AboitizLand to spend P8M for next Persimmon towers

CEBU, Philippines - After reaping positive sales performance from its condominium units at the Persimmon, the 1.4 hectare urban village project located in Mabolo, Aboitiz Land Inc., is now on the planning stage of building another two towers that would cost around P8 million of investment.
“We are on the planning stage now. Soon, we will announce the construction of two more towers of Permission,” said AboitizLand vice president for sales, marketing and customer service Pia Mantecon.
AboitizLand president Andoni Aboitiz said in an earlier interview that the company is spending at least P4 million for every tower. Now, Persimmon” has two twin-towers. All the 157 units at Tower 1 are already sold out, while the other tower with the same number of units is currently 40 percent taken.
Last Friday, AboitizLand formally opened the commercial component called “Persimmon Plus” a support facility which offers a total leasable area of 2,200 square meters.
At present, there are already seven merchants operating at “Persimmon Plus,” these include; Mr. Coffee, Happy Roaster Home Furnishing Store, Urban Indulgence Family Organic Spa and Salon, Softwash Laundromat, Cebu Trip Tours, and Flores fashion shop.
The Permission is the first condominium residential project of AboitizLand and is the first integrated urban village in Cebu.
The company announced earlier that it is spending P2 billion this year, to introduce more residential projects in Cebu, including expansions of its existing developments.
Bigger chunk of the capital expenditure (capex) allocation for this year will be poured on the expansion of “Persimmon.” The company will be spending about P400 million for the construction of each tower.
Aboitiz said the company is on the constant lookout available land, for other projects, especially for condominium developments, as it has seen a strong take up of condominium units in Cebu, since the company offered the Towers 1 &2 units to the market.
Part of the expenditure will also be used to construct the commercial segment of its high-end residential project in Talamban—the Pristina North, including the Town Houses component of the chic subdivision.
AboitizLand’s middle-range subdivision project in the Southern part of the City, Kishanta, will also be expanded next year, as take up sales is also starting to gain some ground, he said.
The company expects to complete all the 628 condominium units at 1.4 hectare Persimmon project located in Mabolo area soon.
“[We noted] good performance of [real estate] sales especially in the condominium market. Some years ago we made judgment call that Cebuanos will embrace condo living,” Aboitiz said adding that today, the condo market is hitting very strongly and the projects a more competitive market in the next few years.
“We are studying some areas and good properties [around Metro Cebu] for our future condominium development projects,” he said.

Source: The Freeman Cebu

Regulators approve Cebu Pacific IPO; budget airline to join bourse on May 4

CORPORATE REGULATORS have approved the initial public offering of Gokongwei-led Cebu Air, Inc., allowing the budget airline to secure almost P12 billion in cash from the equities market.

BUDGET AIRLINE Cebu Pacific plans to raise P12 billion from the initial public offering to increase its fleet. -- Crecencio I. Cruz

In an en banc decision yesterday, the Securities and Exchange Commission (SEC) allowed Cebu Air, operator of Cebu Pacific, to list 235.562 million shares on the stock market on May 4. The budget airline will have the stock symbol “CEBU.”

The SEC approved the “offer of [Cebu Air] shares, consisting of up to 125.253 new shares to be issued and offered by the company, and up to 110.309 million existing shares offered by the selling shareholder, and up to 35.334 optional or over allotment shares.”

Cebu Air can offer as much as 164.894 million shares internationally while 47.112 million and 23.556 million shares will be sold to Philippine Stock Exchange brokers and investors, respectively, at a maximum price of P95.00 each.

ATR KimEng Capital Partners, Inc. was tapped as the domestic lead underwriter while the Hong Kong branch of Deutsche Bank AG and J.P. Morgan Securities, Ltd. will be the international underwriters.

Net proceeds from the primary offering were estimated at P11.561 billion.

Last week, Cebu Air said it would use the bulk of funds to be raised from the IPO to buy up to 20 more aircraft within five years.

“It’s going to be for capital expenditures for purchasing airplanes. We have a purchase order from Airbus for 15 Airbus A320 in the period of 2010 to 2015 and an option to buy five more,” said Bach Johann M.

Sebastian, senior vice-president for corporate planning of listed JG Summit Holdings, Inc., in an interview early last week.

Mr. Sebastian said going public was only one option, and that the company could also borrow from export credit agencies. Cebu Pacific can also tap the lease market, he said.

Documents showed the carrier needed to make P9 billion in advanced payments to increase its fleet to 49 by 2014.

The company originally planned to go public in 2008 but postponed the listing due to difficult market conditions.

Cebu Air turned around last year by posting a net income of P3.184 billion, from a net loss of P3.259 billion in 2008. Operating income almost doubled to P3.164 billion from P1.727 billion in 2008.

Shares in parent firm JG Summit Holdings rose to P8.50 apiece yesterday from P8.30 per share on Wednesday.

Source: Businessworld Online

Vista Land sets 22 new projects under Camella brand

MANILA, Philippines - Capitalizing on strong demand for affordable housing, Vista Land & Lifescapes Inc. has lined up 22 new projects this year under the Camella brand, translating to 17,500 new units located all over the country.
In a statement, Vista Land said the move is aimed at further cementing Camella  Homes & Communities’ dominant position in the affordable housing segment and boost its total portfolio to 97 projects nationwide.
Camella president Maribeth Tolentino said these new projects will be put up in various areas in Mega Manila as well as in key provinces and cities outside Luzon such as Cebu, Iloilo, Tacloban, Cagayan de Oro, Davao and Gen. Santos.
“We are leveraging the bigness of Camella, in terms of geographical reach, land banking, contribution to group sales, number of houses built and other key attributes, to achieve two aims more effectively. One is to be the first choice of home buyers on the basis of long-term satisfaction based on enduring quality and value. The other is to achieve higher levels of financial and operational efficiencies, and thus profitability,” she said.
Tolentino said the company, which has been providing value for money homes in master-planned communities for over 30 years, is targeting overseas Filipino workers who want to buy a house of their own.
Vista Land has earmarked P10 billion for capital expenditures this year for the launch of 30 new projects and landbanking activities. This would bring the group’s total number of projects to 157 , widely dispersed in 19 provinces and 46 cities and municipalities
Vista Land has built the largest number of homes among all local developers, a total of more than 200,000. Other companies under its wing include Brittany, which builds high-end communities; Crown Asia, focusing on the mid-range category; Communities Philippines, which develops projects in the provinces; and Vista Residences, the newly launched company and brand name which consolidates all of the group’s residential condominium projects.

Source: The Philippine Star

San Miguel to exercise Petron option this year

DIVERSIFYING food and beverage giant San Miguel Corp. is looking at pushing through this year with its plan to take a majority stake in Petron Corp.
"I think we might exercise the option this year," Ramon S. Ang, San Miguel chairman and president, told reporters yesterday.

San Miguel in December 2008 signed an option agreement with Petron’s owner, UK investment firm Ashmore Group, for a 50.1% stake in the refiner via the purchase of Ashmore unit SEA Refinery Corp. The option, which cost San Miguel $10 million, expires in December this year.

Exercising the option, Mr. Ang said, would be followed by a tender offer.

Ashmore currently owns 91% of Petron but last year already allowed San Miguel to join the refiner’s board.

Ashmore first bought into Petron in March 2008 by taking Saudi Aramco’s 40% stake for $550 million. The investment firm later that year raised its interest to 51% via a tender offer, then capped the year by purchasing the government’s 40% stake for P25.7 billion. At the time of the government stake sale Ashmore said it could turn around and resell to another party.

Mr. Ang’s statement sent Petron share prices to as high as P6.20 yesterday. The firm closed the day at P5.60

Source: Businessworld Online

GMA inks land titling, tax info sharing laws

TWO LANDMARK LAWS -- one allowing the sharing of taxpayer information with foreign entities and another making it easier for Filipinos to secure land titles -- have been signed into law by President Gloria Macapagal Arroyo.
Approval of Republic Act 10021, or the Exchange of Information on Tax Matters Act of 2009, was prompted by the Organization for Economic Cooperation and Development’s (OECD) blacklisting the country as a tax haven last year.

