Air + Sea
Air + Sea
| Trickle
Down Garment Troubles Hit Shipping The downturn in CNMI's garment industry is also affecting the Commonwealth's shipping services. Shipping companies are projecting a 50 percent reduction in the volume of shipments to the United States. Port Operators and Users Committee President Frank B. Camacho, who is also president of CTSI Logistics, an affiliate of the island's largest garment manufacturer, says it may force shipping firms to reduce their employee numbers. "We're preparing for the worst case scenario and looking for other sources of revenue. We have to cut operating costs to save," he told the Marianas Variety. Camacho says 60 percent of the cargo shipped to the U.S. consists of textile and garments. Other industry officials say the figure could be as high as 70 percent. To recoup their losses, cargo handlers may ask for additional charges on inbound shipments. Tragic Month For Papua Aviation Crash experts are still investigating the cause of two fatal accidents late February in Papua New Guinea and neighboring Papua. Two pilots were killed when an aircraft with 11 people on board crashed in the Star Mountains of Western province Feb. 22. The Mission Aviation Fellowship (MAF) Twin Otter was flying from Tabubil to Wobagen when it crashed. MAF says flight attendant Stanley Torea helped save the lives of the passengers, despite himself being dazed in the crash. Meanwhile, 15 people died and three were seriously injured after a police plane crashed into the sea in the Indonesian province of Papua the same day. The Casa-212 aircraft crashed while trying to land at Mararena airport. Air Vanuatu Still Besieged The turbulence continues at Air Vanuatu, where a new general manager and marketing manager have been appointed. Terry Kerr and Manuel Carlot replace Jean Paul Virelala and Joseph Laloyer as general manager and marketing manager respectively. The alleged abuse of free travel by board members and their families, and bad investments have been given as reasons for the changes. However, the sacking of Virelala and Loloyer, and replacement of the entire board have raised concern about the struggling airline. The new board has doubled in size but according to some, lacks experience in the aviation industry. Air Vanuatu made a loss of US$2.7 million last year. Meanwhile, Air Vanuatu has accused Virgin Blue of using "predatory pricing" to increase its market share. Terry Kerr told the Vanuatu Daily Post "it appears Virgin is trying to increase its load factors by flying people to Melbourne and Brisbane to join the flights to Vila from Sydney. Air Vanuatu has its own service from Sydney. Matson Commits
To Guam Matson Navigation Company is investing $365 million to launch a new Guam and China service next February. The investment will include the purchase of two new ships. Matson is a subsidiary of Hawaii-based Alexander and Baldwin Inc. "Matson's highest priority for the past two years has been the development of a viable replacement service for Guam," says Matson's President and CEO, James Andrasick. Matson's cargo-sharing alliance with American President Lines Ltd expires next February. Under the agreement the companies could use each other's ships to move cargo between Hawaii and Guam. "By mid-2006 both new ships will be deployed in an integrated weekly West Coast-Hawaii-Guam-China service," Matson says. Alexander and Baldwin spokesperson, John Kelly, told the Honolulu Star-Bulletin that the move "opens up a growth opportunity." He says the new ships will create more jobs but that their purchase will not affect Matson's rates. "What this new trade does is to …have revenue-bearing cargo coming to Hawaii, revenue-bearing cargo going to Guam and then, after a short distance from Guam to the Far East," Kelly says.
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