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CEBU PORT AUTHORITY
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SECOND CEBU PORT COMMISSION
VICENTE C. RIVERA, JR.Chairman
Secretary, Department of Transportation &Communication
JUAN O. PENAAlternate Chairman
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ANTONIO JOSE B. ELUMIR,JR.Vice Chairman
DR. RAUL P. ALCAREZCommissioner
ROMULO M. MANIGSACACommissioner
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MICHAEL C. MENDOZACommissioner
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PACITA G. TANCommissioner
RAMIRO V. VALENZUELA, JR.Commiss-~oner
EXECUTIVE OFFICERS
ANTONIO JOSE B. ELUMIR, JR.General Manager'
ENGR. DENNIS R. VILLAMORActing Deputy General ManagerPort Services Division Manager
ENGR. MARIO G. TANEngineering Services Division
ROSARIO G. PEGAROMResource Management Division Manager
ATTY.YUSOPJ.UCKUNGLegal Affairs Division Manager
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OSCAR J. LOPEZPort Safety, Security & Environment Division Manager
ROMEO S. ALVISOChief of Staff
Office of the General Manager
MANAGEMENT GROUPS
Office of the Cebu Port CommissionAtty. Yusop J. Uckung
Acting Corporate Board Secretary
Office of the General ManaaerJose Ramon H. Najarro
Executive Assistant
Enaineerina Services Division Port Services Division
Engr. Sofronio T. MagdadaroConstruction/MaintenanceSection
Capt. Arnoldo I. MaglangitHarbor Master
Engr. Jose Rido C. SullanoPlanning/MonitoringSection
Fernando C. TaladuaManager, Management Office 1
Engr. Romeo SevillaUtilities Section
Nilo L. RiveraManager,ManagementOffice2
Port Safety, Security & Environment Division Benjamin B. CartillaManager, Management Office 3
Rhonda Ave V. DaluzIntelligence& InvestigationSection Paterno C. Satina
Manager, Management Office 4
Edmund Leopoldo, Sr.Access/Pass Control Section Florencio B. Anib
Manager,ManagementOffice5Glenn SaradorPatrolfTrafficSection Rodrigo M. Oporto
Manager, Management Office 6Resource Management Division
Elizabeth C. SuarezFinanceOfficer
Augusto V. DuranoManager, Management Office 7
Perlita G. JumapaoSr. IndustrialRelationsMgt.Officer
Eutiquio Nunez, Jr.Manager, Management Office 8
Rosemarie S. SeguraActingSupplyOfficer
Claro R. Cagigas, Jr.Manager, Management Office 9
Bibiano JandayanOIC,GeneralServices
Leah S. GorreroActingChiefStatistician
GENERAL MANAGER'S REVIEW
In 1998, the Authority went full steam ahead towards fulfilling its mandate inspite of the ASEAN economic crisis.
The Change in the composition of the Cebu Port Commission took a littlelonger than usual but this did not slacken the level of performance' of theoffice in general.
A. ORGANIZATIONAL DEVELOPMENT
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The Authority had a personnel complement of 189 employees, 173 ofwhich were holding regular plantilla positions while 16 employeeswere on casual status.
I In deference to the issuance of Administrative Order No. 372, theorganizational restructuring originally programmed in 1998 wasdeferred and was reprogrammed for CY 1999.
On the improvement of the office system, the computerization of thebilling, collection, and the integrated accounting system had beenfully implemented at year's end.
B. OPERATIONALrI For the year reported, the total cargo throughput for the Port of Cebu
(Bulk, Breakbulk and Containerized for both domestic and foreigncargoes) increased to 15,262,134 m.t. in 1998 compared to13,523,552 m.t. in 1997 despite the decrease in foreign traffic(2,319,494 m.t. in 1997 compared to 2,029,614 m.t. in 1998).Domestic cargo traffic compensated for this decrease with itsincrease from 11,204,058 m.t. in 1997 to 13,232,520 m.t. in 1998.
