PHL nickel miners hopeful of better ore prices

September 13, 2019 | 7:35 pm

NICKEL miners in the country may expect improved prices for ore in the near term as Indonesia sets an exporting ban for the mineral next year.

Dante R. Bravo, president of the Philippine Nickel Industry Association, told reporters earlier this week the Indonesia export ban poses an opportunity for local miners, but noted the country may not be able to produce enough ore supply to meet the surge in demand.

“That’s exciting for the Philippine nickel industry, but we cannot definitely supply the gap that’s going to be left by the Indonesian ore ban,” he said.

“We’ll see. But as soon as the plans in Indonesia get operational…then we’re looking for basically three years of better prices for our ore,” he added.

Earlier this month, Indonesia released a decree ordering a nickel ore export ban starting Jan. 1, 2020, sooner than its previous target of implementing the ban in 2022.

A Reuters report said the advanced execution of the ban is aligned with the country’s intent of reserving ore for its growing smelting industries of nickel pig iron, stainless steel and electric vehicles battery nickel.

Mr. Bravo said with the doors open for new opportunities following Indonesia’s ore export ban, he hopes the Philippine government will soon lift Executive Order (EO) No. 79, which has been in place since 2012 to limit new mining permits until a new law is enacted.

“We hope by then we have the EO 79 already lifted so that we can also begin processing the mineral agreement and encourage investors to come in,” he said.

Mr. Bravo also said it is important for the cost of producing ore in the Philippines to stabilize to attract mining investors.

“You have to make it stable. Let’s say for the next two years… the price would really stay at that level. Whenever we go into value adding processing, there’s confidence in the investor that they can recover back their investment the soonest time possible,” he said.

He also flagged Administrative Order 2018-19 of the Department of Environment and Natural Resources (DENR), which limits areas where miners can conduct operations.

“We are limited by the mining area that the DENR set and things like that. We are limited also by the weather. So there are a number of factors,” Mr. Bravo said when asked about the expected boost in production for local miners by 2020. “I’m not saying minimal. But we’ll see.” — Denise A. Valdez with Vincent Mariel P. Galang

Gov’t approves additional P1B for rice farmers’ loan program

September 13, 2019 | 7:35 pm

THE Agricultural Credit Policy Council (ACPC) has approved an additional P1 billion for the Survival and Recovery Assistance Program (SURE Aid), expanding its assistance to 70,000 farmers affected by the plunging price of palay, or unmilled rice.

“Today, we approved additional P 1 billion to support the same program… so mayroon na tayong [we already have a] total amount of P2.5 billion… para mapondihan itong [to fund] SURE Aid loan assistance program for rice farmers” Agriculture Secretary William D. Dar said during a press conference on Friday.

The P1 billion will be on top of the initial P1.5 billion allotted for the on-going program, which was launched Sept. 2. Under the loan assistance program, rice farmers who applied for a loan will be given P15,000, with 0% and payable in eight years.

“That is not enough. It can only accommodate 100,000 farmers out of the 600,000 farmers that we have… In effect, we will now be able to give to almost 170,000 farmers,” Mr. Dar explained.

Furthermore, the Landbank of the Philippines (LANDBANK) also approved a P10-billion loan assistance for local government units (LGU) for their procurement of palay from farmers, needed facilities, and marketing efforts.

“We are launching the new program, which is the Palay Alay sa Magsasaka ng Lalawigan which will provide a program fund of about P10 billion to all LGUs for the purchase, acquisition of palay from the small farmers,” Emellie V. Tamayo, first vice president of the lending program management group of LANDBANK, said.

The new program will be applying the new buying price of palay, which is at P19 per kilo.

The Department of Agriculture (DA) has been asking provincial offices to help in the procurement of palay from farmers. It earlier announced that 30 LGUs have already committed to procure, process, and market palay.

Meanwhile, the ACPC also approved a P60-million loan assistance for hog raisers affected by the first outbreak of the African Swine Fever (ASF) in the country.

“Naglaan kami ng [We allotted] P60 million as livelihood assistance to those affected by the African Swine Fever…. They can buy any inputs they want for their livelihood activities, so hindi lang baboy, pwede rin silang bumili ng manok basta pangkabuhayan [it’s not just hogs, they can also buy poultry as long as it’s for livelihood),” Mr. Dar explained.

