Smuggled vegetables seized in Subic Freeport

In line with the mandate of President Ferdinand Marcos Jr. to run after agricultural smugglers, the Subic Bay Metropolitan Authority (SBMA) and the Bureau of Customs (BOC) Port of Subic apprehended nine 40-foot container trucks at the Port of Subic on Wednesday.

SBMA Chairman and Administrator Jonathan D. Tan, who personally went to the Freeport's container terminal for the inspection, said the nine containers were all declared as frozen lobster balls, which were consigned to Rianne Food Products.

The SBMA Chief added that the seized cargo arrived on November 3 with a declaration that the shipments all  contained at least 40, 000 cartons of frozen lobster balls.

Tan revealed that upon cargo check, the SBMA and the BOC found that the shipments contained fresh potatoes, carrots, radish, and broccoli in the amount of more than 42.6 Million Pesos.

The BOC Port of Subic seized the misdeclared shipments for proper disposition and appropriate action. Six other containers, also consigned to the same company, will be subjected to the same inspection procedure by the port authority and the customs bureau.

Meanwhile, Chairman Tan lauded the vigilance of the two agencies, stating that both the SBMA and the BOC Port of Subic are very much serious in implementing the President's mandate to go after agricultural smugglers and end illicit trade in the country. (MPD-SBMA)

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SBMA Chairman warns unscrupulous traders to follow protocol or get banned

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan warned port users here engaged in truck trading to follow protocol or get banned from doing business inside the Freeport.

Chairman Tan in a meeting with 100 stakeholders on Thursday said that the agency is clamping down on illegal activities that are proliferating in the Freeport.

One of the most common is underdeclaration of the weight of shipped trucks to reduce the payment of their duties and taxes. Also common is the fraudulent upgrading of the trucks' year model through bribery, aside from the irregular shortening of process time or skirting of port policies by truckers who want their shipments processed earlier than scheduled.

“This is a fair warning to everyone. The President told me to give you a chance, he told me to save the truck industry. The processing of imported trucks should be done as stated by law,” he said.

“Most of the truckers here use bribes to speed up the processing of their papers. We will stop this illegal activity and will abide by the process on the releasing of trucks,” he added.

The SBMA is in the process of procuring a weighing scale that will be used on November 15, providing the agency equipment to determine the actual weight of imported vehicles and improve the deterrence of illegal activities in the port area.

“You have until November 15 to straighten your businesses or we will revoke your permit. This order is coming from the President, and I will coordinate with BOC Commissioner Bienvenido Rubio to ensure that you are all following the protocols,” he said.

The agency chief further admonished that no one should ask for money using his name, that he will give his number to the truckers so that if anyone tries to ask for money, they can contact him.

Tan said that for the past 30 plus years, this has been the norm in the Subic Freeport, adding that things will be different. “Ngayon bago na, kung hindi niyo magawa ng tama yan, I will have to revoke your permit,” he concluded. (MPD-SBMA)

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Foreign businessmen seek use of Subic, Batangas ports

MANILA, Philippines – The Joint Foreign Chambers (JFC) is reiterating its calls to utilize ports in Batangas and Subic in an effort to “reduce cost and increase efficiency in the Manila port.”

In a statement on Monday, the JFC said its logistic firms are in talks with major port operators seeking “win-win solutions” to address congestion at the Manila port, truck-bans and route prohibitions.

“They are also looking at the lack of support infrastructure in form of easy access to the ports (including Batangas). The intent is to draw up short-term, mid-term, and long-term solutions. While undertaking these discussions, the JFC advocacy remains that the use of port assets in Batangas and Subic should be promoted and the impact of expanding the Manila port carefully evaluated,” the JFC said.

JFC said it has furnished a letter to the House of Representatives Committee on Ways and Means from the Arangkada Philippines 2010: A Business Perspective of the Joint Foreign Chambers of the Philippines and the recent Assessment on Infrastructure: Seaports and Logistics to address the underutilization of the Batangas Container Terminal.

