SBMA chair reveals P6.33-M Subic Port Expansion plan

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator has revealed the P6.33-million port expansion plan for this premier Freeport.

Speaking before the participants of the Central Luzon Transport & Trade Conference 2024 held at the Hilton Clark Sun Valley Resort on May 24, Aliño presented Subic’s Port Expansion plan under the Japan International Cooperation Agency (JICA)-Regional Development Master Plan. 

“Subic Bay Freeport will have additional berthing facilities in the Boton Area alongside the expansion of the Boton Wharf with an approximate cost of P6.33-million. The plan would include the reclamation for a terminal expansion with a ten-hectare area, expansion and deepening of the existing wharf by 1.5 meters, and the inclusion of a general cargo and Roll-On Roll-Off (RoRo) terminal,” Aliño said.

He also said that the New Container Terminal 3 will also have an expansion plan to include additional berthing facilities and a quay with a length of 410 meters and width of 700 meters, a total area of 28.7 hectares, and a depth of 16 meters. The said project will cost P20-billion. 

The agency also plans to create additional berthing facilities at the San Bernardino Road which will have a multi-purpose terminal that has a quay length of 400 meters, an area of 17.4 hectares, and a depth of 12 meters.

“The construction of the 400-meter wharf will have warehouses and open spaces, an empty container yard, and a truck weigh scale area. The expansion at the San Bernardino Road will cost around P10 billion,” Aliño added.

Aside from the aforementioned expansion plans, the SBMA also aims to implement the Port Expansion Plan at the Redondo Peninsula that includes the construction of a P9.35-billion multi-purpose terminal with a 600m by 500m quay that has a total area of 30 hectares and a depth of 13.5 meters.

“This will also include the construction of a 600-meter wharf, warehouses, an admin building, truck parking, truck weigh scale, sentry gate, open storage, offices and facilities for workers,” Aliño also said.

A proposed multi-purpose terminal at the Lower Mau area of the Subic Bay Freeport is also in the works that includes a 570-meter quay with a total area of 17.2 hectares and a depth of 13 meters. The said facility will have the same amenities as the other multi-purpose terminals, but has an approximate cost of P10.19 million.

Aliño stated that the SBMA is bullish on the shipping industry, citing that Subic Bay Freeport can easily handle the shipping industry in the North and Central Luzon. “This is why we are pushing for these expansion plans, we want the world to know that Subic Bay Freeport is more than capable of handling their cargo,” he added. (MPD-SBMA)

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Japan finalizes the Subic Bay Regional Development Masterplan

The Department of Finance (DOF), on Tuesday (April 26), unveiled the Subic Bay Regional Development Master Plan which was finalized with the assistance of a survey mission team of the Japan International Cooperation Agency (JICA).

The master plan will serve as a blueprint to maximize the economic development potentials of the Subic Bay and its surrounding areas.

The joint effort of the Philippines and Japan to formulate a regional development master plan for Subic Bay commenced with the decision by the two countries’ leaders in November 2019–and the Memorandum of Cooperation to that effect in Hakone, Japan, in December 2019.

The finalized Master Plan was furnished by Japanese Ambassador to the Philippines, H.E. Kazuhiko Koshikawa, to Secretary Dominguez on April 7 in Manila.

During Secretary Dominguez’s meeting on April 25 with Minister for Foreign Affairs of Japan, Hon. Hayashi Yoshimasa, both sides welcomed the successful completion of the Master Plan that was yet another epitome of bilateral strategic partnership between the Philippines and Japan.

“We deeply appreciate the Japanese Government’s close coordination and expeditious fulfillment of the commitment to the Subic Bay development masterplan, despite the challenges posed by the COVID-19 pandemic during its preparation,” said Secretary Dominguez.

The Master Plan envisages Subic Bay region’s economic future and concrete development proposals in both public and private sectors, with which the Philippine Government unlocks the full potentials of Subic Bay, including the port capacity and the connectivity with its hinterlands, with a view to helping continued efforts to decongest Metro Manila.

Minister Hayashi expressed hope that the publication of the Master Plan proves to be conducive to the enhancement of regional connectivity and coast guard capabilities of the Philippines.

The Philippines and Japan signed the Memorandum of Cooperation on Subic Bay Regional Development in December 2019 with the belief that such cooperation would serve both countries’ common interests.

To be specific, the Japanese side rendered technical support to the formulation of the Subic Bay Regional Development Master Plan that maximizes the economic development potentials of the Subic Bay by harmonizing logistics, industry and living functions, as well as existing assets and new investments.

The finalized master plan has covered possible development projects in the fields of road network for Olongapo’s Central Business District and Subic Bay West Coast, logistics terminals such as Alava Wharf, among others, and public utilities such as the Philippine Coast Guard’s new support facilities.