"It is the declared policy of the State to promote and pursue tax environment that contributes in sustaining a favorable international investment climate and instills confidence in the adequacy and capacity of the country’s tax administration to comply with its commitments under existing international conventions or agreements on tax matters," Section 2 of the new law, signed by Mrs. Arroyo last March 5, states.

It allows the Bureau of Internal Revenue chief to inquire into bank deposits and other related information held by financial institutions following a requests by a foreign tax authority.

The new law likewise allows a foreign tax authority to examine the income tax returns of taxpayers in the country.

Local authorities had previously said they could not comply with the international tax information standard given bank secrecy laws, among others.

While the Philippines was quickly put on by the OECD on a "grey" list last year after local officials committed to pass relevant laws complying with an international tax standard, France last month said the country was on its list of tax cheat-friendly states.

Mrs. Arroyo, meanwhile, also signed into law Republic Act 10023, otherwise known as the Act Authorizing the Issuance of Free Patents to Residential Lands, last March 9.

It amended Commonwealth Act 141 or the Public Land Act.

The new law states that Filipinos who occupy untitled residential lands for at least 10 years -- down from the previous requirement of 30 years -- may apply for titles.

It also makes it easier for landowners to apply for titles as they simply have to apply for one at the Department of Environment and Natural Resources without the need to hire the services of a lawyer.

Landowners, however, will only be given titles as long as the land will be used for commercial purposes.

Banks are expected to benefit from the new law as the land titles can be used as collateral to secure loans from banks.

"This will boost lending since the landowners will now have collateral for borrowing," Chamber of Thrift Banks Executive Director Suzanne I. Felix said in a text message yesterday.

Source: Businessworld Online

BSP encourages banks to put up branches in less developed areas

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) is encouraging banks to expand their operations outside the National Capital Region and other developed areas as part of the central bank’s effort to make financial services more accessible in less developed areas.
BSP Deputy Governor Nestor Espenilla Jr. said in an interview with reporters that there is a need to make banking and financial services accessible throughout the Philippines.
“The distribution seems to be heavily concentrated in NCR, then Calabarzon, Region III, and then there are pockets in Cebu and in other cities,” Espenilla stressed.
He pointed out that the concentration in these areas show that banks follow centers of economic activity and population.
 “In an archipelago like ours, there are very well defined centers of economic gravity and banks are basically profit-driven enterprise so of course you go where the business is,” he added.
He pointed out that the density of banking offices to population in the Autonomous Region in Muslim Mindanao (ARMM) is one banking office for 40,000 person per area.
“We have totally lifted banking restrictions outside NCR. We are really sending a signal to put branches outside so that you can better service the public,” Espenilla said.
Latest data showed that the number of banking institutions (head offices) fell further to 797 as of end-September 2009 from the year-ago level of 835, indicating the continued consolidation of banks as well as the exit of weaker players in the banking system.
By banking classification, banks (head offices) consisted of 38 universal and commercial banks, 73 thrift banks, and 686 rural banks.
Meanwhile, the operating network including branches of the banking system increased to 7,914 from 7,811 reflecting mainly the increase in commercial and rural banks’ branches.

Source: The Philippine Star

Net hot money inflow hits $308.7 million in January-February

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) reported a net portfolio investment inflow of $308.7 million in the first two months of the year or almost 14 times the inflow of $22.6 million registered in the same period last year due to higher export earnings and additional government borrowings.
Data released by the central bank showed that BSP-registered foreign portfolio investments increased $286 million from January to February this year after the country’s merchandise exports jumped 42.5 percent in January.
“Net inflows were sustained due to news on higher export earnings, inspite of jitters about the coming elections and recent sovereign debt concerns in some European countries,” the BSP stressed.
Inflows surged 53.9 percent to $1.076 billion in the first two months of the year from $698.92 million in the same period last year. Major sources that accounted for about 83 percent of the total portfolio investments in January and February included the United Kingdom, the US, Malaysia, Luxembourg and Singapore.
On the other hand, gross foreign portfolio investment outflows climbed 13.5 percent to $767.73 million in the first two months of the year from $676.3 million in the same period last year due to withdrawals from interim peso deposits.
For the month of February alone, foreign portfolio investments posted a net inflow of $139 million, a complete reversal of the $198.73 million net outflow registered in the same month last year.
Portfolio investment inflows surged 154.2 percent to $500.39 million in February from $196.85 million in the same period last year.
Investments in shares being traded at the Philippine Stock Exchange (PSE) accounted for about 74 percent of the total inflows, followed by government securities with 18 percent, and peso bank deposits with minimum maturity of 90 days with eight percent.
On the other hand, outflows retreated 8.5 percent to $361.81 million in February from $395.58 million in the same month last year.
Registration of inward foreign investments with the BSP is voluntary. It entitles the investor or his representative to buy foreign exchange from authorized agent banks or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of dividends/profits/earnings that accrue on the registered investment.
The Philippines shrugged off the global recession and posted a portfolio investments net inflow of $388.02 million in 2009, a complete reversal of the $1.784 billion outflow posted in 2008.
Inflows, the BSP data showed, amounted to $6.335 billion last year or 23.8 percent lower than the $8.321 billion inflows registered in 2008 while outflows fell 41 percent to $5.947 billion from $10.105 billion.

Source: The Philippine Star

BSP sees OFW remittance growth of 6% in January

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) believes that the amount of money sent home by Filipinos from abroad in January grew by more than the full year growth target of six percent due to high demand for skilled Filipino workers abroad.
BSP Governor Amando M. Tetangco Jr. told reporters Friday that overseas Filipino workers’ remittances likely grew faster in January than the full-year growth of six percent based on preliminary data.
“This year we are projecting six percent for the whole year, but for the initial data I have seen, it looks like the figure for January could be in excess of the projection for the year,” Tetangco stressed.
The BSP sees OFW remittances growing by six percent to a new record level of about $18.1 billion this year.
Last year, remittances went up by 5.4 percent to a new record level of $17.348 billion last year from $16.426 billion and exceeded the revised four percent growth forecast set by the central bank due to the sustained demand for skilled Filipino workers overseas particularly engineers, medical practitioners, and teachers.
This, after the money sent home by overseas Filipinos surged by 11.4 percent to hit a new monthly record high of $1.567 billion in December 2009 from $1.407 billion in December 2008.
The amount eclipsed the previous monthly record high of $1.531 billion registered last October.
Major sources of remittances last year included the US, Canada, Saudi Arabia, United Kingdom, Japan, Singapore, United Arab Emirates, Italy, and Germany.
The remittance level accounted for about 10.8 percent of the country’s gross domestic product (GDP) that expanded by 0.9 percent last year from 3.8 percent in 2008.
The stronger-than-expected growth could also be traced to the decision of the government to conduct bilateral talks with host countries that continue to open up new employment opportunities abroad for Filipinos and to facilitate the hiring of displaced workers who were affected by the global economic difficulties.
Authorities also cited the continued expansion of remittance transfer facilities that has helped capture a large share of the global remittance market.
Commercial banks’ established tie-ups, remittance centers, correspondent banks, and branches or representative offices abroad increased to 4,192 as of 2009 from 3,015 as of 2008.
Data from the Philippine Overseas Employment Administration (POEA) showed that the government processed about 41.6 percent or 221,548 of the total job orders that reached 532,214 last year. These jobs comprised mainly of service, production as well as professional, technical, and related job categories in Saudi Arabia, Qatar, UAE, Kuwait, and Hong Kong.
The POEA reported that Middle East countries particularly Saudi Arabia continue to absorb a significant number of deployed OFWs including those that have been displaced elsewhere.
The BSP was originally looking at a zero growth last year but later revised the outlook to a growth of four percent due to the steady deployment of Filipino workers abroad and the increase access to formal remittance channels.
OFW remittances are expected to grow faster at six percent next year especially with the signing of a memorandum of agreement between the BSP and member banks of the Association of Bank Remittance Officers Inc. (ABROI).
The agreement calls for the use of the central bank’s Philippine Payments and Settlements Systems (PhilPaSS) to send the remitted money to the beneficiaries’ accounts in other banks.
OFW families are expected to save at least P92 million to as high as P922 million due to the faster and cheaper delivery of remittances to the beneficiaries at a lower rate of P50 per transaction instead of the current range of between P100 and P550 per transaction.

