MARITIME WATCHKEEPER

….Sevilla also said that the privatisation of North Habor will be resumed this month after the joint venture of Metro Pacific Investment Corp. (MPIC) and Harbour Centre Port Terminal Inc. agreed to continue the bidding of the country’s premier domestic port.

Earlier, the PPA informed the joint venture about the amendments to the terms of reference (TOR) for the management of the North Harbor Modernization Project. The bidding is only open to MPIC and Harbour Centre.  Read the article here.

How can two firms belonging to one consortium proceed to participate in the bidding of PPA for the North Harbor? Something strange is brewing when PPA says it will resume the bidding process with only MPIC and HCPTI as the qualified bidders.  There must be a new meaning to the term “public bidding.”

The North Harbor is large enough for two operators. Why not let HCPTI and MPIC each operate one-half of the North Harbor area and let competition reign in order to streamline port operations? Establishing monopolies in port operations has resulted in overly exorbitant cargo handling and other rent-seeking services controlled by the PPA. Why has “cooking” the North Harbor privatization taken PPA more than two decades to implement? The project is so juicy so that major “booty capitalists” would not allow this project to get to the “wrong hands”.

In the meantime, forty percent of end-to-end shipping cost in the Philippines is still traceable to multiple cargo handling of items shipped. And since the returns in port operations and cargo handling is very lucrative for the port authorities and their appointed operators we could still end up having more investments in ports and cargo handling rather than in the floating assets of the maritime industry.

Look at how the government agencies have emaciated one Presidential flagship project – EO 170, the Road-RORO Transport System or RRTS. Some oversight committee ought to go over the implementation of this project in order to determine the culprits behind its complete emaciation.

If the President is not even aware of the failure of RRTS to bring down transport costs, she can only blame herself for having appointed incompetents and ass lickers to such an important undertaking. One is immediately reminded of the king and his new clothes each time the President reports on the RRTS during each SONA.  ;-0

WHEN former MARINA admin Victor Suazo Jr. retired from office
recently, immediately my mind flashed back and recalled MARINA’s
previous administrators.
Generoso Tanseco, Victorino Basco, Philip Tuazon, Adm. Pio Garrido, the late Paciencio Balbon, Atty. Oscar Sevilla, Agustin Bengzon, Suazo, etcetera. What is obviously common to them? They are all “boys” and full time administrators during their time. I have covered them except Tanseco and Basco, and had established professional
friendship with them as my gracious source of news and information.
It is different now. Not this time. You have to seek written appointment with OIC admin. Elena Bautista to get her sit for interview. She is always busy in a meeting. She can not be seen in her office and she is tightly guarded by enlisted men from the Philippine Coast Guard. I don’t know if she is afraid of being assassinated or
something? Why those cordon sanitaire?
Ms. Bautista came in as the first lady administrator in history since 1974? and it is the first time in history also that an administrator is reporting to MARINA office at least three times a week or more. It can not be denied that she holds two equally important positions, that of OIC and as the undersecretary at the DOTC. But, is she doing justice to both? Is this good or bad? People are asking.
Why did Malacanang threw Ms. Bautista to MARINA? And why is Malacanang dillydallying on getting a full time administrator for MARINA. I doubt Ms. Bautista will choose MARINA for it will be a demotion for her. And, I doubt Malacanang would appoint her for the position also. She is not an expert in maritime or at least who knows something about maritime business, which is very important for the post. Why appoint her? Is this proof that Malacanang does not consider MARINA a very important post?
The appointment of Ms. Bautista to MARINA is both good and bad, according to some experts. She enjoys the perks of both positions and nothing compares to it. Of course she will be enjoying the salaries of whichever is higher. Is she entitled to honorariums from both positions? We don’t know, but we can be sure, she knows where the money is and she can allocate funds for any kind of project properly justified.
We can symphathize with her nevertheless. She is imprisoned in the demands of both their offices and she can not fulfill them with satisfactory results. What about planning, strategizing and forward looking administration of both offices? Those must have some visions for the transportation and maritime industry? Base on records, an appointment of a parttime administrator is all that bad for MARINA and the whole maritime industry. The position is all hands-on management and if she is not here or there most of the time, she missed opportunities for the development of our people, the sector and the whole country. We are the number one supplier of seafarers in the world. Why delay the seafarer’s seaman’s book in favor of new system that has not been properly consulted, and properly advised to the affected sectors? Delay the seaman’s documents and you reduced the yearly $2B remittances. You delayed the food, clothing, medicine, shelter and hamper the education of the seafarers’ families. Is this not contributing to the suffering of our people?
Malacanang is alienated to most of its people because of this kind of appointment that is not good for the people and the sector. What good does it profit the appointing power if she loses the respect of the world?

