"PPA AWARDS ZCIPSI CARGO HANDLING MANAGEMENT CONTRACT"
News Release No. 10, Series of 2006 Page 1 of 2 Pages April 12, 2006 PPA AWARDS ZCIPSI CARGO HANDLING MANAGEMENT CONTRACT h .p In a move to solidify and strengthen cargo handling services at the Zamboanga baseport, Philippine Ports Authority Head Office (PPA HO) in Manila recently released the m ten-year management contract of the Zamboanga City Integrated Port Services Inc. o (ZCIPSI). .c The ten-year contract, signed by PPA General Manager Atty. Oscar Sevilla and in ZCIPSI officials Hadji Harun Demarunsing (Chairman of the Board), Edgardo Ruste h m (President) and Ricardo Purugganan (Director/General Manager) of the newly-integrated .p cargo handling operator (CHO), covers the period February 24, 2006 to February 23, 2016. so om “This milestone truly underscores the commitment of PPA to recognize as well as pa challenge the capacity and competitiveness of the regional players at the outports,” PPA Port .c District Office-Southern Mindanao (PPA PDO-SoMin) Port District Manager Abdussabor .p in Sawadjaan expressed during the handover ceremonies on April 3. w h m .p ZCIPSI, prior to the effectivity of said integration, was composed of three individual w so and separate operators, namely, PTC Mindanao Port Services, Inc. (PTC-MPSI), United w om Stevedoring and Arrastre Corporation (USAC), and Zamboanga Arrastre and Stevedoring pa Corporation (ZASCO) which took charge of the cargo handling requirements of baseport Zamboanga. .c .p in Back then in the 1980s, PPA motioned to liberalize the cargo handling operations w om nationwide by implementing the open competition policy for all interested cargo handling w bidders. This provision allowed the Zamboanga port to have two or more qualified CHOs to cater to its specific requirements. w as Market demands as well as the call to improve efficiency through PPA’s thrust for p more globally competitive ports have recently called for the integration of its CHOs. .p Thus, after almost two grueling years of deliberation, ZCIPSI’s integration agreement w finally took effect on January 1, 2005. Such move enables them to pool more resources to w deploy more modern facilities and also to boost its financial portfolio. w The merger, likewise, aims to harmonize arrastre and stevedoring processes and procedures as well as to raise labor productivity of the port. PPA measures productivity in terms of metric tons for bulk and breakbulk goods and twenty-foot equivalent units (TEUs) for containerized cargoes per net gang hours (MT or TEUs/ngh). NGH is the unit of measure of the worker’s regular cargo handling cycle or shift. -MORE- http://www.ppasomin.com.ph/pdosomin/press.htm News Release No. 10, Series of 2006 Page 2 of 2 Pages April 12, 2006 Furthermore, arrastre, as defined by PPA Administrative Order (AO) No. 10-81 refers to receiving and loading of cargoes from and to ship’s tackle with the use of dock gang (workers) and equipment. It generally sums up cargo movement undertaken within the quay or on land. Stevedoring, however, covers the loading and unloading of cargo, stowing inside hatches, compartments and on the deck or open cargo spaces on board the vessels. h .p The integration, a result of a tedious process of unifying three CHOs which are among the original operators at the PPA Port Management Office (PMO)-Zamboanga, is totally m committed to transform ZCIPSI into a solid, more bankable, competent and stable service o provider. .c Another essential benefit of its integration is reaching utmost customer satisfaction in and achieving more organized servicing, especially that the Zamboanga baseport is known to h m handle mixed cargoes (bulk, breakbulk and containerized) in its four major five berthing .p areas: Finger Pier, T-Head Pier, Marginal Wharf and Ferry Pier. so om Zamboanga is also among the top ten priority ports nationwide shortlisted to meet pa international standards by 2010 in terms of facilities and services. .c .p in Moreover, the then three CHOs were given individual and separate two-year w h probationary contracts for the period November 2003 to November 2005 before qualifying for m .p the long-term contracts as an integrated company. w so w om Previous contract agreements in the two-year period are specifically outlined and pa mandated by PPA AO No. 01-2001. .c .p The guidelines of AO 01-2001 cover essential conditions such as meeting of in satisfactory rating in CH, complying with the provisions of its business plan, gaining w om certificate of no outstanding account with PPA, establishment of a trust fund for its workers w and obtaining an endorsement by port stakeholders. w as Majority of the guidelines of the two-year probationary contract were still carried over in the recent ten-year term. p .p Specifically, the terms and conditions of the new ten-year contract cover the maintenance of its working capital, prompt collection of all authorized fees, set-up of w performance bond, full compliance to its stipulated business plan, deployment of cargo w handing, safety and related equipment/gears, meeting of prescribed productivity rates, w establishment of a port labor trust fund and regular submission of list of laborers/workers for monitoring/evaluation purposes. PPA HO also specified the visitorial powers of PPA as the government regulatory body in port operations as well as the terms in the suspension, cancellation or termination of the said contract in case of major violations of the CHO. -30- http://www.ppasomin.com.ph/pdosomin/press.htm