JFC added that a private sector expert said the recommendation is not ongoing because “there is still resistance from customers to pay added trucking costs to Batangas.” (ABS-CBNNews.com)

http://www.abs-cbnnews.com/business/12/16/13/foreign-businessmen-seek-use-subic-batangas-ports

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Subic Bay historical marker unveiled

The National Historical Commission of the Philippines (NHCP) unveiled here on Tuesday a historical marker for the port of Subic, recognizing the contribution of the area and the role of Filipino workers in the economic development of the nation.

The marker, which cited the area as the “Himpilang Pandagat ng Look ng Subic” or the Subic Bay Naval Station, was unveiled by NHCP executive director Ludovico Badoy with the assistance of Subic Bay Metropolitan Authority (SBMA) chairman Roberto Garcia.

NHCP is the government agency responsible for the conservation and preservation of the country’s historical legacies, as well as the commemoration of significant events and personages in Philippine history.

The marker was placed on the outside wall of the “Spanish Gate” at the corner of Dewey Avenue and Sampson Road here, which served as the entrance to the former Spanish Naval Port that was constructed in 1885.

The unveiling ceremony was graced by Region 3 tourism director Ronaldo Tiotuico, Subic Bay Chamber of Commerce president Danny Piano, representatives of local tourism establishments and civic organizations, and members of the SBMA board of directors.

Badoy said the marker represents the whole Subic Bay Naval Station, which served as the entrance to and from the Spanish garrison that existed here from 1885 to 1899, when it was forcibly taken by the American forces.

Badoy explained that despite the fact that the area was used as naval port by foreign occupation forces—the Spanish, American and Japanese armies— the contribution of the Filipino workers who toiled here during the time and after the hostilities “is so significant to the development of the region and the national economy.”

The NHCP official also commended the administration of the SBMA for preserving, maintaining and protecting the historical structures and values of the port, adding that he would recommend to the NHCP board of directors the proposal of SBMA to declare the San Roque Chapel inside the Freeport as another historical landmark.

For his part, Chairman Garcia said that marking the Spanish Gate as a historical site will boost the tourism industry in the Subic Bay Freeport.

“Some tourists who come here only remember that Subic was a former recreation area of the US forces. With this historical marker, it will be known to everyone that this free port is a place with a history of its own,” Garcia said.

The SBMA official also noted that the historical marker reflects the undertakings of Filipino workers who have worked hard to build a better community—be it in time of war or peace—and succeeded in developing a place that now contributes to national economic progress.

“This may be the first historical marker for the Subic Bay Freeport, but it symbolizes the long history of the endeavors and heroism of Filipino workers,” Garcia added. (RAV/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia (left) and National Historical Commission executive director Ludivico D. Badoy unveil the historical marker which declares the old Spanish West Gate in the Subic Bay Freeport Zone a historical site.

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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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Subic’s customs collections rise 58% to P5b

The Bureau of Customs here said revenue collections in the first half grew by more than 50 percent year-on-year and exceeded the goal for the period.

Port of Subic customs collector Adelina Molina said the Freeport zone collected P5 billion in customs duties and taxes in the January-June period, or 58 percent higher than the P3.1 billion posted in the same period last year.

The agency also surpassed its first-half target of P3.03 billion by P1.09 billion, or 62.6 percent.

Molina said BoC-Subic showed strong collection performance in the months of April and June, when it achieved record-high monthly collections of P1.09 billion and P1.05 billion, respectively.

The strong April and June collection took the Freeport’s second-quarter tally to P3.09 billion, or 85.5 percent more than the P1.42 billion it collected in the second quarter last year. The figure also represented a 95.5-percent increase over the P1.58-billion quarterly revenue target.

Data from the BoC’s statistics division showed collection in the first quarter grew 26.5 percent to P1.8 billion from a year ago. It also surpassed the target collection of P1.45 billion for the period by 26.5 percent.

Molina attributed the collection performance to the ‘team effort’ shown by different departments of her office as well as close cooperation with Freeport authorities.

Customs Commissioner Ruffy Biazon made a surprise visit recently to the Port of Subic to personally commend Molina for achieving an unprecedented collection performance for the month of April.

