Philippine exports stronger than most Asian countries, up 20%

MANILA,—– Philippine merchandise exports rallied to 19.7 percent in November, placing the country on top of other East and Southeast Asian economies for the third time, the National Economic and Development Authority (NEDA) announced on Friday.

Data from the Philippine Statistics Authority (PSA) showed that the country’s total export earnings reached $5.178 billion in November 2014, higher than the $4.325 billion posted in November 2013.

PSA noted that the positive growth was mainly brought about by the increase of nine major commodities out of the top ten commodities for the month and these were: coconut oil; cathodes and sections of cathodes, of refined copper; machinery and transport equipment; chemicals; woodcrafts and furniture; ignition wiring set and other wiring sets used in vehicles, aircrafts and ships; electronic products; articles of apparel and clothing accessories; and metal components.

“This strong performance of the exports sector during the period was largely driven by growth in manufactures, agro-based, and mineral products. An increased demand for Philippine-made products by Taiwan, China and the United States of America likewise boosted this expansion,” said Deputy Director-General and currently NEDA Officer in Charge Emmanuel Esguerra.

Data from NEDA showed that the Philippines outperformed Vietnam (10.8 percent), China (4.7 percent), Taiwan (3.7 percent), Hong Kong (2.8 percent), Thailand (-1 percent), South Korea (-2.1 percent), Malaysia (-2.3 percent), Singapore (-6.4 percent), Japan (-10 percent), and Indonesia (-14.6 percent).

“Manufactures continue to gain from positive developments in the global manufacturing sector, as better performance of both the electronics and non-electronics segments pushed exports to a higher growth

Earnings from manufactured goods amounted to $ 4.4 billion, up from $3.7 billion posted in November 2013. Total sales receipts from electronic products amounted to $2.5 billion in November 2014, higher by 27 percent than the $2 billion a year ago.

“The demand during the holiday season likely sustained exports and consumption growth until December 2014 which could potentially support a stronger fourth quarter GDP (gross domestic product) growth,” said Esguerra.

“However, slack demand by the start of 2015 may soften the demand for Philippine exports, in addition to the uncertainties still lingering in many big economies. Considering that exports of goods comprise around 40.7 percent of the country’s GDP, vulnerability to external shocks through the trade channel can pose downward risk to growth,” he added.

Esguerra called for the intensified effort to diversify export products and markets through continued export promotion and market access initiatives. He added that the enhancement of the Export Assistance Network can help provide start-up support for more exporters and further ease export-related procedures.    ( PHILIPPINE STAR)

Bidding up for P17-Billion Davao world-class international seaport

A world-class multi-million peso international seaport complete with modern port equipment to handle loading and unloading of big containers from large ocean vessels will soon be constructed at the Davao Sasa seaport.

THE Department of Transportation and Communication (DOTC) and the Philippine Ports Authority (PPA) are now inviting bids for the P17-billion Davao Sasa port project.

Official sources at the DOTC said the project will include a world-class dedicated container handling facility, container yards and warehouses comparable adhering to the highest standards of global seaports.

Bidders must pass a pre-qualifying stage before they can submit their technical and financial proposals for the project, according to DOTC officials.  A number of foreign and domestic firms specializing in constructing and operating international port terminals have indicated their intention to bid for this port project.

Regional Director Maria Lourdes D. Lim of the National Economic and Development Authority (NEDA), is hoping the Davao Sasa Port project and the P40.57-billion upgrade of the Francisco Bangoy International Airport (FBIA) could be bid out within this year.   (Sun Star Davao)

Davao exports rack up $430 million in 4Q-2014

Combined exports of various commodities in the Davao region posted an export value of $430.13 million in the fourth quarter of 2014, according to the Philippine Statistics Authority

Based on the preliminary data of PSA-Davao, agricultural products remain to be the main export commodity of the region.

Fresh and dried bananas, including plantains, continue to be the number one exported product of the region with a value of $158.87 million.

China is the top export market of the commodity at $62.53 million, followed by Japan ($33.99 million), Iran ($18.34 million), South Korea ($14.64 million), and Saudi Arabia ($6.31 million).