Source: The Philippine Star

PAL still reigns with 43% market share

CEBU, Philippines - Despite discount rates offered by main rivals in the industry, Philippine Airlines continues to dominate the various air routes in the country retaining a lion’s share of 43% of the total passenger traffic led by its Cebu operations, which accounts for the highest share of 42% of the total market.
And as the country’s premiere flag carrier celebrates it 70th year in March 2011, PAL country manager Genaro “Bong” Velasquez said they want to make it big and share the airline’s milestone to the customers by commencing the year-long celebration with a series of promotional events.
Velasquez yesterday announced during a press briefing held at Laguna Garden Café that 70,000 free seats will be given away through a series of promo initiatives including a grand seat raffle, a “Philippines Free” international campaign, a major discounted promo, and a loyalty program targeting the youth market dubbed as the Y Flyers.
The promotions will be formally announced during the 69th anniversary celebration of PAL on March 15, 2010 at the Century Park Hotel.
The Grand Seat Raffle covers all PAL revenue tickets purchased in the Philippines and through PAL’s website. Travel

period must be between March 16 and December 31, 2010.
The raffle draws will span for nine months wherein 16,000 winners will be chosen to win free tickets equivalent to those purchased and flown. And on the day of the 70th anniversary of PAL, 3,000 passengers will have the chance to travel for free.
Meanwhile, the “Anniversary Fare Special” fares promo will offer discounted rates on all domestic routes served by PAL. One-way flights from Manila to any point in Luzon or Visayas will be pegged at a flat rate of P700, while flights to and from Mindanao will be offered at P1,700.
Moreover, the “Philippines Free” campaign will offer free travel to the Philippines from 18 international destinations. The sale period is between March 15 and April 7, 2010.
And those who will be celebrating their 70th birthday between March 15 and April 15, 2010 will receive a free domestic ticket, provided that a companion purchases a ticket for travel on the same route and date. Travel date must be within May 15 and August 20, 2010.
PAL likewise initiated a promo for the younger flyers dubbed as the Mabuhay Miles “Y Flyer” which will start on March 15, 2010.
The “Y Flyer” promo gives 10% discount off published fares to passengers between the ages two and 21 years. Current members of Mabuhay Miles are automatically qualified as Y Flyers.
Y Flyers will also get a chance to grab a ticket to the “Changing Lives: Timbaland Shock Value II” concert on March 27 in Manila, which will feature Justin Timberlake and Jojo. PAL will be giving away 50 concert tickets.

Source: The Freeman Cebu

French oil giant to invest P400 million for Cebu stations

CEBU, Philippines - French oil giant, Total (Philippines) Corporation (TPC) announced its P400 million investment plan for Cebu in the next three years.
This plan includes the installation of five more stations in Metro Cebu this year, which will incur an investment of P120 million.
In an interview with TPC president and managing director Ernst Wanten, he said that Cebu’s vibrant economy presents a growth opportunity for TPC.
Since its entry to the Philippines in 1998, Total has already installed 133 stations mostly in Luzon. This year, the company has decided to explore the Southern Philippine market, through a stronger presence in Cebu.
As part of its expansion program, the company opened a fuel depot in the province, which has a capacity of two million liters. It also currently upgraded its waterborne fleet with the acquisition of MT Camille, a 3,651 deadweight ton double-hulled vessel classified by the Korean Register Shipping as accredited by the International Association of Classification Societies (IACS). The depot will serve both retail and wholesale consumers.
Total’s strong entry in Cebu will not only provide wider options for consumers to get their fuel requirements, but it also offers business opportunity for entrepreneurs who may want to partner with the Total.
The company offers two packages for entrepreneurs for partnership these are via Company-Owned-Dealer-Operation (CODO) and Dealer-Owned-Dealer-Operated (DODO) options.
Of the total 133 gasoline stations installed by Total in the Philippines, 97 of which are DODO, and 36 are CODO.
In Cebu, Wanten said the company will build the infrastructure, which means the physical gasoline stations, and partnership will depend on the negotiations of interested entrepreneurs.
The first Total station in Cebu is located along Plaridel Street in Mandaue City. It has four pump islands and also has a Bonjour convenience store and Café that offer a wide selection of quality snacks and sundries. It is run by a staff of a 25 personnel.
“Our forefront service crew and Bonjour staff have been trained on the Total brand of customer service, which is what differentiates us from our competitors,” he said.
The Total big boss was here in Cebu to attend the Petro/World Forum held last March 9 to 12 at the Shangri-La Mactan Resort and Spa in Mactan Island.
In the next three years, the company plans to build at least 20 Total gasoline stations around the Cebu Metropolis.
“Cebuanos are different clientele. They are interesting,” Wanten said describing Cebuano customers as more demanding and critical. He said this is what makes it challenging for Total to establish its brand here.
With the quality and competitive products and prices offered by the company, Wanten is confident that Total will be able to hit the taste of the “Cebuano market”.
Total is the fifth largest publicly-traded integrated oil and gas company in the world. It reported sales of 179,976 billion Euro in 2008.

Source: The Freeman Cebu

BPI eyes slower remittance growth this year

Ayala-led Bank of the Philippine Islands (BPI) expects the growth of money sent home by Filipinos through its 19 remittance centers abroad to slow this year.

The bank, which recently opened its newest branch in Madrid, Spain, expects remittances to grow by 11 percent to $5 billion this year. Last year, remittances went up faster at 15 percent to $4.5 billion despite slower inflows from the US.

BPI Senior Vice-President Teresita Tan said three-quarters of the remittances had come from land-based workers, and the balance from seamen.

"There was a slowdown of remittances from the US but it remains large in terms of volume," she told reporters.

The growth in money sent home by Filipinos in the Middle East, Europe and other Asian countries was steady.

According to a central bank ranking, BPI had the second biggest remittance volume in 2008, with a 23-percent market share.

The central bank expects remittances to grow by 6 percent this year after actual growth exceeded the target last year.

Data showed remittances coursed through banks rose by 5.6 percent to $17.3 billion last year — better than the 4-percent goal — due to sustained demand for Filipino workers abroad.

The remittance level accounted for about a tenth of the country’s economic output, supporting local consumption amid the global economic slump.

The major sources of remittances last year were the US, Canada, Saudi Arabia, Britain, Japan, Singapore, United Arab Emirates, Italy and Germany.

Source: GMA Business News

Metro Cebu has enough water supply for its 2-M users till June–MCWD

THE water distribution utility serving Metro Cebu assured its customers that there is enough water for its 2 million residents during the expected long dry spell and the supply will last until the scheduled rainy season in June.

Metropolitan Cebu Water District (MCWD) production and distribution chief Genaro Mejor said there is no need for water rationing in their franchise area as of yet.  However, he explained there will be lesser delivery hours and lower pressure in some districts as the dry spell takes its effect on the supply.

“We have anticipated the problem and, thankfully, we were able to augment the supply just before the dry spell,” Mejor said.

But he added that instead of a daily average of 22.5 hours of water for its franchise areas, they estimate the number will go down to 21 hours per day as the water supply needs to be distributed to more customers.

The Buhisan Dam in Cebu City already has signs of drying up, but Mejor said the facility, built in the early 1900s, supplies just a small portion of the water supply of the metropolis. Most of the supply of MCWD is still taken from underground wells.