Biazon showed his appreciation and support to the team of Molina, including deputy collectors Ernelito Aquino for assessment, Andrew Fernandez for operations, Irineo Onia Jr. for administration, BoC law enforcement head Elpidio Manuel, Customs intelligence and investigation service chief Jose Du.

Subic Bay Metropolitan Authority chairman Roberto Garcia cited Molina for a “job well-done” not just for the high collection performance but also for strict enforcement of its mandate to curb smuggling. (Cecille Garcia, Manila Standard Today)

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Chinese steel pipe factory to ramp up exports through Subic port

Chinese metal pipe manufacturing firm HLD Clark Steel Pipe Co. Inc. is expected to increase its export operations through this free port after gaining concession to ship via Subic’s New Container Terminal-1 (NCT-1).

SBMA Chairman Roberto Garcia said the Subic Bay International Terminal Corp. (SBITC), operator of the NCT-1, had given the Chinese firm a bigger space for stockpiling its cargo in response to the requirements of the Chinese exporter.

HLD, which is a subsidiary of Huludao City Steel Pipe Industrial Co. Ltd. in China, specializes in the production of high-frequency straight-line welding pipes that are being used as casing pipe for petroleum products.

The company has been based since 2009 at the neighboring Clark Freeport, where it had since expanded its production program for steel pipes from ½ to 14 inches in diameter, including the carbon steel variety.

HLD has actually started shipping its pipe exports here in January after it signed an agreement with the SBMA and SBITC for the use of NCT-1, said SBMA seaport manager Jerome Martinez.

The firm, which ships its products to the United States and Canada, initially tried break-bulk shipment at the NSD area, but realized that the place had no more space left for an eight-hectare stockpile.

Martinez also said that with HLD’s shipment operations via NCT-1, the Subic agency expects to boost its income from the SBMA seaport.

He said that from February to May this year, the SBMA already earned around P3 million from HLD operations, the bulk of which came from SBMA shares from the SBITC.

He added that in the past four months, the Chinese pipemaker had shipped its cargoes using four vessels of from 20,000 to 30,000 gross tons, thereby increasing collections as well in wharfage fees and other seaport payments. (HEE/MPD-SBMA)

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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)

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New vessel tracking system to boost safety in Subic harbor

Vessels coming into harbor at the Subic Bay Freeport would feel doubly secure now, as the Subic Bay Freeport Chamber of Commerce (SBFCC) installed a new vessel tracking system to help raise the level of safety in this maritime port.

SBFCC president Danny Piano said the business locators’ group installed a new Automatic Identification System (AIS) antenna on May 2 at the iconic Lighthouse Marina Resort, which is conveniently located to receive transceiver signals from ships entering or leaving Subic Bay.

Subic Bay Metropolitan Authority Chairman Roberto Garcia welcomed the initiative of the SBFCC and said the equipment would complement the AIS that the SBMA, as manager of the maritime port, has been using to effectively keep track of vessels within its area, including those without any transmitters.

Piano said the additional AIS would help increase the level of safety in Subic Bay, which is increasingly becoming a major maritime hub.

“Placing a new vessel tracking system will boost safety and security, as it provides real-time data on ship positions and movements including arrival and departure information,” he also explained.

Piano said that the Lighthouse Marina Resort is a suitable location for the new AIS because it also has a tower equipped with a blinking white light that serves as a guide for ships.

He added that vesseltracker.com, an international provider of AIS services with a network of over 800 AIS receiver stations worldwide, is now the antenna partner of SBFCC in cooperation with The Lighthouse Marina Resort.

The Automatic Identification System is used on ships and by vessel traffic service outfits to identify and locate vessels by exchanging electronic data with other nearby ships, base stations and satellites.

Vessels fitted with AIS transceivers and transponders can be tracked by AIS base stations located along coast lines or, when out of range of terrestrial networks, through a growing number of satellites that are fitted with special AIS receivers which are capable of de-conflicting a large number of signatures.

AIS information supplements marine radar, which continues to be the primary method of collision avoidance for water transport. (HEE/MPD-SBMA)

PHOTO:
SBFCC president Danny Piano turns over an Automatic Identification System antenna to Jozen Curva, Public Relations Officer of The Lighthouse Marina Resort.

