PBBM bullish on expanded, more modern seaport, airport for SBMA in 2028

Before President Ferdinand Marcos, Jr. reaches the maximum tenure of his term in 2028, the Subic Bay Metropolitan Authority (SBMA) expects a significant upgrade in its seaport and airport facilities with an ultimate goal of modernizing infrastructure, boosting economic activity and solidifying Subic Bay’s position as a major gateway for trade and tourism. 

This is in line with the Philippine Development Plan 2023-2028 of the Marcos administration. The Plan states that existing airports will be improved and new ones will be strategically developed to address future demand. 

The BBM infrastructure program for 2023 to 2028 presently includes 198 high impact infrastructure flagship projects (IFPs) with an overall investment cost of P8.8 trillion. 

“This premier Freeport is set to boost the country’s economic corridor by developing both its seaport and airport,” said SBMA Chairman and Administrator Eduardo Jose L. Aliño. 

The airport and seaport expansion and modernization projects in Subic Freeport will cost an estimated Php28.18 billion. 

These projects are expected to boost port capacity, increase competitiveness, and generate more revenue. Aliño said that these infrastructure projects support the Luzon Economic Corridor (LEC) Development initiative of Pres. Marcos’ administration, to be completed by 2028. 

Aliño also disclosed that the first project, a Multipurpose Port Terminal (MPT) at the Lower Marine Amphibious Unit (MAU), will include a 570-meter wharf, with a depth of 12.9 meters. It will have a back-up area of 17.2 hectares for warehouses and open storage areas. 

“This project will provide an additional capacity of 2.5 million metric tons bulk cargoes. As one of the identified projects under Public Investment Program of the National Economic Development Authority (NEDA), the project will spur economic growth through the additional berthing facility,” he said. 

The second MPT will be at the Redondo Peninsula, which hosted the former Hanjin shipbuilding facility. It will have a 600-meter wharf, with a depth of 14 meters, and a back-up area of 30 hectares for warehouses, open storage, offices and support facilities. 

The project will increase the port capacity with additional 3 million metric tons cargoes. This is one of the identified projects under Public Investment Program of the NEDA, with a project cost of P11-billion. 

“The high percentage of domestic and international commerce is by sea, therefore, the efficiency of maritime transportation has become increasingly essential to national competitiveness,” Aliño cited. 

The SBMA also plans to construct a Cruise Passenger Terminal area with a project cost of P1.2 billion for phase 1, and P8.96 billion for Phase 2. The facility will have a double berth 380 meter pier with a depth of 12 meters, along with the reclamation of 20 hectares for Phase 2. 

“International and local cruise operations will greatly benefit the local and national economies, with increased employment opportunities, revenue from port fees and dues, and increased tourism spending. This is vital to the National Cruise Tourism Program of the Marcos Jr. administration,” the official shared. 

Also in the pipeline is the proposed improvement of existing buildings and the construction of new facilities inside the Subic Bay International Airport (SBIA) with a project cost of P7.02-billion. 

To modernize ports and allied industries and to decongest passenger traffic in Metro Manila, the Marcos administration will also undertake the improvement of the SBIA to be able to accommodate 6 million passengers annually. 

 

A new hotel and parking facility within the airport complex that will promote the use of the SBIA and further boost the tourism sector in the Subic Bay Freeport is also in the offing. 

“The project is currently under study and will cost around P4.3 billion,” Aliño said. “Locators, port users and prospective investors will also benefit from upgraded and modernized airport facilities, with increased SBIA efficiency, capacity and revenue generation. With these improvements, the SBMA will have additional revenue generating facilities with the rise of a world-class airport hotel and multilevel carpark,” he added. 

“Now for the Subic Bay International Airport (SBIA) to achieve its maximum potential, we are planning to expand the SBIA by upgrading and modernizing its facilities. Once in place, we are confident to increase both the handling and revenue generating capacity of the airport,” the chairman said. 

The feasibility study on the proposed SBIA Expansion Project will include the extension of the runway from 2,745 meters to 3,300 meters in length, expanded aprons, relocated CAAP-ATC tower, and a new passenger terminal building. 

The projects are expected to improve and provide a more efficient client and passenger accommodation. The improved and expanded airport is expected to generate a conservative revenue of P12.5 billion annually. 

