07 September 2016

ICTSI offers Subic port to ease Port of Manila congestion

THE International Container Terminal Services Inc. (ICTSI), operator of the Manila International Container Terminal (MICT), is renewing its proposal of an infrastructure “master plan” to the Duterte administration to improve the flow of trade in the country’s key port.

Speaking to reporters at the sidelines of the Management Association of the Philippines’ (MAP) 14th International CEO Conference, ICTSI Senior Vice President and Head of Asia Pacific Operations Christian Gonzalez suggested a holistic approach to facilitate goods inflow into the country.

Christian R. Gonzalez, ICTSI Senior Vice President and Asia Pacific Region Head

“We all need roads, we know how many cars there are in the streets and public transportation needs to be improved. What we’ve heard from the current government is positive because they intend to build more roads, but they need to fast-track it. The critical one is really the roads,” Gonzalez said.

The establishment of a proper logistics network should be looked at outside of Metro Manila, such as in Subic port, where ICTSI operates Terminals 1 and 2 through its subsidiaries.

Aside from road infrastructure, creation of inland facilties, such as warehouses, can incentivize more businesses to use the Subic port instead of the crowded Manila port. These initiatives can encourage the shift of more cargo from the Port of Manila to Subic.

Last year ICTSI moved 100,0000 twenty-foot equivalent unit (TEUs) of cargo previously accommodated in Manila, to Subic. The Subic port’s installed capacity is at 600,000 TEUs.

The port operator is constrained from moving more because of the disjointed infrastructure network in the area.

Creating alternative modes to deliver cargo, such as water transport, and a dedicated railway track for cargo to connect Subic and Bataan, is also a welcome move, he said.

“If the government wants to talk about this, we are open to it,” Gonzalez said. (Catherine Pillas, BusinessMirror)