The MCWD’s biggest water well field in Jaclupan in Talisay City cut production by more than half from an average of 45,000 cubic meters a day to just 18,000 cubic meters in March. MCWD was able to open more wells and commissioned several private bulk-water suppliers to augment the supply.

Early this year MCWD added more than 4,500 cubic meters of supply from several wells in the south district of the city and bulk-water suppliers with injection areas in the north.

Mejor said more wells will be opened in the summer, while existing bulk-water suppliers said they can increase their volume by up to 25 percent.

But while the hot summer months will not pose problems for existing MCWD consumers, the water district itself admits they are facing bigger long-term problems. The utility admits to servicing only 55 percent of its service area either because of shortage of supply or lack of infrastructure to bring water to more people.

MCWD serves more than 130,000 customers in Metro Cebu and produces some 160,000 cubic meters of water daily, but this still falls short to fulfill the pent-up demand—potential customers who have pending applications for water lines, but could not be served.

“Our priority is to provide the best service to our existing customers,” Genaro said.

With Cebu not having enough big bodies of inland water like lakes and rivers, most of Metro Cebu’s water is sourced from underground wells. Pollution and overextraction, however, forced MCWD to close some of the wells as contaminants and sea water have found their way into the water sources.

MCWD recently signed a huge 20,000-cubic-meter bulk-water supply deal with the city of Danao in the north, which should secure the water supply in the city for the next several years.

Source: The Business Mirror

Air Philippines to buy six Airbus planes

AIR Philippines, the low-cost partner of Philippine Airlines (PAL), is expanding its fleet this year with the planned acquisition of six Airbus units.

PAL president Jaime Bautista said this is part of the working plan of Air Philippines which is 99-percent owned by the Tan Group of Companies controlled by Lucio Tan.

“That is the plan but let’s just wait for the final announcement [which may happen] hopefully this year,” he said.  

Initially, the plan is for Air Philippines to lease six Airbus A320s, added the PAL president.

He also said the Airbus planes will service the airlines’ existing routes.  

Both PAL and Air Philippines are looking to strengthen operations with modest fleet and route network buildups. This, despite predictions by the International Air Transport Association of a dip in industry earnings due to higher fuel prices.

The two airlines have had close complementation in their flight operations, feeding passengers into each other’s networks and ensuring connections via their joint hubs at the Naia Centennial Terminal 2 in Manila and Mactan International Airport in Cebu.

Air Philippines earlier announced a new management team appointed to implement the airline’s new business model.

David Lim, president, and Cesar Chiong, executive vice president and chief operating officer, were tasked to fast track the airline’s conversion to a low-cost business model using a leaner workforce.

It said in a statement last year that the new business model involves the lease of Bombardier turboprop aircraft from PAL. The turboprop fleet flies to 19 towns and cities, operating out of two hubs—Manila and Cebu. From Manila, the airline flies to Tuguegarao, San Jose (Mindoro Occidental), Naga, Virac, Busuanga, Catarman, Calbayog, Ormoc and Surigao. From Cebu, it will service Kalibo, Iloilo, Bacolod, Tacloban, Butuan, Ozamiz, Cagayan de Oro, Gen. Santos, Zamboanga and from Zamboanga to Davao. 

The following flights are being operated by Air Philippines, as code shared with PAL with the latter as the marketing carrier. Tickets issued by PAL will be accepted for carriage.

PAL is set to announce tomorrow details of its new aircraft and new destinations.

PAL, said Bautista in an earlier interview, will resume flights to India after an absence for so many years. The flag carrier is appealing to the Philippine government to help negotiate landing rights so it can service the Manila-Bangkok-Bombay route.

“We want to fly back to India in Bombay. But the problem is the landing rights. We are talking to the government to negotiate for landing rights because Bangkok won’t permit us to pick up passengers there,” he said.

PAL ceased operating this route for commercial reasons. Now, Bautista said it is time for the flag carrier to resume flights on the back of strong demand. “There are many Indians flying to Manila but not so much the other way around. Even Tourism Secretary Ace Durano said there is a strong demand and the number of Indians that visited the country last year reached thousands and thousands.”

The PAL president is hoping that negotiations for landing rights will be successful so the airline can resume service as soon as possible.

Source: The Business Mirror

If elected, Gibo to prioritize bridge between Cebu, Bohol

CEBU, Philippines - Administration presidential aspirant Gilberto “Gibo” Teodoro said the construction of the bridge linking Cebu and Bohol provinces will be given immediate attention if he is elected into office.
Teodoro who joined the first day of Suroy-Suroy Sugbo southern heritage trail said that the development of Cebu and Bohol will continue if they push through with the plan to link two provinces by constructing the bridge.
At present, visitors from Cebu who also want to visit Bohol may ride through fast craft and other vessels. Those coming from Manila may avail of direct flights bound for Tagbilaran City.
The anchors of the bridge will be Getafe and Cordova towns in Bohol and Cebu respectively. Passing through shallow waters between the two provinces, the bridge is estimated to be 18 kilometers long —a “baby” compared to the bridge linking Incheon Airport and Incheon City in South Korea, spanning some 45 kilometers, now undergoing construction.
Bohol Governor Erico Aumentado said he envisions the bridge to improve vehicular and passenger traffic between the two provinces. It can also carry cables to Bohol so it can get more electric power.
The additional power can meet the requirements for the establishment of a shipyard in Bohol while the fiber optics will link Bohol to the information and communications technology highway.
To recall, the Regional Development Council-7 asked the Department of Public Works and Highways to endorse to the Korean government their request for the funding of a feasibility study on the proposed multi-access friendship bridge that will link the provinces of Cebu and Bohol.
During the RDC-7 full council meeting last year, Aumentado asked the endorsement and support from the RDC for the funding assistance of the project.
“I am happy to report to the RDC that one of our mega projects, the Bohol-Cebu multi-access friendship bridge now has the support of EDCF,” Aumentado told members of the RDC, which is headed by Cebu Governor Gwendolyn Garcia.
Aumentado said the Economic Development Cooperation Fund of Korea has already agreed to dole out $3 million for the needed feasibility study.
Aumentado said the bridge will hasten commerce and sharing of technology and exchange of power and water between Bohol and Cebu, if it will be implemented.
The bridge, which was conceptualized in 2006, is seen to cost at least P20 billion.
He also said that the completion of the airport in Panglao Island in Bohol will also add to the development of the two provinces. Teodoro also cited the need to construct a third bridge linking Mandaue City and Mactan Island.

Source: The Freeman Cebu

Maria Luisa Properties posts high sales, announces new development

CEBU, Philippines - The strong market in Cebu for house investments continues to grow as noted by the high sales of Maria Luisa Properties despite the economic downturn.
This was shared by Jovy Beltran, sales and marketing manager of Maria Luisa Properties, who said that the continuous support they gather from the public, especially their target market, which is the class A, has been very encouraging.
Beltran said that this was even proven as they announced their new development for Maria Luisa Subdivision where even if they did not have any formal launch yet, they already had three units sold.
The new project of Maria Luisa properties is the “Highlands at Maria Luisa” which boasts of its location within the established subdivision in Banilad, Cebu city.
Beltran said that with around 6.6 hectares for the Highlands, they expect to have a lot of takers for the soon-to-rise units since it is situated in the upper portion of the subdivision that has a perfect view of Mactan Island and the blue waters and a mountain-view on the other side.
“It is the exclusive part of the subdivision,” said Beltran.
He said that this is a joint venture project with the province of Cebu where they have 16 salable lots, three of these already sold.
Beltran explained that they have bigger lot cuts for the Highlands which range from 1,000 to 1,530 square meters.
Investments are welcome said Beltran with their P8,000 per square meter to P15,000 square meter price.
Beltran said that they have not formally launched the project since not like other companies and developers, they only launch their projects with everything done already.
But he said that despite only having initial advertisements for salable lots, they already had buyers which prove of their strong market in Cebu and the established presence that Maria Luisa has made.
According to Beltran, they are targeting the high-end class for the Highlands which has a price range of P8M to P22 M.
Beltran said that they are very eager with the new development and the support they would get in Cebu . “Cebuanos continue to invest in our houses and we have noted of this with the sales we had for the past year with our units in the other phases of the subdivision.”
He said that he was surprised with the show of sales amid the crisis but just proves that Cebuanos are looking for quality for their money which Maria Luisa could give.