“This should significantly align to the objectives of the Luzon Economic Corridor,” Aliño said. 

The Subic Bay Freeport has some 1,900 businesses with more than 162 thousand workers and residents in three housing areas. 

SBMA Senior Deputy Administrator (SDA) for Port Operations Ronnie Yambao said Subic Bay Freeport has three important pillars in enhancing its capacity and operational efficiency: first is automation to make cargo movement seamless and transactions faster and more efficient; second is investment in infrastructure like port rehabilitation, the Vessel Traffic Management System or VTMS, and the acquisition of equipment; and third is by expanding the SBMA’s network thru trade missions and creating partnerships with different ports to increase trade and commerce. 

 

"Subic Bay Freeport is the only Freeport in the Philippines that has a complete logistics infrastructure in one location that is managed by the SBMA. It has an airport, and a seaport with a modern container terminal, and piers that can accommodate different types of cargo, to be connected to the Luzon Economic Corridor by a railway in the near future,” he said. 

Subic Bay is also a tourist and cruise ship destination. Currently, the SBMA is developing a facility to be used as a home port for cruise ships. A home port is a port where a cruise ship will take on or change over the majority of its passengers, while taking on stocks, fuel and supplies. 

The Marcos administration, under its PDP, also plans to connect cargo and freight rail infrastructure to strategic infrastructure such as ports. Railway development for cargo and freight will be prioritized, particularly for long-distance deliveries. 

Meanwhile, truck routes will be established to service medium- and short-distance deliveries. Dry ports and other inland cargo terminals will be connected by freight rail to ease the movement of goods to or from the ports. (Radyo Pilipinas)

Read More

SBMA enhances capability to accommodate growing demand for multi-modal logistics in Asia

The Subic Bay Metropolitan Authority (SBMA) has enhanced this premier Freeport’s capacity and operational efficiency to keep up with the growing demand for multi-modal logistics in the Asian region. 

This was the statement made by SBMA Senior Deputy Administrator (SDA) for Port Operations Ronnie Yambao during the Super Terminal Expo 2024 held at the Hong Kong AsiaWorld-Expo on November 5, 2024.

The three-day expo is Asia’s pioneering design, construction and operations event that showcases the next wave of innovation in passenger and cargo terminal, while bringing together experts and decision-makers to shape next-gen airports.

The Super Terminal Expo's opening ceremony was graced by Michael Wong Wai-lun, acting Financial Secretary of the Government of the HK Special Administrative Region, Vivian Cheung, CEO of the HK Airport Authority, and other government officials and influential members from industry associations.

During a panel discussion, Yambao emphasized three important pillars in enhancing Subic Bay Freeport’s capacity and operational efficiency: first is automation, with systems in place to make cargo movement seamless and transactions much faster and more efficient; second is investment in infrastructure like port rehabilitation, the Vessel Traffic Management System or VTMS, and the acquisition of equipment; and third is by expanding the SBMA’s network thru trade missions and creating partnerships with different ports to increase trade and commerce.

He added that the automations installed in the SBMA are the Automated System for Customs Data (ASYCUDA), Electronic Transit Admission Permit System (ETAPS), and Automated Export Documentation System (AEDS), which are pursuant to President Marcos Jr’s thrust on the ease of doing business thru automation.

“Subic Bay Freeport is the only Freeport in the Philippines that has a complete logistics infrastructure in one location, that is managed by the SBMA. It has an airport, and a seaport with a modern container terminal, and piers that can accommodate different types of cargo, to be connected to the Luzon Economic Corridor by a railway in the near future,” he further said.

It is accessible by land, sea, air, and in the near future, by railway. It has an airport and a seaport with modern facilities and a container terminal with a capacity of 600,000 TEUs that can be expanded to handle one million TEUs.

The freeport also boasts of four industrial parks with 15 piers that can accommodate commercial vessels and cruise ships. There are 1,900 companies operating in the Freeport with a total of USD12-billion worth of investments.  

“Locators in this Freeport enjoy fiscal incentives under the CREATE Law and all the ancillary services are available to complete the logistics ecosystem in this premier port. Lastly, the SBMA offers competitive rates in port services, in fact, we are 20 percent cheaper compared to Port of Manila,” he said.