Total domestic shipcalls increased to 68,234 in 1998 compared to65,751 in 1997 while foreign shipcalls decreased to 589 in 1998compared to 675 in 1997. Total passenger traffic (disembarking andembarking) also increased to 11,757, 951 in 1998 from 10,697,645 in1997.
The year also saw the completion of the RORO ramp at the Port ofSta. Fe (Management Office 7), increasing its berthing capacity tofour (4) small conventional vessels.
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In line with the Authority's policy of operating and maintaining onlyports and subports which have relevance to regional and nationaldevelopment, the operations and management of other ports wouldbe turned-over to interested concerned municipalities. The first of thisco-management endeavor with an LGU was the Port of Bantayan,which turn-over was effected last July 1, 1998.
For better delivery and to further encourage the participation of theprivate sector in public service, the Authority bid out the operationand management of its passenger terminal at the CIP Complex to aprivate contractor.
OPASCOR acquired additional yard cranes to increase cargohandlingcapacity and efficiency at the CIP.
Towards the last 2 months of the year, the Authority intensified itsefforts not only in its inherent berthing and cargohandling operationsbut also in other port-related matters like vendors' relocation, portbeautification, and sanitation.
Additional working committees were also created within and amongthe Commissioners to enable the Board to promulgate and attainmore responsive and realistic policies for management to implement.
C. ENGINEERING
At the close of the year 1998, the Engineering Services Division wasable to implement thirteen (13) RIM projects and eight (8) CapitalOutlay projects in the amount of P62,005,332.26 and P9,780,716.40,respectively, or a total of P71,786,048.66.
Due to the election ban, most of these projects were implementedduring the 2nd half of the year. Although some of the road repairprojects were affected by intermittent occurrences of rain, the projectswere nevertheless completed on time.
D. PORT SAFETY, SECURITY & ENVIRONMENT
The Port of Cebu enjoyed a peaceful environment. There had beenno major untoward incident that occurred inside the port area duringthe year.
To promote a pro-active policing system in the Port of Cebu, thePSSED adopted and implemented various crime preventionprograms, foremost of which were the creation of the port usersvolunteer groups for anti-crime activities in the Baseport of Cebu andthe active participation and coordination of the activities of theBarangay Unified Police Force operating within the port area.
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I E. FINANC IAL
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The slowing down of the economic activities in the ASEAN countrieshad reduced the volume of importation at the Port of Cebu.Consequently, the Authority's revenue generated from port chargesand from arrastre and stevedoring services went down, though not somuch below the target.
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The Cebu Port Authority for the year 1998 generated a total revenueof P295.04M, registering an increase of 4% over last year's revenueof P283.55M. This however was 7% short of the year's revenuetarget of P318M.
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Revenue from port charges accounted for 58% of the total. On theother hand, the Authority's income from arrastre and stevedoring was24%, while the non-traditional income and income from fundmanagement contributed 15% and 4%, respectively,
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On the expenditures side, the Authority after having fully compliedwith the requirement of AO No. 372 of offering not less than 25% ofnon-Personnel Services Budget of its 1998 Corporate OperatingBudget as mandatory cost saving measure, has expended a total ofP269.25M which was 2% below the 1998 Operating Budget ofP275.59M and 3% over that of 1997.I
.- Expenditures include repayment of long term foreign debt amountingto P61.54M for interest and loss in currency adjustment and P50M forprincipal repayment; capital expenditures of P10M; PersonnelServices at P44.2M; Repair and Maintenance of Port Facilities atP62.06M and Other Operating & Administrative Costs of P40.15M.
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The mandatory savings imposed by the government whichconstrained the Authority to defer some projects and programs hadcontributed much in the realization of a net income before tax ofP16.33M, posting an impressive 149.51% increase over last year'snet income of P6.5M.
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The 2nd Cebu Port Commission is optimistic that what had beenaccomplished in the past year was just the beginning of better years ahead.Though faced with a bigger and greater task ahead, management isconfident that with the cooperation of everyone, CPA shall be able to realizeits vision of being a better port with improved infrastructures and effectiveport services manned by dedicated personnel truly committed to be themodel of public service.