Leo J. Santiago

Hon. Enrique M. Aboitiz, Jr. CEO of Aboitiz Transport Systems, Inc. (ATS) is also a Member of the Maritime Industry Authority (MARINA) Board. Unless the MARINA Charter (PD 141) has been amended, only the President can appoint members to the MARINA Board. However, changing the composition of the MARINA Board would require an amendment of the law creating the MARINA.

In the issue of the Philippine Star, dated 22 July 2007, further scrutiny of the Lloyds list of maritime accidents reveals that afterall, Sulpicio Lines is not the topnotch accident prone company in the Philippines.

“A total of 111 sea tragedies involving 84 local commercial vessels have occurred in Philippine waters since 1980, Lloyd’s of London records obtained by The STAR showed.

Surprisingly, it is the Aboitiz Transport Systems Inc. and not the controversial Sulpicio Lines Inc. which posted the highest number of sea accidents – 71 – involving 55 of its vessels.

The report showed SLI was second on the list with 45 accidents. Trans Asia and Lorenzo Shipping followed with 18 and 11 incidents respectively, each involving 10 vessels.” [Read more]

What is the agenda behind the appointment of E M Aboitiz into the MARINA Board?

The MARINA Administrator, instead of clarifying this issue has replied with a libelous statement that the question about the propriety of having a shipowner in the MARINA Board comes from a “malicious and polluted mind.”  Read the rest of this entry »

Trying to grab a piece of the limelight (for himself) resulting from the MV Princess of the Star sea tragedy, MARINA Chief Vicente T. Suazo, Jr. has instead opened a can of worms.  Claiming that he was “quoted out of context”, Suazo tried to correct his statement made about “All ships in Central Visayas not qualified to sail.”

Newsman Elias O. Baquero of Sun*Star Daily insists that he did not misquote Suazo.  “How could he have been misquoted when he was the one who called me on my cellphone, at least on three occasions?”, said Baquero. Central Visayas ship owners described as “unfair and irresponsible” Suazo’s allegations that “Marina 7 officials are in the payroll of several shipping firms, and that this is why all vessels were certified as seaworthy when these should have been grounded.” Read the rest of this entry »

Friday, July 11, 2008
All ships in Central Visayas not qualified to sail: Marina chief

CEBU CITY — If maritime laws were followed strictly, no vessel owned by shipping lines in Central Visayas would be allowed to sail because of numerous defects, Maritime Industry Authority (Marina) Administrator Vicente Suazo Jr. said Thursday.

Suazo said the inspection team he organized in Manila uncovered what he described as “questionable” approval and granting of Certificates of Public Convenience (CPCs) by Marina 7 officials.

This, he said, endangers the lives of the public.

Marina 7 is authorized to issue CPCs because the task has been deregulated.

Despite their issuance of CPCs, Marina 7 inspectors and auditors failed or intentionally did not attach a copy of inspection reports of vessels to the CPC forwarded to the Marina central office, Suazo said.

He said he wanted a copy of the inspection reports because he will compare these with the report of the inspection team he organized after the m/v Princess of the Stars sank last month in stormy weather.

Suazo said he received reports that Marina 7 officials are in the payroll of several shipping firms, and that this is why all vessels were certified as seaworthy when these should have been grounded.

Suazo also said he already ordered an investigation on allegations that Marina 7 allowed Rolly Shipping Corporation to operate “dilapidated” vessels for three years, even if the shipping firm allegedly failed to meet the requirements.

Suazo said he received reports that Rolly Shipping was able to continue operating because Marina 7 extended its franchise for three years.
Rolly Shipping vessels operate in the Cebu-Leyte route.

Sun.Star Cebu failed to locate Rolly Shipping president Virgilio Alcaraz for comment Thursday.

When asked for his side, Marina 7 Director Glenn Cabañez refused to comment on Suazo’s allegation. But, he said, he will look into the allegations raised.

Cabañez said it would be better if Suazo will also present proof to back his allegations so that those linked to it can be investigated.

Cabañez also refused to comment on the issue raised against Rolly Shipping, saying he will discuss it first with his subordinates. (EOB)

Marina Administrator Vicente Suazo, Jr. evades the chance to clarify a serious observation on the propriety of having a major player in the shipping business in the country sitting in as a member of the Board of the Maritime Industry Authority (MARINA).  Rather than reply to the implied impropriety and conflict of interest raised by the appointment, the MARINA Administrator simply issues a libelous statement: “That comment about the appointment of Aboitiz came from a malicious and polluted mind.”

Perhaps, by answering some questions on the matter, the public will be made aware of the reasons behind the questioned appointment. Suazo can easily answer the following questions, if he cares to clear the issues:

Has there been any amendment to the MARINA CHARTER?
 
