuga is a shipowner, it knows the needs of its client shipowners. To satisfy clients on crew competence, Misuga invests a huge amount on training. Apart from in-house trainings, it conducts officers dialogue twice every year – all expenses paid for with personal allowances to participants in the five-day training all booked at ranking hotels. To strenghten its bench, Misuga sponsors cadets in five major maritime schools nationwide. Example of a premier institution is the Mariners Polytechnic Colleges Foundation-Canaman campus, Bicol’s best as managed by the renown Commo. Dante Jimenez.

Managing Director Hisao Yokouchi emphasizes full support on enhancement programs.

Solid Trust. “Our company started the business with the Philippines since 15 years ago, maybe I’m one of the pioneer in our company. We tried to get work with other nationalities… but eventually Filipino officer is the best…” But Yokouchi cannot be complacent as they still receive some complaints. He commits to continue honing and shapingup the crew. The major effort is on the bi-annual Dialogue, supplemented but a critical systems of follow-throughs and on-job monitoring.

General Manager Kenji Fujita gladhands a participant with gift and professional certificate.

Senior Management and the speakers confirm points expounded.

“…We have to solve one by one, we will continue this officers’ Dialogue more actively, that’s what I want to do,” Yokouchi commits. The group once recorded a 90% crew retention, a reflection of its management style. While figures changed, the commitment to be the best is an enshrined policy. And more to heart, it believes in a 100% Filipino hands in plying blue waters anywhere to move cargo and logistics for the commerce of the world.

MARCH 2012




Philippine Ship Registry Pushed for liberalizing policies such as the removal of the 4.5% withholding tax and replace it with tonnage due which is cheaper. The withholding tax does not add revenues to the government, and instead cause ships not to register here.

By Gen Dy The Philippines is pushing the expansion of its Ship Registry to bring in revenues in registration fees, annual tonnage, direct local employment and other spinoffs in allied services. This can be achieved by dangling globally-competitive incentives to vessels owned by foreign entities to provide additional employment to our Filipino seafarers. Assistant Secretary for Ocean Concerns Gilberto Asuque, of the Department of Foreign Affairs (DFA) says the Philippine ship registry must be competitive, which can be done by removing stumbling blocks. “You have to make your flag attractive as an investment. By then we can compete with many countries like those in the top such as Panama, Liberia , Bahamas, Greece,” he details.

Asuque: must be competitive.

Conti: we will give incentives.

Asuque explains being competitive means it is easy to register here in the Philippines. He stresses we have to upgrade the laws such as mortgage law and to have a maritime admiralty court, in case of the need to arrest ship if it has liability.

Deputy Administrator for Planning Atty. Nicasio Conti of the Maritime Industry Authority (MARINA) says it will enhance trade and promote a better investment climate if we will remove withholding taxes.

At present, there are only 170 vessels registered here from some 1,000 years back. He further says we also have to review our taxation to encourage more vessels to register.

Shipping companies will also be encouraged to register since we have  the world’s best seafarers.  “If it’s a Philippine flagged vessel, the Philippine labor law will be applied. We will have a condition that only Filipino seafarers will be employed. If a single ship has 21-25 crew then you are giving employment to many Filipinos,” Asuque adds.

“We will give incentives similar to other flag states and shift to tonnage dues from implementing withholding tax and income tax. We will also have faster registration,” says Conti. MARINA has been pushing

The program on the promotion and expansion of the Philippine ship registry will allow ships owned by foreign corporation to do business in the country through its ship management company.

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MARCH 2012

PCG flexes with anti-terror equipment Response capabilities of the Philippine Coast Guard (PCG) takes on higher level as it acquires new and better tactical equipment against terrorism in the country. The equipment was recently turned over to the PCG in ceremonies led by Retired VADM Toshitaka Ishima representing the donor, Japan International Cooperative Agency (JICA). The lot consist of eight sets each of bullet proof vests, vest carrier, plates, ballistic helmets, and visors for the PCG’s Special Operations Group – Anti Terrorist Unit. Just recently, JICA also turned over two seven-meter utility boats to the PCG. Department of Transportation and Communications Secretary Mar Roxas expresses gratitude to JICA for support to the PCG. He adds the Philippine Government will continue to provide the upgrades the Coast Guard needs to assist it in performing its expanded role of manning both Philippine seas and inland waters. The new protective gears will add safety to the protocols set by the PCG in performing life-threatening tasks like vessel boarding, security inspections, and explosive ordnance disposal. PCG will use the new gear for routine

A better equipped PCG.

activities and expects to significantly improve the Anti-Terrorist Unit’s counter terrorism capability.

to counter maritime terrorist threats is part of President Benigno Aquino’s commitment to serve well the Filipinos.