Source: The Freeman Cebu

Villalons to take full control of Monterrazas development

CEBU, Philippines - Landco Pacific Corporation and Genvi Development Corporation officially ended their agreement to jointly develop the 210-hectare high-end hillside residential resort called Monterrazas de Cebu.
Genvi Development Corporation, owned by the prominent Villalon family in Cebu who is also the landowner, is now taking full control of the development, after the two companies terminated their joint venture agreement recently.
In a press conference, Genvi Development Corporation president and general manager Augusto Villalon said that the company is committed to stick with the original plan to develop the entire 210-hectare property with a capital expenditure of P5 billion in the next 10 to 15 years.
Despite the termination of Genvi’s partnership with Landco, Villalon assured property owners, and prospective buyers of Monterrazas de Cebu to fast track the project. The targeted completion of the phase one of the project was delayed due to drainage and environmental problems, among others.
Villalon said Monterrazas de Cebu will now become Genvi’s biggest real estate project, as the company had only been developing small low-cost housing projects in Cebu.
Although the company has not been known as developer of big residential and high-end projects, the Villalon family committed to continue the original masterplan. In fact, it has readied a P300 million budget to move the development faster in the next 30 months.
“We are laying our company on the line here. We have to fulfill what is expected from us,” said Marga Villalon, Genvi’s vice president and treasurer.
In an official joint statement, Villalon and Landco Pacific Corporation president and chief executive officer (CEO) Alfred Xerez-Burgos III said they have agreed for Genvi to take over as developer and landowner of Monterrazas de Cebu.
Villalon reiterated the Genvi’s commitment to pursue Landco’s original vision for the project, while Landco agreed to be a consultant in the next several years to ensure smooth transition.
Early last year, the Metro Pacific Investment Corporation (MPIC) trimmed down its stake of Landco from a majority 51 percent to 30 percent, after agreeing to sell part of its shareholdings to AB Holdings for P220 million.
AB Holdings acquired P500-million loan to MPIC, an earlier report said that AB Holdings used Landco’s shares in three mall corporations to pay up the loan exposure.
Landco is one of the country’s biggest real estate developers. The Monterrazas de Cebu could have been the company’s flagship showcase in its first entry in the Visayas.
Villalon, who is a well-known architect in the country, assured that the phase I of the project, which is composed of two cluster lots, is scheduled to complete in the next three years, and land owners can already build their houses by the end of this year.
Upholding their good name as Cebuanos, the Villalon family erased impressions on the project’s uncertainty, instead vowed a much faster completion of the development.
“We know there will be market apprehensions, it is expected. But the proof is our delivery. We have a fantastic team that is very experienced in this kind of development,” Marga Villalon said.
Landco and Genvi inked the joint venture agreement in December of 2006, to start the Monterrazas de Cebu project, which is one of the largest integrated residential development projects, being built in Cebu in the last few years. It is located in the huge 220-hectare prime hillside estates which covers several barangays in Cebu City Labangon, Sapang Daku, Guadalupe and Buhisan.
 The development, which will build complete line of real estate products, such as chic home address, townhouses, condominiums, commercial/lifestyle facility is targeted to complete in the next 10 to 15 years.

Source: The Freeman Cebu

Aboitiz Equity Ventures acquires Cebu thrift bank for P1.36 billion

MANILA, Philippines - Aboitiz Equity Ventures Inc. (AEV) is acquiring indirect full ownership of Cebu-based thrift bank City Savings Bank (CSB) for P1.36 billion.
In a disclosure to the Philippine Stock Exchange, AEV said its board approved the purchase of up to 60 percent of CSB with the remaining 40 percent to be acquired by its wholly-owned unit Pilmico Foods Corp.
AEV, which currently owns 34 percent of CSB, said the acquisition of the additional stake is still subject to approval by regulatory authorities.
According to AEV, the acquisition would provide CSB with greater access to resources to sustain its high level of growth and to drive further expansion. 
‘The support that AEV can give CSB is vital to catapult the bank to its ambitious growth plan in the years to come,” said AEV president and chief executive officer Erramon Aboitiz.
CSB currently has over 300 employees serving over 90,000 borrowers and more than 53,000 depositors. It has 12 full branches and 11 extension offices in the Visayas and Mindanao areas.
CSB has total capital funds of over P700 million and total resources of over P6 billion.
As a thrift bank, CSB is primarily engaged in offering loans to school teachers under the Department of Education’s Automatic Payroll Deduction System. Teachers have been the main market of CSB since it began operations over 40 years ago.
The bank’s other products include salary loans to government and private sector employees, home mortgage and home improvement loans, as well as small business loans.
CSB has one of the best operating efficiencies in the thrift banking industry with a low past-due ratio and among the highest capital adequacy ratios.
For the last five Bangko Sentral ng Pilipinas (BSP) examinations, covering a period of 10 years, CSB has received an average CAMELS rating of “4”, which indicates its ability to withstand unfavorable outside influences.
In March 2009, CSB issued P1 billion worth of five-year peso-denominated corporate fixed rate notes via a private placement to primary institutional lenders. Proceeds from the issuance were used to augment the bank’s funding base and support its long-term asset growth objectives.
AEV is the publicly listed holding company for the Aboitiz Group’s investments in power, financial services, food and transport.

Source: The Freeman Cebu

Microsoft eyes iCafes as IT training ground

CEBU, Philippines - After implementing a nationwide campaign of offering the lowest software license fees exclusively for Internet Café owners, Microsoft Philippines is bent on pursuing its plan to make iCafes as training ground for Information Technology (IT) related courses.
Microsoft Philippines Inc. License Compliance Manager Fortune Abelo-Magsadia said that through its Microsoft iCafe Program, the company will soon introduce a program that will allow iCafe shops to offer short training programs to add value to its services, aside from generating revenues from internet gaming and surfing.
Abelo-Magsadia said that putting mini-training center facilities in iCafes in the Philippines will not only provide the proprietors the opportunity to earn more, but it will also provide more Filipinos the opportunity to learn IT skills.
The iCafé program is Microsoft's response to one of Internet café customers' unmet needs: secure and dependable computing experience in a shared PC space.
In an earlier announcement, Microsoft is going to build an online network access to authorize net cafés to accept consumers interested to avail of an online training.
This is a computer based and online training. Internet Cafes will provide the dedicated PCs for this purpose.
This program, will provide Internet Cafes another revenue channel, while any individual regardless of age, can get easy training access to different Microsoft programs.
Aside from partnering with the iCafe owners, by encouraging them to enroll in the Microsoft iCafe Program, the company will also forge stronger relationship with key government agencies, like the Technical Education and Skills Development Authority (TESDA), as well as the local government units (LGUs).
Empowering iCafe shops to offer educational services to consumers is part of Microsoft’s bid to make iCafes as one of the channels to push its program ‘bridging digital divide’, offering easier eLearning access to Filipinos.
Abelo-Magsadia said that this particular program will come later as phase-2 implementation of the long term Microsoft iCafe Program.
Recently, Microsoft rolled out the lowest prices for software products and licensing for the first time in history.
As an introduction to the program, Microsoft announced the major slash of Windows 7 (Operating Software) from P9,000 to P2,000 (plus) until May of this year
Microsoft Office on the other hand, is now pegged at P999 including rental rights fee.
The Bill Gates-owned company has picked Cebu as its pilot area for the national launching of this program
“There are a lot of benefits that an iCafe can take advantage of, once they will enroll in the program,” Magsadia said.
Aside from slashed prices, the program offers value added services for free, such as billing and metering tools, PC help tools, among others.
“We are trying to provide them [iCafe owners] value added services and products,” she explained.

