Over the past years, the maritime industry has been growing and expanding. The companies that have been pioneers in this industry include Interorient Maritime Enterprises, Inc., Philippine Transmarine Carriers, Inc., Transorient Maritime Agencies, Inc., and the Magsaysay Maritime Corporation. They have attained their competency through the years by providing excellent services and providing its clients all over the world with highly skilled human resources.
The Interorient Maritime Enterprises, Inc. started out in 1985. It has a headquarters in Cyprus and offices scattered around the globe – Hamburg, Miami, Manila, Riga and St. Petersburg (“Profile”). They have been servicing more than 265 vessels from Bulkers, Tankers, Containers, RoRo’s, to LPG’s. They have also been servicing 100 vessels with a crew made up of all Filipinos. They also provide their seafarers In-house training for free. The company has shown its excellence by constantly receiving awards from the government namely 3 Top Performer Awards, a Hall of Fame Award, an Award of Distinction, and Philippine Overseas Employment Administration (POEA) has given them several Awards of Excellence (Tinig ng Mariano, 2010). They have been honored by the POEA to administer an In-house Contract Processing system where they are already the ones giving their employees the contract that is authorized by the government (Interorient Maritime Agencies, Inc.). In 2009, the company has deployed a total of 5,127 Filipino seafarers. This was also the time when the whole global shipping industry was fit by the US financial crisis. (Tinig ng Mariano, 2010) Until today, the company continues to grow and insures that they provide high quality services.
The Philippine Transmarine Carriers, Inc. (PTC) was founded in 1979. It is now one of the largest companies in the industry today with 30,000 officers and crew all over the globe. PTC has tied-up with leading Principals from Europe, Asia, and North America. They have been also certified by Det Norske Veritas, a global provider of services for managing risk, since 1995. Like Interorient, PTC has also received numerous awards from the government for its outstanding performance like POEA Top Performer Award and Hall of Fame and managing a wide range of vessels from tankers to carriers. PTC offers its people an in-house facility called Philippine Center for Advanced Maritime Simulation and Training (PHILCAMSAT) since 1992 for training purposes. Also, they have hired 200 employees to meet the needs of their Principals and seafarers (Philippine Transmarine Carriers, Inc.).
The Magsaysay Company started out in 1940 and ventured into the maritime industry in 1970. They have been involved in the “Philippine interisland and near-sea trades for both dry and liquid cargoes by acquiring the National Marine Corporation (NMC) from the Philippine government in 1988″ (Magsaysay Maritime Corporation). The Magsaysay Company also helps in domestic tourism through the establishment of Sun Cruises, Inc., which served as a ferry to Corregidor Island. This also led to the start of Magsaysay Travel and Tours Co., Inc. They have proven their excellence by achieving the 2005 Lloyd’s Maritime Asia Award as Best Manning Company in Asia/Pacific as well as other awards. They have over 20,000 officers, crew, and personnel working all together. (Magsaysay Maritime Corporation) Today, the Magsaysay has partnered with Mitsui O.S.K. Marine, Ins., the largest shipping company in Japan, to create MAGMOL (Magsaysay – Mitsui O.S.K. Marine, Ins.). They have been servicing more than 200 vessels and giving jobs to more than 5000 people (“MOL Upgrading Maritime Training Centers in Philippines”, 2005). They continue to expand as they believe that investing in their people as well as their families is the foundation to growth and success.
The Transorient Maritime Agencies, Inc. (TOMA), establish in 1972, is one of the pioneer maritime agencies here in the Philippines. As same as the other companies, TOMA handles bulk carriers, cargo, RO-RO vessels, and tankers. They also offer their seafarers in-house trainings which include management and leadership programs, environmental protection seminars and pre-departure orientation seminars (Transorient Maritime Agencies, Inc.).
Industry size
There are more than 200,000 Filipino seafarers across the globe. They aim to provide high quality services across the globe in order to compete with low cost providers. They make up 25% to 28% of the world’s manning industry and they contribute approximately US$2.5B to the to the Philippines economy. The Philippines Seafarers’ Promotion Council is also responsible for making sure that the industry provides well-trained and skilled seafarers that could compete in the global market (PDP Australia Pty Ltd, Meyrick and Associates, 2005).
