Ship operators oppose old vessel’s phaseout

CEBU, Philippines - Shipping operators are seeking the suspension of the implementation of Executive Order No. 909 that encourages ship owners to invest in brand new vessels for domestic routes.

Members of the Philippine Roro Operators Association (PROA), Visayan Association of Ferryboat and Coastwise Service Operators (VAFCSO) and the United Trampers Association of the Philippines (UTAP) were alarmed by the pronouncement of Secretary Arthur Tugade of the Department of Transportation (DOTr) that vessels aged 35 years old and above should be phased out.

Shipping operators are apprehensive that the implementation of EO 909 would only lead to monopoly of routes by those who can afford to buy new ships.

Then president Gloria Macapagal Arroyo issued the order on June 29, 2010 but it was not immediately implemented because it was only on September 7, 2015 that the Maritime Industry Authority issued the Implementing Rules and Regulations.

 Lucio Lim Jr., chief executive officer of Lite Shipping Corporation and president of PROA, said they are now drafting a letter addressed to the Marina administrator.

Lim said the implementation of the order should be suspended because it is against the liberalization policy that Marina instituted in 1998.

 Under the new policy, Lim said new vessels would be given the first choice and would practically monopolize the routes where the 35 years old vessels are phased out.

 Lim said that when it comes to maritime issues, Marina makes it a point to include Cebu and the three associations in any consultations. In this case, Lim said, there was no public hearing.

 “We wish to point out that ship owners are against the phase out of 35 years old ships and above. I don’t think we will look good in the eyes of the public, they don’t understand the nuances of what these 35 years old phasing out. We want to say that first of all, we are only asking what is the international norm will be followed,” Lim said.

 Aside from the Philippine maritime laws, Lim also pointed out that the International Maritime Organization sets no age restriction on the life of the vessels because their engines can be replaced.

 “Age is not a guaranty of safety, when we talk of ships, safety is number one, age is not the factor there, more on maintenance and proper manning, competence of crew especially the master. Phase out is not the right answer, it’s even illegal,” said VAFCSO president Alex Cohon.

 UTAP administrator Paraiso Casio said their ships are dry-docked every two and a half years, during which over 60 percent of the vessels are overhauled.

 Casio has warned about the devastating effect to the economy as 70 to 80 percent of the shipping industry will be affected once the move is pushed through.

 “We are saddened by this issue because there was no comprehensive study by the proponent of this phasing out. We do not go against the principle of safety but we hope that the administration will have a fair treatment on our side. We are the primary carrier of goods but we are being treated unfairly,” Casio said. (FREEMAN)