Ninth Symposium (Part I : Presentation by Member Ports)

●THE PORT OF CEBU●
-Dennis Villamor, Deputy General Manager, Cebu Port Authority-

The Port of Cebu is one of the Philippines' oldest and major ports and is strategically situated in the center of the Philippine archipelago. It has been one of the Philippines’ major trading centers for centuries since the around 900 A.D., well before the Spaniards came to the Philippines in 1521, and had been conducting trade with such Asian neighbors as China, Indonesia, Malaysia, and India.
Today, the Port of Cebu is the second premier port in the Philippines and tops all other Philippine ports in terms of passenger traffic as it handled a little over 13 million passengers in 2006.

The Port of Cebu is managed and administered by the Cebu Port Authority, or CPA, which is a wholly owned-and-controlled government corporation created through a legislative act of the Congress of the Philippines on June 26, 1992.

The Cebu Port Authority is attached to the Department of Transportation and Communications for purposes of policy coordination only and is vested with its own governing body, the Cebu Port Commission, which is composed of representatives from the private sector in the fields of cargo handling labor, ship owners and/or shipping operators and business.

This set-up is unique as far as government corporations go, since unlike other port authorities, the only government representative in CPA’s governing board is the ex-oficio Secretary of the Department of Transportation and Communications. This arrangement has worked to the advantage of CPA as it has enjoyed certain advantages in being closely allied to private sector concerns while simultaneously avoiding the pitfalls of the typical government bureaucracy.

We hope this short overview of the CPA whets your appetite to know more about our port and eventually lead to the conduct of mutually satisfying business alliances between us, the members of INAP. Thank you!



●Promotion of Economic Exchanges Among the Member Ports●
-W.K.Ariyadasa , Director –Training, Port of Colombo-

Let me convey warm greetings for INAP 2007, from our Chairman Mr. Saliya Wickremasuriya to the representatives of all member countries who are here today. Today, we take part in the ninth symposium of INAP. I am very happy and proud of our members and their Governments, who are supporting the INAP movement particularly the Port of Kochi, the Governor H.E. Daijiro Hashimoto who plays a vital role and also sponsoring the 2007 INAP General Assembly and the Symposium here in Kochi, Japan the beautiful country we all love to visit.

It is with great pleasure, I make this simple note, that INAP was established in 1998 with the aim of contributing to world peace by facilitating the development of world ports through economic and friendship exchange activities, is now successfully moving towards in achieving it’s objectives.

Let’s continue to work together while strengthening our relationships to ensure better prospectus specially to promote economic exchanges among Member Ports continue for a better future. I consider the theme for this year’s symposium as the most appropriate and I really appreciate the lead role played by the Port of Kochi in organizing and hosting the General Assembly and the Symposium. I wish to offer my services, share knowledge and experience to all member Ports in whatever capacity to improve their position, taking in to consideration of challengers we are facing today.

I make this opportunity to express our gratitude to HE The Governor of the Kochi Prefecture and the officials of the Ports and Airports Authority for their kind co-operation and the support given to make INAP 2007 a very successful event.


●Introduction of Mokpo Newport●
−Beong Soo Choi, CEO of Mokpo Newport Co., Ltd.−

With all respect, Governor of Kochi Prefecture, Mr. Daijiro Hashimoto / General Manager of Cebu Port Authority, Mr. Angelo C. Verdan and Chairman of Subic Bay Metropolitan Authority (SBMA), Mr. Feliciano G. Salonga / President of Sri Lanka Ports Authority, Saliya Wickramasriya / General Manager of Tanjung Perak Port, Indonesia, Achmad Baroto / President of Qingdao Port (Group) Co. Ltd., Chang Dechuan, and All the representives of INAP members here including distinguished guests…

I am very pleased to meet you all.

I'm here as the CEO of Mokpo Newport in Korea and very appreciate that our Port has been the 7th member of INAP. I am well aware that INAP has a lot of history and have done many successful jobs so far. As a Lucky Seventh member of INAP, I'm very proud of it and I'd like to thank you for your warm hospitality and also congratulate on this successful Opening of Nineth INAP Conference.

We, all members of Mokpo Newport, promise that we will respect and put it in practice. We will make our every effort to build good partnerships with all INAP members. And we eagerly ask you to allow us to seek your kind advice and encouragement. Through a lot of constructive discussions from this Conference, I really hope all INAP members are having truly successful results in promoting mutual understanding and cooperation.