Source: The Freeman Cebu

Consumers warned vs low-quality cement

IMPORTED cement now being used in construction projects in Metro Manila is substandard and
was brought into the country without proper clearance from the government, a consumer
advocate warned.
“Cement imported from Vietnam is now being used without the required Import Commodity
Clearance [ICC] from the Department of Trade and Industry [DTI],” said Adrian Sison, a lawyer
known for his proconsumer advocacies.
Before an ICC is granted, the commodity being imported has to pass certain quality tests to
ensure that it will not endanger consumer welfare and safety, Sison explained.
Sison said an importer has already used the cement in a construction site on Tatalon Street,
Ugong, Valenzuela City, without any ICC. What is worse, he said, is that there are reports that
the cement used failed the quality test that the DTI conducted.
The cement bags, he pointed out, are also without the proper markings required by the DTI to
guide consumers on the product’s proper use. This enables the government to track the identity
of the manufacturer, who can be held accountable for any problems arising from the cement’s
use. These bags are also not in the 40-kilogram bags as required by law.
Sison pointed out that the cement in question was stored in a place different from what is being
claimed, thus making government monitoring of this particular cement shipment
difficult—constituting a third violation, the lawyer said.
Sison alerted the DTI of a similar cement importation in May last year. He is now again calling
the attention of the department to look into what he noted are violations of the law, as well as
DTI trading rules, in order to protect consumer welfare and safety.

Source: The Businessmirror Online

Real estate loans rise in ‘09

UNIVERSAL, commercial and thrift banks increased their exposure to the real estate sector in 2009 by extending more loans, central bank data showed.
Data released on Friday showed that total exposure of these lenders to the real estate sector reached P393.6 billion as of December, up by 9.4% from the previous year.

Universal and commercial banks accounted for almost three quarters of the total, while thrift lenders accounted for the balance.

“The additional exposure came primarily from real estate loans, which rose [by 9.67% year-on-year] to P383.7 billion,” a statement from the Bangko Sentral ng Pilipinas (BSP) explained.

“Investments in [debt and equity] securities issued by real estate companies also expanded by 1% to P9.9 billion.”

Total real estate exposure as ratio of banks’ total loans excluding loans they made between themselves rose to 14.47% from 13.96% from a year ago.

But Victor J. Asuncion, director for research and consultancy at CB Richard Ellis Philippines, Inc., downplayed the figures, pointing out that while loans to the real estate sector have been growing, the rise has been tempered by other funding sources available to developers.

“Real estate developers, if they can help it, don’t want to borrow from banks anymore... because loans that have floating rates make their borrowing costs more volatile... [Bank loans] are still a part of funding sources, but no longer the primary one,” he said.

Mr. Asuncion added that property companies prefer to fund projects with equity, bonds or from pre-selling projects, and the share of bank loans as a funding source could go down with the introduction of real estate investment trusts or REIT, a company that pools funds and invests these in properties.

Central bank data also showed that real estate loans for construction and development of commercial properties accounted for nearly three-fifths of total real estate loans at P221.1 billion, while the balance was granted for the construction or improvement of residential units by individual borrowers.

Of total real estate loans granted by universal and commercial banks, 73.7% or P203.1 billion were directed to commercial projects, while the balance of P72.6 billion went to residential purposes.

Thrift banks lent out P90 billion to finance the acquisition, improvement or construction of residential units for households, and provided only P18 billion for commercial real estate loans.

Soured real estate loans rose to P23.18 billion from last year’s P22.83 billion, but as percentage of total real estate loans, slid to 6.04% in December from 6.53% a year ago because of a higher growth in loans.

In February, BSP Deputy Governor Diwa C. Guinigundo said monetary authorities may further limit banks’ exposure to the real estate sector from the current 20% of total loans as a way of controlling excessive foreign capital flows that may stoke an asset price bubble.

The deputy governor noted that the central bank had done this before when it limited banks’ exposure to the real estate industry to 20% from 30% after the Asian financial crisis in 1997.

He said that while an asset bubble is unlikely to emerge in the Philippines, this policy tool is available to the BSP in case a slower than expected recovery in developed markets prompts investors to seek higher yields in emerging economies.

Source:  Businessworld Online

Oakridge adds commercial component to business park

CEBU, Philippines - The high demand for office space in Cebu prompted the Oakridge Realty and Development Corporation (ORDC) to go full-blast in developing its three-hectare business park along A.S. Fortuna street, Banilad, in Mandaue City.
Oakridge Business Park, the location of call center giant Tele Tech, is now constructing a commercial component within the park, and eventually develop the entire three hectare property in the next two to three years.
ORDC, used to be a fully-gated business park, is now opening the facility to the community, with the commercial component called OakTree Drive.
“The OakTree Drive will complement the business park facility, offering the support products and services to initially cater the two thousand people working within the park,” said ORDC chief executive officer (CEO) Edmund Liu during the official ground breaking ceremony to start off the OakTree Drive construction.
At present, the park houses 20 tenants including the PEZA (Philippine Economic Zone Authority) registered IT Center currently occupied by Tele Tech operation

in Cebu.
While it is tempting to maximize the three-hectare property with available offices and buildings, Liu said the company is committed to make the Business Park, one of Cebu’s landmarks in “green architecture.”
ORDC, is not limited to attracting BPO-related companies, but also to other industries, as aside from Tele Tech, the business park is the home of other service-oriented firms such as Basic Graphics Inc., Golden ABC Corporation, OVF Law Office, among others.
Liu hopes that the Park will attract diverse industry and service-based companies once it will construct sophisticated and modern office infrastructure, with emphasis on “green” development concept.
“The temptation to add more leasable spaces was there, but we are not losing touch of the park ambiance,” Liu said adding that providing an ample green-space within the property is the development’s priority.
The OakTree Drive will offer a total leasable space of 628 square-meters that will host food chain, coffee shops, and other food and retail businesses.
Although the building occupied by Tele Tech is the only PEZA-registered facility within the park, Liu said the company is open to convert some of the buildings to a cyber-zone registered to give way for potential BPO/IT related companies to take advantage of the fiscal perks offered PEZA.
To date, Oakridge Business Park has a total leasable area of 18,000 square meters, it boasts of an integrated road network, well-maintained building facilities, 24/7 security, a one-megawatt generator, ample parking space and easy access by public transportation.
The company is open to possibilities of developing similar infrastructure within the metropolis in the next few years, after it will maximize the business park’s total leasable space.

Source: The Freeman Cebu

The ABCs of real estate buy and sell business

MANILA, Philippines - A 12-session mentoring course in real estate buy & sell will be conducted by Urban Institute of Real Estate starting March 17, then March 24, April 7, 14, 21, 28, May 5, 19, 26, June 2, 9 and 16 from 3 to 7:30 p.m. at the Maximo Function Room, Max’s Restaurant, Glorietta 3, Makati City.
Buying and Selling real estate is a very attractive investment alternative and this course was designed for investors seeking a better return for their capital but who need more detailed knowledge on how it is correctly and safely done.
The course will cover real estate-related principles of economics; valuation of vacant lots and improvements, analyzing what causes values to go up and down; techniques in searching for bargain properties; buying techniques and frauds avoidance; techniques on improving price and marketability of real properties; financial aspect of buy and sell and its risks; legal and taxation aspects of buy and sell including legal forms and documents needed and tax computation; and many other related topics.
Main lecturer is Engr. Enrico Cruz, who has more than 40 years of experience in real estate, engineering, construction, management and education; together with Professor Atty. Rex Enrico V. Cruz III. Engr. Cruz is also a licensed real estate consultant and 1st and 8th placer in the real estate appraiser’s and broker’s board examinations respectively, and was invested as a “Real Estate Fellow” by the Philippine Council of Real Estate Educators.

