Cargo Handling and Port Operations Its Effect in The Philippine Economy
Cargo Handling and Port Operations Its Effect in The Philippine Economy
Cargo Handling and Port Operations Its Effect in The Philippine Economy
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million TEU1s and is growing very slowly. Singapore, Hong Kong,
and Kaoshung ports handle over 20 million TEUs/year; Laem
Chabang (Thailand) and Klang (Malaysia) ports each handle about
5 million TEUs/year. The terminals at Manila (MICT and South
Harbor) handle about 3 million TEUs/year. Manila is ranked 90th in
the world in tonnage volume and ranked 36th in container traffic.
(Arangkada Philippines: Move twice as fast) (World Shipping
Article).
A number of factors can explain the weaker performance of
Philippine exports relative to exports of its neighbors. The trade
competitiveness map of the Philippines reveals why growth has
been constrained.
Over the last decade, there has been significant investment in
the development of the international ports of Batangas, Cagayan de
Oro (PHIVIDEC), Davao, and Subic. Their combined capacity has
almost doubled. GRP agencies have borrowed from JBIC to
develop the new ports in Batangas,Subic, and Cagayan de Oro and
will need to generate substantial port revenues to pay these loans
and to avoid the new facilities becoming white elephants.
Historically traffic has grown around 5% annually, but volume is
projected to increase by only 2-3% until world trade has fully
recovered from the financial crisis. While the new ports have
considerable capacity for future growth, the volume share of the
main NCR ports is not spread efficiently.
It suggests undertaking reforms and large investments to modernize
as many ports as possible.
1 The twenty-foot equivalent unit (often TEU or teu) is an inexact unit of cargo capacity often
used to describe the capacity of container ships and container terminals.
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Cargo Handling
Cargo handling as an activity has evolved from being purely manually
driven to an activity that is performed using the latest materials handling
equipment money can buy.
Ports in the Philippines have a relatively small number to make a
significant contribution to international trade but the quality of port
infrastructure rank for the Philippines in the WEF Global Competitive
Report2 is the lowest among the ASEAN-63. With proper equipment and
process in cargo handling it will reduce the traffic of containers in the port
and will avoid port congestion that slowed down trade and hampers
economic growth.
Check in Counter
The check in is normally handled by an airline itself or a handling
agent working on behalf of an airline.
Passengers usually hand over any baggage that they do not wish or
are not allowed to carry on to the aircrafts cabin.
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Check-in is usually the first procedure for a passenger when arriving
at an airport.
The airline check-ins main function, however, is to accept luggage
that is to go in the aircrafts cargo hold and issue boarding passes.
Boarding gate
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PORT CARGO HANDLING PROCESS
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BULK CARGO HANDLING EQUIPMENT
SHIP UNLOADERS
SILO/ELEVATOR
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GRAB TYPE UNLOADERS LOADING BOOM
The movement of liquid bulk cargo, crude oil and derivatives, from the
tanker is undertaken by means of pipelines connected to the shore-
based storage tanks.Pumping equipment is provided in the tanker
storage plant or refinery ashore, but not on the quayside. In view of the
dangerous nature of such cargo, it is common practice to build the
special berths a small distance from the main dock system on the
seaward side. Oil cargo is discharged from the ships tanks, via the
cargo piping system to the main ships manifold usually situated
amidships, on either port or starboard side. From there by means of
shore-based loading arms oil is transferred to the shore manifold and is
then distributed to shore-based storage tanks on the oil terminal. The
loading arm hose must be flanged oil-tight to the ships manifold so that
oil spills can be avoided.
LOADING ARMS
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GENERAL CARGO HANDLING EQUIPMENT
LIFTING BEAM
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Cargo Handling Equipment or Lifting Gear (loose gear & cargo
tools)
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PORT/TERMINAL CARGO HANDLING EQUIPMENT
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PORT OPERATIONS
Port operations are a necessary tool to enable maritime trade
between trading partners. For Philippines to ensure smooth port operations
and to avoid congestion in the harbor it is inevitable to permanently
upgrade the ports physical infrastructure, invest in human capital, fostering
connectivity of the port and upgrade the port operations to prevailing
standards. Hence, port operations can be defined as all policies, reforms
and regulations that influence the infrastructure and operations of port
facilities including shipping services.
The Bay Service Section shall be headed by a Chief, who shall have
direct supervision and control over all personnel therein. He shall issue
instructions to the Customs Senior Boarding Officer, and who shall in turn
be held responsible for their proper execution of the instructions given from
time to time and to render reports. (SECTION 1 CMO 22-2010)
A. Customs Senior Boarding Officer shall have the following duties and
responsibilities:
1. Board incoming foreign vessels outside the breakwater or harbor,
unless prevented by stress of weather. When boarding a vessel,
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the Customs Senior Boarding Officer shall be assisted by the
Customs Inspector assigned on a vessel.