Operating practices/strategies/resources
The industry has important rules and measures in order to guarantee the safety of the people, company, and environment. The industry’s quality policy is also in line with Transorient own quality policy, “To effect timely deployment of competent, well-trained, disciplined, experienced, well-documented and medically fit seafarers and to render prompt, efficient, reliable ship agency services” (Transorient Maritime Agencies, Inc.). Every company wants its seafarers to be prepared and well-equip every time they are on aboard for them to work efficiently as possible and avoid any catastrophes. The company wants safety of its crew and at the same time, they care for the environment and they aim not to damage it.
The Interorient follows its own Guidelines. “The Guidelines recognized the importance of the existing international instruments as the most important means of preventing maritime casualties and pollution of the sea and included sections on management and the importance of a safety and environmental policy. It is therefore a vital importance to have a full knowledge and understanding of the International Safety Management (ISM) Code and the Company Safety Management (SMS). Moreover, possessing good background safety first course, like first aid, personal survival technique, fire fighting and prevention, lifeboat handling, leadership and behavioral development crucial. It is also very important for everyone to be able to familiarize with matters related to Ship Security. This is to be able to be more vigilant and responsible on board to avoid possible unfortunate events through learning. The ISP Code and the Security measures to be implemented in your ship security plan. Familiarity with Port states control inspection is likewise essential in order to be prepared and secured that any deficiencies found within the ship are rectified before sailing” (Interorient Maritime Agencies, Inc.). It is important that these guidelines implemented to ensure the safety of both the employees and the environment. Severe damages can occur even if just one of these guidelines is not followed. Spillage especially oil can ruin the marine life and mistakes in operating the machines could result to the ship burning. These would not only harm the environment and the people but also the company will be held responsible of the damages if it is proven that it was the company’s fault.
Moreover, MAGMOL has its own Ship Management division. It was created so that the trade routes would be trouble-free when the goods are traveled around the world. It involves all of their branches worldwide including Tokyo, Hongkong, Singapore and Rotterdam. MAGMOL also follows the rules of the other companies like guaranteeing that the all the ships for use are in good condition and it follows the correct standards. They also aim for a full Filipino crew to handle their ships (MAGMOL). Their cadets are trained in the Magsaysay Institute of Shipping (MIS) with its state-of-the-art maritime training facilities. It now has a four-storey dormitory in order to obtain more than 440 cadets per year. “This institute also recruits candidates selected from maritime academies in the Philippines and offers a three-month training course before assignment to a vessel. Graduates serve as cadets on ships operated by MOL and its partners. After a one-year on-board cadetship, they are entitled to take examination for certificate of competency. The passers will be qualified as deck officers or engineer officers of MOL and its partners” (MAGMOL).
PTC also provides an in-house training program in the Philippine Center for Advanced Maritime Simulation and Training (PHILCAMSAT). “It is the first maritime training center thrice-certified by Det Norske Veritas. It utilizes a state-of-the-art integrated bridge and engine simulator, as well as, cargo handling simulators, to ensure that the training experience is as close as possible to the actual shipboard environment. It also ensures that our seafarers comply with all the certification requirements of flag states and international maritime bodies; offers behavioral courses that focus on enhancing personality traits, values and management skills; offers customized courses to meet specific requirements of Principals; offers culinary and language training courses through third party providers; and a customized Cadetship Training Program” (Philippine Transmarine Carriers, Inc.).
Human resource practices/strategies
The success in the industry lies in training their people as well as caring for both their people and their families. Each company has its own methods to train their people into highly skilled employees. TOMA’s recruitment and selection method as well as crew hiring is shown respectively by the flow charts below. They also provide them with several in-house trainings and seminars. Before one of their employees is deployed, they have to go to a series of assessment and examination to ensure that they are well prepared and capable of boarding and working in the ship (Transorient Maritime Agencies, Inc.).
Source: Transorient Martime Agencies
PTC has an integrated human resource development model. It offers three essential elements: the Seafarer, Our Principal and PTC. “The model ensures a holistic and continuous cycle of recruitment, deployment, retention, training, and career development” (Philippine Transmarine Carriers, Inc.).
They also believe in caring for the seafarers families so they offer them programs about entrepreneurship and livelihood, health and wellness, and spiritual renewal. PTC also provides them housing programs with Pacific Terraces Community located in Imus, Cavite to ensure the total well-being of their families. PTC has been active in giving back to the community by hosting mode libraries, Christmas parties for the street children, calamity relief efforts, costal clean-up activities, and many more (Philippine Transmarine Carriers, Inc.).