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Subic Port collection above target

Data received from the Financial Service, Statistics Division of the Bureau of Customs showed that the Port of Subic collected the total amount of P1,091, 625, 587 for the month of April.

This is P561,980, 587 over its assigned target of P529,645.000, or a positive deviation of 106.1 percent.

Customs Commissioner Ruffy Biazon, upon learning of the above target collection, made a surprise visit yesterday to the Port of Subic to personally congratulate District Collector Atty. Adelina SE Molina for achieving an unprecedented collection performance.

The gesture of the Commissioner served as a motivation to the Port to further improve its revenue collection drive and the personnel has vowed to contribute towards the attainment of this vision.

Commissioner Biazon has just attended the 18th Meeting of the ASEAN Coordinating Committee on Customs at Widus Hotel, Clarkfield, Angeles, Pampanga and decided to proceed to the nearby Port of Subic to show his appreciation and support to the team of District Collector Atty. Molina, her Deputy Collectors, Atty. Ernelito G. Aquino for Assessment, Atty. Andrew Fernandez for Operations, Atty. Irineo Onia Jr. for Administration as well as to the entire personnel of the Port for achieving this rare feat.

Biazon stressed the role of the various Association of Southeast Asian (Asean) customs agencies in establishing a One-Asean, One Customs environment among the 10 Asean member economies through the envisioned Asean Economic Integration for 2016 during the formal opening of the 18th Meeting of the Asean Coordinating Committee on Customs (CCC).

In delivering his keynote address to the customs officials of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Singapore, Thailand, Vietnam and the Philippines, Biazon underscored the evolving global economic trends where customs procedures among Asean member economies are being streamlined, trade barriers are being dismantled to give way to faster trade facilitation, even as enforcement of customs laws and rules and capacity building programs are being enhanced.

“Globalization is a reality we have to face and trade facilitation is at the forefront of this Asean economic endeavor” Biazon said, adding that, “Today’s meeting of customs chiefs shall, therefore, help pave the way for the establishment of an integrated customs agencies among the Asean countries,” Biazon said.

The Asean customs officials were also joined by the customs delegation from Japan, China and Korea.

The delegates to the 18th Asean CCCC shall discuss among others, the progress reports of the Customs Procedures and Trade Facilitation Working Group, the Customs Compliance Working Group and the Customs Capacity Building Working Group.

Preparations for the coming 22nd Meeting of Asean Directors-General of Customs shall also be discussed. Biazon currently seats as Chairman of said organization. (Malaya Business Insight)

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Salvtug expands tugboat fleet

Marine services provider Malayan Towage and Salvage Corporation, also known as Salvtug, inaugurated on Friday three new tugboats to beef up its capacity to provide critical support services to the shipping industry.

Salvtug president Capt. Edgardo Gualberto said the new tugboats consisted of M/T “Vigilant,” a Japanese-made 4,000-boiler horsepower (BHP) hybrid harbor assist tug, and the 4,400-BHP M/T “Intrepid” and M/T “Defiance,” both ocean-going harbor tugs from Singapore.

All three vessels are specially fitted with external fire-fighting equipment, Gualberto noted. In addition, Intrepid and Defiance have oil spill equipment.

Aside from being outfitted with the latest in technology, the new tugboats are so powerful that they can perform towage without difficulty, Gualberto added.

Salvtug Chairman and CEO Terry Watkins said the new tugboats represent “the beginning of a new era” for Salvtug, which started out in 1974 with just three coastal tugs and four barges.

Watkins said the company now owns 41 multi-tasked tugs, six special project vessels, a crewboat, and 13 container and general cargo barges, which include M/T “Trabajador-1,” said to be one of the more powerful oceangoing salvage tugs in the Western Pacific today.

Salvtug, which maintains vessels in the Subic Bay Freeport and other major ports in the Philippines, engage in the provision of marine services like harbour docking and undocking, ocean and coastal towage, marine salvage and wreck removal, oil spill response and recovery, emergency firefighting and underwater operations, as well as barging.