PCG Commandant Vice Admiral Edmund C. Tan says apart from the donated equipment, JICA has been working with PCG in sponsoring skills trainings and seminars for coast guards.

The donated equipment will be entrusted to the Coast Guard Special Operations Group (CGSOG), headed by Lcdr Marco Antonio Gines.

VA Tan adds this development will immensely enhance PCG’s capability in its mandated task in maritime security. A better trained and equipped PCG

The CGSOG, with the K9 and Aviation Group, are special units under thesupervision of the Coast Guard Fleet Commander, Commodore Rodolfo Isorena.

COMMAND TURNOVER. Coast Guard (PCG) Vice Admiral Edmund Tan presides at the turnover of command of the PCG Bicol District between Capt. Leopoldo Laroya and Commo. Joel Garcia. Held at Jaime’s Hall, Mariners’ Polytechnic Colleges Foundation at Rawis, Legazpi City, Albay on February 24, 2012. VAdmiral Tan welcomed by Commo. Dante La. Jimenez of the PCGA Bicol staff with Squadron Commanders. MARCH 2012



PPA INCOME APPROACHES TWO BILLION By Gen Dy The Philippine Ports Authority (PPA) posted revenues of P7.906 billion in January to November last year, up 5.2% from P7.515 billion,  brought by increased collection in arrastre and vessel charges. PPA says revenues from vessel and cargoes, remittances from terminal operators and government share from cargo handling continue to build a favorable revenue base that support PPA operations and infrastructure. This enables PPA to bring P1.2 billion to the national coffers, according to the Department of Transportation and Communications (DoTC). Net income for the period was at P3.518 billion, a wee bit 4.8% lower than the P3.699 billion posted in the same period last year. The lower net figure is due to increases in expenses. Revenues from ports went up by 5.77% to P7.779 billion from P7.354 billion. Fund Management Income (FMI), declined by 20% to P126.92 million from P160.50 million. PPA says the decline in FMI was due mainly to the lesser short-term investments of available funds earmarked for still unincurred expenditure items. PPA says expenses rose 15% to P4.387 billion from P3.699 billion due mainly to continued repairs and maintenance projects. PPA says 14 major infrastructure projects worth P1.17 billion were completed last year.

Compared to the targets, the net income posted was higher by 47.64%as gross revenue was higher by 2.75%. Meanwhile, the five port district offices (PDOs), which include Manila and North Luzon; Southern Luzon; Visayas; Northern Mindanao; and Southern Mindanao are forecast to show volume growth of 1 to 11 percent this year, with the expected surge in foreign trade. PDO Manila and North Luzon, comprised of the country’s biggest ports – South Harbor, the North Harbor and the Manila International Container Terminal (MICT) as well as San Fernando (La Union) and Limay (Bataan), are projecting growth of about 0.9%,  with volume expected to reach 68.325 million metric ton (mmt) from last year’s projection of 67.709 mmt. MICT, the flagship project of International Container Terminal Services Inc. (ICTSI), is expected to handle about 20.681 mmt, from last

year’s target of 19.457 mmt. South Harbor is expected to handle about 10.791 mmt, lower than the 2011 volume target of 11.052 mmt. North Harbor, the country’s main domestic port, is projected only to handle about 15.499 mmt or slightly lower than the 2011 volume target of 15.883 mmt. The Port of Limay, is expected to handle some 15.866 mmt of cargo, also lower compared to the 2011 projected cargo volume of 16.214 mmt and San Fernando is seen to handle 5.487 mmt from 5.101 mmt. PDO Northern Mindanao, which includes the ports of Cagayan de Oro, Iligan, Nasipit, Ozamiz and Surigao is projecting an 11.3% volume growth for 2012, mainly from the port of Surigao with 19.422 mmt followed by Cagayan de Oro with 5.276 mmt, Nasipit 2.833 mmt; Iligan, 2.259 mmt and Ozamiz with 1.010 mmt.

