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Business

Wish list for Marina on small roros

BIZLINKS - Rey Gamboa - The Philippine Star

Undoubtedly, political will plays an important role in change. We saw this when the government leadership encouraged Philippine tankers that carry and transport oil inter-island to install double hulls in keeping with the International Maritime Organization agreement, but more importantly, to prevent oil spills that pollute the marine environment.

The move, which was guided by an agreed roadmap between the government and the industry members, was completed in early 2012 without any fiscal incentives to compensate for the estimated $12- to $15-million conversion cost of a single-hull tanker with a gross weight of 5,000 tons.

The retrofitting may have taken five years to complete since the controversial sinking of an oil tanker in the Visayas carrying half a million gallons of oil in 2007, which incidentally became the worst environmental disaster to date of the Philippines, but it was done and completed.

Unsafe ROROs

With this in mind, there is scope for our small roll-on, roll-off (RORO) ships that carry Filipinos and their precious cargo to and from the various islands of the archipelago so that they will become model sea-going transportation that are safe and dependable.

It is unthinkable that the government allows the importation of second-hand ROROs from Japan that are 20 or more years of age and fit only to travel its relatively shallow and calm waters.

Worse, it seems atrocious that our regulators allow the retrofitting of these imported sea vessels with an additional upper deck to increase the number of passengers that can be accommodated for every trip.

Special mention on travel advisories

No wonder that almost all developed countries, including the United Kingdom, Australia, United States and Canada, have travel advisories to their nationals that counsel against travelling inter-island in the Philippines via ROROs as much as possible.

They cite that our ROROs are often overloaded, lack necessary lifesaving equipment, not adequately maintained, and have incomplete passenger manifests. Furthermore, they note that maritime rescue services in the Philippines are limited.

It is interesting to note that these countries actually monitor the number of ferry accidents that happen in Philippine seas. When you go through their list (“five major inter-island ferryboat accidents in the last two years, one with significant loss of life,” according to the one issued by the US), you realize that their advisory is quite reasonable.

It’s downright embarrassing that the Philippines is listed (quite like our infamous Ninoy Aquino International Airport Terminal 1 in the world’s list of worst airports) as also having one of the worst in terms of domestic inter-island sea travel.

Urgent roadmap to health

Fortunately, it is possible to redeem the national pride from this loss of face. And similar to the case of the local oil shipping industry, political will needs to play a significant role.

Here’s my wish list for Marina to implement if it truly values the safety of vessels that ply the country’s inter-island routes, and if it really wishes to ensure the stringent standards of safety:

First definitely is to stop importing second-hand ROROs of 5,000 gross tonnage and below that are 20 years and older. If these have been banned from the countries that sell to us, then they should be banned from the Philippines as well.

Ideally, and over the years, we should impose a maximum life for our ROROs that will not compromise on their safety. Definitely, let’s call for a ban of ferries that are over 35 years old within five years. This will give existing owners and operators enough time to cope with the forthcoming more stringent regulations.

Corollary to this, no modifications or retrofitting should be allowed on second-hand purchases unless approved and supervised by a member of the International Association of Classification Societies (IACS). This is to ensure that the new build will be able to withstand rough Philippine seas.

Second, let’s have our ROROs fully classed, preferably by an IACS member. This will ensure that our ferries are properly classed and maintained, and more importantly, qualified by insurance companies.

This will lead to wider insurance coverage, not only of passenger lives, but also of third party liabilities including passengers’ medical needs and death benefits, damage to properties and the marine environment, and wreck removal.

Modernizing ROROs

Modernizing our ferry system can and should be done. We have seen the strategic importance to commerce and human productivity that efficient, safe and well-maintained ROROs have in developed countries.

Even international financing organizations like the Japan International Cooperation Agency (JICA) recognize the need to upgrade the safety and pursue the modernization of the Philippine domestic shipping industry.

Recently, it gave a P2.3-billion loan support to Archipelago Philippine Ferries Corp. (APFC) for the acquisition of 10 FastCat vessels designed by Sea Transport of Australia and built by Boni Fair Development Ltd. It will be the first locally owned, brand new, and internationally classed Catamaran passenger-RORO vessel to operate in the Philippines.

Even with JICA help, there’s another company that has ordered five brand new small ROROs from China for short routes, three of which have already been delivered. Another one has signed a shipbuilding contract with a Japanese firm for two bigger ROROs fit for longer routes, and for another three more, also by a Japanese company.

What is heartening to note with all of these developments is the emergence of a new breed of shipping magnates that put a premium on safety and of doing things the right way and without compromising on quality.

This should convince Marina that there is no need to hesitate, but instead be more resolute in doing what needs to be done – for the sake of all Filipinos and the country.

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We are actively using two social networking websites to reach out more often and even interact with and engage our readers, friends and colleagues in the various areas of interest that I tackle in my column. Please like us at www.facebook.com and follow us at www.twitter.com/ReyGamboa.

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.

ARCHIPELAGO PHILIPPINE FERRIES CORP

BONI FAIR DEVELOPMENT LTD

CORPORATE CENTER

FACEBOOK AND TWITTER

INTERNATIONAL ASSOCIATION OF CLASSIFICATION SOCIETIES

INTERNATIONAL MARITIME ORGANIZATION

JAPAN INTERNATIONAL COOPERATION AGENCY

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