MAGMOL also believes in caring for the families of the seafarers. “MAGMOL established its Crew & Family Affairs Section (with offices in Manila, Cebu, Iloilo, Bacolod and Davao) to provide services and programs that take care of families while seafarers are on board and assistance to the crew after their shipboard assignment. MAGMOL maintains 100% CONNECTIVITY with its people and their families through the following programs:
1) The MAGSAYSAY SIM – a SIM card with a permanent number so that even if the SIM is lost you can still get the same number. It has a unique menu that gives you information such as PEME results, departure dates and allotment schedules. You can also call or text your family or MAGSAYSAY at a cheaper rate. 2) Counseling for families when serious problems arise as well as timely assistance in the event of emergencies. The Family Center has various programs and a wide array of services to strengthen family relations and help crew give a bright future to their families. 3) Magsaysay Savings Program, which encourages every crew and family to save a portion of their income for long term financial goals. This voluntary program aims to ensure that everyone who works for MAGSAYSAY has a home, college-educated children and enough funds for a comfortable retirement. 4) Medical and Dental coverage and Life Insurance for crew while on shore and medical coverage for their family. 5) Educational Assistance Program, which offers educational stipends to deserving children or siblings of Magsaysay MOL People. 6) General Allottees Orientation, an orientation that welcomes new allottees (family members of Magsaysay People) into MAGSAYSAY. The orientation has speakers who shares about the Company, Principal, and Fleet profile as well as policies, benefits, details of allotment and deductions, and the services and programs that can be availed through the Family Center. 7) Livelihood/Skills Training programs for crew and allottees that are useful for a start-up business or viable and sustainable alternative source of income. Parenting/Family Relationship Sessions, which aim at enriching husband-wife and parent-child relationships. 8) Health Awareness Training – Informative sessions pertaining to health and wellness of both Magsaysay People and their families. Crew and Family Day are regularly conducted to gather crew, allottees and principals from various regions in a fun-filled event. Magsaysay People and Family Club – Created for the workforce and families to serve a network in communicating information/events/activities, to provide strong emotional support and friendship, and to build a community within MAGSAYSAY. The clubs may initiate other programs beneficial to the workforce and their families” (MAGMOL).
Company
Total Assets as of 2007
Total Assets as of 2008
Total Assets as of 2009
Interorient Maritime Enterprises, Inc
–
Php 32,499,596.23
Php 30,766,523.73
Philippine Transmarine Carriers, Inc.
Php 814,282,791
Php 917,833,504
–
Transorient Maritime Agencies
–
Php 7,176,536.20
Php 6,679,299.93Financial strategies/resources/profability
Philippine Transmarine Carriers, Inc.
2007
2008
Revenue
Php 178,255,025
Php 192,633,023
Cost and Expenses
179,319,416
192,689,497
Operating Loss
(1,064,391)
(56,474)
Other Income and Gains (Expenses and Losses)
6,658,399
480,460
Net Income
Php 4,182,693
Php 973,890
Interorient Maritime Enterprises, Inc.
2008
2009
Revenue
Php 45,445,234.11
Php 49,858,818.18
Cost and Expenses
21,583,547.92
23,487,864.66
Operating Income
23,861,686.19
26,370,953.52
Other Income and Gains (Expenses and Losses)
2,901,012.15
3,208,239.84
Net Income
Php 2,107,419.94
Php 2,018,322.55
Transorient Maritime Agencies, Inc.
2008
2009
Revenue
Php 9,739,257.12
Php 8,509,179.58
Cost and Expenses
4,463,160.86
5,035,844.46
Operating Income
5,276,096.26
3,473.335.10
Other Income and Gains (Expenses and Losses)
4,707,429.58
2,723,677.22
Net Income
Php 369,633.34
Php 524,760.55
The information was retrieved from Securities and Exchange Committee.
From the data given above, the biggest player is PTC followed by Interorient Maritime Enterprises, and TOMA. PTC has the largest assets, revenue, and cost and expenses. However, they have an operating loss end result compared to Interorient Maritime Enterprises and TOMA who ended up with an operating income. The biggest net income for 2007 also comes from PTC that totaled to more than four million but only around nine hundred thousand in 2008, while Interorient was able to collect a net income of two million for 2008.