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'TATI'TI(Al DATA
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Shipe aIlsDomestic
Foreign
199868,234
589
Inc.l(Dec. )3.77%
(12.74%)
199765,751
675
m 1W7 m m7
I tUn Iesficl I.~
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6,200,000
6,000,000
5,800,000
5,600,000
5,400,000
5,200,000
5,000,000
4,800,000
4,600,000
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Passenger Traffic
Disembarking
Embarking
1998
6,000,356
5,757,595
Inc.l(Dec.)8.00%
11.98%
1997
5,556,079
5,141,566
1998 1997
I- Disem barking. Em barking 1
DomesticInboundOutbound
ForeignImportExport
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Cargo Throughput1998
13,232,5206,668,7596,563,7612,029,6141,378,340
651,274
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1997~~ '
1997
11,204,0585,585,2235,618,8352,319,4941,890,852
428,642
Variance
18.10%19.40%16.82%
(12.50%)(27.10%)
51.94%
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~ 19.J7
DomesticInbound
EmptiesFulls
OutboundEmptiesFulls
ForeignImport
EmptiesFulls
ExportEmptiesFulls
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Container in TEUs
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Variance28.65%12.93%39.29%6.58%55.68%181.55%25.41 %1.24%
(10.76%)(30.83%)(5.76%)8.86%9.94%8.59%
1997
BillImport(empties)
BillImport(fulls)
. Export(empties)
II export(fulls)
1998 1997
270,858 210,531150,285 133,08335,940 25,803114,345 107,281120,573 77,44742,278 15,01678,295 62,43162,425 63,20629,026 32,5254,483 6,481
24,543 26,04433,399 30,6816,722 6,114
26,677 24,567
30,000
25,000I
fillJdnnl
(oq:iKs)I 20,000
Jdnnl
(fill;) I 15,000.
(oq:iKs)I
10,000
III
(00s) .15,000
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lJJ7 1998
Revenue By Source
I- Port Charges. Arr & Stev [JJOther Income [JJFund Mgmt. Inc 1
1998 1997 Variance
Port Charges 169,900,227.86 162,656,801.74 4.45%
Arrastre and Stevedoring 69,500,633.27 69,049,225.36 0.65%
Other Income 42,503,825.29 39,911,434.59 6.50%
Fund Management Income 13,132,254.80 11,935,925.76 10.02%
Total 295,036,941.12 283,553,387.45 4.05%
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Expenditures
Personal ServicesOther Administrative CostsR & M Port FacilitiesDepreciationInterest Expense
Total
199844.2240.1562.0170.8061.54
278.71
199746.5248.3948.9567.0866.07
277.01
Variance(4.95% )
(17.03%)26.67%5.54%
(6.86% )0.61 %
16%
14%
IIIPersonal Service
IIIDepreciation
. OtheradministrativeCosts III R & M Port Facilities
IIIInterest Expense
Republi~ ofthe PhilippinesCOMMISSION ON AUDIT
Office of the AuditorCebu Port Authority
North Reclamation Area, Cebu City
STATE AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS
The General ManagerCebu Port AuthorityNorth Reclamation Area
Cebu City
Pursuant to Section 2, Article IX-D of the Philippine Constitution and pertinentprovisions of Presidential Decree No. 1445, we have audited the accompanying Balance Sheetof the Cebu Port Authority as of December 31, 1998, and the related Income and Cash FlowStatements, for the year then ended. These financial statements are the responsibility of theAuditee. Our responsibility is to express an opinion on these financial statements based on ouraudit.
We conducted our audit in accordance with generally accepted state auditing standards.Those standards require that we plan and perform the audit to obtain reasonable assurance thatthe financial statements are free of material misstatements. Our audit included examining, on atest basis, evidence supporting the amount and disclosures in the financial statements. It alsoincluded assessing the accounting principles used and significant estimates made by the Auditeeas well as evaluating the overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all materialrespects, the financial position of the Cebu Port Authority as of December 31, 1998, and theresults of its operations, and its cash flows, for the year then ended in accordance with applicablelaws, rules and regulations and in conformity with generally accepted state accountingprinciples.