Section 7 of PD 474 states that: Composition and Organization. The Board shall be composed of eight members as follows: The Secretary of Trade, the Secretary of Public Works, Transportation and Communications, the Secretary of National Defense, the Executive Secretary, the Chairman of the Board of Investments, the Chairman of the Development Bank of the Philippines, the Chairman of the Board of Transportation and the Maritime Administrator. The Chairman of the Board shall be appointed by the President of the Philippines from among its members.

The officials next in rank to the regular members shall serve as permanent alternate members, except that, in the absence of the Chairman, the Board shall elect a temporary presiding officer. The alternate members shall attend meetings of the Board and committees assigned to their principals and receive the corresponding per diems whenever their principal is absent or the said position is vacant.

The Board shall meet regularly once a month and may hold special meetings to consider urgent matters upon call of the Chairman or any three members thereof. A majority shall constitute a quorum for the transaction of business.

Each member shall receive a monthly commutable allowance of five hundred pesos and per diem of one hundred for every meeting of the Board or committee thereof actually attended: Provided, That the total amount of per diems which each may receive shall not exceed five hundred pesos a month.

Has Carlos Salinas been replaced as the private sector representative to the MARINA Board?

Certainly, if the answer to the previous question is in “no”, the next logical question that can be asked would be on the nature and legal basis for said appointment. What was the basis for the Presidential appointment of this shipping company CEO into the MARINA Board?

Do the permanent alternate ex-officio members attending the Board meetings occupy positions in government that qualify them to do so according to Section 7 of PD 474?

Lastly, what caused the Administrator to accuse the source of the news article written by Elias Baquero of Sun*Star Daily of having a “malicious and polluted mind.”

MALAYA
by JOCELYN MONTEMAYOR

“TRANSPORTATION Secretary Leandro Mendoza yesterday said the Board of Marine Inquiry will be impartial in its investigation on the condition of the vessels of Sulpicio Lines which accounts for 40 percent of the shipping operations in the country.” More..

What kind of assurance is this coming from the DOTC Secretary that has been haled to court for charges of graft and corruption in connection with the conclusions made after the investigations into the Superferry 14 accident that sank the vessel? Let’s revisit that case filed with the Ombudsman in 2004 against the Secretaries of the DOJ and DOTC.  According to the complainant when contacted last Monday, she has never been afforded with any kind of reply regarding the status or disposition of the case that she filed with the Ombudsman.

Partly, the case was filed due to the failure of the BMI to even acknowledge the existence of a MARINA report on the Superferry 14 accident which gave a different version to that which blamed the fire as the handiwork of terrorists.

This refusal to hear formally the complaint without any valid or understandable reason speaks loudly about the “rule of law” that this Administration loudly proclaims as an assurance that it talks and deals straight as an arrow.  But things are not what they sound to be; and so, why could this new BMI investigation be different from the last one?

Secretary Mendoza was briefed for two days when he assumed the leadership at the DOTC in 2002.  He said he learned a lot out of those two days, however, we were wrong in expecting that he would correct the practices that were brought to his attention.  Most of the objectionable practices from the previous Administration were simply carried over to the new one and with the same players easily jumping from the Erap gravy train to Gloria’s.

The Secretary’s words of assurance mean nothing to those that have clearly seen that he is able to act only in the interest of the people close to the President and not for the rest of the citizens of the Republic.

After each sea tragedy, what follows is a predictable and routine series of events purported to symphatize with relatives of victims and the survivors, the start of the finger-pointing season, issuances of headline grabbing one-liners, trial by publicity, imposition of sanctions sans due process, a flurry to hold public hearings, and the eventual formation of a Presidential maritime task force that would result in a formal statement that henceforth such tragedies would never happen again.

Once the media has lost interest on the matter, everything dies down and it is back to normal again…… at least, until the next tragedy. Read the rest of this entry »

In a span of one week, we are able to report on good and happy news about our ports.  First was the announcement that a PPA port has been converted into a Port Management Office (PMO).  This weans the Pulauan Port of Dapitan City away from the Port District Office of Cagayan de Oro.  Now, we have the announcement that very soon, the City Mayor and the Provincial Governor shall become members of the Cebu Ports Authority Commission.  We see this as a trend towards letting the Local Governments participate in determining how ports are developed, maintained and operated.

Hopefully, this trend will continue and perhaps accelerate so that port performance, which impacts immediately on the local economy is no longer determined by bureaucrats sitting in their offices far away from where the action is.  Also, we hope that CPA is finally also be weaned from over-influence from PPA policies and actions.

Already, Mayor Osmena of Cebu City has put forward his initial recommendations on CPA’s priority moves and concerns.  He is correct when he says that the local officers would be in a better position to look into port operational matters which affect the general public, especially the consumers that eventually bear the brunt of port inefficiency.

Read more…