Qualified export enterprises shall be entitled to four to seven years Income Tax Holiday (ITH) to be followed by 10 years five percent Special Corporate Income Tax (SCIT) or Enhanced Deductions.

Subic Bay is also a tourist and cruise ship destination.  Currently, the SBMA is developing a facility to be used as a home port for cruise ships. A home port is a port where a cruise ship will take on or change over the majority of its passengers, while taking on stocks, fuel and supplies. 

Team Philippines joined key global leaders in airports, aviation and logistics industries for the Super Terminal Expo 2024 where over 800 international and local aviation professionals were in attendance.

The SBMA is part of Team Philippines led by Department of Transportation Undersecretary for Airports and Aviation Roberto C.O. Lim. Yambao was part of the delegation along with Subic-Clark Alliance for Development (SCAD) Executive Director Amee Fabros, and Clark International Airport Corporation (CIAC) Chief Business Development Officer Melissa Feliciano. (MPD-SBMA) 

Read More

Taiwan firm offers SBMA help to bring in more shipping lines

The Taiwan International Ports Corporation (TIPC) on Thursday expressed its interest in investing in this Freeport and in helping develop the Port of Subic to become a certified major port destination in Asia.

TIPC Chairman Chih-Ching Chang, in a meeting with Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia at the SBMA office on Thursday, said that Taiwanese investors are eyeing Subic because of its location and facilities.

“Subic is the finest commercial and tourism destination in one that we have seen, and the future cargo shipping destination,” Chang said.

Chang explained that because the ports in Taiwan are nearing full capacity, many shippers in the island-state are planning to invest overseas and among the preferred destinations for them is Subic, specifically inside the Taiwanese-managed Subic Bay Gateway Park here.

“Subic must prepare for the future as more cargoes are expected to come here from Taiwan because the port in Taiwan is already full. They are coming to Subic and we (TIPC) can help make that happen,” Chang told Garcia.

Chang led an 18-man delegation from TIPC for an ocular inspection of the Subic port. The members included Kuo-Ying Huang, TIPC executive vice-president and CEO of the Kaohsiung Port; Min-Chuan Yen, director of Kaohsiung District Economic Development Association; and Carol Peng, president of the United Development Corp.

Chang noted that TIPC will be hosting a meeting with shipping companies and port users in Taiwan, and among the agenda is to convince them to send bulk or containerized cargoes to Subic.

Meanwhile, Garcia said that as more Taiwan companies and other foreign investors express the desire to locate in Subic, he has been spearheading a move to develop idle lands between Subic and the nearby Clark Freeport and convert these for industrial use.

“Subic has no more space to offer and there, along the Subic-Clark-Tarlac Expressway, we can still develop at least 1,000 hectares for industrial parks that can be offered to investors,” Garcia said.

The SBMA official also told the Taiwanese visitors that Subic has been making headway in terms of transshipment and maritime logistics services.

He said that Subic’s P1.16 billion port revenue in 2015 has overshot the 2014 collection of P908.6 million, thereby registering an increase of 25 percent.

Garcia attributed the growth in port revenue to the increase in the volume of containerized cargo recorded in Subic, from 77,618 twenty-foot equivalent units (TEUs) in 2014 to 123,558 TEUs in 2015. The port yard utilization is now 30 percent, he added.

“We are confident that the increase in container volume handled by the Port of Subic will continue because many shippers have already experienced the convenience of using the Port of Subic,” Garcia noted. (RAV/MPD-SBMA)

PHOTOS:
[1] SBMA Chairman Roberto Garcia (right) exchanges pleasantries with members of a trade delegation led by TIPC Chairman Chih-Ching Chang during a meeting at the SBMA office on Thursday. (AMD/MPD-SBMA)

[2] TIPC Chairman Chih-Ching Chang (left) presents SBMA Chairman Roberto Garcia with a memento during the visit of Taiwanese investors to the Subic Bay Freeport on Thursday. (AMD/MPD-SBMA)

Read More

Subic marks 100,000th TEU with unloaded cargo from Kaohsiung

Subic’s New Container Terminal 2 (NCT2) registered its 100,000th twenty-foot equivalent unit (TEU) cargo container last Saturday, marking a milestone in maritime business in this Freeport.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia, who was on hand to witness the unloading, said the event only manifested the growing number of port users already transporting their goods through the Port of Subic after it became an extension facility of the Port of Manila.