Coconut crude oil is the second most exported product of the region at $76.92 million with the Netherlands being the number export destination at $34.91 million.

Other top export destinations for the commodity include Indonesia ($11.39 million), Malaysia ($11.12 million), United States of America (USA) ($9.05 million), and Italy ($5.53 million).

The third most exported product of the region is fresh and dried pineapples at $24.56 million with Japan being the top export destination at $5.99 million. Other top export markets are Singapore ($4.79 million), United Arab Emirates (UAE) ($4.25 million), China ($3.92 million), and South Korea ($2.17 million).

Prepared or preserved fruits — lychees, longans, jackfruit, and mango, among others — containing added sugar and sweetening ingredients is the fourth most exported commodity of the region at $20 million.

The top export destination for the commodity is still China at $3.73 million, followed by Germany ($2.35 million), Taiwan ($2.06 million), South Korea ($1.41 million), and USA ($1.4 million).

Rounding up the top five exported commodities of the region are coconut oil and its fractions at $19.79 million with USA being the top export destination for the commodity at $11.17 million. Other major destinations include Malaysia ($4.56 million), Canada ($1.94 million), United Kingdom ($609,379), and South Africa ($406,903).

Also among the top 10 exports of the region are natural rubber in other forms ($17.16 million); activated carbon of coconut-shell based ($16.81 million); soya bean oil ($9.75 million); desiccated coconut ($9.12 million); and oil cake and other solid residues extracted from coconut or copra ($6.88 million).

The agency also reported that China is the top market for Davao Region exports for the fourth quarter of 2014 at $96.02 million worth of exports.

Japan came in second at $50.61 million while Netherlands placed third at $42.83 million. Rounding up the top five export destinations are USA ($42.64 million) and Malaysia ($27.77 million).—  (Sun Star Davao)

Malaysia port operator keen to build a seaport in Palawan

 PUERTO PRINCESA —–  Malaysian port operator Labuan Liberty Port Management Sdn Bhd is eyeing the operation of ports in the Philippines, particularly in Palawan, according to a Malaysian trade official.

Nyaee Ayup, trade commissioner of the Embassy of Malaysia Trade Office, said Labuan Liberty, which operates Malaysia’s duty-free Labuan port, is discussing possible port development and management projects with various local government units in Davao del Sur and Palawan.

“We want to establish linkages and strengthen relations we have with the Philippines and explore business together,” Ayup said, adding that they want to explore new opportunities and new markets.

Labuan Liberty wants to connect Labuan port to Puerto Princesa as another linkage within the Brunei Darussalam-Indonesia-Malaysia-Philippines-East ASEAN Growth Area or BIMP-EAGA.

Labuan Liberty chairman and chief executive officer Dato’ Sri Mohd Alias Haji Abd. Rahman said they are “in the proposal and discussion stage.”

Azhar Othman, Labuan Liberty Port business development manager, said they will make a proposal to manage the port and “probably have a joint-venture agreement with companies in Palawan.”

Othman also noted that another foreign investor is interested in building a port in Puerto Princesa in Palawan.

If the port project in Palawan materializes, it can boost trade of goods between the island and nearby Labuan, Rahman said.

Palawan produces agriculture products and livestock that can be shipped to Labuan, while Malaysia can provide manufactured consumer products to Palawan. 

( Liza Almonter / PORT CALLS NEWS)

ICTSI’s Iraq port now accepting cargo ships

ICTSI’s Iraq seaport is now opened for business in the Middle East

MANILA port operator International Container Terminal Services Inc (ICTSI) reported that Iraq shipping operations are now in full swing at the Basra Gateway Terminal, a wholly-owned subsidiary in the port of Umm Qasr in Iraq.

“We are attracting plenty of interest from several container lines and enjoyed a good cargo build-up since we opened for business after full takeover in November, 2014,” said BGT chief executive officer Phillip Marsham.

He noted that “our focus is on performance, employing container handling gear and rolling out state-of-the-art IT systems that include links for customers.”

