Wednesday, May 27, 2009

Relocation of Catarman airport considered

published May 27, 2009 in BusinessWorld

TACLOBAN CITY — The Civil Aviation Authority of the Philippines (CAAP) is considering the relocation of Catarman Airport to ensure safety. This even as Cebu Pacific Air (CEB) announced that it was resuming its Manila-Catarman service next week.

Sergio Sumergido, CAAP acting area manager for Eastern Visayas, said relocating the airport to a less crowded site would prevent runway incursions by people or vehicles.

"We are thinking of looking for another place. There’s no more room for improvement or expansion at the present site because it is very close to residential area and some key structures of the town," Mr. Sumergido said in a phone interview with BusinessWorld.

Cebu Pacific suspended early this month its Manila-Catarman service because of safety issues. Although authorities have prohibited people and vehicles from using the runway to get to the town center, several runway intrusions have been noted.

The airline announced last week that it will resume its four-times weekly Manila-Catarman flights starting June 2 after airport and local authorities stepped up security measures.

"The runway has been cleared of vehicles and people 24/7. This is our green light to fly again to Catarman and bring back CEB’s affordable fares that other airlines must again try to match," Candice Iyog, CEB vice-president for marketing and distribution, said in a statement.

Ms. Iyog said airport safety was improved after additional security personnel were deployed on the runway and authorities started the construction of a perimeter fence.

"Airport authorities have also blocked the entry points around the airport’s perimeter fence used by residents," she added.

Mr. Sumergido also said that apart from employing more security personnel, they have also sought the deployment of some policemen and military personnel at the airport to ensure that there will be no more incursions.

Responding to the appeal of the public, the CAAP allows use of the barangay road crossing the runway from 4:30 a.m. to 6 a.m., and from 5 p.m. to 10 p.m.

"From 6 a.m. to 5 p.m., we don’t allow any disturbances," Mr. Sumergido added. Cebu Pacific uses the airport only until 10:45 a.m.

Other airlines that serve the route are PAL (Philippine Airlines) Express, which has daily flights, and Zest Air, which flies to the town every Monday, Wednesday, Friday, and Saturday.

Cebu Pacific started its service to Catarman last February 14, with scheduled flights every Tuesday, Thursday, Saturday and Sunday. Catarman is a second class municipality and the capital town of Northern Samar province. –Sarwell Q. Meniano

Tuesday, May 19, 2009

Singapore firm to invest P300M on Leyte resort

published May 19, 2009 in BusinessWorld

TACLOBAN — The Singaporean-backed LKY Property Holdings, Inc. will invest P300 million to upgrade the MacArthur Park Beach Resort Hotel in Palo, Leyte.

LKY President Wilbert Lee signed a 25-year contract last week with the Leyte provincial government for the takeover and rehabilitation of the 43-room resort, previously run by the local government.

Leyte Governor Carlos Jericho Petilla, who signed the contract with LKY, said the signing of the contract was moved to last week because the resort had to honor bookings made until the second week of May.

Mr. Lee said the existing structure would be demolished. A new five-star hotel will rise on the site, expected to open toward the end of the second quarter of next year.

"We would need that much time because we will be building a hotel with international standards," Mr. Lee said in an interview aired over the weekly radio program of the provincial government.

Previously, LKY acquired the Mayon Imperial Hotel in Legaspi City, Albay.

The Leyte provincial government has been aggressively trying to attract hotel investments to keep up with the increasing demand for accommodations in Leyte. Large groups had been discouraged from holding their conferences in Leyte because of the lack of hotels and other tourist facilities, Mr. Petilla said.

The governor added that it would be best for the private sector to build and operate hotels. "It has been tried and tested that if it is the government that runs a facility, more often, it loses [money]," he said.

The provincial government, which took over the management of MacArthur resort in January from the Philippine Tourism Authority, had been subsidizing the resort’s operational expenses at P400,000 a month.

An executive order issued by President Gloria Macapagal-Arroyo in October last year transferred the hotel to the provincial government.