“This only shows that our efforts to make Subic the most competitive port in Luzon are all reaching fruition,” Garcia said, as he congratulated officials of the Subic Bay International Container Terminal (SBITC), which operates the NCT2.

Garcia said that in August this year, the Port of Subic already recorded 83,000 containers, a number that was almost double the 43,000 recorded for the same period last year.

“As we reached the 100,000-mark this month, we again reached another milestone,” he added.

Garcia said that that SBMA has been successful so far in marketing Subic as the only port in Luzon that has a one-stop shop.

SBMA’s hosting of two maritime summits, the formation of a Maritime Technical Group, and the agency’s aggressive maritime business marketing program “certainly helped a lot in this undertaking,” he also said.

Garcia said the one-stop-shop facility inside Subic’s container terminal has been very well appreciated by brokers from Manila and Northern and Central Luzon because all the necessary documentation “stops” could be accomplished within the shop.

“If your papers are in order, you can finish processing in just 30 minutes or an hour,” he said.

SBITC general manager Roberto Locsin said the 100,000th container was unloaded from Kaohsiung, Taiwan, by Wan Hai Lines for delivery to United Auctioneers, Inc., a heavy equipment trader in the Subic Bay Freeport.

“We never selected it. It was luckily scheduled to unload,” Locsin said.

As this happened, Chairman Garcia also noted that the SBMA is expanding its seaport, and “is pushing very hard to increase cargo volume here to decongest Manila Port.”

The SBMA official also noted that Subic is the only port in the western seaboard that still has the capacity to accommodate more containers, as the Batangas port is already 100% full.

“Before you could unload in Batangas or even in Manila, you’d be forced to wait for three to four days. In Subic, you can enter anytime, unload anytime and process your cargo anytime” he said. “We now have seven shipping lines coming to Subic on a regular basis,” he added.

Subic, as well as Batangas, became an extension port because of congestion in Manila.

Subic now has seven shipping lines unloading and taking in cargo on a regular basis after President Aquino signed Executive Order 172 that designated Subic as an alternative port to Manila. (RAV/MPD-SBMA)

PHOTO:

SBMA Chairman Roberto Garcia (middle, left) receives from SBITC general manager Roberto Locsin a copy of documents marking the arrival of the 100,000th TEU at the New Container Terminal 2 in Subic Bay Freeport. (AMD/MPD-SBMA)

Read More

Subic expands port, road for P11B

The Subic Bay Metropolitan Authority is expanding Subic port as well as build a new road that will directly connect to SCTEX (Subic-Clark-Tarlac Expressway) for an estimated cost of P11 billion in preparation of a huge spill over from the Manila port three years from now.

SBMA Chairman and Administrator Roberto Garcia told reporters during an interview at the recent Manila Ports Summit that the expansion of the port could cost P7 billion while the new road at P4 billion.

“This expansion is immediate because the volume of cargoes going to Manila is expected to reach 6 million twenty-footer equivalent units (TEUs) in two to three years the existing 3 million TEUs at present,” he said. Of the 3 million TEUs, 15 percent of that comes from the northern and central Luzon areas, which could easily shift to Subic.

“We are in the process of updating an old study of the seaport so we can submit this proposal to NEDA and we can start this project immediately because it will take three years to build a new port and a road network,” Garcia said.

Garcia explained that the two ports in New Container Terminal 1 and 2, which are owned and operated by Subic ICTSI Inc., a unit of International Container Terminal Services Inc., have berthing capacity of 300,000 TEUs each or a combined capacity of 600,000 TEUs.

The current Subic port cargo volume is only 75,000 TEUs or at least 15 percent port capacity. But with 4 international shipping lines (SITC, APL, Wan Hai and NYK) now calling in Subic, they have opened the freeport to wider international coverage that includes China, Jàpan, Taiwan and Singapore.

“These four shipping lines are expected to boost cargo volume to 250,000 to 300,000 TEUs next year,” he said.

This means NCT 1 and 2 could increase their capacity utilization to 30 percent by next year already.

“If we don’t expand the port now, it might be too late when cargoes in Manila reach 6 M TEUs in three years,” he added. Subic and Batangas ports have been designated by the government as alternative Manila ports following the port congestion in Manila.