Officials say Salvtug now provides over 90 percent of the docking and undocking services for all types and sizes of vessels calling at all major Philippine ports.

It also provides tug service for coal power plants in Sual, Pangasinan; Masinloc, Zambales; Calaca, Batangas; and Pagbilao, Quezon, and services very large crude carriers (VLCC) and tankers that call at Petron, Shell and Caltex refineries and depots in Bataan and Batangas.

Salvtug has also refloated more than 145 vessels of various sizes, and maintains oil spill equipment of the Philippine Coast Guard and some oil companies. (HEE/MPD-SBMA)

PHOTO:
Guests board the M/T Defiance, one of the three new tugboats inaugurated by the Malayan Towage and Salvage Corporation at the Bravo Pier in the Subic Bay Freeportlast Friday.

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ICTSI sees Subic becoming top seaport

Subic Free Port Zone will become a major port in 10 years, the top official of International Container Terminal Services Inc. (ICTSI) said.

“Subic we are pushing hard we are building up the market, it takes a long time within the next 10 years. I think Subic will become a major port,” said Enrique Razon, chairman and president of ICTSI, during the company’s annual stockholders meeting on Thursday.

The Port of Subic in Zambales is located in the vicinity of Subic Bay, one of the Philippines’ finest harbors and most strategic base.

Subic Port is the country’s first free port and continues to be one of the country’s major economic engines with more than 700 investment projects, including the fourth largest shipbuilding facility in the world.

Earlier reports said that at present, Subic is upgrading its port facilities through the Subic Bay Port Development Project, and forging ties with the Clark Special Economic Zone in Angeles Pampanga to form the Subic-Clark Corridor via the 45-kilometer segment of Subic-Clark-Tarlac Expressway. With those developments, Subic and Clark are being positioned to become one of the most competitive international service and logistics centers in Southeast Asia.
Financial results

During the ICTSI annual stockholders meeting, it was reported that the company’s consolidated cash operating expenses in 2012 grew 10 percent to $319 million, from $289.3 million in 2011.

The increase was mainly driven by the full-period consolidation of the expenses of terminals in the United States and Croatia, and the inclusion of new terminals in Indonesia and Pakistan.

Consolidated financing charges and other expenses slid 25 percent to $35 million, from $46.4 million. The company said that the decrease was due to the higher capitalized borrowing cost as the company expanded existing terminals, and developed new projects in Mexico and Argentina.

In 2012, ICTSI’s capital expenditure was about $465.6 million, against a full-year capital expenditure of $550 million.
“Our capex program is $500 million this year then it will severely drop after that next year, so we are covered this year already,” Razon said.

The group’s capital expenditure budget for 2013 is approximately $500 million, mainly allocated for the completion of projects in Argentina and Mexico, and the ramp-up of construction in Colombia and Philippines.
 
ICTSI also said that it will vie for seaport developments in Cambodia and Greece.

“We are just looking, waiting, same parts, Latin America, Africa, Middle East and Asia of course,” Razon said.

“Mynamar, we are watching it but no plans to expand there. Cambodia is the most promising, but the government has not decided to privatize, one thing or another they have not made up their mind. Its beyond our control, the time table there,” Razon said. ( Rosalie C. Periabras, Manila Times)

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USS Emory S. Land to Arrive in Subic Bay

USS Emory S. Land (AS 39), a submarine tender, will arrive in Subic Bay on Friday for a routine port call that highlights the strong historic, community, and military connections between the United States and the Republic of the Philippines.

This visit will allow the ship to conduct maintenance, replenish supplies as well as give the crew an opportunity for rest and relaxation. The USS Emory S. Land is part of the U.S. Pacific Fleet and is homeported in Diego Garcia in the Indian Ocean.

While in Subic, the ship’s crew will continue its subject matter expert exchanges with the Philippine Navy. The crew will also engage in several community service projects with schools, medical institutions, orphanages, and other local community centers, as well as community relations activities such as sports events.