COMMISSION ON AUDIT
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R~~OState Auditor III
Unit Head
January 29, 1999
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ASSETS
CURRENT ASSETS
Cash on Hand & In BankReceivables - Trade
- Non-Trade
Total Receivables
Less: Allowance for Doubtful Accts.Net Receivables
Inventories - Supplies & Materials
- Sem i-Expendable Supplies (net)- In Transit
Total Current Assets
FIXE D ASS ETS
Land
Depreciable Fixed Assets
Building & Structures
Building & Structures in ProgressFurn., Fixt. & EquipmentFurn. Fixt. & Eqpt. - In TransitTotal Depreciable Assets
Less: Accumulated Dep'n.
Net Land, Buildings & EquipmentTotal Fixed Assets
INVE S TME NTS
S h0 rt-Term Inves tm e nt
Other Investm ents
Total Investm ents
OTHER ASSETS & DEFERRED CHARGESP repaid Tax
Contingent AssetsMiscellaneous
Total Other Assets & Deferred Charges
TOTAL ASSETS
CE BU PO RT AUTHORITYCOM PARA TIVE BALANCE SHEET
As 0fOe ce m be r 31 , 1998 & 1997
1998
9,418,990.70
6,652,640.60
16,071,631.30
359,200.25
1,063,718.38
2,371,689.55
3,118,097.00
1,664,186,921.21
26,072,218.01
223,998,470.94
55,500.00
1,914,313,110.16
1,132,473,981.08
130,343,866.61
36,748.80
2,265,843.37
7,241,943.05
223,63223
19,813,757.80
15,712,431.05
6,553,504.93
42,079,693.78
3,573,170,000.00
781,839,129.08
4,355,009,129.08
130,380,615.41
9,731,418.65
4,537,200,856.92
1997 "loINC(D EC)
7,639,117.48
10,026,665.46
17,665,782.94
135,521.34
1,642,929,670.16
25,987,458.89
225,287,570.73
4,575,828.55
1,898,780,528.33
1,064,838,004.00
127,594,934.22
36,748.80
880,043.00
4,595,334.51
223,632.23
28,700,313.66
17,530,261.60
1,580,513.55
47,811,088.81
3,573,170,000.00
833,942,524.33
4,407,112,524.33
127,631,683.02
5,699,009.74
4,588,254,305.90
(30.96)
23.30
(33.65)
(9.02)
165.05
(10.37)
(100.00)
(11.99)
1.29
0.33
(0.57)
(98.79)
0.82
6.35
(6.25)
2.15
2.15
157.47
57.59
70.76
(1 .11 )
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1998
LIABILITIES & RESIDUAL EQUITY
CURRENT LIABILITIES
Accounts Payable-TradeOther Current Liabilities
Total Current Liabilities
30,732,087.12
9,695,420.56
LONG-TERM LIABILITY
Loans Payable-Foreign
Accrued Interest Payable
208,579,305.67
15,110,170.26
Total Long-Term Liability
CONTINGENT LIABILITY
OTHER LlABILITTIES
& DEFERRED CREDITS
Output VAT PayableMiscellaneous
499,323.67
10,642,931.19
Total Other Liabilities & Deferred Credits
TOTAL LIABILITIES
RESIDUAL EQUITY
Equity Contribution
Retained Earnings