Each affected hog farmer in Rizal and Bulacan will receive P30,000 loan, with 0% interest and three years to pay.

This is aside from the P82.5 million given to the Bureau of Animal Industry on Sept. 10, which will be used for different plans and programs to ensure that the country is protected from the further spread of the disease and for information campaign.

On Sept. 9, the DA confirmed the first outbreak of ASF in the country, specifically in areas in Rizal and Bulacan. Mr. Dar assured that these areas are now clear of ASF according to the tests conducted by the DA in the area.

On Thursday, there were reports that dead pigs were found in Marikina River in Marikina City and a creek in Bagong Silang, Quezon City. About 40 pigs were found in Marikina City, while three were found in Quezon City.

Mr. Dar said that dead pigs are being collected and buried. Investigation is also on-going as to where these came from, but he said they is a high possibility that these came from affected hog raisers in Rizal, since there were those who acted on their own instead of reporting the deaths.

He urged affected hog raisers to report possible outbreak of the ASF in their farms and to immediately implement safeguard measures, preventing the spread of the disease. — Vincent Mariel P. Galang

Phoenix inks offtake deal with Hengyi

September 13, 2019 | 7:34 pm

PHOENIX Petroleum Philippines, Inc. is teaming up with Singapore-based Hengyi Industries International Pte. Ltd. (HYII) for a liquefied petroleum gas (LPG) offtake venture in Brunei.

In a statement issued Friday, Phoenix Petroleum said its wholly owned unit PNX Petroleum Singapore Pte. Ltd has signed an agreement that will allow the company to offtake from the future production of HYII’s refinery. The offtake agreement will start within the year.

This is in line with Phoenix Petroleum’s recent acquisition of PNX Conqueror, its first pressurized LPG carrier with 2.5 kilotonnes (kT) capacity, along with a long-term carter of Chelse, a large pressurized vessel with 4.6kT capacity.

Hengyi Industries is the trading arm of privately-run Chinese firm Hengyi Group that will start operating a refinery-petrochemical project in Brunei this year.

Phoenix Petroleum expects the venture to help improve the country’s overall supply situation since it only takes a day to deliver supply from Brunei. This also gives the firm more options for its petroleum sources, which are usually taken from China, Vietnam, Korea, and the Middle East, among others.

“As we continue to expand the brand internationally and establish strong connections with complementary businesses from neighboring countries, we are relentless in forging ties with companies like HYII to be able to provide quality products and services to more and more communities,” Phoenix Petroleum Chief Operating Officer Henry Albert R. Fadullon said in a statement.

“We are optimistic and excited about the future of this project as it opens new opportunities and possibilities for growth and progress for both companies and countries.”

Phoenix Petroleum has been beefing up its LPG operations since the start of the year. Its unit PNX Energy International Holdings Pte. Ltd has recently set up Phoenix Vietnam Pte. Ltd for its presence in the Vietnam LPG market.

The company has also initiated marketing efforts succh as the launch of the “Sarap Pala Magluto” nationwide campaign for Phoenix Super LPG, alongside the opening of Phoenix Super Hubs in different parts of the country.

Phoenix Petroleum’s net income attributable to the parent went down seven percent to P903.94 million in the first half of 2019, due to higher costs and expenses. This followed a 27% increase in gross revenues to P51.2 billion. — Arra B. Francia

SEC greenlights Now Corp equity restructuring

September 13, 2019 | 7:34 pm

NOW Corp. said it has erased its deficit of P402 million after it received approval from the Securities and Exchange Commission (SEC) to undergo equity restructuring.

In a series of disclosures to the stock exchange Friday, the Velarde-led firm said the corporate regulator has given the go-ahead to decrease its authorized capital stock and par value per share through the reduction of its surplus of P455 million.

The par value of the company’s common shares has been reduced to 70 centavos from P1 previously, decreasing its authorized capital stock to P1.44 billion from P2.12 billion, which will be divided into 2.06 billion common shares.

“The company’s equity restructuring will enable it to eliminate accumulated deficit, strengthen its financial position and to allow it to declare dividends to shareholders from its unrestricted retained earnings that will be generated subsequent to the equity restructuring,” it said.

Aside from the wiping out of its P402-million deficit, Now Corp. also has a pending application with the SEC to convert the outstanding advances of its shareholders amounting P264 million into equity.