Garcia said they have already identified another 15-hectare lot for the new port. SBMA may bid out the new port, he said.

The other component in the SBMA plan is to construct a bypass road that will run through Bataan and into the SCTEX.

Garcia stressed that the current TIPO road is running out of capacity with 68 trucks an hour plying this Clark-Subic expressway.

‘So even if we don’t expand the port we still have to build this new road,” he added. It will be a 23-kilometer bypass road that will run through Bataan and into SCTEX.

“This is the long term solution to the Manila port congestion, but this can happen in the short term,” he said.

Meantime, Garcia said that SBMA revenues in the first ten months this year went up by 21 percent while operating revenues grew 42 percent. Combined with unrealized foreign exchange savings in 2013 and 2014, the freeport is expected to post 152 percent increase in net income this year over last year, which was already a record year.

Revenues this year could exceed the P2.5-billion target for the year. For 2015, Garcia expects revenues to reach P2.8 billion largely driven by higher port revenues.

SBMA is the 9th biggest government-owned and controlled corporation revenue contributor to the national coffers with P243 million in cash dividends to the government in 2013. (Bernie Magkilat, Manila Bulletin)

PHOTO:
BUSY PORT – Hauling trucks and reach stackers move some of the container vans in Subic Bay Freeport at the New Container Terminal-1 in Subic Bay Freeport. Manila port has transferred most of its overstaying cargoes to Subic to help ease the port congestion felt in Manila. (Jonas Reyes)

http://www.mb.com.ph/subic-expands-port-road-for-p11b/

Read More

NYK line makes first port call in Subic

Japan-based Nippon Yusen Kaisha (NYK) Line, one of the largest shipping companies in the world, made its first direct route to Port of Subic from Kaohsiung, joining other major shippers in using this free port as a more viable alternative to the congested Port of Manila.

NYK’s MV Jakarta Towers, a 688-gross tonnage Liberian-flagged cargo vessel, made its first port call at Subic on Saturday and docked at the New Container Terminal (NCT)-2 after sailing a day-and-a-half from Kaohsiung, Taiwan.

The cargo vessel unloaded about 110 container vans destined to consignees in Southern Luzon, including Toyota Motor (Phils.) Corp. in Santa Rosa, Laguna; Canon Business Machines (Phils.) Corp. inTanauan, Batangas; and parts of Metro Manila.

The ship also unloaded cargos for consignees in Central and Northern Luzon. These included Sumi Phils. WiringSystem Corp. at the Hermosa Ecozone Industrial Park in Bataan; International Wiring System (Phils.) at Luisita Industrial Park and Special Ecozone inTarlac; and Yokohama Tires at Clark Freeport Zone in Pampanga.

The ship departed on the same day for the Port of Manila, and then later for Singapore after loading almost the same number of containers.

NYK Group National Sales, Marketing and Outports manager Mary Grace Golez said that the port call is part of the ad hoc operation of NYK in Subic and will serve as basis of assessment for opening a full operation here or have Subic only as an alternate port.

“It all depends on the outcome of the assessment after several port calls. But we hope everything would go well,”said Golez.

She added that should the assessment go well, the new route—Kaohsiung-Subic-Singapore—would open Port of Subic to major transshipment ports that connect to the rest of the world’s trade routes, especially in ASEAN countries, Africa, Europe, and North America.

Subic Bay Metropolitan Authority(SBMA) Chairman Roberto Garcia earlier announced that a number of shipping companies in Southeast Asia are starting to consider using the Port of Subic after experiencing long delays in unloading and loading of containerized cargos in Manila.

This was attributed to the congestion at the Port of Manila, which forced cargo vessels to wait off Manila Bay for at least a week before docking and unloading cargos.

Because of this, President Aquino through Executive Order 172, has classified the Port of Batangas and the New Container Terminal-2 in Subic as extensions of the Port of Manila.

Golez noted, however, that the Port of Batangas, which is nearer Manila, was already congested a month after the issuance of EO 172.

Golez also noted the overwhelming support extended by the SBMA to NYK, especially in working out the agreement for the new route to Subic.