Finally, from now on, Mokpo Newport is being briefly presented by VOD material and it will take about 9 minutes. Thank you.



●Strengthening Exchanges, Promoting Cooperation, And Realizing Mutual Development●
-Chang Dechuan, Chairman and President of Qingdao Port (group) Co., Ltd.-

Respected Assembly Chairman, Representatives, Ladies and Gentlemen,

Good morning! I’m very happy to join with both old and new friends in the beautiful County of Kochi to attend the 9th Assembly of INAP and probe into the subject of “Promoting Economic Exchanges between Member Ports”.

With the acceleration of globalization and the continuing fast development of Asia’s economy, Asia has become an indispensable contributor to the development of world economy. She even powered the world economy at times when the development of Europe and America slowed down.

The development of world economy, especially Asia’s development, has brought about the prosperity for world ports. Among the world’s top 10 ports in 2006, Asia accounted for 8, 3 of which achieved growth of 15% over the previous year. Among the 10 largest container ports in the world, 6 come from Asia.

In the development of world ports, the ports in China are excellent performers. China has become a strong force in terms of port development and its overall container throughput has been No.1 in the world for 4 consecutive years. 5 Chinese ports have entered the rank of world top 10, namely Shanghai, Ningbo, Guangzhou, Tianjin and Qingdao, with each exceeding throughput of 200 million tons. In such background, Port of Qingdao also achieved strong development. In 2006, Port of Qingdao handled 7.7 million TEU for container throughput and 224 million tons of cargo for overall throughput, ranking the 10th largest port in the world. The port’s export throughput amounted to 168 million tons, maintaining the position of China’s 2nd largest export port for a number of years. With the handling of 57.52 million tons of imported iron ore, Port of Qingdao is the world’s largest port for iron ore. It handled 27.84 million tons of crude oil in 2006, ranking No.1 among all the ports in China.

We ushered in “the times of seconds” by measuring operation efficiency in seconds so as to strive for the highest efficiency and forge the most efficient port in the world. We launched the campaign of vocational-technical contests among all the employees, out of which came over 1500 excellent skills and more than 700 records for operation. Among the records, “Zhenchao Efficiency ” for container handling, with 96TEU per crane per hour, has broken world record for 6 times. According to the Maersk statistics regarding the container handling efficiency of major ports around the globe, Port of Qingdao is ranked No. 1 with 177M per hour. “Sunbo Efficiency” for iron ore discharging has broken world record for 6 times, with discharging efficiency of 6260 tons per vessel per hour, much higher than Port of Rotterdam, the former largest port for iron ore handling.

At the same time, we stick to the resources-conserving, environment-friendly, and benefit-oriented mode of development. Under the circumstances that there were no new terminals opened for operation over the past 6 years, we have managed to improve our efficiency through innovation, management and training for skilled workers. From 2001 to 2005, Port of Qingdao increased throughput by 100million tons through tapping the internal potentials. The port accounts 7.1% of China’s overall throughput with only 1.3% of the country’s berths, creating the miracle of “12”, which means achieving throughput more than twice the port’s designed capacity. Last year, we handled 224million tons of cargo with designed capacity of 100milion tons and container throughput reached 7.7milling TEU with designed capacity of 2.25million TEU. This year, we achieved throughput of 100 million tons within the first 138 days. Overall and Container throughput for the first half of the year reached 131.62 million tons, up 19.8% over the same period last year and 4.61 million TEU, increasing by 27.6%, respectively. Comprehensive energy consumption per unit dropped by 4.5% over last year. It is expected that overall throughput of 260-270 million tons and container traffic of 9 million TEU will be secured for the whole year, realizing the fast increase of throughput without the opening of new terminals. We implement series of environment protection projects to build a port with “blue sky, green land, and clean water”. In the port area, there is no black smoke in the air, no dust on the ground, and no flotage on the water surface. Port of Qingdao has been entitled as “Environment-friendly Enterprise of China” and “Model Unit in China’s Afforestation Campaign”. In 2007, we invested over RMB 60 million to reinforce the dust prevention and suppression in the operation of iron ore and coal. Thus, the port adheres to the scientific mode of sound and fast development. On July 15, 2007, “Symposium on the Scientific Development Mode of Qingdao Port” was held in the Great Hall of the People, Beijing. The conference put a premium on the scientific development mode of Port of Qingdao.