To date, Japan remains to be the country’s top Official Development Assistance (ODA) partner, with a net loan commitment of about USD 10.02 billion, and grant amount of USD 181.15 million, accounting for 31.84 percent of the country’s total ODA portfolio. (SNL)

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Lawmakers push Subic modernization

LAWMAKERS are urging the Duterte administration to prioritize the modernization project of the Subic Container Port to decongest Metro Manila and ease the traffic jams in the capital which have caused productivity losses of at least P2.4 million a day.

Isabela Rep. Rodolfo Albano III said Saturday goods and commodities intended for Central and Northern Luzon no longer need to pass through Metro Manila if Subic’s operations are optimized.

“It is indeed a great idea. It is about time we discussed the Subic Port modernization project,” Albano said.

Albano’s statement followed a study by the Japan International Cooperation Agency which showed that Subic, given its strategic assets, is equipped to acquire a higher share of the country’s growing container cargo volume.

Subic’s location will also ensure a shorter point of entry for cargoes arriving from or going to Singapore.

Eastern Samar Rep. Ben Evardone also said prioritizing the Subic port modernization project in the government’s menu of solutions to the traffic woes in Metro Manila will also spur economic growth across Central and North Luzon.

“I fully support such proposal. It will greatly help decongest Manila,” he said.

“Anything that will lessen the movement of people and vehicles in Metro Manila is a welcome development,” Parañaque City Rep. Gus Tambunting himself added.

The Subic Container Port is a significant component of the Subic-Clark Alliance for Development (SCAD) strategy, which includes the construction of the Subic-Clark-Tarlac Expressway (SCTex), and the Clark International Airport to form a global logistics hub and international gateway for Central Luzon.

However, the port, which can easily absorb northbound cargoes, has remained underutilized.

The Jica study showed there is a capacity shortage of 14 million 20-foot equivalent units or TEUs (the capacity unit of container ships) for the Pacific Region, with Singapore already reaching its limit and Hong Kong remaining severely silted.

Subic Container Port has a capacity of 600,000 TEUs, but by 2012, the volume remained at less than 40,000 TEUs.

Albano stressed that a fully modernized port in Subic means that there is a sufficient volume at Subic Port that is worth marketing to vessel lines.

There is also cost advantage ranging from $100 to $200 per TEU for shippers from Pampanga and Zambales to ship through Subic rather than from the traffic congested Manila ports, he said.

A 2014 Jica study has warned that productivity losses could reach P6 billion a day in 2030 if the traffic mess is not solved.

Lawmakers have cited this as basis for proposals to grant President Rodrigo Duterte emergency powers to address the traffic problem in Metro Manila. (Maricel Cruz, Manila Standard)

PHOTO:
Overview of Subic Bay's port facilities- a legacy of the former US Naval Base, with the New Container Terminals 1&2 developed recently by the SBMA through JICA.

http://thestandard.com.ph/news/-main-stories/top-stories/215819/lawmakers-push-subic-modernization.html

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Gov’t to focus resources for Subic, Batangas, Cebu ports

Despite the need to expand the ports of Manila to address congestion, the government will focus its resources to expand the ports of Subic and Batangas as well as build a new port in Cebu to fan out development to the countryside, according to Transportation Secretary Joseph Emilio Abaya.

Although government predicts that the ports of Manila will hit capacity ceiling soon, Abaya said expansion of Manila ports is not a priority in terms of budget allocation.

Echoing the position of Socioeconomic Planning Secretary Arsenio Balisacan, Abaya said it is logical to develop Subic and Batangas ports instead of expanding the ports of Manila.

“Instead of expanding Manila, we’d rather develop and expand the ports of Batangas and Subic so that we can really spread out development in the rural and provincial areas. (People from these provinces) get to benefit from having expanded ports,” he told reporters at the sidelines of the Philippine Economic Briefing last Tuesday.

Abaya disclosed that the government is also mulling on building a new port in Northern Cebu to decongest Cebu City port by catering exclusively to container traffic.

“They call it La Consolacion (port) in Northern Cebu. It will be a big help to decongest Cebu City port and considering that it has a natural depth of around 16 meters, it is better suited for container (traffic than the existing one),” he added.

Abaya said the Japan International Cooperation Agency is helping the Philippine government in the feasibility study for the new port planned for Cebu. Meanwhile, government is yet to get a consultant for the feasibility study for the expansion programs for Subic and Batangas.

Meanwhile, the Cabinet Cluster on Port Congestion has reported an increase of cargo movements to and from the ports of Manila two weeks since the lifting of the Manila Daytime Truck ban.

Cabinet Secretary Jose Rene Almendras said the cargo movement has improved by as much as 30 percent since September 13.

“The port operators are now working full-blast in its bid to reach the target yard utilization level in time for the expected influx of boxes brought about by the run-up to Christmas,” Almendras said.