The resort is just a few meters away from the MacArthur Landing Memorial in historic Red Beach, site of one of the greatest naval battles in history. It was built by former first lady Imelda Romualdez-Marcos and sequestered by the government after the Edsa Revolution in 1986.-S.Q. Meniano

Monday, May 18, 2009

Shipping lines said to be mulling reopening of Tacloban routes

published May 18, 2009 in BusinessWorld

TACLOBAN CITY — Shipping companies are considering the reopening of services between Tacloban and the cities of Cebu and Manila.

Winfred Elizalde, Tacloban port manager of the Philippine Ports Authority (PPA), said at least two shipping companies have expressed interest in the routes.

"I cannot yet mention what these shipping firms are since the plan is not yet final. They are very upbeat to resume the sea travel to Tacloban because of the good market," Mr. Elizalde said.

He said the recent upgrading of Tacloban into a highly urbanized city was a factor considered by the two shipping lines.

"They see a great potential in the region that’s why they are connecting with us," the port manager told BusinessWorld.

After the tragedy that befell M/V Princess of the Stars in June last year, the Sulpicio Lines-owned M/V Cebu Princess stopped sailing to the city. The vessel was the only passenger ship that transported people from Tacloban to Cebu and Metro Manila that time.

Prior to the Sulpicio Lines operation, only one passenger ship, M/V Samar Star, served the Tacloban-Cebu route.

Due to the lack of sea travel services, most travelers from Tacloban have to take a land trip to Ormoc City in western Leyte, where fastcraft services to Cebu are offered.

Sea travel from Tacloban suffered a huge decline after the M/V Doña Paz collided with an oil tanker between Mindoro and Tablas Islands in December 1987. The accident claimed over 4,000 lives, mostly residents of this city. Another accident was the sinking of M/V Marilyn near Camotes Island that killed 250 people from Eastern Visayas in October 1988.

Aiming to stimulate sea travel, the PPA is improving its facilities here starting with the conversion of its existing 720-square-meter office building into a passenger terminal after the completion of a new office building worth P80 million this year.

"Before starting the renovation, we have to convince our main office that the proposed terminal will be filled with passengers or else they won’t release the fund for remodeling of the building," Mr. Elizalde said. — Sarwell Q. Meniano

Port regulator targeting a tenth more revenues in Eastern Visayas

published May 18, 2009 in BusinessWorld

TACLOBAN CITY — The Philippine Ports Authority (PPA) aims to earn up to P75 million this year, despite the slowdown in international shipping activities.

Winfred Elizalde, PPA Tacloban Port manager, said the target would be nearly 14% more than the P66-million revenues last year. The authority exceeded last year’s target of P59 million by 11%.

Mr. Elizalde said their revenue target was raised in anticipation of economic recovery on the second half of this year.

"We believe that the global economic slowdown will be over by third and fourth quarter of 2009," he added.

As of April 25, port offices in the region generated only P20.52 million.
But Mr. Elizalde said he was confident that the target this year would be met.

"I would say that the annual target is still achievable. We are not losing hope because the President keeps on announcing that we are already seeing the light at the end of the tunnel," Mr. Elizalde added.

PPA revenues come from wharfage dues, storage charges, property rentals, usage fee, dockage fee and berthing fee.

At the same time, PPA Tacloban is awaiting for the release of its P100-million budget to rehabilitate the 2,500-square-meter deck piles this year in anticipation of increasing volume of cargoes shipped to the region.

The area that lies within the 3.5-hectare old wharf has been deteriorating since it was built back in 1936.

"Since it was constructed, there have been no rehabilitation efforts done. It is still being used, but we’ve been imposing load limits from five tons to 15 tons," Mr.
Elizalde said.

The proposal was earlier forwarded to the central office of PPA with the hope to place the proposed project in the priority list this year.

The city’s wharf has a 7,756-square-meter working area that serves as loading area for 10-40 footer cargo containers. — Sarwell Q. Meniano