“…the conversion of advances to equity, once approved, will improve the Company’s debt-to-equity ratio from 0.70:1 to 0.37:1. Post debt-to-equity, equity will account for 73% of total assets as compared to 59% prior to equity conversion,” it said in a statement.

These efforts are meant to help the company raise funds for its capital expenditures as it expands its fixed wireless broadband business. Now Corp. said it needs a strong balance sheet to support its core business in the near term.

“Foundations for organic and fundamental growth are now being put in place in order for Now to excel in the industry as the fixed wireless internet provider of choice,” Now Corp. Chief Operating Officer Rodolfo P. Pantoja was quoted as saying.

“We are banking on these changes as we strengthen further our financial health as we institute and excel in service excellence to our clients.”

The company is planning to extend the reach of its broadband business beyond Metro Manila as it said there is a growing demand for its services in “underserved or unserved areas.”

“Wireless solution is superior to fiber cable-based infrastructure in terms of ease, time and cost to deploy. And continuing advances in the field of wireless technology allows the company to offer world class broadband service that match the quality of its fiber based competitors,” it said. — Denise A. Valdez

Ayala to re-issue up to P15B in preferred shares

September 13, 2019 | 7:34 pm

AYALA Corp. (AC) plans to re-issue up to P15 billion worth of preferred class B shares, it told the stock exchange Friday.

The listed conglomerate said in a disclosure that its board of directors has ratified the resolution of its Finance Committee for the re-issuance of the preferred class B shares. This consists of a base of P10 billion, with an oversubscription option of up to P5 billion.

“The terms of the re-issuance of the preferred class B shares will be disclosed in due course,” the company said.

The plan followed AC’s redemption of Class B Series 2 Preferred shares that will take effect on Nov. 5, or the fifth anniversary from the issuance of the securities.

The shares will be redeemed at P500 each, plus accrued and unpaid dividends at a rate of 5.575% per annum until the redemption date.

AC said the redemption will decrease the number of foreign shareholders of its preferred shares.

AC’s net income attributable to the parent surged 105% to P37.84 billion in the first half of 2019, mainly from the sale of its equity investments in the energy and education businesses. Gross revenues meanwhile went up two percent to P137.51 billion.

Shares in AC dropped 0.11% or P1 to close at P908 each at the stock exchange on Friday. — Arra B. Francia

BSP to move currency production facility to New Clark City

September 13, 2019 | 7:34 pm

TARLAC — The Bangko Sentral ng Pilipinas will be transferring its currency production facility to New Clark City (NCC) as part of efforts to boost production of notes and in line with its continuity plan for operations in case of natural disasters.

Under the central bank’s Memorandum of Understanding (MoU) with the Bases Conversion and Development Authority (BCDA), the new BSP Security Plant Complex (SPC) will be erected on a 29.22-hectare land area within the NCC—National Government Administrative Center (NGAC).

The said facility will be located near the access road that links NCC to the Subic-Clark-Tarlac Expressway (SCTEx). Currently, the BSP SPC is in East Avenue, Quezon City. The BSP said operations of the SPC will be transferred to the new facility once fully completed, with the Quezon City property to be closed or sold afterwards.

“The BSP follows a stringent set of criteria in selecting locations for its facilities. These standards — which encompass everything from lot configuration, site conditions, to infrastructural support — are intended to ensure that the BSP’s operation are optimally located,” BSP Governor Benjamin E. Diokno said during the MoU signing on Friday.

As per the MoU, offices of the BSP and its attached agencies to be built in NCC-NGAC will be consistent with the Phase 1 development of the NCC within the four-year timeframe from 2019 to 2022.

“I think all the paperworks should be done before the end of the year. So pwede na kami mag-umpisa ng construction first week of 2020. (So we can start the construction by the first week of 2020),” Mr. Diokno told reporters during the event. However, the BSP chief refused to disclose the budget for the facility as it is still in the works.

The BSP governor said that the new facility will boost the central bank’s ability to produce bank notes and to refrain from outsourcing.

“Right now ang capacity ‘nung plant sa Quezon City (the capacity of the plant in Quezon City) is P3 billion [bank notes] but the requirement is something like P5 billion. So ‘pag natapos itong bagong facility (so when this new facility is built), we won’t need to outsource requirements,” he explained.