Source: The Philippine Star

DOT steps up assessment system

CEBU, Philippines - The Department of Tourism gears up on intensifying its technical assessment system to accurately measure the tourism sector’s contribution to the Philippine economy.
“We have expanded our assessment to include a more systematic and in-depth analysis of top destinations to provide a clearer insight on the tourism movements throughout the country. Understanding these movements allows us to create strategies to further support the development of these destinations. This system also creates awareness for these places in the national level,” said Tourism secretary Ace Durano.
Top destinations are referred to as those that have at least 100,000 foreign tourists annually and have received substantial tourism-related investments.
Since its adoption in 2008, the new system has propelled several previously unknown local sites to the main tourism circuit, such as Camsur, which enjoyed a 117.25 percent growth in foreign and domestic arrivals in 2009.
The Cebuano tourism chief added that the enhanced system also aims to empower local government units (LGUs) to gather information and generate ideas for tourism development in their area.
“We have actively engaged in a campaign, with the help of Japan, to train local officers in monitoring tourism traffic in their respective destinations. Empowering them builds up their capacity to create policies and strategies to stimulate tourism and boost livelihood in their areas,” said Durano.
Since 2006, the DOT has maintained a partnership with the Japan International Cooperation Agency (JICA) for a statistical-capacity building program in the local government level.
The ongoing campaign, called the DOT-JICA Technical Cooperation Program Management (TCPM), taps more than 100 LGUs to standardize their data collection methodology which is used to analyze tourism information culled from hotels, resorts and other tourism accommodations in their areas.
According to Alan Cañizal of the Tourism Development Planning, the campaign capitalizes on the more attuned perception of locals for mining information about their sites.
“It also generates consciousness among community members, from the top to the grassroots, to manage their own destination and help promote it,” Cañizal explained.
DOT’s new documentation process has also started integrating data collected from the newly-released arrival/departure cards (A/D). Bearing more detailed information on passengers, the new A/D cards include questions on Type of Accommodation, Education/ Training, Official Mission, Religion/ Pilgrimage, Health, and Transit.
 “These innovations are logical and necessary if we want to keep up with the ever- changing market trends. With this detailed breakdown and analysis of data, the tourism industry is able to respond to needs, create demand and serve our foreign and local tourists. All these lead to a more robust tourism industry which translates to more jobs for Filipinos,” Durano concluded

Source: The Freeman Cebu

2GO to expand operations this year

CEBU, Philippines - The total supply chain solutions provider under the Aboitiz Transport System (ATS), 2GO is expanding its operations this year, taking advantage of the dynamic logistic demand in the Philippines.
In an interview with Luigi Cayao, the company’s chain supply consultant, he said that the logistic brand is building a 5,000 square-meter new warehouse or equivalent to a football field this year in Metro Manila.
2GO leverages on unsurpassed local knowledge from over a hundred years of experience and a passion to consistently deliver cargo and information on time while offering simplified solutions to meet the most complex requirements.
It has total control of its network nationwide, operating its own fleet of vessels, aircraft, trucks, container vans, and other delivery vehicles that provide a reliable network of delivery channels.
Already, the company has built large warehouses in Pasig and in Taguig. Combined, these warehouse facilities have a total size of 48,686 square-meters. Last year, the Aboitiz One Distribution Inc., the company that manages 2GO opened the 22,000 pallet positions located in Taguig City.
This year, it will invest on putting up equally sophisticated warehouse, as demand for state-of-the-art storage facility and logistic service is very strong, especially for the fast moving consumer items.
2GO is the first to introduce 136 - a time-based, cost-efficient service that gives customers a time-definite service to get their parcels, documents and cargo to its destination within 1, 3 and 6 days.
Further complementing the freight services for Full Container Load (FCL), 2GO also pioneered the Road RORO Terminal System (RoRo), a superior yet simple, self-driven service that gives back the control to the customers in the movement of their goods. Customers are given priority loading, thereby enabling them to have faster delivery lead-time, reducing costs at unsurpassed speed to market levels, thus ensuring fresher products in the market.
In an earlier interview with ATS president and chief executive officer (CEO) Enrique M. Aboitiz Jr., he said that expansion for ATS has been focused on its value-added business “as we transform beyond being a shipping company to a total transport solutions enterprise.”
In order to boost its supply chain solutions services, via 2GO brand, ATS acquired Scanasia Overseas Inc., a company engaged in the business of sales, marketing, warehousing and transportation of temperature-controlled and ambient food products to its customers in the Philippines.
ATS, the transport and logistics arm of Cebu-based conglomerate Aboitiz Equity Ventures (AEV), had been actively enlarging its logistics network locally and internationally.
To complete its already vast menu of services, 2GO launched its Supply Chain

Service in 2007.
With Supply Chain, 2GO handles the release of the goods from the manufacturer to the delivery of the products to trade for end consumers nationwide. The offer to customers is simple - 2GO assures product availability, which in turn translates to product growth through efficiencies brought by the strengths of the 2GO brand.

Source: The Freeman Cebu

Globe Telecom sets capex at $500M

CEBU, Philippines - Telecommunication giant, Globe Telecom is allocating US$500 million capital expenditures (capex) for this year, large part of this budget will be allocated to expand its broadband business.
The Ayala-controlled company reported that US$230 million of the total capex for this year will be spent to augment its existing capacities of its broadband business, including the expansion of coverage and footprint of the Company’s DSL, WiMax, and 3G broadband services.
The company will also spend about US$170 million is also allocated for its mobile telephone business.
The 2010 capex plan also includes about US$50 million for Globe’s fixed line data networks which primarily caters to the corporate and enterprise sector.
It also includes the investment of about US$50 million in additional one-time investments. This covers costs related to Globe’s participation in the new Southeast Asia Japan Cable (SJC) System which will link Singapore, Hong Kong, Indonesia, Philippines and Japan, and which will further increase the capacity and boost the resiliency of Globe’s international network. The SJC is expected to be operational by 2012.
In 2009, Globe Telecom allocated a total of P24.7 billion capex, included carry-over spend related to the Company’s participation in the TGN-A international cable system, FOBN2 or Globe’s second fiber optic backbone network, domestic transmission loops, as well as the expansion and upgrades of the Company’s broadband and mobile networks.
As of the end of 2009, Globe increased its base stations by 22 percent to 10,333 and cell-sites by seven percent to 6,226 to support its 2G, 3G and WiMax services.
Geographical coverage of service revenues stood at 97 percent while population coverage was at 99 percent.
Total capex as a percentage of service revenues registered 40 percent compared to 2008’s 32 percent, the report indicated.
Excluding the one-time investments, mobile capex as a percentage of mobile revenues was at 13 percent, within regional benchmarks for similarly mature markets.
The company closed the year 2009 with net income after tax of P12.6 billion, 11 percent higher than 2008. Excluding foreign exchange, and mark-to-market gains and losses and non-recurring items, the Company’s core net income closed at P12 billion or two percent higher than the previous year.
Mobile revenues on the other hand, declined by four percent due to intense competition and increase preference of subscribers for value offers on the back of weak consumer economy.
However, the decline was partially offset by a 22 percent improvement in fixed line and broadband revenues on the back of robust subscriber growth in broadband, and the continued growth of the Company’s fixed line data business for the corporate sector.
Mobile revenues of the company accounted for 85 percent of total service revenues, down from 88 percent in 2008. Meanwhile, fixed line and broadband increased its share of consolidated revenues from 12 percent to 15 percent in 2009.