During boarding formalities, only the Customs Senior Boarding
Officer and the Customs Inspector shall be allowed to enter the
Captains cabin unless the Captain chooses to give the boarding
information to the Customs Senior Boarding Officers outside the
Captains cabin.
2. Obtain from the Master of a vessel the necessary information as
required in BOC OPM Form No. 15 (Records of Vessel Boarded).
3. Seal sea stores in the presence of ships officer and the Customs
Inspector assigned on board. Under penalty of law, the Customs
seal so affixed shall not be broken while the vessel is within the
jurisdictional limits of the Philippines except when the vessel is in
port and only upon written application to withdraw supplies signed
by the Master and approved by Collector of Customs or his duly
authorized representatives. Only the Customs Senior Boarding
Officer, in the presence of the Customs Inspector, may break the
seal and allow the withdrawal of such quantities as may be
authorized, and re-seal the sea store compartment after such
withdrawal.
Sea stores when adjusted by the Collector of Customs to be
excessive or when duties assessed thereon are not paid, such
excess sea stores shall be treated as that provided for in Section
2530 of the Tariff and Customs Code of the Philippines, as
amended.
4. See to it that all Customs Inspectors and Customs Guards on duty
are in their proper prescribed uniforms. Unless the Customs
Inspectors are properly uniformed, the Customs Senior Boarding
Officer shall not allow their embarking on the launch and shall
report them as absent. In such cases, he can assign any available
unassigned Customs Inspector or if no Customs Inspector is
available, an acting Customs Inspector to take charge of the
vessel until a regular Customs Inspector assigned reports in
proper uniform. In case of necessity, the Customs Senior Boarding
Officer can temporarily take charge of the vessel until the regular
Customs Inspector is on board. In every case, the Customs Senior
Boarding Officer, shall, without delay, report his action to the Chief,
Bay Service Section (or its equivalent office).
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5. See to it that a Customs Inspector or Customs Guard assigned to
a vessel is provided with the necessary stationary and supplies.
He shall also see to it that Customs Inspectors have a copy of the
Tariff and Customs Code of the Philippines and a Manual for Port
Operations.
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be necessary in the interest of the service that immediate action
be taken.
5. Honor any order, request, or permit of any description only from
the following named officials:
(a)Commissioner of Customs or Deputy Commissioner of
Customs;
(b)Collector of Customs or Deputy Collector of Customs;
(c) Chief or Asst. Chief, Piers & Inspection Division;
(d)Chief, Bay Service Section;
(e)Customs Senior Boarding Officers.
6. Endeavour to work in harmony at all times with Customs
employees of other divisions and with the immigration officers on
board with respect to the enforcement of immigration laws,
rendering assistance to those officials in the performance of their
duties. In case of Philippine registered vessels returning from
abroad, conducts mustering the crew, pursuant to Section 1011 of
the Tariff and Customs Code of the Philippines, as amended.
7. Cooperate with quarantine authorities in the enforcement of port
quarantine regulations promulgated by the Bureau of Quarantine
and shall give effect to the same, in so far as they are connected
with matters of shipping and navigation, pursuant to Section 605 of
the Tariff and Customs Code of the Philippines, as amended.
8. Familiarize themselves with the provisions of the Tariff and
Customs Code of the Philippines, as amended, Customs
Administrative Orders, Customs Memorandum Orders and
Circulars issued by the Bureau of Customs pertinent to their
duties.
9. Refer the matter to the Customs Senior Boarding Officer or Chief,
Bay Service Section (or equivalent office) for decision, in case he
is in doubt as to the proper action to be taken.
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vessel without a written pass, excepting the stevedores to attend
to the discharging or loading of cargoes.
2. The Customs Inspector shall instruct Customs Guard assigned on
the gangway to conduct body searches, if necessary, on all
persons boarding or disembarking from the vessel.
3. While the vessel is docked at the pier or wharf, the Customs
Inspectors shall make periodic inspection to ascertain that all
ropes and cables from vessel to dock are provided with rat guards
and that adequate safeguards are employed, such as the covering
of the holes through which ropes and cable pass.
