Raising safety standards

Operating under the motto ‘Ferry safe, ferry fast and ferry convenient’, Archipelago Philippine Ferries Corporation (APFC) was set up in 2002 to connect the Philippines’ 7,107 islands via a seamless transportation system. The company owns and operates the Philippines’ first and only catamaran ro-ro ferries, as well as ro-pax ferries and modernised ports and terminals on the eastern and western Philippine sea route.

Owing to its focus on ensuring passenger safety, welfare and comfort, APFC embarked on an ambitious re-fleeting programme in 2010. It partnered with Sea Transport Solutions of Australia to bring to the Philippines for the first time 10 new ro-pax vessels that are fully compliant with international standards for lifesaving, firefighting and damage stability.

Over the past two years, APFC has operated these vessels in both the eastern and western corridors of the country. “So far we have made significant impact on safety and the travel time of people and cargo within the islands because the ferries used are far faster than the second hand-tonnage operating in the country,” says Chet Pastrana, APFC’s chairman.

Key to the company’s success are time, reliability, safety and good feedback from passengers, as well as the fact the group was bold enough to look at a different type of vessel. “The Philippines has the worst maritime record in the world for a single incident and I would really like to change that stigma that the Philippines does not adhere to safety standards,” says Pastrana. “We’ve initiated a modernisation programme and other shipowners will follow, and we can be proud that the Philippines is genuinely trying to get away from the perception that we are not responsible shipowners.”

AFPC’s ferries operate a system similar to airlines, with assigned seating and strict boarding controls. The company is investing in technology to ensure it knows what is happening onboard in real time. “We want to be able to raise the standard of service and to provide a safer and more comfortable means of transportation,” explains Pastrana. “We hope Archipelago’s initiatives will encourage other owners to follow its example of safe, modern tonnage.”

APFC does not consider itself as just a shipping company; it also has links with a network of recently upgraded buses that operate in both the city and provinces. Synergies between the two operations mean that AFPC can connect people in different parts of the country using both the bus and the ferry.

“What we are offering is the convenience of daily departures, not having to wait for a container to be filled and not having to wait for it at the port,” says Pastrana. “Essentially the company is offering a point-to-point delivery of goods and people and there is no multiple handling. It’s a door-to-door service.”

The company, which represents less than 10% of the local market in terms of passengers and cargo, aims to have about 30 vessels in the fleet and 1,000 buses operating all over the country by 2020. “We aim to expand our operation covering the major islands, including the southern part of the Philippines connecting with Northern Malaysia and hopefully with Indonesia,” notes Pastrana.

APFC has eight vessels on order and although Pastrana says initially obtaining domestic finance was difficult, now that the company successfully operates upwards of 10 vessels, there is a greater willingness to provide funding.

However, banks would prefer vessels that are already built, so the company needs to bridge the gap between construction and delivery. Consequently, APFC is trying to tap into the Chinese shipbuilder’s leasing programme to fast track newbuild orders.

Finance is just one issue. The Philippines’ newly elected president has prioritised developing a more efficient transportation system for the country. Pastrana believes the government is sincere in its wish to deal with bureaucratic problems that have resulted in ships being inactive for several months before getting the green light to operate, despite meeting necessary documentary requirements.

Getting good quality seafarers is another challenge that needs to be addressed, notably as far as upgrading licences are concerned. Most Filipino seafarers expect to work overseas, while those who remain have to be trained further. The company has established facilities for onboard training and additional educational support so seafarers can gain their licences. It also collaborates with schools and universities.

While the company used to operate a fleet of second-hand vessels with live-in crew, APFC has now become the first ro-pax company to have a policy where crew work a maximum of 12 hours and then stay in onshore accommodation while another crew team comes onboard. These hours allow crew to have more family time. “We want them to have a life outside the vessel,” says Pastrana, adding that salaries are 20-25% higher than those provided by the local market.

Meanwhile, cadets are hired when they are still completing their shipboard training and can benefit from a scholarship programme, subject to a three-year contract.

APFC is also trying to bridge the officer gap. Officers that have served their career overseas and are returning to the Philippines are encouraged to help with the training programme. “You feel there is a sense of giving back,” says Pastrana, explaining that long-term employees want to help train the next generation. “We encourage our young officers to go overseas eventually, but first to work in the Philippines for maybe three to five years because we provide them greater benefits than other local shipowners.”

Although the environmental regime is different from the one operated in Europe, Pastrana says APFC encourages the use of alternative energy, like solar panels. The company has systems in place to handle waste disposal, for example. “Our challenge is how to make sure our people respect our policy,” says Pastrana.

New equipment is being installed on APFC’s ferries, but even if the vessel is compliant with all the rules and regulations, the human factor will always dictate whether ships meet the requirements of the local administration. The company’s goal is to have training facilities in all the ports in which it operates.

Pastrana says that APFC is upgrading cleaning and catering facilities, and is also building a facility to do its own ship repair work, enabling it to maintain its vessels and continue to provide better service. The ship repair facility will also train people in particular specialist areas such as welding and painting. The 12-hectare facility is expected to be completed by the middle of next year and will normally be able to handle two vessels simultaneously, up to a maximum of three. APFC will open the facility to other customers because it will not be working full time on its own vessels.