According to the government, more shipping lines are also utilizing the ports of Subic and Batangas after being declared as extensions of Manila.

Starting October 2, the government is imposing higher storage fee for Customs-cleared ready-to-go containers to discourage cargo-owners from using the terminals as their virtual warehouses, from the current P500 per TEU per day after the 5-day free storage period to P5,000 after a 10-day free storage period.

“With the imposition of the higher storage fee starting Oct. 2, we expect to see further reduction of the volume of containers currently inside the two Manila ports,” Almendras explained.

Currently, the two port operators are stepping up efforts in the relocation of Customs-cleared ready-to-go containers to Subic, Batangas and Cabuyao in Laguna after being slowed down by the twin typhoon that hit the Metro for two consecutive weekends in September.

The Cabinet Cluster on Port Congestion is targeting to reach the 80 percent yard utilization level or approximately 64,800 TEUs should only be inside the ports to have enough room for optimum terminal efficiency and productivity.

“We continue to appeal to the public to remain considerate as we are already in our full-blast efforts in decongesting the ports. We guarantee that the benefits after decongesting our ports will outweigh all the inconveniences they encounter if we have a congested port,” Almendras stressed. (Kris Bayos, Manila Bulletin)

PHOTO: Gantry cranes at the Port of Subic

http://www.mb.com.ph/govt-to-focus-resources-for-subic-batangas-cebu-ports/

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DOTC: No need to expand Manila ports

The Department of Transportation and Communications (DOTC) is looking at the expansion of ports outside Manila such as Subic, Batangas and Cebu and the construction of a new port in Manila Bay.

DOTC Secretary Joseph Emilio Abaya said government would get a consultant from the Public Private Partnership (PPP) Center to undertake a feasibility study for a plan to build a new port in in Sangley Point, Cavite and the expansion of Batangas and Subic Ports.

“Manila ports should not be expanded anymore. (Planning Secretary Arsenio) Balisacan said we have to expand outside Metro Manila , grow Subic and grow Batangas. In that way, we can spread the growth and decongest Metro Manila,” Abaya said.

For Manila ports, Abaya said the long-term plan is to rehabilitate and redesign them into city ports with real estate.

“I personally do not see the need to further expand (Manila ports) otherwise there will be more congestion on our roads, not on our ports. Eventually we’ll hit the ceiling in Manila ports,” Abaya said.

Abaya said Balisacan would rather expand Batangas and Subic because this would help spread development in rural, provincial areas.

The Japan International Cooperation Agency (JICA) has proposed to place a cap on Manila ports’ expansion and facilitate the diversion of cargo volume to Batangas and Subic Port to decongest roads to Manila.

“Shift cargo-handling function of Metro Manila to Subic and Batangas through controlling of future expansion of Manila ports and providing incentives to use Subic and Batangas Port,” said the JICA study on the Roadmap for Transport Infrastructure Development for Metro Manila and its surrounding areas.

Based on the JICA proposed short-term program for 2014 to 2016, over P 12 billion worth of expansion and modernization projects are set for the Manila ports: P6 billion for North Harbor, P1 billion for South Harbor and P4 billion for Manila international container terminal.

A proposed feasibility study estimates the cost of the North Harbor redevelopment at P 75 million and for other ports expansion and modernization, P 1 billion.

As part of the initiatives to decongest the Manila port, President Aquino declared the ports of Batangas and Subic Bay as extensions of the Port of Manila in response to the present port congestion problem. (Myla Iglesias, Malaya Business Insight)

http://www.malaya.com.ph/business-news/business/dotc-no-need-expand-manila-ports

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Cap on Manila ports expansion pushed

The Japan International Cooperation Agency (JICA) has proposed to the government to place a cap on the Manila ports’ expansion and facilitate diversion of cargo volume to Batangas and Subic ports to decongest roads to Manila.

JICA cited the need to “shift cargo-handling function of Metro Manila to Subic and Batangas through controlling of future expansion of Manila ports and providing incentives to use Subic and Batangas ports,” in its study on the Roadmap for Transport Infrastructure Development for Metro Manila and Its Surrounding Areas.

Based on the JICA proposed short-term program for 2014 to 2016, there are over P12 billion expansion and modernization projects in the Manila port, which include P6 billion for North Harbor, P1 billion for South Harbor and P4 billion for Manila International Container Terminal (MICT).

Also, there is the proposed feasibility study for North Harbor redevelopment worth P75 million and for other port expansion and modernization worth P1 billion.

“The planned expansion projects for Manila ports recommended for rescheduling to promote diversion of cargo to Batangas and Subic ports as well as decongest road to Manila,” JICA said in the study conducted in March 2013 to March 2014.

JICA’s “proposed concept for gateway port development” is to “maximize capacities and development opportunities of (the) three ports.”