Marsham added that STS crane performance is now peaking at over 30 moves per hour and  attention is being focused on training staff and improving terminal security.

Strsssing BGT’s commitment to providing quality customer service, BGT chief commercial officer Munther Al-Saiegh explained that “The underlying drive is to ensure full support exceeding all our clients’ requirements.”

Southern Iraq is home to some of the largest oilfields in the world. This, as well as other trade factors, drives a strong cargo potential, according to Marsham.  ( James Loyola / Manila Bulletin )

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PH, Indonesia boost maritime ties

A regular shipping route is now opened between Indonesia’s eastern ports and the southern Mindanao ports in the Philippines.

 

MANILA —-  Combating illegal fishing had been agreed by both the Philippines and Indonesia in a recent agreement  to cooperate in maritime problems in the Celebes and Mindanao seas, according to       President Benigno Aquino III after his meeting with Indonesian President Joko Widodo who visited the Philippines recently.

The two Asian neighbors also sought to enhance cooperation on defense, trade, and investments, including the setting up of a roll-on/roll-off operations between two ports, according to the Aquino.

Widodo, who assumed the Indonesian presidency in October last year, was on a two-day state visit to Manila upon the invitation of President Aquino. His Manila visit was part of a three-nation introductory tour of the Asian region.

.           Widodo also offered the potential “trade of defense equipment” with the Philippines during his meeting with President Aquino.

On economic cooperation, Aquino and Widodo agreed to expand trade and investment between the two countries. “The opportunities are certainly there, especially given that Indonesia and the Philippines are two of the fastest growing economies in the region,” Aquino said.   ( Genalyn Kabiling / Port Calls News)

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Bigger container ships pose bigger risks

 

SINGAPORE —-   The big container ships plying the world’s trade routes are growing ever larger, holding down the cost of ocean shipping, raising worries among vessel operators, insurers and regulators about potential accidents.

The ships, designed to carry freight stowed in large metal containers, transport much of the world’s seaborne cargo, including manufactured goods and, increasingly, farm products.

Their increasing size is straining the unloading resources at some port facilities and – along with labor troubles – has contributed to major traffic snarls at the nation’s West Coast ports.

Since the economic downturn, shipping lines have sought to stay competitive by running larger, more fuel-efficient container ships in major shipping lanes, reducing their cost per container, according to Noel Hacegaba, acting deputy director of the Port of Long Beach, Califonia.

Today, the newest and biggest container ships can carry around 18,000 twenty-foot-equivalent units–the industry’s capacity benchmark–but Dr. Hacegaba said in a study last year that industry watchers expect ships as large as 22,000 TEU to come into service by 2018, and that 24,000-TEU vessels are on the drawing board.

The larger ships will further test the capacity of ports and canals and the skill of their captains and crews. “There is a world-wide shortage of qualified seamen to command these vessels,” said Andrew Kinsey, senior marine risk consultant at insurer Allianz SE’s Allianz Global Corporate & Specialty unit and a retired ship’s captain. Capt. Kinsey added that human error is a factor in most shipping accidents.

Though there have been fewer such accidents in recent years, their cost has been rising. Ship groundings topped the roster of insured losses from 2009 to 2013, putting them ahead of fire, plane crashes and earthquakes, according to Allianz.

 (Dow Jones News)

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Socot cassava project impresses World Bank

Cassava farms like this one are now flourishing in many areas of South Cotabato in Mindanao

Big demand for cassava to be used for feeds is attracting more farmers to venture into cassava farming

 GENERAL SANTOS CITY —- The World Bank (WB) has approved and funded a P39.3-million cassava production and marketing project in South Cotabato as a pilot enterprise  under the Philippine Rural Development Project (PRDP).