ACCESSIBILITY
In total, the NGAC will house 60 hectares of government infrastructure. Meanwhile, 100 hectares will be for Filinvest. Some portions will also be developed into leisure facilities, according to BCDA President and CEO Vivencio B. Dizon.

He added that the master plan of the NCC includes the “necessary facilities needed not just to work here [there], but also to live,” with Mr. Dizon saying the most important of which are transportation and connectivity.

“These new roads are built to make this area more accessible. It’s important to know that distance-wise, we are only 15 kilometers away from Clark International Airport and the Clark Freeport Zone and we are only 10 kilometers away from the Subic Clark Expressway,” he said.

He addedthat the upcoming Manila-to-Clark railway will be beneficial to BSP employees who will be assigned in the new facility.

“Yung pinapagawa po ni [Transportation] Secretary [Arthur P.] Tugade…na Manila-to-Clark railway, magkakaroon po ng istasyon (The Manila to Clark railway will have a nearby station)…. It’s only about 300 meters from where the BSP facility will be,” Mr. Dizon continued.

Phase 1A also includes the sports complex which will be used for the Southeast Asian Games, a residence for government employees and a river park.

NCC’s first phase is the development of a 200-hectare NGAC which will house backup offices of government agencies including the BSP, among others, as a continuity plan in cases of disasters or natural calamities.

The development is one of the flagship initiatives of the Duterte administration’s “Build Build Build” program. — Luz Wendy T. Noble

PHL balance of payments position reverts to surplus in Q2

September 13, 2019 | 7:34 pm

THE country’s balance of payments (BoP) — which shows the Philippines’ economic transactions with the world for a certain time frame — reverted to a surplus in the second quarter, on the back of the narrowing of the current account deficit in the period, as well as continued net inflows in the financial account.

A report released by the Bangko Sentral ng Pilipinas (BSP) on Friday showed the country’s BoP position was at a $991-million surplus in the April-June period, a reversal of the $2-billion deficit booked in the same quarter last year.

“The surplus stemmed from the net inflows (i.e., net borrowing by residents from the rest of the world) in the financial account, albeit lower, mainly on account of the reversal of portfolio investments to net inflows and the sustained net inflows in the direct investment account,” the central bank said.

“The financial account continued to post net inflows on the back of the positive growth outlook as the country’s macroeconomic fundamentals remained stable. Meanwhile, the current account registered a lower deficit due to the narrowing of the trade-in-goods deficit combined with increased net receipts of trade-in-services, and in the primary and secondary income accounts during the quarter,” it added.

The report showed the country’s current account deficit narrowed 95.6% to $145 million in the second quarter versus the $3.284-billion shortfall logged a year ago.

The central bank said this was on the back of a lower trade deficit of $11.3 billion from $12.8 billion a year ago. Increased net receipts of trade-in-services ($3.3 billion from $2.2 billion), secondary income ($6.7 billion from $6.6 billion) and primary income ($1.2 billion from $712 million) also contributed to the improvement of the current account during the quarter.

Meanwhile, the capital account’s net receipts rose 15.4% to $18 million in the quarter from $16 million last year.

On the other hand, in the financial account, net borrowings of residents with the rest of the world dropped 86.6% to $225 million from $1.682 billion a year ago. This was due to the reversal of the other investment account to net outflows of $1.8 billion from net inflows of $48 million last year and the decline in net inflows of direct investments to$666 million from $2.7 billion. Meanwhile, portfolio investments reversed to net inflows of $1.3 billion in the quarter from a $1-billion net outflow in the same period last year.

For the first semester, the country’s BoP position stood at a surplus of $4.788 billion versus the $3.257-billion deficit booked in the comparable year-ago period.

The current account deficit in the first half narrowed to $1.741 billion from the previous year’s $3.756 billion, while the capital account registered net receipts of $33 million, higher than the $30 million booked last year.

Meanwhile, the financial account recorded higher net inflows of $5.719 billion in the first half from $2.536 billion the prior year.

Security Bank Corp. chief economist Robert Dan J. Roces said the first-semester BoP surplus shows the record-high reserves accumulated by the central bank.

“We continue to see positive fundamental inflows from higher net receipts. However these mask the negative on the current account which measures among others, trade-in-goods, which have been experiencing deficit,” he explained.