As part of the initiatives to decongest the Manila port, President Aquino declared the ports of Batangas and Subic as extensions of the Port of Manila in response to the present port congestion problem.

Last month, the Office of the President also approved the reduction of port charges and other vessel-handling related fees at the Port of Batangas and that paid by port operator International Container Terminals Services, Inc. (ICTSI).

The move is to attract more direct callers and port users to the Batangas Port while incentivizing MICT operator ICTSI for its share in de-clogging the Ports of Manila.

Direct callers at Batangas get 90 percent discount on port dues from the existing fee of $0.081 per gross revenue ton (GRT) per day to only $0.008 per GRT per day, as well as a 90 percent cut in dockage-at-berth from $0.039 per GRT to only $0.004 per GRT per day.

The new rates, however, will be applicable only for six months. The discount for the succeeding six months will be reduced to 50 percent for both, or from $0.081 GRT per day to $0.040 per GRT per day and from $0.039 per GRT to $0.020 per GRT per day. (Malaya Business Insight)

http://www.malaya.com.ph/business-news/business/cap-manila-ports-expansion-pushed

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Subic pushing for more shipping trade

The port of Subic is aiming to take in more containerized- and bulk-cargo shipments to help relieve congestion in Manila ports and is now offering better terms for port users in Central and Northern Luzon.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia said on Monday that both the government and the business community have to consider using the Subic Bay Freeport as an alternative to Manila because it provides a decidedly comparative advantage.

“Subic is 30-percent cheaper than Manila in terms of overall costs and offers a better turnaround time so it’s more advantageous, all-in,” he said. Garcia added that the Subic advantage is more apparent now that the daytime truck ban in the city has resulted to some problems in the transportation of goods to and from Manila piers.

“From a national point of view, we really have to utilize the ports of Subic and Batangas to help decongest Manila. Inefficient transportation translates to increased costs, and these are eventually passed on to consumers,” Garcia said.

The SBMA official said a study made by the Japan International Cooperation Agency (Jica) had shown that of the 2.8 million containers arriving in the Port of Manila annually, some 450,000 of these go to various destinations in Central and Northern Luzon.

“So why do these shipments have to pass through Manila when Subic is nearer?” he asked.

Garcia said Subic has a total of 14 piers and wharves that can accommodate containerized and bulk shipments, including grains and petroleum products. The port also has warehouses and related logistics facilities.

He said the shipping firm Delgado Brothers is proposing to put up a “super shuttle” barge system that would bring shipments bound for Manila to Subic where they would be off-loaded, sorted and properly taxed.

This pass-through scheme, Garcia said, would enable shippers to off-load cargoes faster since the barging from Manila to Subic would just take four hours.

As of now, Garcia said a lot of big players, especially exporters with shipping deadlines, are looking at Subic to see how they can ship their cargoes here.

Among those recently shifting shipment through the Subic Freeport is Yokohama Tires Philippines Inc., an export-manufacturer based in nearby Clark Freeport.

Aside from the SBMA, the Bases Conversion and Development Authority (BCDA), a government agency overseeing the development of former military bases in the country, and the private sector-led Export Development Council (EDC), have been pushing for the diversion of cargo traffic to Subic and the Port of Batangas.

In March EDC Vice Chairman Sergio Ortiz-Luis Jr. said the Port of Manila is “operating beyond its capacity” and called for the diversion of foreign cargo to ports outside Manila.

In December 2012 the BCDA also endorsed JICA’s policy mix to decongest port and road traffic in Manila by diverting some shipment to the underutilized Subic and Batangas ports. ( Henry Empeño, BusinessMirror)

http://www.businessmirror.com.ph/index.php/en/news/regions/31781-subic-pushing-for-more-shipping-trade

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Shipping is said to be cheaper at Subic, Batangas ports

Shipping from Subic and Batangas ports would be cheaper for traders, according to Roberto V. Garcia Subic Bay Metropolitan Authority (SBMA) chairman and administrator.

He said that importing from Subic would cost only $ 1,001.79 per 20 footer container compared with Manila’s rate of $ 1,142.26 per 20 foot container. To export from Subic also costs only $ 847.33 per 20 footer container compared with Manila’s rate of $ 990.81 per 20 Ft container.

Garcia cited Japan International Cooperation Agency (JICA) study which showed that out of the 2.8 million containers passing through the Port of Manila, 450,000 containers are destined for Central and Northern Luzon .

“We have the capacity of 600,000 TEUs so even if all the cargo that comes from Manila goes to Subic, we have the facilities to handle that , the location is very central. We are trying to promote Subic as transshipment hub” Garcia said.

Subic Bay Freeport Zone to date , has 1,800 locators with $ 9.3 billion total investments . It also has 90,092 active Freeport zone workforce, and 5.23 million visitor arrivals in 2012.

