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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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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APEC avenue for improving RP’s tourism, claims Palace

Presidential communications secretary Herminio Coloma Jr. yesterday noted the Asia-Pacific Economic Cooperation (Apec) events as a way to promote the Philippines as a key tourist destination, saying that it will pave way to a robust economy and create livelihood for Filipinos.

“We should continue to build the image of our country as a favors tourist destination because this will be the way for a healthy economy and will create opportunities in livelihood for out citizens,” Coloma said.

The Palace official also said that efforts for ongoing talks in the Apec and the Philippines hosting it will help shape the economy in a better way, as preliminary talks begin in Central Luzon.

“The whole year, meetings will be held in different provinces and cities of the country to the point of the actual summit of Economic Leaders which will be held in Manila,” Coloma said.

The Apec’s Senior Officials’ Meeting and Related Meetings (SOM-1) — the Apec kick-off event — has begun earlier this week, where the Palace reiterated that the event would again tackle pursuing policies and programs on trade and investment liberalization, business facilitation, and economic and technical cooperation.

Representatives from the 21 Apec member-countries are attending the Apec-SOM1 in Clark Freeport Zone in Pampanga and Subic Bay Freeport Zone in Zambales. (Joshua L. Labonera, The Daily Tribune)

http://www.tribune.net.ph/nation/apec-avenue-for-improving-rp-s-tourism-claims-palace

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Central Luzon ‘well-poised’ for Asean economic integration

CITY OF SAN FERNANDO -- Central Luzon is in a strong position to partake in the economic integration of the Association of Southeast Asian Nations (Asean) next year, an official of the Regional Development Council (RDC-3) in Central Luzon assured, citing vigorous economic progress and positive image in the international community.

“What does it mean for us here in Central Luzon? First of all this is not an option for us because we are all involved here and all of us are stakeholders and are bound to feel the impacts of the integration,” RDC-3 chairman and Bulacan Governor Wilhelmino Sy-Alvarado clarified during the RDC-3 Forum on the Asean Economic Community (AEC) held recently at the National Economic and Development Authority (Neda-3) Central Luzon Office, Diosdado Macapagal Government Center, this city.

Alvarado revealed that the RDC-3, in particular, was tasked to determine the opportunities and challenges of establishing relevant programs, which will highlight the strengths of the Central Luzon within the context of the impending Asean economic integration.

“By December next year, the Asean Economic Community or AEC will take full effect, although this is not something new because we know that the initiative for integration was signed way back in 2000 during the Asean 2000 Summit,” he said.

The forum, which concurrently served as the 14th Session of the RDC-3, was participated in by key government and private stakeholders, including lawyer Jonas Leones, Undersecretary, Department of Environment and Natural Resources (DENR); Brenda Joyce Mendoza, Director, Neda Trade and Services and Industry Staff; Alberto Lina, Chairman, Lina Group of Companies; Severino Santos, Director, Neda-3; and other local officials of Central Luzon.

"The forum on Asean Economic Community of the RDC-3 aims to increase the level of awareness of RDC3 members and other stakeholders on AEC, particularly its implications to national and regional economy," said Santos.

Leones stressed the competitive edge of Central Luzon in the Asean economic integration in terms of its strategic location, covering both the Subic Bay Freeport Zone and the Clark Freeport Zone, which has its own international airport.

“Central Luzon has been identified as the new ‘epicenter’ of big investments because of the massive influx of opportunities here, especially in the Subic and Clark. It certainly has a high potential to perform well on the Asean economic integration next year,” Leones said.

Mendoza shared that the AEC offers massive business opportunities that both the public and the private sector must exploit to copiously benefit from its advantages.

"The asean Economic Community is something not to be feared about. AEC can be explored and taken advantage of," urged Mendoza.

Challenges ahead

Central Luzon may be a robust economic player in the international stage, especially in the Asia-Pacific region, but Alvarado said the government still has a long way to go in terms of creating development strategies that will ensure its readiness for AEC implementation.

“Most of us who have been with the RDC can attest that for many years now we have been working towards the realization of some very important critical infrastructures for Central Luzon such as the Clark International Airport, coastal highway that will link Sangley Point in Cavite to the Bataan Special Economic Zone, North Rail or mass transport system linking Metro Manila to the Clark International Airport and the Balog-balog dam to name a few,” cited Alvarado.

Small and Medium Enterprises (SMEs), according to Alvarado, are also expected to significantly gain from the trade and investment opportunities of this new arrangement but there are still some key economic issues that needs to be addressed.

“For example, on the target of eliminating or having zero tariff rates—as early as January 2010, more than 99 percent of tariff lines between ASEAN six member countries have been brought down to zero in line with the goals of ASEAN Free Trade Area or AFTA,” he said adding that ASEAN must work on further eliminating trade barriers and undertaking agreements with important economic powers, including China, India, Japan, South Korea, Australia and New Zealand.

Competitive advantages

Mendoza, nevertheless, mentioned that the country is already "well-poised" to compete with its neighbors in the Southeast Asian region.

"The Philippines has been gaining the confidence of international community as evidenced by the credit rating upgrades given by debt-watchers Moody's Investor Service and Fitch Ratings. This means that we are in a great position in terms of the economy," she said.

The growth from 2010 to 2013, according to Neda, recorded the highest four-year average growth since 1979 and this will ascertain that the Philippines will gain from the AEC.

Meanwhile, Alvarado supported this statement, citing the presence of many Filipinos abroad.

“Our network of Overseas Filipinos stands out as a distinct advantage over Asean counterparts because relatively, most of the Philippines’ work force is proficient in English. Another advantage is that we have the high average growth or Gross Domestic Product in the current decade,” he said.