The crew of the USS Emory S. Land includes 106 Filipino-Americans (out of 410 total) – 26 U.S. Navy Sailors and 80 Civilian Mariners. They hail from Botolan, Olongapo City, San Antonio, and Pasay City, and elsewhere in the Philippines. Below are some select profiles of the ship’s Filipino-American crew:

• Supply Corps Officer Lieutenant Junior Grade Officer Michael Agojo is an officer and a second generation Sailor, following in the footsteps of his father.
• Logistics Specialist Senior Chief Randy Mangohig oversees the professional growth and development of 35 enlisted personnel aboard the ship.
• Chief Petty Officer Nino Miranda is a Sports Community Relations Coordinator for the Morale Welfare and Recreation Office and is part of the Religious Ministries Team.
• Gunners Mate Second Class Veronica Connole helps trains the crew in safe deployment of the ship’s self defense weapons. She also helps with translations between the ship’s crew and the local community in Subic.
• Chief Petty Officer Enrico Manalac is a language interpreter for subject matter expert exchanges with the BRP Gregorio del Pilar. (US Embassy Public Affairs)

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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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Subic Maintains Competitive Port Fees

The Subic Bay Metropolitan Authority (SBMA) decried reports claiming that shipping costs in this premier Freeport will increase as soon as the government reroutes their traffic from the port of Manila to here.

SBMA Chairman Roberto Garcia said contrary to figures being floated around, the SBMA services are as competitive as that of Manila’s.

He said that Subic’s rates are meant to attract ship operators to use the Port of Subic.

With an aggressive stance in promoting this premier Freeport as the go-to cargo and container port terminal in Central and Northern Luzon, the agency set out rates and incentives to be more competitive than in Manila.

Department of Transportation and Communications (DOTC) Secretary Joseph Emilio Abaya endorsed the Port of Subic, encouraging cargo shippers to use Subic Bay and Batangas ports to decongest the ever-growing traffic in the Port of Manila.

Recent study shows that the utilization rate of Subic Bay Freeport is 5 percent, while Batangas’ rate is 4 percent.

But Christian Gonzalez, general manager of Manila International Container Terminal (MICT) and regional head of International Container Terminal Services, Inc. (ICTSI) told reporters last week that the move will “make trade more costly.”

The suggestion (of using Subic and Batangas) goes against market dynamics, he claims and “the way to keep costs down in this port environment is to let the consumers decide.” (Jonas Reyes, Manila Bulletin)

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Strike Hampers Subic Port Operations

SUBIC BAY FREEPORT – A strike by employees of the Malayan Towage and Salvage Corporation (SALVTUG), led by the Federation of Free Workers (FFW), almost crippled this seaport operations here over the weekend.

Six vessels, including a US naval supply ship, were left at the open sea waiting for their escort tugboats that were docked due to a strike initiated by SALVTUG employees. The loss of service to these vessels would have meant a loss of millions of pesos worth of income for the government.

In a text message, Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia stated, “I hope strike is resolved soon.”

He added that both Hanjin Heavy Industries Corp.-Philippines (Hanjin) and Keppel are helping out with the predicament, ensuring that port operations here are not paralyzed and are normal.

According to an anonymous source, the strike stemmed from employees who want to have the same rate as that of their international counterpart. He added that the average salary of the employees there were more than R40,000.

He said that to them it was a question of principle, but to him, it was a question of patriotism. He added that if the employees could jeopardize the country’s port operations, the protesting employees will not only succeed in doing so but might also disrupt the country’s economic state.

SALVTUG was established in November 1974 with three (3) ocean-going coastal tugs and four (4) dry cargo and bulk oil barges. Over the years, the company has kept paced with the development of Asian Ports and has continued its modernization program. Presently, the fleet has grown to thirty one (31) multi-tasked tugs, two (2) specialized crafts, one (1) crew boat, thirteen (13) barges of various types and two (2) floating dry docks.

SALVTUG and its Western Pacific Associates specialize in Ocean Towage, Marine Salvage, Logistical Support, Cargo Recovery, Wreck Removal, Underwater Operations, Barging, Anchor Handling, Buoy Installation and Ocean-Spill Cleanup in the territorial waters of the Philippines, South China Sea and the Western Pacific Ocean.(Jonas Reyes, Manila Bulletin)

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