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Saturday, June 28, 2008

 

Congress must stop cycle of sea tragedies

Inadequate investments to modernize domestic shipping fleet one of the reasons for poor safety record

By Sammy Martin, Reporter

THE never-ending cycle of sea tragedies that had claimed more than 5,000 innocent lives during the last 21 years should be stopped at once, and both houses of Congress must undertake an immediate comprehensive review of the country’s maritime policies and laws.

“We should find a permanent solution to these recurring maritime tragedies. While negligence, too much greed for profit and incompetence are among the major factors that contribute to the country’s poor maritime safety record, part of the problem might also be on our exiting maritime laws,” said Nograles.

The world’s most horrifying peacetime shipping tragedy killed at least 4,340 when the ferry Doña Paz collided with the tanker MT Vector in the Tablas Strait, between the islands of Mindoro and Tablas.

Eight months later, another ferry—MV Doña Marilyn—sunk off Leyte during a typhoon, killing some 250. The MV Princess of the Orient likewise sunk in 2004 after encountering a killer typhoon. All of them are owned by Sulpicio Lines, including that of MV Princess of the Stars, which capsized with more than 800 people onboard last June 21.

Between the years 1990 and 1999, the Philippine Coast Guard reported a total of 1,825 maritime accidents with an average of 182 reported cases per year.

Once and for all, Nograles said, policies and laws concerning maritime transport and port operations must be consolidated, including the licensure and training of maritime captains and personnel, and even government maritime officials and personnel.

“We have to have a clear blueprint of a long-term program to modernize the industry,” he added, noting that the Princes of the Stars tragedy is a “painful wake up call.”

A study by the Congressional Planning and Budget Department showed that “most ships in the country tend to overload during peak passenger season. This is partly because majority of passengers have little choice and are willing to board even an overcrowded deck.”

Low investments in maritime industry

The poor safety record of the industry is only one of the many problems that resulted from the inadequate in-flow of investments, which is the main obstacle to the development of the Philippine shipping industry.

The Speaker said this is manifested in the relative age of the domestic merchant fleet, which consists mostly of vessels 20 years old or more. One major constraint in the industry is that ships require large investments.

Seven years ago, a 10-year-old cargo vessel weighing 6,800 dead weight tons needed a capitalization of around $3.616 million.

“That was seven years ago. With our inflation rate always on the upward momentum, it could be much more,” he said.

Excluding data after 2001, 425 vessels sank within the Philippines seas from 1991 to 2001, with the most sensational ones involving the Doña Paz and Doña Marilyn.

“Safety should be a prime consideration for policy makers and policy implementors,” Nograles said.

However, the Speaker noted that from 1990 to 1999, there had been a noticeable decrease in the number of maritime accidents, from the high 456 in 1990 to 116 in 1999.

Other problems in the industry include high domestic shipping freight rates and poor passenger and cargo service standards.

Nograles also said Congress must also look into the government incentive policy for industry players, so investments could be increased for fleet expansion and modernization.

There is also the high cost of doing business. According to the Philippine Inter-island Shipping Association, domestic ship owners are subjected to comparatively higher operating costs relative to their counterparts in Southeast Asia.

In fuel cost, domestic ships spend higher on locally supplied fuel compared to ships operating within the Asian region, except for Japan.

“These are the visible problems we have to look into. I expect that we should discover more loopholes once we sit down and scrutinize our maritime law and policies,” Nograles said.

   

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Severino O. Frayna Jr., Benjie Dela Rosa
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