The Asean integration puts in motion the materialization of the AEC, which envision Southeast Asia as "a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy."

The Asean is a 10-nation regional bloc that includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. (Ferth Vandensteen Manaysay, Sun Star Pampanga)

http://www.sunstar.com.ph/pampanga/local-news/2014/12/22/central-luzon-well-poised-asean-economic-integration-383323

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CL growth seen as PNoy puts RDCs to task

The engines of growth has shifted to high gear as President Aquino swore in and took to task the Regional Development Council (RDC) heads of the country in a ceremony held at the Rizal Hall of Malacañang the other day.

Under the National Economic Development Authority (NEDA), the new RDC chairpersons are Bulacan Gov. Wilhelmino M. Sy-Alvarado for Region III; Albay Gov. Jose Ma. Clemente “Joey” Salceda for Region 5; Bohol Gov. Edgardo Chatto for Region 7; and Surigao del Norte Gov. Sol Matugas for Mindanao.

In Central Luzon, Gov. Alvarado said that the RDC 3 is focusing on boosting the two special economic zones in the region – the Clark Special Economic Zone in Pampanga and the Subic Bay Freeport in Zambales.

He said that plans are under way for the construction of a fast mass transport system that will link the Clark International Airport to Metro Manila.

“We already have the facilities and we just need to maximize its use in order to further spur more growth in the Central Luzon,” said Alvarado, with his wife Bulacan 1st District Rep. Ma Victoria M. Sy-Alvarado by his side.

He said the President is very serious in expediting various socio-economic development programs in the different parts of the country.

The governor said that the interlinking of the Clark area via a fast mass transport system like the “Bullet Train” of Japan to Metro Manila will create a new booming region. (Freddie C. Velez, Manila Bulletin)

PHOTO:
GROWTH TALKS — President Aquino seems to be telling Bulacan Governor Wilhelmino M. Sy-Alvarado to start rolling up his sleeves in fast-tracking the development programs in Region 3, shortly after being sworn-in as the chairman of the Regional Development Council in Central Luzon the other day at Malacañang. Also in photo are Department of Interior and Local Government Secretary Mar Roxas and Gov. Alvarado’s wife, Bulacan 1st District Rep. Ma Victoria R. Sy-Alvarado.

http://www.mb.com.ph/cl-growth-seen-as-pnoy-puts-rdcs-to-task/

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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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IPAs to set unified investments goal and strengthen referral system

The government’s investment promotion agencies (IPAs) are expected to come up with a unified investment target as they collaborate to further strengthen a referral system to promote each other in their various investment campaigns, including the huge agricultural potential for Bangsamoro provinces.

Trade and Industry Undersecretary Ponciano C. Manalo Jr. told reporters that heads of the various IPAs met recently in Zamboanga City and agreed to jointly promote the country as an investment destination with a single message “Invest Philippines”.

With that, Manalo said the IPAs should have a common investment target noting that the Board of Investments and the Philippine Economic Zone Authority are the ones accounting for the bulk of investments generation.

At present, each IPAs have individual targets which are later on combined but Manalo, as head of the DTI investment promotion group, said the IPAs, can adopt a unified target where there is a specific target for foreign direct investments and total projects approved.

The IPAs are led by the government’s premier investment premier investment promotion agency Board of Investments (BOI). Other IPAs include the Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, Cagayan Economic Zone Authority, Zamboanga Special Economic Zone, Aurora Special Economic Zone, Philippine Retirement Authority, Phividec Industrial Estate, BOI-Autonomous Region of Muslim Mindanao and the Bases Conversion Development Authority.

In 2010, the IPAs had set an investments growth target of 10 percent in 2010 and 15 percent for 2011 to 2012 and 20 percent by 2013 to 2014. Investments generated by the government’s IPAs in 2009 reached P315.28 billion from P473.25 billion in 2008.

The setting of an investments target could help the IPAs measure their performance in light of the good reviews the country has been getting from the international business community.

“We should be running on all four cylinders,” Manalo stressed.

To push for an aggressive investment promotion campaigns, Manalo also urged the iPA members to work together by providing referrals for each other noting that not every IPA can accommodate all the specific needs of investors. There are small IPAs that can host small manufacturing operations.

“I encourage them to work together that even if they have specific mandate they can refer each other for projects that are suitable in another area,” Manalo said.

He cited the case of the recent P9 billion investment of Panhua Group Co. Ltd. in Subic Bay. The Chinese firm plans to build a pre-paint could and metal sheets factory for export and domestic markets.

The Panhua investment was actually an effort of the BOI, which was referred to the more appropriate Subic Bay Metropolitan Authority because Subic can appropriately serve the requirements of this manufacturing firm.

Manalo also cited the Authority of the Freeport Authority of Bataan, which has already an established players of garments and leather goods making it easier in terms of materials sourcing.

In the case of the Bangsamoro, Manalo was positive that once the law is passed, there will be more investments inflow particularly in agriculture in this region

“I am very hopeful, Mindanao is very rich in agriculture and agri processing,” he said.

It is rich in fisheries, rubber, seaweed manufacturing, tuna and sardines processing.

“Once the Bangsamoro is completed with a plebiscite, I am very hopeful for Zamboanga,” he added.

The incentives to be granted by IPAs to investors will depend on the list of economic activities listed under the Investment Priorities Plan (IPP), an annual list of priority projects that are entitled to government incentives.

Manalo further said the 2014 IPP has identified sectors that need reinvestments the most. (Bernie Magkilat, Manila Bulletin)

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