MARINA SUSPENDS CEBU SHIPS Two Cebu homeported passenger vessels were recently suspended from operations due to separate maritime accidents. The strong sanction came from the Maritime Industry Authority (MARINA). Atty. Nicolas A. Conti, Deputy Administrator for Planning, confirmed the immediate suspension of the “Passenger Ship Safety Certificates (PSSC)” of the two passenger ships. Without a valid PSSC a ship cannot legally operate.



MARCH 2012

On 04 March 2012, M/V Super Shuttle Ferry 1, owned and operated by Asian Marine Transport, encountered engine trouble while navigating from Bantayan Island, Cebu to Hagnaya Port, San Remegio, also in Cebu. All 79 passengers and crew were safely disembarked, so was the off-loading of the commercial cargo. On the other hand, MV Cebu Ferry 1, a roll-on, roll-off (RORO) passenger ship enroute to Caticlan, Aklan, caught fire an hour after leaving the Port of Batangas at 8:00 a.m., 07 March 2012.

All 36 passengers and 75 crew were unhurt, the 17 rolling cargoes safe. Passengers and crew were rescued and transferred to ships of Montenegro Shipping and Besta Shipping which were then passing through in the area. To return to commercial operations, these ships must pass audit inspection by MARINA to determine vessel seaworthiness. MARINA investigators have been directed to determine the root of the accidents, and to recommend appropriate action to higher MARINA authorities.

Hanjin Diversifies Against Competitions By Gen Dy


anjin Heavy Industries & Construction -Philippines (HHIC-Phil) starts its diversification with a US$ 38.39 million contract from Daelim Industrial to manufacture steel frames for Petron Corporation. Last 28 February, Hanjin signed an agreement for the manufacture of steel frames for the Refined Master Plan Phase 2 (RMP-2). These steel frames will be built at HHICPhil’s Subic Shipyard for the oil refining plant being developed by South Korea’s Daelim Industrial as ordered by Petron. The steel frames project will take about 15 months to finish. Daelim Industrial won an order for US$2 billion worth oil refinery plant from Petron, the biggest project in Southeast Asia. “The RMP-2 project of Petron is a

mammoth to produce high value-added oil products by extensively modernizing existing refinery plants located in Limay, Bataan, about 150 kilometers from the southwest of Manila,” says Daelim. HHIC accepts that due to severe economic slowdown in domestic shipbuilding and construction industries against increase in overseas business competitions, the diversification of business structure has been essential. HHIC has accelerated the overseas plant development business by improving its competitiveness in bidding construction. It also took advantage of the strength of its Subic Shipyard with perfect facilities and environment for the manufacture of steel frames, spools and pressure containers. Hanjin is capable of manufacturing highquality steel frames using state-of-the-art cutting, welding, plating and painting facilities. It also plans to manufacture various equipment and facilities which will be

used in an oil refinery factory, fire power plant and petrochemical factory planned for Southeast Asia and the Middle East. It has two bulk carriers to transfer goods from Subic to the destination, making the move very cost effective. HHIC claims it is highly competitive compared to South Korea and China in terms of manufacturing and transportation costs. “The HHIC-Phil’s Subic Shipyard will be a future growth engine in a shipbuilding sector and strategic base for overseas plant business at the same time,” predicts an HHIC official adding, “We would be able to overcome current economic slowdown if we keep expanding our overseas business through the Subic shipyard.” HHIC plans to focus on maximizing synergetic effects in shipbuilding and construction sectors. Its Subic Shipyard has maintained competitiveness and productivity with state-of-the-art automation and skilled labor.

Puerto Galera seeks upgrade of ports, eyes airport Puerto Galera Mayor Hubbert Christopher A. Dolor has pushed for the modernization of ports and the construction of an airport to boost tourism opportunities in his city. The mayor says infrastructure developments are needed for investments to come and to maximize tourist arrivals. Puerto Galera has four seaports, namely Balatero, White beach, Sabang and Muelle. Mayor Dolor asks the Philippine Ports Authority (PPA) to modernize the 5,000 sqm Balatero and 2,000 sqm. Sabang port. These entail funding of PhP60 million for Balatero and PhP40 million for Sabang. “What is needed, is the improvement of the terminal, ramps, construct toilet and other amenities,” he says. There are two roll-on roll-off (roro) vessels calling at Balatero operated by Montenegro Shipping. There are also passenger ferries like Father and Son Shipping (FSL) and Minolo Shipping (MSL). On the other hand, three outriggers call at Sabang port. “Every 15 to 30 minutes, we have

outrigger boats coming here from the Port of Batangas. We have no problem with that but tourists, especially Europeans, are looking for an airport,” he points out. The mayor adds they now have a feasibility study on building an airport at the 10- hectare land in Barangay Villaflorfor a runway of 1.5 kilometer. He says they have asked approval from the Department of Environment and Natural Resources (DENR) and the Department of Public Works and Highways (DPWH) for the proposed airport. “We have not asked the Department of Transportation and Communication but we already asked the Department of Tourism (DOT) to make it a priority just like Puerto Princesa. Now DOT made us a priority,” he claims.