Asian Terminals Inc. operator of Batangas Port said that the port remain as the better alternative to Manila Ports for Calabarzon (Cavite,Laguna, Batangas , Rizal and Quezon) cargoes as it has enough capacity to handle the 300,000 TEUs going to Calabarzon annually .

Sean Perez ATI vice president said during his presentation at the recent transport summit that the customers from Calabarzon would save trucking cost of at least 16 percent for export and 13 percent import in choosing Batangas rather than Manila Port.

Batangas Port has 350,000 TEUs capacity per year , 12 hectares of terminal space can handle 7,152 TEUs (4 high) at any given day expandable facility is needed . The Port volume has more than doubled to 3,819 TEUs in the first quarter of 2014 compared to previous year same period of 1,564 TEUs .

In 2013, ATI said Batangas Port handled its highest number of outbound passengers at 3.06 million. It also facilitated the seamless transit of 230,173 vehicles via the Mimaropa ( Mindoro, Marinduque, Romblon , Palawan) nautical corridor. Cargo operations which handled 580,054 metric tons of conventional cargo .

The government is promoting the use Subic and Batangas port as an alternative to Manila Port as the Manila City government plans to pursue the implementation of full truck ban in Manila by July this year.

Last February, Manila City government has implemented a truck ban gives a daytime window period from 10:00 am to 5:00 pm for loaded truck to ply in Manila. Empty container trucks, was banned to take to Manila’s streets. The daytime window period for trucks was expected to last for six months . (Myla Iglesias, Malaya)

http://www.malaya.com.ph/business-news/business/shipping-said-be-cheaper-subic-batangas-ports

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JPEPA talks focus on use of ports

The further utilization of the Subic and Batangas ports emerged anew as one of the key points pressed by Japanese investors in the Philippines.

The Philippines and Japan yesterday convened the 8th meeting of the Sub-Committee on Improvement of Business Environment convened under the Japan-Philippines economic partnership agreement (JPEPA). the embassy of Japan said in a statement.

The embassy said that during the meeting, both sides noted the progress made on issues such as refund of value-added tax, the common carriers tax and gross Philippine billings (CCT/GPB) among other issues.

So far, the budget department has allocated funds to refund the VAT paid by Japanese investors. A law has been recently passed scrapping the foreign carriers’ tax.

Also discussed were topics on consistency of tax-related issues, sustainability of affordable and reliable supply of electricity, further utilization of Batangas and Subic ports, additional surcharges introduced by the Subic Bay Metropolitan Authority, development of the Philippines as Human Resource Development (HRD) hub, and other issues and initiatives.

Batangas and Subic ports, both funded by the Japan Bank for International Cooperation have remained under-utilized.

The meeting was led by Ambassador of Japan Toshinao Urabe, and Undersecretary of the Department of Trade and Industry, Adrian S. Cristobal, Jr. co-chaired the meeting.

Representatives from various Philippine government agencies, Embassy of Japan in the Philippines, Japan International Cooperation Agency (JICA), and Japan External Trade Organization (JETRO) attended the meeting. The private sector was represented by Mr. Takashi Ishigami, President, Japanese Chamber of Commerce and Industry of the Philippines, Inc. for the Japanese side.

Among the JPEPA framework, the Sub-Committee on Improvement of Business Environment is of significant importance because it provides a forum for dialogue between public and private sectors of both countries to discuss specific issues in order to ensure transparent, predictable and consistent business environment. This regular semi-annual dialogue with parties concerned is indispensable for further improvement of business environment which is constantly evolving.

The next meeting of the Sub-Committee is scheduled in September 2014.

JPEPA, which entered into force in December 2008, is an important framework for enhancing economic ties between the two countries.

Both sides noted that recent trade and investment figures had been very encouraging. The existence of JPEPA has successfully promoted Japanese investment to the Philippines.

The abundant, diligent, and English-speaking workforce in the Philippines are finding jobs in and out of the country. Such win-win relationship is expected to be further enhanced by the adoption of Integrated Services Digital Broadcast-Terrestrial (ISDB-T) by the Philippines late last year, two and a half fold increase of bilateral air services including direct links to Haneda Airport, Japan’s on-going cooperation in Yolanda relief and rehabilitation projects, as well as other ODA projects. (Reuters)


http://www.malaya.com.ph/business-news/business/jpepa-talks-focus-use-ports

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JICA officials in Subic to gauge funded projects

Officials of the Japan International Cooperation Agency (JICA) and other Japanese financial institutions visited this free port recently to assess the status and financial and economic potentials of projects funded by the financial institution.

The group, led by JICA chief representative Takahiro Sasaki, was welcomed by Subic Bay Metropolitan Authority (SBMA) chairman Roberto Garcia, together with several officials from the SBMA seaport department.

