Subic-Clark’s 11% GDP contribution cited

The Subic Bay Freeport and the Clark Freeport Zone in Pampanga remain to be major contributors to the country’s economic development, as their combined export values last year provided about 11 percent of the country’s gross domestic product (GDP).

In a report to Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia, SBMA acting deputy administrator for business group Ronnie Yambao said that the contribution of the two neighboring special economic zones to the Philippine GDP was between 10 and 11 percent.

“Clark's and Subic’s combined export value last year of US$6 Billion is very significant to the gross regional domestic product (GRDP), which contributed 11 percent to our GDP,” said Yambao.

Yambao added that according to a report from the International Monetary Fund (IMF), the Philippine GDP’s growth rate remained at 6.1 percent as of 2014.

Referring to the updated World Economic Outlook, Yambao also said that the IMF sees the Philippines to still become the fastest-growing economy in Southeast Asia this year after it was able to maintain its 6.1 percent GDP, outpacing Vietnam and Indonesia.

For Subic, Yambao said that among the major growth contributors is the South Korean shipbuilder Hanjin Heavy Industries Corporation (HHIC), which now has 29,000 direct workers.

“For this year, Hanjin is projecting to complete at least 17 ships worth over US$1.6 billion. This would mean hiring additional workers,” Yambao said.

Meanwhile, Yambao also named five new investment projects that the SBMA Board of Directors has approved this year. These include Harbor Star Subic Corp., which proposed a US$4.5-million investment for marine-related ancillary service operation, such as harbor assist, towage, oil spill, and underwater services.

Another project, Nanofixit Ventures Inc., will open a $5.32-million rebottling and packaging company for water-based liquid screen protector, while Subic Superfood Inc. will infuse $920,000 for a food processing plant that will use local pili nuts from the Bicol Region and Himalayan salt for the manufacture of so-called “super foods.” (RAV/MPD-SBMA)

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Congested ports stunting growth

Trade Secretary Gregory Domingo said port congestion due to the truck ban will slow down economic growth before picking up toward year-end.

“We expect that much but the situation will improve by the fourth quarter. With the continuing improvements in port operations by all sectors involved, we can expect quasi-normal operations within 10 days and full normalization by end-September,” he said, admitting things “were doing well before the truck ban”.

Domingo said the situation of the industries dependent on port operations eased up compared to 10 days ago “but may still impact on the GDP (gross national product)”.

In an update last Friday on port and shipping operations, Trade Undersecretary Victoria Dimagiba of consumer protection group said ports had accumulated a backlog of 135,000 twenty-foot equivalent units (TEU) in three months.

He said six shipping lines were now making as much three portcalls a week in Batangas while Subic Port increased portcalls to twice a week with 600,000 combined TEUs of Wan Hai Philippines Inc. and APL Philippines Co.

To ease port crowding, Customs-cleared overstaying cargo will move to a 10.6-hectare lot at the Cultural Center of the Philippines complex.

Also lined up are at least 36-hectares of off-dock facilities to park empty container vans--5 hectares near the Cavitex toll gate; 9 hectares between the IRS Eastern depot and the Philippine Economic Zone Authority; a 4-hectare depot in Malvar, Batangas; 5 hectares within the Asian Terminal facility in Calamba, Laguna; the planned 6-hectares property of ICTSI in Cabuyao and 2 hectares in North Harbor.

Other decongestion measures being proposed include nightime private warehouses to shorten truck dwell time and make more turnaround or trips, weekend cargo release and a five-day port clearance processing. (Othel V. Campos, Manila Standard Today)

http://manilastandardtoday.com/2014/08/11/congested-ports-stunting-growth/

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Truck ban hurting economy–chamber

The truck ban measure in Manila is partly to blame for a recent spike in the inflation rate and may hold back economic growth, locally-based foreign businessmen say.

The Foreign Chamber Council of the Philippines (FCCP) said that City Ordinance 8336 on road decongestion has increased the cost of doing business nationwide. FCCP chairman Philip Chien said transport and storage charges have risen significantly since the truck ban took effect.

The cost of trucking alone has nearly doubled following the truck ban in Manila, he said because cargo firms have been forced to charge more for the same services because their trucks can make fewer round trips daily.

“Our members are paying for the idle time of those trucks,” Chien said.

The chamber has recommended the immediate suspension of CO 8336 to avert the “derailment” of the economy; decongestion of the Port of Manila by relocating some of its key operations to other viable ports, such as the Batangas Port and the Subic Bay Port; removal of 35,000 empty containers; inclusion of the business sector in the formulation of a long-term solution to the present transport problems.

Chien said CO 8336 is likely to be reflected in the 3rd quarter Gross Domestic Product (GDP) figures. He said a growth of “less than 6 percent” is probable because of higher costs, delays in delivery and losses in business opportunities. The Aquino Administration is reportedly targeting upwards of a 7 percent growth.

FCCI’s membership includes the local chambers of commerce of Taiwan, India, Finland, Israel, Singapore, Spain, France, Turkey and Malaysia.

Chamber insiders said the Federation of Philippine Industries is being tapped to join the move to have the ban revoked.

The group has indicated plans to go directly to Malacañang for an audience.

“The Administration’s economic growth targets are at stake, so we think the President will support us,” it said in a statement. (Miguel C. Gil, Manila Standard Today)

http://manilastandardtoday.com/2014/08/08/truck-ban-hurting-economy-chamber

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