Early this month, China-based SITC Container Lines (Phils.), Inc. also opened a direct route from Xiamen,China, to Subic with its container ship MV Sicilia making its maiden voyage to Subic and unloading 22 containers at NCT-2. (RAV/MPD-SBMA)


PHOTO:
A trailer truck hauls off a cargo container from MVJakarta Tower, a vessel chartered by the Nippon Yusen Kaisha (NYK) Line for its first ad hoc call at the Port of Subic. MV Jakarta Tower, which will be used exclusively for NYK bookings, arrived at Subic’s New Container Terminal on Sunday, November 23. (AED/MPD-SBMA)

Read More

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

Read More

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

Read More

Subic feeder to provide better service to Central Luzon shippers

A faster, cheaper transport system will soon be available to cargo shippers in Central and Northern Luzon when a new feeder service that will ship containers from Manila to Subic begins its operation next month.

The Subic Bay Metropolitan Authority (SBMA) announced last Friday that a Manila-Subic shuttle service operated by the PTC Agency & Transport, Inc. will serve as a common feeder for shipping lines serving locators and shippers in and around Northern Luzon.

SBMA Chairman Roberto Garcia, who welcomed the shuttle project as a new gain for the Subic Bay Freeport, pointed out that it would make shipping more efficient and also help address difficulties that shipping lines and truckers face because of the truck ban imposed by the Manila city government.

Garcia also said that the Subic Bay Freeport would generate additional income from the feeder service, as it would increase ship calls in this free port.

“The common complaint of shippers in Manila is that we have very few ship calls here. But once the feeder service is established, eventually there will be an increase in container volume, thus attracting major shipping lines to make their calls here,” Garcia said.

Garcia added that because of this new development the SBMA is looking at doubling the current volume of cargo unloaded at Subic’s container terminal.

The SBMA official also pointed out that Subic is a better alternative to shipping via Manila, as it would be cheaper and more convenient for shippers, especially those in Central and Northern Luzon, to load and unload their cargo here.

“Out of the 2.8 million containers that are shipped through the port of Manila every year, 450,000 of these go to Central Luzon. So it is definitely cheaper and more convenient if they ship and deliver from here,” he said.

Garcia also said that the SBMA would coordinate closely with Manila North Tollways Corp. regarding the maintenance of the Subic-Clark-Tarlac Expressway in order to accommodate trucks that will be coming in and out of Subic. (FMD/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto Garcia (right) looks on as PTC Agency & Transport, Inc. President Edgar Milla discusses the schedule of the Manila-Subic shuttle service that will open early next month.

Read More

Shift To Batangas, Subic Supported

Truck operators support the government’s plan to move cargo traffic from Manila to Batangas and Subic ports to decongest Metro Manila but urge regulators to withdraw existing truck ban and instead establish a regular truck route that they could use unhindered.

The Confederation of Truckers Association of the Philippines (CTAP) said it supports the Department of Transportation and Communication’s (DoTC) impending policy decision on shifting port traffic , saying the proposal is “salutary and economically viable.” But CTAP president Ruperto Bayocot said government should fix some established trucking regulations first before implementing the cargo traffic shift, primarily the trucking ban on certain thoroughfares.

“Unlike in Metro Manila, the transportation of cargoes in and out of Batangas or Subic ports should not be covered by a truck ban. Instead, a special truck route should be established to ensure the continuing and hasslefree transport of cargoes,” he said.

Bayocot said cargo trucks that will move operation from Manila to either Batangas or Subic ports should not be under the control of the local trucking associations covering their new port of business.

“There exists at present a local trucking association in Batangas port which tends to control and monopolize the operation and movement of trucks in the area. CTAP believes that every truck transporting cargoes in and out of Batangas port should not be subject to control by any local trucking association. On the contrary, such truck should be given access to and from the port without being harassed,” he said.

Bayocot urged the Philippine Ports Authority (PPA) to establish a complaint and monitoring office inside Batangas port, in particular, “to safeguard the interest of truckers and other port users.” He also defended truckers from being blamed as major factors to the perennial problem of traffic congestion in the streets of Metro Manila.

“Truckers are not solely to blame for the daily traffic congestion in the port of Manila. There are other factors that contributed to the traffic congestion,” he said.