“On a positive note, our high capital account means we have enough forex (foreign exchange) reserves to stabilize the peso. Notwithstanding potential headwinds, as long as economic fundamentals stay robust and with the export sector potentially getting its much needed support, we are seeing a sustained surplus for the year,” Mr. Roces added. ““A pick-up in infrastructure spending for H2 will increase import demand for capital goods and raise the trade-in-goods deficit.”

The BSP expects the country’s BoP position to hit a surplus of $3.7 billion this year, a turnaround from the $2.306-billion deficit recorded in 2018. It sees the current account deficit at $10.1 billion by yearend, while the financial account is projected to end at a $5.2-billion net inflow.

Peso inches higher on bets of US-China deal

September 13, 2019 | 7:34 pm

THE PESO strengthened slightly on Friday on optimism that the US and China will have an interim trade deal by October.

The local unit closed at P51.91 against the greenback on Friday, climbing two centavos from its P51.93-to-a-dollar finish on Thursday.

On a week-on-week basis, the peso ended a tad weaker than its P51.905-to-a-dollar close on Sept. 6.

The peso opened at P51.88 against the dollar. It traded in a tight range, with its weakest point recorded at P51.911, while its intraday best was at P51.77 against the greenback.

Dollars traded on Friday recovered to $1.172 billion versus the $1.170 billion on Thursday.

“The peso appreciated after US President Donald Trump [said he] is considering to close an interim deal with China ahead of the scheduled October 2019 trade talks in Washington,” one trader said.

This was also echoed by Rizal Banking Commercial Corp. economist Michael L. Ricafort, who added that the trade deal with China “would delay or roll back some tariffs provided that China increases purchases of US agricultural products and protect US intellectual property rights.”

“Thus, this has supported the latest gains in the global financial markets including the peso.”

Reuters reported that deputy trade negotiators are due to meet in Washington in mid-September, with minister-level talks to follow in October. Exact dates for the meetings have not been released.

Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are expected to meet in early October in the US capital, but key officials are tamping down expectations for a major accord. — Luz Wendy T. Noble with Reuters

PSEi firms up on easing US-China trade tensions

September 13, 2019 | 7:32 pm

LOCAL SHARES firmed up on Friday, taking cues from Wall Street which was boosted by easing trade tensions between the the United States and China.

The bellwether Philippine Stock Exchange index (PSEi) climbed 0.6% or 47.89 points to close the week at 7,992.32, while the broader all shares index likewise gained 0.48% or 23.18 points to 4,822.97.

“Shares closed higher as investors digested a slew of US-China trade news along with a large bond-buying program from Europe’s central bank,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.

US President Donald J. Trump said Thursday he will be thinking about an interim deal with China, although he would still prefer a full agreement with the country. This follows Mr. Trump’s statement on Wednesday that he will delay the planned tariff increases on $250 billion worth of Chinese goods.

With this, the Dow Jones Industrial Average went up 0.17% or 45.41 points to 27,182.45. The S&P 500 index rose 0.29% or 8.64 points to 3,009.57, while the Nasdaq Composite surged 0.30% or 24.79 points to 8,194.47.

Investors also welcomed the European Central Bank’s (ECB) bond-buying program launched Thursday that seeks to stimulate the eurozone economy. It will start buying €20 billion worth of securities beginning Nov. 1.

At the same time, the ECB also cut the main deposit rate by 10 basis points, pushing the rates to -0.5%.

Philstocks Financial, Inc. likewise attributed the market’s increase to the ECB’s policy decision.

“The ECB’s monetary easing and optimism on US-China talks sent the local market higher by 47.89 points,” the brokerage said in a market note.

All sectoral indices ended in positive territory back home, led by services which jumped 1.1% or 17.78 points to 1,623.61.

Mining and oil rose 1.07% or 101.74 points to 9,591.46; property went up 0.87% or 35.37 points to 4,064.08; industrials climbed 0.82% or 90.22 points to 11,011.94; financials rallied 0.61% or 11.28 points to 1,832.62; while holding firms added 0.22% or 17.36 points to 7,918.59.

Turnover was thin at P4.53 billion after some 7.12 billion issues switched hands, lower than the previous session’s P6.73 billion.

Advancers overtook decliners, 111 to 69, while 63 names were unchanged.

