FILIPINO companies which forward goods from one port to another have finally agreed to a government proposal which hikes their respective capitalization requirements. Besides reducing fly-by-night operators, the new capital hike arrangement will allow sea freight forwarders—especially small- and medium-sized firms—to comply with new regulations until 2009.

In a public hearing held late last week, a group of small- and medium-sized sea freight forwarders have expressed their agreement with the new protocol proposed by the Philippine Shippers’ Bureau (PSB).

Nevertheless, the Alliance of Concerned Freight Forwarders (Acffo), said that they will still try to extend the schedule by another year, even though most of them have already accepted the new terms.

According to the new schedule, nonvessel operating common carriers (NVOCC)—entities which buy and sell cargo space onboard vessels—will have to increase its minimum capitalization from the current P500,000 to P2 million by January 3, 2008 and to P4 million by January 2, 2009.

Domestic freight forwarders, which currently have a minimum capitalization requirement of P250,000, are required to hike their capital to P1 million by January 2, 2009.

International freight forwarders, on the other hand, will have to comply with the full P2-million minimum requirements by January next year.

However, newly established NVOCCs, domestic and international carriers will have to comply with the full minimum requirement by January 2, 2008.

In late 2005, the PSB issued Administrative Order No. 06, Series of 2005, which provides that NVOCCs, International Freight Forwarders, and Domestic Freight Forwarders “must be accredited first before they can legally engage in the said categories.”

The move was made in order to professionalize the freight forwarding industry and eradicate forwarders whose services fall under industry standards.

PSB director Pedro Vicente C. Mendoza said he expects to release the amendment of the order by next month, and whatever changes that would be rendered, besides those discussed at the hearing, are expected to be “minimal.”

A group of smaller freight forwarders, Acffo was established to oppose the new measure, asserting that the capital hike requirement  will eradicate them one by one.

For its part, another forwarding group, the Philippine International Seafreight Forwarders’ Association had no objections to new rules since most of its members are large companies.

New rule issued on port fee assessment

PORT fees levied on noncontainerized foreign and domestic goods shall be assessed based on the total revenue ton per receipt, according to a recently issued order by the Philippine Ports Authority (PPA).

FILIPINO companies which forward goods from one port to another have finally agreed to a government proposal which hikes their respective capitalization requirements. Besides reducing fly-by-night operators, the new capital hike arrangement will allow sea freight forwarders—especially small- and medium-sized firms—to comply with new regulations until 2009.

DUBAI—DP World, the third-biggest container port operator, may bid for Egypt’s Sokhna Port at the southern entrance of the Suez Canal after owner Orascom Construction Industries said last month it’s trying to sell the asset.