Bayocot cited the local government unit’s ordinances that run counter to the Metro Manila Council ordinance no. 5, which gives trucks a 24-hour window time and a designated route to the north, south east and west of Metro Manila.

“Hence, during truck hours from 5 p.m. to 10 p.m., hundreds of trucks and trailers were forced to park along Bonifacio Drive and streets adjacent to Manila ports. Traffic congestion was aggravated when the Department of Public Works and Highways issued a directive prohibiting trucks from parking along Bonifacio Drive and nearby areas,” he said. (Kris Bayos, Manila Bulletin)

Read More

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)

Read More

Decongest Manila: Cargo Diversion To Subic, Batangas Starts 1Q 2013

A new policy on how to decongest traffic to and from the Manila port by diverting container cargoes to the Subic and Batangas seaports will be in place by the first quarter of 2013.

This was disclosed by the consultants who made a study on the twin issues of decongesting Metro Manila traffic and making full use of the recently modernized alternate ports during a final consultation held at a hotel in the Ortigas business district in Pasig early this week.

The consultants were commissioned by the Department of Transportation and Communications (DOTC) late last year and were funded by the Japanese International Cooperation Agency (JICA).

The consultants responded that the decongestion and diversion program will be finished by the end of this year and be ready for executive decisions by January.

A representative to the consultation from the Metropolitan Manila Development Authority (MMDA) informed the group that the council of Metro Manila mayors has passed a resolution imposing a new truck band during the holidays.

The resolution, if not rescinded on time, will impose a trucking ban from the streets of the metropolis between 4 in the morning to 9 in the evening from December 3 to 26 or the height of preparations for the long Christmas to New Year holiday.

The MMDA said the mayors made the decision after the truckers failed to submit a route plan for truckers to decongest city streets of heavy traffic after they were given a six-month notice.

Even at this late time, some reservations were still brought out during the consultation as to how practical the consultants’ recommendations will be.

It was pointed out that as a destination for imports, Metro Manila remains the biggest market compared to any other region in the country. This would mean, most ships for imported goods will still prefer to call at the Manila Port.

Secondly, the shipping lines, in order to sail directly to and from Subic and Batangas, must be able to pick up or deliver bigger volumes of cargo to make additional ships call on those ports more than just one or two ships a week.

Thirdly, the truckers that bring cargo in and out the ports are mostly based in Metro Manila. (Edu Lopez, Manila Bulletin)

Read More

Passenger/cargo hub plans for Subic, Clark

Subic and Clark are poised for greater growth as over P100 billion worth of existing infrastructure and road projects and those still in the pipeline are designed to turn the two freeports into world-class passenger and cargo hubs.

“The most relevant goal is to create a world-class passenger mobility and cargo distribution network,” Arsenio M. Balisacan, secretary of Socioeconomic Planning and NEDA director-general, said at the recently held Subic Bay Maritime Conference and Exhibit 2012.

Balisacan said the Aquino administration envisions Subic and Clark as centers that will provide globally competitive passenger mobility and cargo distribution services.

This is on the back of strong economic performance and the presence of the private sector in the shipping business in Subic, a former US naval base, and in Clark, a former US Air Force base.

Because of this, Balisacan said the government and the private sector have invested some P53.4 billion. In addition, there are other projects in the pipeline totaling more than P49 billion.

“Opportunities abound for the maritime industry as investments in Central Luzon continue to grow. Almost P180 billion of new investments were generated in 2011 as compared with the P70 billion new investments in 2010,” Balisacan said.

Balisacan further said that the government’s private-public partnership program in Central Luzon will also boost growth in the region, including its maritime industry.

Among the infrastructure projects in the Subic and Clark area are as follows: the completion of the Subic-Clark-Tarlac Expressway (SCTex); rehabilitation of the North Luzon Expressway; construction of the Tarlac-Pangasinan-La Union Expressway and the Central Luzon Link Expressway; widening of MacArthur Highway; rehabilitation of the Gapan-San Fernando-Olongapo Road; rehabilitation of Daang Maharlika, and opening of the Capas-Botolan Road, which will continue to improve access to Subic and Clark.

The construction of Dingalan Port in Aurora and concreting of the Dingalan-Gabaldon Road complete an overland Pacific-West Philippine Sea connection through Subic Port, Balicasan said. (Jennifer Ambanta, Malaya)

Read More