4. f the vessel docks at night, the Customs Inspector shall require
proper lighting at the gangway. (SECTION 4 CMO 22-2010)
1. At the Pier/CY-CFS
1. There shall be one Wharfinger In-Charge of each pier, who shall
be responsible for the efficiency an discipline of Customs
personnel under him;
2. He shall exercise effective supervision over the Arrastre
Contractors service regarding receiving, handling, custody and
delivery of cargoes;
3. He shall note carefully the condition of the fender piles and draft at
the piers and submit reports thereon;
4. He shall cooperate and assist other officers of the government
performing official function at the piers;
5. He shall supervise the cleaning of the piers and see to it that
garbage and obnoxious cargoes are disposed of promptly and
properly;
6. He shall cooperate with, and assist the Enforcement and Security
Service (ESS) in maintaining peace and order at the pier,
including the exclusion of unauthorized persons inside the pier
shed/warehouse and premises;
7. He shall recommend the transfer and shifting of cargoes from pier
to pier only, to government bonded warehouses inside and outside
the Customs premises;
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8. He shall process delivery permits and other types of Customs
permits; Vis a vis the official Receipt/Statement of Settlement of
Duties and Taxes (SSDT) issued by the Formal/Informal Entry
Division, prior to the release of cargo;
9. He shall, or thru his authorized representative, accept delivery
permits and other types of Customs permits officially hand carried
by official messengers of the Bureau and shall properly distribute
the same to concerned shed/warehouse Wharfinger where the
cargoes are stored;
10. He shall submit daily, weekly, monthly, and annual reports thru
proper channels, to the Chief, Piers and Inspection Division (or its
equivalent office);
11. He shall implement all lawful orders given to him from time to
time by proper customs authorities;
12. He shall submit report of Overstaying Cargoes to the Chief,
Piers and Inspection Division (or its equivalent office).
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8. In all cases of transfers of packed containers covered by
Warehousing Permits or other permits where duties and taxes
have not been paid, the container shall be sealed with a Customs
seal by the Wharfinger concerned in the presence of the Customs
Examiner concerned. Said Wharfinger shall see to it that the
containers transferred be underguarded until received at the
Customs Bonded Warehouse by the Customs Warehouseman
assigned thereat. If there is no Customs Warehouseman or
anybody authorized by the Collector of Customs to receive the
same, such containers shall remain underguarded continuously by
the Customs Guard until the same is property released by the
Bureau of Customs;
9. He shall maintain a logbook to record events such as examination
made, hold/alert order, notice of Warrant of Seizure and Detention
(WSD) and samples taken;
10. He shall report to the Collector of Customs within twenty-four
(24) hours from the time the article is deemed abandoned and
submit a monthly report Abandoned/Overstaying Cargoes to the
Office of The Chief, Piers and Inspection Division (or its equivalent
office). (SECTION 6 CMO 22-2010)
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6. He shall surprise closely the activities of the Customs Guards
assigned in his shed /warehouse;
7. He shall clear the pier berth of lighters and other obstruction during
the berthing and/or departure of vessel;
8. He shall assist the Wharfinger In-Charge of the pier and to execute all
his orders;
9. He shall prepare and sign Transfer Notes as well as supervise the
transfer of cargoes to the local ports, economic zones and bonded
warehouses either inside or outside Customs Zone including
coastwise transit cargoes and other places designated by customs;
10. He shall see to it that no inflammable, dangerous or obnoxious
cargoes are slowed inside the shed/warehouse;
11. He shall coordinate with the arrastre shed/warehouse security
personnel and Enforcement and Security Service (ESS) in the
prevention of pilferage of cargoes and other anomalies to defraud the
customs revenue;
12. He shall perform all functions that may be assigned to him from
time to time by superior authorities. (SECTION 7 CMO 22-2010)
A. At the Piers/CY-CFS
1. A Customs Guard shall see to it that no inflammable, dangerous
and obnoxious cargoes are discharged on the dock without proper
permit;
2. When assigned to deliver work, he shall scrutinize the delivery
permit properly processed and signed by the processing
Wharfinger;
3. He shall check carefully the load on the truck against the gate
pass issued in accordance with the mark, countermarks, registry
number and total number of packages;
4. He shall to it that all deliveries made are duly recorded on the
Customs Guard delivery sheet;
5. He shall see to it that the Wharfingers copy of the delivery permit
is retained and the same to be forwarded to the Wharfinger
concerned upon the completion of the delivery;
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6. When assigned as conduction guard, he shall see to it that the
cargo destined for transfer reaches its destination safely and the
covering transfer note properly signed by the
Warehouseman/Storekeeper or Wharfinger or Customs Guard
concerned, as the case may be.