Sasaki said the group’s visit to Subic was part of their two-day tour of the Philippines to understand the actual financial and economic potential of the country and also to introduce JICA’s projects and programs here.

During the meeting, Garcia and seaport officials briefed the visitors on the seaport facilities available within the free port, as well as the performance of the New Container Port Terminal.

The terminal project, along with the Subic-Clark-Tarlac Expressway that connected the two former bases of Subic and Clark, was completed with funding from JICA’s Official Development Assistance (ODA).

Last month, a group composed of members of the House of Councilors from Japan also visited Subic and commented that the Philippines has a huge potential and that it needs to take advantage the growing manufacturing sector.

The group added that the Philippines and Japan have a lot in common and that continuous communication and information exchange is very important for mutual development.

The group also stressed the importance of Subic port in decongesting the port of Manila. (FMD/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia (right) confers with JICA chief representative Takahiro Sasaki during a consultation meeting regarding the status of projects funded through JICA-ODA in the Subic Bay Freeport Zone.

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PPA calls for serious study on decongesting Manila ports

The Philippine Ports Authority (PPA) yesterday sought a more thorough study on how to make “more utilizable” the largely under-utilized Subic and Batangas ports.

Such study, the PPA said, would balance the interests of such stakeholders as port and terminal operators, exporters and other shippers, shipping lines and cargo forwarders.

Decongesting traffic to and from the Manila ports and rerouting cargoes to Subic and Batangas ports “is a way to go forward,” PPA general manager Juan Sta. Ana admitted in news briefing as he announced the holding in Manila of the 11th Asean Ports Association (APA) sportsfest on Feb. 25.

“We are not against it,” he said, adding that any policy advocating similar cargo diversion should put premium to market forces at play and should not place the exporters in harm’s way.

Sta. Ana issued this statement after newsmen pressed him into speaking about a set of policy recommendations, drawn up by the Japan International Cooperation Agency (Jica), that sought to decongest the overcrowded Manila ports by rerouting spillover cargoes to either Subic and Batangas.

In the same breath, Sta. Ana stressed the need to revive the cargo rail links that used to transport container cargo from Manila ports to container yards near economic zones and industrial parks in Laguna.

The cargo rail links which effectively removed the less desirable cargo trucks from Metro Manila roads, proved to be unprofitable for the private firm than the Philippine National Railways, prompting rail authorities to forgo the system.

Sta. Ana said the revival of the cargo rail system would help decongest Manila ports.
Meantime, the PPA announced it posted P8.9 billion in total revenues in 2012, or 2.01 percent bigger than that year’s income target.

Port revenues, or incomes derived from vessels and cargoes and remittances from terminal operators, were recorded during the same year at P8.61 billion.

The port authority attributed the growth in port revenues to, by and large, the country’s increased mining activities last year.

Last year’s economic growth enabled the PPA-run ports and terminals to handle cargoes totaling 181.49 MMT (million metric tons), up 1.8 percent from previous year.

According to the Jica-commissioned study, which was actually conducted by Transport and Traffic Planners Inc., Subic port’s usage in 2011 was 5.6 percent of its actual capacity, while Batangas port’s utilization was 4.2 percent, also during the same year.

The same study showed these ports’ combined cargo volume paled in comparison with the container traffic handled in 2011 by the Manila ports.

Sta. Ana said Subic port utilization did not move an inch even after it lowered two years ago its fees, such as wharfage and other charges.

Batangas port, he added, likewise adjusted its berthing fee. But these price adjustments seemed not enough, he said even as he called for a more comprehensive study on how to make both Subic and Batangas ports more appealing to shipping lines and shippers.

Sta. Ana said that Jica, in coming up with a more comprehensive study on improving Subic and Batangas ports’ usage, should also determine the requirements not only of shipping lines but also those of logistics companies.

The Jica study proposed a policy mix that also included a six-year delay in capacity-expansion investments at the South Harbor and Manila International Container Terminal (MICP).

But Sta. Ana said these capacity-expansion projects were “on schedule” and could not be delayed any longer.

On the APA sports festival, which will be held from Feb. 25 to March 1 in various sports complexes in the Philippines, Sta. Ana said it would be a “very good avenue in promoting camaraderie” among the officials and employees of APA member-ports.

More than 500 delegates from Asean countries are expected to participate in sportsfest events like golf, futsal, badminton, mini-marathon, bowling and table tennis.


Sta. Ana said the sports festival would be open to the public. (The Daily Tribune)

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Manila Ports’ Decongestion Moves Up

The Subic-Clark Alliance Development Council has thrown its support behind a new set of policy proposals aimed at decongesting traffic to and from the Manila ports, saying such policy mix will give a major boost to the underutilized Subic and Batangas ports to where spillover container cargoes would be rerouted.