Foreign investors turned net buyers at P140.55 million, against Thursday’s net outflow of P131.26 million. — Arra B. Francia

Meralco, Hitachi unveil PH’s first grid-scale energy storage system in the distribution network

September 13, 2019 | 10:02 am

In another example of its relentless pioneering spirit, the Manila Electric Company (Meralco) introduced the Philippines’ first grid-scale distribution-connected Battery Energy Storage System (BESS), a technology for storing electric charge through special batteries.

Commissioned in San Rafael, Bulacan, the utility’s two 1-megawatt (MW) lithium-based BESS units were launched September 6 in partnership with Japanese multinational conglomerate, Hitachi, through a Memorandum of Agreement.

BESSs are a sub-set of Energy Storage Systems (ESSs), the general term for systems that store energy to be consumed at a later time. Storing energy defers or reduces the need to buy capacity from the electricity marketplace.

BESS holds an advantage over other storage technologies due to its generally smaller footprint and a lack of restrictions regarding where these may be installed. Although versions are available, those of lithium-ion, a newer technology and the kind set up by Meralco, offer greater energy storage for their size and can be charged and discharged many times in their lifetime compared to most ESS technologies.

Lithium-ion batteries are currently the most cost-effective with the best energy density. They have been seen in a variety of consumer electronics applications such as in smartphones, tablets, laptops, digital cameras, and electric vehicles; with designs ranging from a few kilowatts with a few minutes of storage, up to multi-megawatt solutions with hours of storage that may be used at a utility substation or a wind or solar farm.

As a result, Bulacan’s lithium-ion BESS will be connected to the Meralco network spanning from Cruz-na-Daan (CND) Substation, where the 3.8 MW SPARC solar farm is also hooked up.

SPARC-generated power will be delivered and sold through the Meralco distribution system via the CND interconnection, where excess will presumably be stored at the San Rafael BESS.

Not only does the BESS project ensure a sustainable energy supply, the initiative aligns perfectly with Meralco’s affirmative action to prefer green in support of the country’s growth.

Revving up for a new generation in vehicle technology

September 13, 2019 | 9:05 am

It is an exciting time for the automotive industry. Great leaps in technology have allowed what was once science fiction to become reality, from electric, autonomous vehicles to artificial intelligence-driven digital services and platforms.

And while automobiles and vehicles have always been at the forefront of innovation, the potential for revolutionary developments in the industry has never been higher. Below, we take a look at the most promising trends and developments in the industry.

The electric-powered future

Switching to more sustainable sources of energy is among the world’s top priorities, as exhaust from automotives being one of the leading sources of the carbon emissions that are causing climate change.

Forbes, in an article describing the electric car rush in countries like China, wrote, “All across the global economy, titans of the fossil-fuel era are scrambling to adapt to an existential shift: the soaring economic viability of clean alternatives to dirty energy. Electricity and oil producers are struggling to ride — rather than be crushed by — a renewable energy wave.”

“Automakers, though, are at a particularly scary fork in the road. The rise of electric vehicles — machines with multiple small motors instead of one big engine; with batteries instead of a fuel tank; with unprecedentedly extensive software systems instead of a transmission — is poised to redefine car making.”

According to energy data firm Wood Mackenzie, combined sales of passenger EVs — including full-electric vehicles, which have no combustion engine, and “plug-in hybrid-electric” vehicles, which augment their battery system with a combustion engine — are on the rise, jumping 47% from the first half of 2018 to the first half of 2019, to 1.1 million. A combination of factors like declining cost and improving technology, notably for batteries; increasingly convenient electric-charging infrastructure, particularly in large cities; and hefty government support are driving that surge.

In places like India, ambitious government plans like the National Electric Mobility Mission Plan seek to put six to seven million electric vehicles on roads by 2020, in pursuit of an e-mobility target of 30% in the country by 2030.

The self-driving revolution

Some of the world’s biggest companies are leading the charge towards autonomous vehicles. Google, Uber, and Tesla are making headlines with self-driving vehicles outfitted with A.I.-enabled devices that allow them to safely navigate the roads without human intervention.

Technologies such as machine learning, cloud-based computing, and smart technologies show limitless capacities in improving vehicles into mobile platforms of the future. Such tech-enabled vehicles are equipped with sensors and cameras for recording vast amounts of data before, during, and after each trip, while radar systems use radio waves to detect the presence, speed, and distance of surrounding vehicles and objects.