B. On Board Vessel
1. A Customs Guard shall see to it that no person is allowed to board
the vessel without a written pass excepting the stevedores to
attend to the discharging or loading of cargoes at each
accommodation ladder or gangway;
2. He shall conduct body searches, If necessary, on all the persons
coming in and out of the vessel;
3. He shall perform Customs surveillance on board the vessel or on
cameras containing cargo in transit that has not been released
from Customs supervision;
4. He shall check cargoes being discharged from, or loaded on, a
vessel;
5. He shall act as courier on official business;
6. He shall see to it that no empty lighters may alongside the pier
without proper permit.
C. Outside CY-CFS (Off-Dock)
1. A Customs Guard shall assist the shed/warehouse Wharfinger on
supervising the receiving, handling, custody, delivery and stowage
of cargo inside the shed/warehouse by the arrastre operators, to
include witnessing the shipping/devanning and sign the Cargo
Shipping Report;
2. He shall assist the shed/warehouse Wharfinger in attending
inventory of bad order cargo and signed the Bad Order Inspection
Certificate issued by the arrastre operator.
D. Others
A Customs Guard shall perform any other work or function that may be
assigned to him from time to time by his superiors. (SECTION 8 CMO 22-
2010)
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Assistant Customs Operations Officer (Designated Customs
Gatekeepers)
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The reporting time for Customs Senior Boarding Officers, Customs
Inspectors and Customs Guards are as follows;
1. Customs Senior Boarding Officers, Customs Inspectors and Customs
Guards not assigned to vessel shall report at, and stay in, the office
of the Chief, Piers and Inspection Division (or its equivalent office)
and observe regular working hours. They shall perform such duties
as may be assigned to them by the Chief or Assistant Chief of the
Division and the Chief, Bay Service Section (or its equivalent office).
2. Customs Senior Boarding Officers, Customs Inspectors and Customs
Guards assigned to vessels arriving before 6:00 a.m. and after 5:00
p.m. shall report for duty at least two (2) hours before the vessels
estimated time of arrival. (SECTION 10 CMO 22-2010)
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8. See to it that cargoes are transferred properly and promptly to
bonded carriers, bonded warehouse and private warehouses,
covered by proper transfer notes;
9. Recommend to the Chief, Piers and Inspection Division (or its
equivalent office), for the interest of the service and with consultation
with the Wharfingers In-Charge of the piers, the reshuffling of
personnel under him to the different piers;
10. Supervise the Wharfingers in the preparation, rating and
submission to the chief of division the performance rating of all
personnel under them. He shall rate all Wharfingers In-Charge of the
Piers;
11. Recommend any personnel who are deserving, capable and
willing pursuant to civil service rules and regulations for any
promotion that are subject to be filled up;
12. Implement all lawful orders given to him from time to time by
proper customs authorities with regard to his section. (SECTION 5
CMO 22-2010)
CONCLUSION:
Philippines with its archipelagic character, depends on seaports more
than countries with large continuous landmass. Since a high percentage of
domestic and international commerce and travel is by sea, the efficiency of
maritime transportation has become increasingly essential to national
competitiveness. These services and capabilities are costly and time-
consuming, as other countries Philippines has also been have been
diligent in making smart investments in their seaports, identifying critical
investment needed to remain competitive in a global market both for cargo
and tourism.
Underlying the inability of Philippine exports to keep pace with global
trends is a host of domestic problems, which include: unnecessary and
trade-impeding domestic regulations and government policies; high costs
and deficient infrastructures; limited availability of export financing,
especially for micro, small and medium enterprises; unstable supply of raw
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materials; shortage of domestic skills matching industry requirements;
weak system of innovation in products and processes; and fragmented and
poorly funded domestic institutions promoting product quality and
standards. These problems have undermined the competitiveness of
Philippine exports and capacity of local producers to link up with the global
production network.
With efforts in improving its facilities, equipment and process in cargo
handling and port operations, Philippines can be at par with other countries.
Economic growth will be certain if we are globally competitive in these
areas since ports are now the backbone of global economy.
Bibliography
Arangkada Philippines: Move twice as fast. (n.d.). Retrieved September 6, 2015,
from Arangkada Philippines: Move twice as fast:
http://www.investphilippines.info/arangkada/seven-winners/infrastructure/seaports/
content, E. (2010, March 29). Philippines Trade, Exports and Imports. Retrieved
September 8, 2015, from Philippines Trade, Exports and Imports:
http://www.economywatch.com/world_economy/philippines/export-import.html
World Shipping Article. (n.d.). Retrieved September 6, 2015, from TOP 50 WORLD
CONTAINER PORTS: http://www.worldshipping.org/about-the-industry/global-
trade/top-50-world-container-ports
http://www.manilatimes.net/trade-facilitation-customs-modernization-drive-trade-
growth/139827/
http://www.weforum.org/reports/global-competitiveness-report-2014-2015
Customs Memorandum Order 22-2010
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