Biz Buzz: Change is coming… to Manila’s ports
IN WHAT could be a game-changing development in the local ports scene, Manila North Harbor Port Inc. is expecting prospective foreign clients to dock at its modernized port very soon, Biz Buzz has learned.
This, after it was granted international port status by the government following the signing into law in 2015 of RA 10668 or the Foreign Ships Co-loading Act that amended the 50-year-old Cabotage Law.
Expect this development to foster competition, potentially lower shipping costs and boost the country’s competitiveness as the new port will help meet the growing demands of domestic and international trade.
In essence, the Foreign Ships Co-loading Act allows foreign vessels carrying imported cargo (and cargo to be exported out of the country) to dock in multiple ports within the Philippines. The law effectively allowed all domestic ports to service domestic and international cargo.
This makes sense if you are of the view that both existing Manila ports—South harbor and the Manila International Container Terminal—have already exceeded their full capacity resulting in port congestion and longer queuing time for vessels and cargo.
According to industry sources, the average waiting period for loading and unloading of cargo at berth is anywhere between 80 and 150 hours. To recover cost of delays, shipping lines impose higher shipping rates.
A third player like MNHPI may help consumers through lower cost of shipping between Philippine and international ports.
Of course, MNHPI just completed a P15-billion modernization program that increased its container cranes, yard space and as well as having the most advanced terminal operating system to handle increased volume.
And believe it or not, credit goes to outgoing Customs chief Bert Lina who insisted on implementing the law which had, in fact, been enacted a year ago.
The question now is this: How will industry giants International Container Terminal Services Inc. and Asian Terminals Inc. take the prospect of a third player coming in to challenge them? Daxim L. Lucas
Incognito commuter
LTG Group Inc. president Michael Tan knows first-hand the anguish that MRT commuters go through every day as he had used this public transportation in the past. Without any fanfare, Tan would take the MRT incognito to cut travel time on Edsa, although at the end of his station of disembarkation, a driver would pick him up. The last time he did this was sometime last year as the occasional MRT commuter eventually could no longer bear the jampacked crowd.
As such, Tan has a few unsolicited ideas on how to ease the worsening gridlock in the metropolis. Apart from adding more coaches in the MRT/LRT railways to accommodate hundreds of thousands of daily commuters, he says it may be good to build more bridges across the Pasig River, to open up alternative routes to Edsa.
Tan, whose family controls flag carrier Philippine Airlines, also says that the country badly needs a new airport. However, he believes that the new international gateway should not be located within the metropolis, arguing that this would otherwise defeat the purpose of decongesting Edsa. Tan prefers any new international airport to be located south of Metro Manila, but this will also require the completion of C6 superhighway.
Overall, Tan is confident that the growth trajectory of this country and his businesses would continue in the next six years. “We have the right foundations. The new administration will continue that and improve on that,” Tan said, upbeat on President-elect Rodrigo Duterte’s avowed crackdown against illegal drugs and corruption. Doris Dumlao-Abadilla
Cornerstone
CEMEX Holdings Philippines Inc. —whose P39.74 billion stock market debut could be the biggest in the country—has found some cornerstone investors for this initial public offering.
Bloomberg reported that at least six institutional investors had agreed to be the anchor for the offering, including BlackRock Inc., Fullerton Fund Management Co. (a unit of Singaporean state investment firm Temasek) and Avanda Investment Management. This was confirmed by sources involved in the offering. “It’s very positive,” said one underwriter. The offer period of Cemex is scheduled to run from July 4 to 11 this year.
Cemex, one of the country’s largest cement players, will offer to the public 2.03 billion shares at a maximum price of P17 each. Including its over-allotment option of 304.95 million shares, the company can potentially raise P39.74 billion at the maximum price, an amount that will become the biggest capital raised through an IPO in the history of the Philippine Stock Exchange.
The shares of Cemex will also be offered to local small investors (LSI). The PSE requires issuers to allocate 10 percent of its shares to retail investors, in this case, over 203 million shares. Doris Dumlao-Abadilla
Sweet business
FORMER beauty queen Miriam Quiambao is more than a sweet face, it appears she has a sweet tooth for business as well.
Quiambao told Biz Buzz she has big plans for her latest venture, Tubo Cane Juice, which makes beverages with freshly squeezed sugar cane juice as a base.
Right now, it has branches in the southern part of Metro Manila like Alabang Town Center and Festival Mall.
However, Quiambao said she is the master franchisee in Metro Manila. That means in five year’s time, she sees Tubo Cane Juice growing to around 200 branches in the capital.
Big plans indeed. But Quiambao seems to be borrowing a page from British billionaire Richard Branson’s book. After all, she attended Branson’s recent talk in Manila, his first visit in over two decades in a business forum organized by ABS-CBN News Channel.
Like Branson said, if you have a great business idea, “screw it just do it.” Is a bet on Manila’s sugar cravings a good idea? We’re not sure, but it definitely sounds sweet. Miguel R. Camus
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