Surplus Reserves:
Gratuity Reserve
Appraisal Surplus
Contingent Surplus
Total Surplus Reserves
8,600,000.00
4,017,385,718.08
7,137,280.23
TOTAL RESIDUAL EQUITY
TOTAL LIABILITIES & RESIDUAL EQUITY
Prepared by: Certified Correct:
ELIZABETH ~UAREZ
Finance Officer
ROS~GAROM
RMD~~
40,427,507.68
223,689,475.93
54,000,000.00
11,142,254.86
329,259,238.47
150,862,076.32
23,956,543.82
4,033,122,998.31
4,207,941,618.45
4,537,200,856.92
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1997 %INC(DEC)
33,232,834.99
5,917,453.04
265,570,851.65
32,846,167.00
429,301.17
11,742,139.45
8,600,000.00
4,017,385,718.08
4,595,334.51
39,150,288.03
298,417,018.65
41,500,000.00
12,171,440.62
391,238,747.30
150,862,076.32
15,572,429.69
4,030,581,052.59
4,197,015,558.60
4,588,254,305.90
(7.52)
63.84
3.26
(21 .46)
(54.00)
(25.04)
30.12
16.31
(9.36)
(8.46)
(15.84)
53.84
55.32
0.06
0.26
(1 .11 )
General Manager
Prepared by:
ELIZABETHhbAREZ.Finance Officer
Certified Correct:
ROS~GAROM
~a~er
FS-98(COA)/FINREP98
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CEBUPORTAUTHORITY
INCOME STATEMENTFor the Period ending December 31, 1998
(WithComparati\eFiguresfor1997)
INC(DEC)1998 1997 ANOUNT %
REVENUE FROM OPERATIONS (Schedule1) 281,904,686.42 271,617,461.69 10,287,224.73 3.79
Less: Operating Expenses:Personal Services (Schedule2) 44,216,063.34 46,520,345.44 (2,304,282.10) (4.95)RM-Port Facilities 62,005,332.26 48,950,784.75 13,054,547.51 26.67
Maintenace & Other Operating Expenses (Schedule3) 40,151,721.99 48,390,842.48 (8,239,120.49) (17.03)
Total Operating Expenses-Cash Charges 146,373,117.59 143,861,972.67 2,511,144.92 1.75
NET REVENUE BEFORE NON-CASH CHARGES 135,531,568.83 127,755,489.02 7,776,079.81 6.09
Less: Depreciation Expense 70,798,162.18 67,080,446.63 3,717,715.55 5.54
NET INCOME FROM OPERATIONS 64,733,406.65 60,675,042.39 4,058,364.26 6.69
Add/(Deduct): Other Expense/Revenue Items:Fund Management Income 13,132,254.80 11,935,925.76 1,196,329.04 10.02
Interest on Long-Term Loans (61,536,763.42) (66,066,681.27) 4,529,917.85 (6.86)NET INCOME BEFORE INCOME TAX 16,328,898.03 6,544,286.88 9,784,611.15 149.51
Less: Provision for Income Tax 1,086,858.71 2,290,500.40 (1,203,641.69)NET INCOME BEFORE BTr DIVIDEND 15,242,039.32 4,253,786.48 10,988,252.84 258.32
Less: Provision for BTr Dividend 7,621,019.66 2,126,893.24 5,494,126.42 258.32
NET INCOME TO RETAINED EARNINGS 7,621,019.66 2,126,893.24 5,494,126.42 258.32