The mayor expects by 2020, Puerto Galera will have its own international airport. Dolor is looking forward to new investments. He says Australian investors have expressed interest in putting up an ecotourism resort. He adds SMDC and Megaworld will be building socialized housing at Galera. Already, it has one accredited hotel and 11 resorts. Travelers from Metro Manila and other provinces notice the Southern Tagalog Access Road (STAR) has greatly reduced travel time to Batangas port. At this port, there are several outriggers with capacities of 70 to 150 for passengers to Muelle Port for PhP220 fare plus environmental fee of PhP50 only. MARCH 2012




SUBIC hosts biggest ship-to-ship transfer By Gen Dy


he world’s biggest iron ore producer has chosen Subic port as the base of its floating terminals, the biggest ship-to-ship trans-shipment ever in the world. Its Valemax carrier vessels of about 400,000 deadweight ton (DWT) each shall offload cargo to “smaller” feeder ships like Panamax and Capesize types. In turn, these deliver iron ore to several ports in China, now the world’s biggest user of iron ore. The Subic Bay Metropolitan Authority (SBMA) has confirmed Vale Mining of Brazil has located its operations in Subic, a strategic base in the Asia-Pacific region. SBMA Chairman Roberto Garcia says the arrival of Vale Brazil would help Subic

secure its place on the map in terms of floating terminal operations. SBMA has entered into an agreement with Vale Mining, to make this free port the hub of Vale’s iron trans-shipment operations in Asia. This turns Subic into a major player in the maritime logistics industry in the Asia Pacific Region. SBMA expects to earn some PhP70 million in the first year of operation of Vale because of the projected increase in ship calls. SBMA deputy administrator for port operations Redentor Tuazon confirms Vale will carry out its iron ore transshipment operation from its Valemax mother vessels, supplying ore to smaller daughter vessels. The especially-designed floating terminal that will supply feeder ships will be anchored in Subic Bay.

Tuazon says preparations are now underway for the initial transshipment operations with M/V Ore Fabrica, the floating terminal station that arrived here January 31st and the M/V Vale Brazil, expected to arrive any day now. Garcia says, “it’s all about economies of scale. Vale will haul its ore products to Subic using its big carriers, then transfer the iron ore to smaller vessels, which the smaller ports in China will be able to accommodate.” “This is a very fortuitous development for SBMA because Subic will be at the very center of what is expected to be the biggest ship-to-ship transfer operations in the world in terms of volume,” Garcia adds. Due to the magnitude of the trans-shipment operation, various marine safety measures have been put into place, including the conduct of hazard and operability (HAZOP) analysis jointly made by representatives of Vale Brazil, SBMA, and agent companies involved in the operations. All vessels are insured and covered with protection and indemnity insurance. The SBMA has been aggressively pushing for the Port of Subic Bay to be a premier marine logistics hub in the region, as it continues to develop the market for the full utilization of Subic’s container terminals.

CARGO UP BUT SUBIC UNDERUTILIZED Cargo volume at the New Container Terminal (NCT-1) in Subic went up 7.84% with 27,671 TEUs in 2011 from 25,661 in 2010. The port is operated by Subic Bay International Terminal Corporation (SBITC), a subsidiary of International Container Terminal Services (ICTSI). Both have been promoting Subic to industrial locators and shipping lines to increase containerized cargo handling activities. Subic even as a freeport remains underutilized to date. Subic Bay Metropolitan Authority (SBMA) says the port’s average annual utilization from 2007 to 2011 was at 24,275.90 TEUs, representing only 8% of the estimated handling capacity of 300,000 TEUs per year. SBMA chairman and administrator Roberto V. Garcia in his State-of-the-Freeport address says NCT- 1’s cargo volume in 2010 was at 25,661 TEUs, up 17.14% from