The proposed policy mix is contained in a study funded by Japan International Cooperation Agency (JICA) and includes, among others, new pricing strategies such as reduced wharfage, berthing fees and vessel-related charges in Batangas and Subic ports; and a six-year delay in capacity-expansion investments at the South Harbor and Manila International Container Terminal (MICP).

“The JICA-funded study validates what we have been saying all along: That we should learn from Laem Chabang experience and that the already congested Manila ports should stop accommodating more shipments and allow the active use of both Subic and Batangas ports,” Felicito Payumo, SCAD Council chairman, said as he recalled the Bangkok port experience that led to the rise of nearby port of Laem Chabang.

Manila is equidistant at 110 kilometers from both Subic up north and Batangas down south, nearly the same distance between Laem Chabang and Bangkok.

“By way of comparison, the Laem Chabang port in Thailand was built to decongest the Bangkok river port – the same reason we built Subic port to decongest Manila. Both Bangkok and Manila ports were doing two million TEUs (20-footer equivalent units) then. Now, Laem Chabang with six berths is doing three million TEUs while Bangkok is limited to just one million TEUs,” said Payumo, a former chairman and administrator of Subic Bay Metropolitan Authority (SBMA), which owns two container terminals in Subic freeport, and now board chairman of Bases Conversion and Development Authority.

“The policy mix that JICA study is endorsing to decongest port and road traffic in Metro Manila augurs well for both Subic and Batangas ports, the capacities of which are presently underutilized,” Payumo said. “If adopted and carried out, this policy mix can stimulate the development of Southern Tagalog and Central Luzon regions.”

The JICA-funded study, which was conducted by Transport and Traffic Planners Inc., said port usage in Subic in 2011 was 5.6 percent of its actual capacity and port utilization in Batangas, 4.2 percent. The Manila ports, it added, handled 98.2 percent of total volume of container traffic passing through these three major ports (Subic, Manila and Batangas).

Payumo noted that although both Subic and Batangas ports had begun adjusting their pricing strategies, there were still adjustments to be done, like changes in vessel-related charges.

“There is also a need for shipment consolidators as there are enough export volumes in the Subic hinterlands which still pass through the Manila ports. This is the only way to break the ‘chicken or egg’ situation for the Subic port, where few ship calls are attributed to lack of volume shipments, and where the lack of volume shipments is blamed on few ship calls,” he said.

JICA earlier estimated that the provinces of Pampanga, Zambales, Tarlac, Bataan, Bulacan and Pangasinan generated a combined cargo volume of 1,572 TEUs per week, which would total to 786,000 TEUs a year, a volume that exceeded the combined capacities of two container ports in Subic. (Bernie Cahiles-Magkilat, Manila Bulletin)

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Market Forces To Dictate Shifting Container Traffic To Batangas, Subic

MANILA – Diverting container traffic to Batangas and Subic Ports to decongest Manila and maximize the two ports should not be mandated on business, and market forces be allowed to decide on this issue.

This was stressed by Federation of Philippine Industries (FPI) president George Chua during a recent consultation meeting on the study to decongest Manila and divert container traffic to Subic and Batangas ports.

Earlier, the Export Development Council (EDC) and the Philippine Export Zone Authority (PEZA) claimed that one way to unclog the traffic jams in Metro Manila is to divert cargo trucks to Batangas and Subic.

This was supported by the findings of this study conducted by the Transport and Traffic Planners, Inc. (TPPI) engaged by the Japan International Cooperation Agency (JICA) that Manila Ports are congested.

Asian Terminals, Inc. (ATI) vice president Sean Perez stressed that there is no need to transfer cargoes from Manila to Batangas and Subic ports just to maximize the utilization of these ports.

Roberto Aquino, Philippine Ports Authority (PPA) acting manager for port operations said that his office has already submitted the one-year 50 percent tariff discount proposal to the Office of the President to entice shippers to use Batangas and Subic ports.

Incentives and discounts in wharfage fees and tariff rates are also available at the Subic Port and yet shipping lines are not coming, said Captain Perfecto Pascual of the Subic Bay Metropolitan Authority (SBMA).

Several studies were conducted since 1994 to promote Batangas and Subic Ports. Recently, JICA conducted the Subic Port marketing study to trigger this port utilization by focusing promotions on logistics players in the Northern-Central Luzon areas such as Pampanga, Zambales, Tarlac, Bataan, Pangasinan and Bulacan.

In explaining the results of the study, TPPI said that a 2010 study showed that port traffic for loaded containers reached almost 500,000 TEUs in Manila South Harbor and nearly 1.2 million TEUs in the Manila International Container Terminal (MICT).

On the other hand, in the same year, port traffic in containerized cargo reached nearly 6.2 million metric tons (MT) in Manila South Harbor and almost 17 million MT in MICT

In contrast during the same period, traffic for loaded containers at Batangas and Subic ports only reached 622 TEUs and 25,000 TEUs, respectively and nearly 9,000 MT and nearly 400,000 MT at Batangas and Subic Ports respectively.