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SCHEDULE 1SUMMARY OF REVENUE
H arbor Fees
Berthing ChargesAn c h 0 ra g e Fee sPortUsage FeesWharfage DuesStorage ChargesArrastre/Stev. ShareOther Income
Tot a I Revenue from 0 p n s .Fund Managementlncome
TOTAL REVENUE
1 998
1 6 ,3 4 7 ,9 2 6 .1 11 6 ,4 9 9 ,4 6 1 .5 2
3 ,2 0 0 ,3 5 5 .9 52 0 ,4 5 0 ,4 8 0 .549 3 ,8 5 1 ,1 2 6 .4 61 9 ,5 5 0 ,8 7 7 .2 86 9 ,5 0 0 ,6 3 3 .2 74 2 ,5 0 3 ,8 2 5 .2 9
2 8 1 ,9 0 4 ,6 8 6 .4 2
1 3 ,1 3 2 ,2 5 4 .8 0
2 9 5 ,0 3 6 ,9 4 1 .2 2
SCHEDULE 2SUM MAR Y 0 F PER SON A L S E R V IC E S
Salaries & WagesSocialSecurity PremiumsManpower Development0 ther Staff Benefits
TOT ALP E R SON A L S E R V IC E S
SCHEDULE 3SUM MAR Y 0 F M A IN TEN AN C E
Traveling ExpensesCommunication ServicesSecurity ServicesBoard ExpensesMeetings & ConferencesInsurance Non-Staff
Printing & BindingRM-Equipment0 ffice Supplies & MaterialsWater,llum.& Power
Retirement GratuityAuditing ServicesR M -M otor Vehicles
Discretionary ExpensesTaxes & Licenses
Other Operating Expenses
TOTALMOOE
5 C H . 15 9 7
2 1 ,4 7 4 ,5 6 9 .1 63 ,0 7 8 ,2 5 1 .5 2
3 7 ,6 4 9 .0 81 9 ,6 2 5 ,5 9 3 .5 8
4 4 ,2 1 6 ,0 6 3 .3 4
& OPERATING E X PEN S E S
3 8 2 ,7 9 8 .3 68 3 1 ,5 9 1 .3 2
7 ,5 6 5 ,76 8 .1 32 ,6 8 3 ,5 6 4 .9 0
3 0 3 ,3 4 7 .2 75 6 9 ,8 1 2 .5 6
1 ,70 1 ,5 0 4 .5 6519,460.99650 ,79 5 .7 0
9 ,8 3 8 ,5 0 1 .743 0 1 ,0 6 2 .1 7
35,905.82244 ,4 3 4 .2 9
8,116.171 2 ,5 2 3 ,8 7 8 .2 6
1 ,9 9 1 ,1 7 9 .75
4 0 ,1 5 1 ,72 1 .9 9
')
1 9 9 7
1 2 ,9 8 3 ,9 6 2 .2 51 6 ,4 3 6 ,7 6 2 .1 4
2 ,2 6 6 ,5 9 5 .762 0 ,9 7 3 ,4 7 1 .2 98 5 ,2 2 1 ,4 8 2 .2 72 4 ,7 7 4 ,5 2 8 .0 36 9 ,0 4 9 ,2 2 5 .3 63 9 ,9 1 1 ,4 3 4 .5 9
2 7 1 ,6 1 7 ,4 6 1 .6 9
1 1 ,9 3 5 ,9 2 5 .76
2 8 3 ,5 5 3 ,3 8 7 .4 5
2 4 ,5 0 2 ,1 7 4 .8 52 ,7 5 1 ,71 8 .3 0
2 0 0 ,5 4 9 .2 51 9 ,0 6 5 ,9 0 3 .04
4 6 ,5 2 0 ,3 4 5 .44
6 6 3 ,8 4 8 .8 76 6 9 ,2 3 1 .79
6 ,7 3 5 ,3 2 0 .4 91 ,9 7 0 ,5 4 3 .3 7
2 3 6 ,7 2 7 .1 7412,038.71
1,625,967.082 9 8 ,5 1 3 .8 35 6 0 ,7 7 4 .3 7
8 ,4 5 3 ,8 4 8 .3 56 1 6 ,1 6 1 .6 3
1,981,402.15574,469.517 5 4 ,4 3 8 .3 2
2 1 ,5 0 9 ,8 7 8 .6 71,327,678.17
4 8 ,3 9 0 ,8 4 2 .4 8
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% INC(DEC)
2 5 .9 10 .3 8
4 1 .2 0
(2 .4 9 )1 0 .1 3
(21.08)0 .6 56 .5 0
3 .79
1 0 .0 2
4 .0 5
(12.36)1 1 .8 7
(81.23)2 .9 4
(4 .9 5 )
(42.34)2 4 .2 61 2 .3 33 6 .1 82 8 .1 43 8 .2 9
4 .6 57 4 .0 21 6 .0 51 6 .3 8
(51.14)(98.19)(57.45)(98.92)(41.78)
4 9 .9 7
(17.03)