MARCH 2012

21,906 TEUs in 2009, and higher by 3.41% compared with 21,184 TEUs recorded in 2008. NCT-1 is a 14-hectare terminal with a 280-meter berth and controlling depth of 13 meters. As of December 31, 2011, SBITC has two post panamax cranes, three reach stackers, five forklifts, nine prime movers, four manual spreaders and 15 chassis. SBMA and ICTSI signed on 27 July 2011 the contract for the operation and management of the new container Terminal 2 (NCT-2) for a period of 25 years. NCT-2 is also a 14-hectare terminal which includes a 280-meter berth with 13 meters depth and two quay cranes. The NCT- 2 has an annual throughput capacity of 300,000 TEUs. NCT-2, together with the adjacent NCT-1, is a primary component of the $215million Subic port modernization program

funded by the Japan Bank for International Cooperation (JBIC). To increase the cargo volume, SBITC and J-PAC Logistics, Inc., a cargo consolidator and logistics service provider at the Clark Freeport Zone (CFZ). agreed to market the port as the premiere trading gateway for industries in the northern Luzon regions, particularly businesses located in the Freeports of Subic Bay, Zambales and Clark Field, Pampanga and the Special Economic Zones of Northern Philippine provinces such as Tarlac and Bataan. J-PAC Logistics is recognized as a major cargo consolidator in freight forwarding to key destinations worldwide. It is an affiliate of the Pac-Atlantic Group of Companies. J-Pac Logistics president Ramon De Leon says they are looking forward to helping SBITC achieve its goals while simultaneously addressing needs of locators.


International Container Terminal Services (ICTSI) net income rises 32.8%, translating to US$130.530 million in 2011 from $98,276 in 2010. This growth is attributed to the upsurge in port revenues helped by inclusion of ICTSI Oregon and Adriatic Container Gate Terminal (AGCT). ICTSI says the higher net income attributable to equity holders was also boosted by the one-time gain on sale of 16.79% ownership stake in Portek International last year as well as lower financing charges and lower effective tax rate. 

In 2010, ICTSI sold its 9.54% ownership stake in Subic Shipyard and Engineering and 8.56% ownership in Consort Land that accelerated debt issuance cost related to the company’s refinancing exercise. This also wrote-down the carrying value of certain property assets related to the company’s greenfield project in Buenaventura, Colombia.   “Excluding the effect of non-recurring income and charges in both 2011 and 2010, net income attributable to equity holders in 2011 would have been US$124.4 million, 35% higher than the US$92.3 million in 2010,” ICTSI says.  Consolidated gross revenues from port operations went up by 26.1% to US$664.8 million from US$527.1 million in 2010.  ICTSI says factors that contributed to revenue growth were favorable volume mix, mainly import and export-laden containers. It was able to get new customers, and collect higher storage revenues. It also notes the inclusion of ICTSI Oregon and AGCT to the Group contributed to the increase in gross revenues.  AGCT handled 98,675 TEUs to the Group’s throughput for the year, after taking over the operations of the container terminal in Rijeka, Croatia only last April 15, 2011. ICTSI Oregon assumed the control and responsibility of the container terminal and breakbulk steel yard at Terminal 6 of the Port of Portland in February last year. The Container terminal operations in the Americas generated revenues US$284.1 million in 2011, 48% higher than the US$192.1 million in 2010.  The increase

in revenues in this segment was due to the revenues generated by Portland and the robust 30% and 34% revenue growth in the company’s Brazil and Ecuador operations, respectively. Revenues from the company’s ports in the Americas contributed 43% to ICTSI’s 2011 consolidated gross revenues. “Excluding the revenues from the newly acquired terminals, organic revenue growth was still at an impressive 19%,” it says.  Revenue contribution from the Group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 85% of consolidated revenues in 2011, increased 19% to US$565.6 million from US$476.5 million. Meanwhile, Asia posted an 11% increase to U$302.6 million from US$273.6 million. In the Philippines, the terminals in Davao and Cagayan de Oro and in Yantai, China, registered exceptional revenue growths of 50%, 22% and 38%, respectively. Port operations in Asia accounted for 46% of consolidated gross revenues. Container terminal operations in Europe, Middle East and Africa (EMEA), which accounted for 12% of the company’s revenue in 2011, registered strong growth of 27% to US$78.1 million in 2011 from US$61.5 million in 2010.  The increase in revenues in EMEA was mainly due to the company’s terminals in