The study further showed that the congestion in Manila ports is due to vehicles going to and from the port. Report from the Average Daily Traffic (ADT) last year showed that 43 percent of these vehicles is comprised of private vehicles, trucks or trailer at 20 percent, jeepneys, ten percent; and two-axle trucks, nine percent.

MICT has six berths, making it the largest port in the country. Meanwhile, South Harbor has only three, Batangas port with two and Subic port with one berth. Berths are support to provide sufficient distance for a ship to maneuver and help the seamless facilitation of the country's growing international trade.

The infrastructure has allowed MICT's annual capacity to grow to 2.5 million TEUs from 1.9 million TEUs, while South Harbor retained its 850,000 TEUs and 300,000 TEUs for Batangas and Subic ports.

To encourage port users to utilize the Batangas and Subic ports, the study team presented lower costs in stevedoring in Batangas and Subic with P4,985 and P1,801 for a 40-foot container, respectively compared with P5,584 for the same load in Manila ports.

Meanwhile, arrastre charges at Batangas and Subic Ports only cost P5,773 and P2,870 for a 40-foot export container compared with P6,077 in Manila ports.

Storage costs are however more costly in Subic Port with P224 for a 40-footer export container compared with P120 in Batangas and Manila ports. A 40-footer import container will cost P895 in Subic and P481 in Batangas and Manila ports. (Edu Lopez, Manila Bulletin)

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JICA study shows SBMA as most resilient IPA

Investment generation figures collated by a leading Japanese think tank have shown that the Subic Bay Metropolitan Authority (SBMA) is the only Investment Promotion agency (IPA) in the Philippines that turned out a positive output based on year-on-year figures in the first quarter.

According to the Nomura Research Institute (NRI), which prepared a study on the ongoing impact of the global financial crisis on foreign direct investment (FDI) in Asia, the Philippines is also reeling from a decrease in foreign investments due to the current economic slowdown.

However, the NRI study indicated that despite a generally negative record among IPAs in the Philippines, the SBMA, which manages the Subic Bay Free-Port Zone, has reported a 13.6-percent increase in committed investments based on year-on-year figures for the first quarter of 2009.

The NRI, which is reputedly Japan’s largest firm in consulting and system solutions services, prepared the study for the Japan International Cooperation Agency (Jica).

The study, the SBMA said in reaction, only indicated the “apparent resiliency of the Subic Bay Free Port as an investment location.”

According to the first version of the NRI report, which was dated June 2009, FDI commitments secured by the SBMA in the first quarter of 2009 totaled P1.5 billion.

Meanwhile, all of the other Philippine IPAs reported a year-on-year decrease in commitments for the same period, the NRI said.

These included the Board of Investments, which recorded a 57-percent decrease to P4.3 billion; the Philippine Economic Zone Authority (Peza), with a 50.8-percent decrease to P13.6 billion; and the Clark Development Corp., with a 72.5- percent decrease in commitment basis.

Documents gathered by the BusinessMirror showed the NRI prepared the report on FDI commitments in the Philippines for Jica in connection with a proposal for the development of the Philippine Investments Promotion Plan (PIPP).

The PIPP seeks, among others, the creation of an interagency body “to oversee the implementation and monitoring of all programs, activities and projects to improve investment climate” in the country.

The network of IPAs, including the SBMA, “is tasked with formulating and developing strategies to position the Philippines as among the prime investment destinations in Asia,” the NRI said.

In the same report, the NRI mentioned that FDI generation also fell in other Asian countries as a result of the global financial crisis.

These included Thailand, which posted a 26-percent decrease in capital commitments; Vietnam, with a 67-percent decrease in capital realization; India, with a 28-percent decrease in FDI realization; and even China, which suffered a 21-percent decrease in FDI realization.

However, the NRI particularly noted that the Philippines “has attracted far less FDI than its peer Asean countries.”

The SBMA, however, had somewhat bucked the downtrend in investment commitments when it signed up a total of 30 new projects worth P1.5 billion in the first quarter, bringing to 966 the total number of registered investors here.

SBMA Administrator Armand Arreza said the uptrend in Subic was due to a self-sustaining business environment created by the SBMA in Subic over the years “that was directed toward various industries that require less dependence on foreign markets.”

Arreza added Subic’s 2009 investment generation was recently boosted further by new investment pledges worth $86 million by South Korean shipbuilder Hanjin Heavy Industries & Construction Corp., a firm that has already set up a $1.7-shipyard in Subic.

Hanjin officials said the new investments would be for the production of ship components at the Subic facility and would be committed in two parts: $29 million starting September this year, and $57 million next year and onward. (Henry Empeño, Business Mirror Online)

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