Source: The Freeman Cebu

Cebu City now Asia's top outsourcing city - survey

MANILA, Philippines - Cebu City emerged as Asia’s top outsourcing city, overtaking Chinese cities Shanghai and Beijing, a survey from one of the global outsourcing advisory firms showed yesterday.
Data from strategic advisory firm for global outsourcing and investments Tholons ranked Cebu City as the top Asian outsourcing city, followed by Shanghai and Beijing in China. Three other Philippine cities were included in the top 18 Asian outsourcing cities: Pasig, Quezon City and Mandaluyong.
However, the survey showed that Makati City, the country’s leading business district has slipped from the survey as a good BPO destination. Tholons showed that Makati City is no longer in the list of Asian cities included in the Top 50 Global Emerging Outsourcing Countries.
 “It is unfortunate that the country’s acknowledged financial capital is losing out in the BPO boom. The impact is being felt by mostly the middle class residents of Makati who would otherwise be recipients of jobs and business opportunities in BPOs, especially call centers,” Makati Vice Mayor Ernesto Mercado said.
He also noted that allied sectors like construction and real estate have also been affected.
“While we read glowing accounts of investors being bullish about the Philippines as a BPO destination, most of them are locating in other cities in Metro Manila. As a result, residents in these cities get better opportunities for employment and livelihood, as well as skills training and education,” Mercado explained.
He said the city government has not been able to match the investments poured in by neighboring cities in education and infrastructure to suit the demands of BPO firms.
He also said the city government’s business support services have deteriorated, turning off many investors including BPO firms.
 “I have received unflattering reports about the way city hall has been treating our businessmen and potential investors. This has greatly contributed to the drop in the city’s overall competitiveness as a business haven,” Mercado noted.
He said Makati needs to regain its competitive edge, starting with a city government-driven campaign to address weaknesses and problems with key business services.
 “Makati needs to regain its competitive edge. The private sector is looking to the city government to institute programs to attract BPO investments. Sadly, city hall does not seem to realize the urgency of the problem,” Mercado said.

Source: The Philipp;ine Star

Robinsons Land a driving force in Cebu

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MANILA, Philippines - The strong domestic retail market continues to paved the way for more property developments and expansion not only in major urban centers like Metro Manila but throughout the country. The expansion is being followed rapidly by BPO and call center companies as they moved to the Next Wave Cities.
Cebu has taken advantage of these developments and has landed itself as the premier destination for BPO and call center companies because of the presence of the correct mix of critical infrastructure, ample and appropriate human resources and lower cost. Cebu was selected as one of the highest-ranking BPO destinations in Asia due to high literacy and labor pool, fiscal incentives and competitiveness.
Robinsons Cybergate Cebu, Robinsons Land Corporation’s latest Cebu project that integrates BPO office spaces in its newest shopping and lifestyle mall development has reinforce the company stature as a driving force in the industry and the main developer of BPO sites that offers a total live-work-play environment.

Metro Gaisano chain to employ Mandarin-speaking consultants

CEBU, Philippines - Anticipating an influx of Chinese tourists starting this year, the Metro Gaisano chain of department store and supermarkets is preparing to hire Mandarin-speaking sales consultants to specifically attend to this market.
Margaret Gaisano-Ang, whose family owns the Metro Gaisano chain of department stores and supermarket across the Philippines, said that the company recognizes the importance of the Chinese tourists market to the retail sector in the Philippines.
According to Gaisano-Ang, the number one interest of Chinese travelers is shopping, thus they are considered as one of the high-spender tourists to date.
“Shopping here is cheap for them. We are looking for sales people who speak Mandarin because of the Chinese market,” Gaisano-Ang said.
If not, Metro Gaisano chain will train sales people to learn Mandarin, in order to effective communicate with the Chinese travelers, especially that most of them do not speak or understand English.
The expected invasion of Chinese tourists to the Philippines, especially Cebu with the establishment of regular chartered flights from Guangzou to Cebu, is seen to fuel the retail sector.
Gaisano-Ang said Metro Gaisano chain, is taking advantage of this opportunity to immediately install “Chinese-tourists” friendly facilities in their stores, including the provision of Mandarin-speaking sales assistants.
Chinese tourists are not only regarded as “shopaholic” tourists, splurging on shopping, but they are also known as the invest-consumers, who buy bulk of products, for business purposes back home.
A travel expenditure of one Chinese tourist is equivalent to four to five tourists combined. This means, that Chinese visitors spend more than the traditional foreign tourists.
“Chinese [travelers] are either tourists or investors, they buy in bulk, that’s why in Hong Kong we call them ‘invest-consumers,” a Hong Kong based economist earlier said.
Gaisano-Ang, who also owns a travel agency, the Grand Holiday Travel and Tour Inc., said that Cebu is ready to accommodate the influx of Chinese tourists, starting this year.
DOT record showed that in 2004, there were only a total of 32 thousand Chinese travelers visited the Philippines. The figure ballooned to over 200 thousand last year, with the active promotion of the Philippines to attract Chinese tourists in different areas in China.
Each year, an average of 1.5 million to 1.3 million Chinese travels outside their country, large number of these travelers to go Thailand, as it has effectively marketed its tourism attractions to the Chinese market far way ahead than the Philippines.
Record showed that about 1.3 billion Chinese (and growing) is now starting to travel. About 50 million to 100 million can now afford to travel outside of their country, and regarded as the one of the highest tourist spenders.

Source: The Freeman Cebu

Symantec unveils new backup software for mid-size businesses

CEBU, Philippines - Symantec Corporation recently unveiled the Backup Exec 2010 to help mid-sized businesses effectively manage their businesses under a very pressured and competitive environment.
“Organizations of all sizes are struggling to effectively manage information growth, particularly as they leverage virtualization technologies, creating new backup and recovery complexities,” said Andre Xavier, regional product manager, Symantec Information Management Group, Asia Pacific and Japan.
De-duplication and archiving have primarily been enterprise-class technologies, but Backup Exec 2010 brings them to the masses to solve difficult IT challenges in an extremely simple and easy to use solution, Xavier emphasized.
According to industry analyst firm IDC, storage capacity is growing within 48 percent to 50 percent each year, placing more data at risk and making the disaster recovery process much slower.
In fact, approximately 70 percent of data is described as “duplicate,” and has not been accessed in more than 90 days.
Organizations that implement an integrated de-duplication and archiving solution can realize up to 20 percent up to 40 percent savings in storage costs and easily find and recover their critical information when they need it, Xavier said.
Delivering on Symantec’s de-duplication strategy, Backup Exec 2010 offers a flexible approach to eliminating duplicate data without adding complexity.
Also, the technology offers integrated de-duplication technology at the client/source and media server, in addition to integrating with third-party de-duplication appliances through the Symantec Open-Storage Technology (OST) program.
De-duplication allows organizations to dramatically reduce backup storage costs by consolidating and re-using existing storage resources, and client-side de-duplication minimizes backup windows and reduces network utilization by up to 90 percent. 
Backup Exec 2010 integrates two new archive options to provide unified backup and archiving for Windows file systems and Exchange environments by archiving data from the backup copy, rather than separately pulling data from the source. Powered by Symantec Enterprise Vault archiving technology, administrators can easily and more efficiently manage their data lifecycles by setting automated retention periods to migrate older, less critical data over time to less expensive storage environments.
The archive options help optimize Exchange and File Server performance by eliminating redundant data at the server to further free up storage space, keep storage at predictable levels and reduce backup windows. 
Backup Exec 2010 is the first backup and recovery software solution to deliver granular recovery for virtual Microsoft applications from a single pass backup. This unique technology enables organizations to reduce business downtime by recovering granular data from virtual environments in just seconds. Administrators can easily restore or redirect an entire application or recover individual emails, mailboxes or file/folders quickly from inside a guest machine – from a single system backup.
Symantec delivers a range of support plans to help Backup Exec customers and partners install and upgrade quickly, and can train employees to leverage advanced functionality and maximize uptime. 
Symantec helps organizations secure and manage their information-driven world with storage management, email archiving and back-up recovery solutions.

Source: The Freeman Cebu