Dear friends, we have learnt a lot from you over the past 9 years and your experience has helped to improve the management and development significantly at Port of Qingdao. In today’s world, each port has its own successful experience and thus we need to learn from each other. Therefore, I would like to offer the following recommendations to enhance the exchanges between the INAP members:

I. Strengthening information exchanges. Each port designates one contact person, who should be responsible for providing relevant information with other ports. In this way, the member ports can have a better understanding of each other and be updated with latest world port development information.

II. Promoting cooperation in resources sharing. Member ports should help to promote each other in their respective local areas and improve member ports’ international reputation. We should also help and support each other in terms cargo organizing and lines arrangement so as to achieve mutual development.

III. Increasing the exchanges of persons. This should include both the visits between senior management and the dispatching of ordinary staff between each other. In this way, member ports can promote mutual understanding and learn from each other.

Ladies and gentlemen, we are privileged to live in the beautiful and rich Asia. Through mutual trust, we have become close partners and members in the big family of INAP. Let’s join hands to make INAP a reputable and influential organization in Asia and in the world as well, promote cooperation and development of member ports, and bring about the prosperity of Asia’s shipping industry.

My best wishes to you all! Thank you.


●MESSAGE from Subic Bay Metropolitan Authority●
- FELICIANO G, SALONGA, Chairman/Head of Agency-

On behalf of the Subic Bay Metropolitan Authority (SBMA), which manages and operates the Subic Bay Freeport zone in the Philippines, allow me to extend my warmest greetings to Chairman Achmad Baroto and the esteemed members of the International Network of Associated Ports (INAP).

We would also like to acknowledge and thank the Kochi Prefectural Government for hosting the INAP 2007 General Assembly.

We are proud of the fact that the Port of Subic is one of the founding members of INAP. The continued growth and dynamism of this organization run parallel to the sustained development of our port.

Strategically located at the heart of the growing economies of Asia and along the ship lanes of major ports and cities of the Asia-Pacific region, the Port of Subic has evolved into a most viable entry and transhipment point, and distribution and logistics hub.

A major facility within the Subic Bay Freeport Zone, the Port has a naturally deep and sheltered harbor with 15 operational ports and wharves. It also has a bulk grain and fertilizer terminal, and a passenger/cruise ship terminal in addition to a major shipyard northwest of Subic Bay.

Under our Subic Port Development Project, no less than the President of the Philippines, Her Excellency Gloria Macapagal Arroyo recently opened our new container terminal. A second container terminal would be up and ready for operation by June 2008.

With a total land area of 30 hectares, the two new container terminals feature four (4) new gantry cranes with a combined handling capacity of 600,000 TEUs, or six (6) times the original handling capacity of the Port of Subic. A new 3.1-kilometer access road, which is to be completed this month, will link the two new container terminals to an existing highway.

Adding further to the viability of the port of Subic is its location within the Philippines’ top special economic zone and free port where almost 800 local and foreign investors are engaged in various enterprises such as shipbuilding and maritime-related industries, information and communication technology, light industries, real estate development, manufacturing, education, tourism, trading and others.

And to further enhance Subic port’s viability, there is a 94 km four lane expressway nearing completion (March 08) that will connect the two (2) Freeports, Subic and Clark and further on to the rest of central Luzon.

Also in place in the Subic Bay Freeport Zone is tax and duty-free incentives, which allow the free flow of goods and capital equipment, and which have attracted more than US $ 5 billion worth of investments. Equally important, the area enjoys a climate of industrial peace and maintains an abundant supply of highly qualified and trainable manpower.

On this note, we would like to invite everyone to look into what the Port of Subic has to offer in terms of accessibility, business incentives and competitiveness. We are keenly interested in mutually beneficial economic exchanges and interaction with INAP member ports and would also welcome referrals to other ports with which we can explore the same opportunities.


●NINE YEARS REFLECTION OF INTERNATIONAL NETWORK of AFFILIATED PORT (INAP) COOPERATION FORUM●
−Achmad Barato, General manager of Tanjung Perak Port, Subaraya−

Based on the theme of our conference today “Promotion of Exchanges Among Port’s Member”, I would like to remind you all, to reflect what have been through together and what we should develop in the future, after nine years we declared INAP as cooperation forum.