Advanced local data processors can then perform calculations based on the collected data in real time, enabling precise, safe, and real-time on-the-road decisions. Afterwards, the onboard artificial intelligence can enact those decisions and ensure regular software and algorithm updates for continuously improved vehicle performance. In certain cases, some self-driving vehicles are even outfitted with smart technologies that interface with traffic lights, signs, and lane markers.

According to data from KPMG International, the Netherlands is leading the way as the country that is most ready to support driverless cars, followed by Singapore and the United States. China ranks 16^th.

A connected, smarter journey

With so many cars coming equipped with revolutionary technologies, manufacturers are finding new ways to connect people and their devices while on the road. The Internet of Things (IoT), one of the most promising fields in emerging technologies today, can create smarter transportation fleets that use GPS tracking to monitor road conditions, vehicle information, and driving habits in real-time. This works by allowing cars and smart-enabled devices to work in tandem with one another, keeping track of sensors connected to the road and traffic conditions, and even drivers’ health.

An estimate by the World Economic Forum predicts that by 2025, the number of IoT devices will exceed 40 billion, fueled by continued technological advances and the plummeting costs of computing, storage and connectivity.

The rise of 5G networks, which will allow faster transmission of larger amounts of data, can only further drive the development of more accurate and helpful devices.

Even for conventional cars without autonomous capabilities, 5G networks can improve route navigation, safety protocols, and can keep track of vehicle status. Vehicle to vehicle (V2V) communication will lead to fewer accidents on the road, as cars will now be able to share information about pedestrian crossings, infrastructure, and roadblocks to avoid. Sensor technology will do more than sensing what’s in its line of sight, as a fully-capable V2V network can allow a car to get a sense of not just its distance from other vehicles, but also what’s even further down the road, allowing for a safer, more informed journey. — Bjorn Biel M. Beltran

Advancements in safe driving

September 13, 2019 | 9:00 am

In choosing a car, features that help motorists drive safely are worth considering, especially as cars continue to innovate in each of its aspects and functions. Recently, local automotive buying and selling platform Philkotse.com listed down high-tech safety features of modern cars that are now considered as must-haves.

First among these is the forward collision mitigation or forward collision warning. Sensors in cars detect objects in front of the vehicle (e.g., walls, lampposts, pedestrians or other cars) and signal the car’s onboard computer to calculate the time remaining before a car hits an object.

“When the system determines that there is a danger of crash or collision, it will trigger an audible or visual signal to alert the driver,” Philkotse continued. “If the driver is not able to take appropriate measures immediately, the system will automatically apply the brakes to avoid or minimize the crash/collision’s severity.”

Adaptive headlights, another helpful tool especially in low-light conditions, “pivot in the same direction as the steering wheel, providing better illumination on the road.” Sensors are also used here, detecting the steering angle and eventually activating electric motors that turn the headlights.

Blind spot warning alerts drivers of cars approaching its blind spot from behind by signaling a flashing light or warning on the side mirror of the car. An upgraded version of this uses haptic feedback, which delivers a vibration through the seat or steering wheel and notifies of a potential hazard on the adjacent lane.

To keep cars in the proper lane, lane departure warning and lane-keeping assist technologies go hand-in-hand. “Lane departure warning uses a forward-facing camera to scan road markers, and notifies the driver with an audible or visual warning when it senses that the car starts to veer away from its current lane,” the article explained. However, if the driver does not heed such warning, “lane keeping assist feature takes over either by applying brakes to one side of the car to nudge it back into position or by using the steering wheel.”

For cars encountering one or more vehicles in their path, especially those in a parking lot, rear cross-traffic alert aids in preventing the car from hitting a vehicle that can hardly be seen by the driver. This is possible through sensors located at the car’s rear, which can detect such obstacles and then give an audible and visual signal.

In case of unexpected accidents to the point of incapacitating a car’s occupants, the automatic collision notification is a very accessible emergency tool. “When the system detects that the car has experienced a frontal crash (whether through airbag deployment or sudden deceleration), it will automatically contact an emergency operator who can speak to the driver or passenger,” Philkotse explained.

When before drivers rely on mirrors near their seats to keep their cars safe, rearview cameras now allow them to see the traffic or obstacles behind their cars. These cameras also display lines representing the car’s width (in some systems), night vision capability for low-light conditions, and a warning sound when the car gets too close to an object.

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