Justina Navarrete, acting head of the provincial agriculture office here said World Bank officials were  impressed with the project’s business enterprise plan during a recent presentation made by the proponents. She said the business plan’s presentation was joined by officials from  World Bank led by its rural development specialist Carol Figueroa-Geron. The bank is assisting the P27.5 billion project through a loan grant to the national government and regularly monitors its implementation on the ground. “They were impressed with the project for its viability and impact to the people in this village,” Navarrete said. The cassava project, which was proposed by the Polo Samahang Nayon Multipurpose Cooperative (SNMPC) based in Polomolok town in South Cotabato, was the first project approved by the PRDP under its I-REAP component or the “Investments in Rural Enterprises and Agriculture and Fisheries Productivity.” The PRDP, which is implemented by the Department of Agriculture (DA), earlier issued a “no objection letter” to allow the cassava project to proceed to the procurement stage. The Polo SNPMC was a previous national winner of the Gawad Saka Awards and the Gawad Pitak Awards.Around 1,600 farmers and farm laborers in South Cotabato province are expected to benefit from the project, which is slated to begin by the second quarter of the year.  This farmer’s group has some 150 members who are growing cassava in 300 hectares of farmlands and produce around 2.4 metric tons of cassava granules annually. The project will have a total investment cost of P41.43 million and is seen to generate an average annual income of P13.56 million within its six-year implementation period.   (  Philippine News Agency )

Cacao industry seen to surge 30% this year

Demand for cacao beans and dark chocolate from Davao has increased these past months

DAVAO CITY —- A massive growth of the cacao industry is seen by the Regional Agriculture and Fishery Council (RAFC) this year, noting that several cacao farm areas in the region have started harvesting and processing cacao beans.

RAFC regional chair Armando C. Angsinco said they are projecting a conservative growth of 10 percent per quarter for the cacao industry in 2015, attributing the increase to the efforts done by the new emerging industry during the last few years.

“For the whole year, more or less the growth would be around 25 percent to 30 percent,” Angsinco said.

He said the industry is aware of the fast growing demand both in the domestic and global markets for cacao which is expected to spur the expansion of more cacao plantations in the region.

Angsinco said they are targeting some 15,000 hectares of plantation areas for cacao for the year 2015, but cacao farmers are ready to expand their production areas to heed market demand.

Mindanao Development Authority (MinDA) secretary Luwalhati R. Antonino stressed that “now is a good time to invest in cacao” with the increasing demand for the commodity brought about by the looming shortage in the world market, especially after the deadly Ebola virus hit most parts of West Africa, one of the world’s leading cacao producers.

 (RJL/ SUN STAR DAVAO)

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Lower EU tariffs to woo Davao small exporters

DAVAO CITY —-  Davao exporters are being invited to take advantage of the recently approved Generalized System of Preferences Plus (GSP+) of the European Union (EU), which allows them more access to the European market.

Some 6,000 export commodities and products coming from the Philippines will be able to enjoy duty-free access to the European market should they avail of the EU’s GSP+, which is the “tariff preferences under the special incentive arrangements for sustainable development and good governance.”

The GSP+ was approved by the European Parliament last December and was implemented only last December 25, 2014.

This makes the Philippines the 14th country to be granted with GSP+ privileges by the EU and the only country in Southeast Asia to be granted with this privilege.

“We should take advantage of this as soon as possible because it will only be for 10 years,” said Ferdinand Maranon, president of the Davao Chapter of the Philippine Exporters Confederation, Inc. (Philexport Davao)

He said Philippine export products will be much cheaper compared to other products in the ASEAN region because of much lower tariffs on many selected Philippine products. The cheaper prices will also mean a more competitive products being exported from the Philippines.

However, Raf Vlummens, Export Desk.eu founder and principal, pointed out that though the opportunities are big, potential exporters, particularly the small and medium enterprises (SMEs), are expected to be “more creative and innovative” with their products to compete with other products in the European market.

Maranon also said it is up to the local exporters here on how and what they will export to Europe. He said it is important for exporters to know and research about the European market to understand buyers’ preference in Europe.

For example, Vlummens said milkfish or “bangus” fillet and mango syrup would sell well in the European market, but they need to be processed and packaged very well here before penetrating the market.

Mara¤on said Philexport Davao and ExportDesk.eu have partnered together for the information campaign on EU’s GSP+ to exporters here in Davao Region.

                            (Reuel John Lumawag / SUN STAR DAVAO)