Poland and Georgia, which posted 17% and 117% higher revenues, respectively, and the revenues from the new terminal operations in Croatia. ICTSI handled consolidated volume of 5.233 million twenty-foot equivalent units (TEUs) up 25% from 4.202 million TEUs handled in 2010 brought by the continued upturn in international trade, particularly in markets where ICTSI’s ports are located. Without the volume from the two latest port acquisitions in Portland, Oregon, USA and Rijeka, Croatia, organic volume growth was at an impressive 18%. Volume from the Group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 74% of the Group’s consolidated volume for 2011, increased 18% to 3.867 million TEUs from 3.266 million. ICTSI’s capital expenditure for 2012 is approximately US$550 million, about US$345 million of which is for the greenfield projects in Argentina, Mexico and Colombia, and the balance mainly for civil works, systems improvement, and purchase of major cargo handling equipment at its port operations in Manila (MICT), Croatia (AGCT), Brazil (TSSA) and Ecuador (CGSA). Last year’s capex amounted to US$227.8 million, which was spent mainly for the civil works and major equipment at its existing terminals in Manila, Ecuador and Brazil and port development projects in Argentina and Mexico. MARCH 2012





omen from Asia gather in Manila for the Regional Workshop on Advocating Shipping for Women Managers in the Maritime Sector –Asia. This was at the Century Park Hotel, in Manila from Feb 6 to 9, coinciding with the visit of International Maritime Organization (IMO) Secretary General Koji Sekimizu. 40 women maritime managers came from Brunei Darussalam, Cambodia, Republic of Korea, Malaysia, Maldives, Sri Lanka, Singapore, Thailand, Vietnam and the Philippines. Philippines delegates are from the government and private sectors, with



MARCH 2012

Marino World Publisher Lyn Bacani actively participating with women colleagues in media. The workshop was facilitated by IMO officials lead jointly by Ms. Pamela Tansey, Senior Deputy Director for Technical Cooperation Division and Ms.

Brenda Pimentel, Regional Coordinator for IMO Regional Presence for Technical Cooperation in East Asia and Women in Maritime Philippines (WIMAPHIL) President Ms. Carla Limcaoco.

MARCH 2012



PHILCAMSAT President Gerardo A. Borromeo (2nd from left) and Orion Maritime Training Center’s Jorge Ramirez Arias (4th from left) seals the landmark partnership with a handshake. On hand to witness were (from L-R) PTC Executive Director for Education and Professional Development and Offshore Processing Karen Avelino, H.E. Ambassador Roberto Vallarino of the Republic of Panama (in green), Engr. Jorge Torres, Regional Chief of the Seafarer Certification Center in Manila, and PHILCAMSAT Training Director C/E Alfredo Haboc.

PHILCAMSAT Signs with Orion Maritime Training of Panama



The Philippine Center for Advanced Maritime Simulation and Training (PHILCAMSAT) recently signed a Memorandum of Agreement with Orion Maritime Training Center of Panama, which certifies PHILCAMSAT to conduct the assessment of seafarers who wish to work onboard Panamanian flagged ships. This partnership accords PHILCAMSAT the distinction of being the first maritime training center in the Philippines to gain recognition from the Panama Maritime Authority (PMA).

professionals. We are also very grateful to His Excellency, Ambassador Roberto Vallarino of the Republic of Panama, for his valuable support of this significant partnership,” says Gerardo A. Borromeo, President of PHILCAMSAT, during the MOA signing at the Embassy of Panama in Ayala Avenue, Makati City. Borromeo adds, “I am hopeful that with this new certification scheme, PHILCAMSAT can help abet the professional development of more Filipino seafarers seeking to fill the huge demand for Deck and Engine Officers globally.”

Under the agreement, the assessment shall be conducted by PHILCAMSAT on Deck and Engine Officers who intend to apply for a Certificate of Competence (COC) from the PMA through Orion Maritime Training Center. The COC is one of the requirements needed by seafarers to be eligible for deployment on Panamanian flagged ships.

Classified under the prestigious Category A of the International Maritime Organization, Panama holds the honor of having the most number of ships registered under its flag. As one of the world’s maritime powers, Panama presents a wealth of opportunities to highly-skilled and competent seafarers within its vibrant merchant marine industry.

“PTC is deeply honored by the confidence of Orion Maritime Training Center in PHILCAMSAT’s world-class capability and expertise, as well as, in the skills and competence of our Filipino maritime

PHILCAMSAT is currently one of the leading providers of simulator-based maritime training in the country dedicated to the continuing professional advancement of Filipino maritime professionals.

MARCH 2012


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