Nine years is not a short term, we have done a lot of activities, meetings, and also have experienced warm and sweet memories together, and many friendship visits. But a question comes after that, should we feel satisfy with this? I do believe, the answer is no, and for that reason allow me to say somethings:
▢ First, related with what we have done together.
▢ Second, is about the challenges that have been faced by INAP.
▢ The third, is what we expect more in the future from this cooperation forum.
▢ And the last, as an information, what Tanjung Perak Port have been done to improve the port’s service quality for the customer.

▢ EFFECTS OF PORT EXISTANCE
It is undeniable that the existence of a port gives huge multiplier effects for a city even a country. As we all know, more than 80% of trade commodities for both domestic and international, are transported by maritime transportation, since it has bigger capacity, lower cost and the capability to mobilize the cargo in huge scale.

So, it is obvious that port become important logistic chain to support domestic or international trade activities. However, these will be in-effective if the Port Management could not give real assistance to stimulate trade development by providing the best port’s services.

Comply with this spirits, I hope that we could use INAP cooperation forum, not only, to increase cooperation between member’s port, but also give contribution in international economic and trade between INAP members.

▢COOPERATION REALIZATION BETWEEN INAP MEMBER
INAP has successfully increased the connection between its member, by constantly doing formal/informal meetings, symposium, discussion official or un-official visits from one to another member. I believe that we are not the only one who gain benefits from this information exchange. However, we may not be trapped only in form of annual cooperation activities.

In fact, indirectly INAP cooperation forum has been given a lot of help for Surabaya’s businessman to make their business relationship come true, for examples, specific commodities which before was unavailable to export to Japan now is available, sugarcane top for cattle’s food, organics fertilizer and some others commodities. This will absolutely difficult to get, if there is no good mutual understanding from each sides, and as the port organizer, I feel so happy with this condition, the higher trade level between the members means more commodities that will export or import trough our port.

As illustration, it will be better if we pay attention to these data of the trade’s activities, especially between INAP member which are exported or imported from Surabaya ( some destination countries could not shows because the export or import doing by transhipment through Singapore).

▢Export-Import from Tanjung Perak Port, Surabaya in 2005-2007:

▢INAP, CHALLENGES AND EXPECTATIONS IN THE FUTURE
I believe the challenges for INAP cooperation forum will be harder day by day, keeping or even increasing this relationship is not a simple thing to do, it will need support and strong commitment from all members. Basically, we already have good fundamental, each member has already known about every single detail about advantages, disadvantages, and specific characteristic from each INAP member.

By those things that we mentioned, we may expect in the future INAP cooperation forum could do these several things such as:
▢Enlarge the cooperation between the members, not only in economy but
also in other aspects such as management, technology, information
system, environmental system and other things;

▢Each member, individually or together, give contribution to stimulate
other non-economic cooperation, and also try get incentive in form of
policy or regulation from each government, if there is cooperation
development (for example, service dispensation that gives by each INAP
member’s port often not follow by dispensation in import or export
procedure or a possibility to get lower tax);
▢INAP as a cooperation forum expected could give integrated promotion in
larger world port’s events so the existence could be more admitted by
other international forum.
▢At the last part of our paper, I would like to inform anything that has been
done by Tanjung Perak port in giving better services for the customers.

▢IMPROVEMENT AND DEVELOPMENT THAT HAVE BEEN DONE BY TANJUNG PERAK PORT.
We realized that without our customers we are nothing, for that reason we always try to give the best services. Here are some efforts that we have done:
a)Build fifty hectare new terminal in Lamong Bay as Tanjung Perak Surabaya Port extension, this new terminal will capable to accommodate 1,138,000TEUs per year.
The location is not too far from the old port, has 9.600 slots, and its going to have 14 meters LWS depth;
b)Integrated Cash Management System with One Day Billing Program, a program which designed to help our customer get their billing statement finishing in same day. Until today, we try to shorten the days to finish the statement.
c)We try to optimised Waste Reception Facilities in order to make Tanjung Perak Port environment friendly (green port and clean sea);
d)Completing and minimizing all port services procedure so it will become cheaper and easier to understand by the customers;
e)Tanjung Perak Port complied with ISPS Code
f)Active participate in cooperation program between ports in national and international scale or with Port of Tanjung Perak stake holder, in order to expands cooperation links;

That’s all our presentation. We hope it could give benefits for all of us and thank you for your attention.