PNOC Shipping bucks move to close it down

The government-owned PNOC Shipping and Transport Corp. (PSTC) yesterday denounced efforts of private shipping groups to close down its operations.

PSTC president Gen. Cesar F. Tapia (Ret.) said private local oil transport and shipping groups have launched a campaign to force government to close down the state-owned shipping firm which today has been turned around and contributes millions to the national coffers.

Tapia said the Philippine Petroleum Sea Transport Association (Philpesta) and Philippine Interisland Shipping Association (PISA) want the government to stop PSTC from pursuing a fleet modernization program and just close down the company because it poses undue competition to the private shipping industry.

"These demands are ridiculous, unreasonable and contrary to law. No government official in his right mind would dare close down a viable, income and employment generating enterprise among whose other tasks is to ensure deliveries of oil products to strife-torn and hostile areas and remote communities," Tapia said.

At present only PSTC continues to deliver oil products to missionary, high security risks or hostile, strife-torn routes like Basilan, Jolo and Zamboanga while Philpesta members have conveniently indicated reservation to deliver to these hostile places.

"Do we just close shop because local private oil shipping groups with aging, inefficient fleets fear a state-owned shipping firm from pursuing its mandate under its franchise and the law? What happens to our legal obligations under our contracts with clients? Our employees livelihood? Do we just fold up and sell PSTC assets especially our ships as junk? Tapia asked."

Privatization of PSTC is the only fair, acceptable and legal way to put PSTC in private hands and it will happen under the right conditions and circumstances, Tapia said.

He explained that the privatization of PSTC in 1994 and 1997 through public bidding failed and PNOC had no recourse but to stop losses, improve its operations and viability to enhance the state-owned shipping firm’s value with the end in view of ensuring success in future privatization efforts.

"PSTC categorically supports the policy pronouncement of the Arroyo administration to "leave business in the hands of the private sector" and has endeavored to ensure that it would be a viable and healthy business venture when it is privatized so that government would be able to get the best returns for the business," Tapia said.

However, Tapia said PISA and Philpesta do not only want government to scuttle PSTC’s fleet modernization program to meet growing market demand for younger and more efficient bottoms. "They want the immediate extinction of PSTC by presidential edict," Tapia said.