BOC orders transfer of empty containers in Manila ports to Batangas, Subic

In an attempt to solve port congestion, the Bureau of Customs has ordered the transfer of all empty containers in Port of Manila and Manila International Container Port to the ports in Batangas and Subic.

Customs Commissioner Rey Leonardo Guerrero directed the district collectors of Port of Manila (POM) and Manila International Container Port (MICP), which are both located in Manila, to transfer all empty containers to the Asian Terminals Inc. in Port of Batangas and Manila International Container Terminal in Subic Bay Freeport.

The two ports, under Executive No. 172, series of 2014, were declared as extensions of the POM and MICP “during port congestion and other emergency cases.”

District collectors of Port of Batangas and Subic Bay Freeport, according to Guerrero, shall exercise authority over the containers to be transferred.

The district collectors of POM and MICP, on the other hand, shall “immediately transmit all pertinent documents relative to the subject containers for immediate processing and disposal.”

Port congestion experienced in 2014 also prompted former Customs Chief Alberto Lina to order the transfer of cargo containers to the container terminals in Batangas and Subic.

According to the bureau, the jurisdiction of the transferred cargoes remained on the district collectors of the POM and MICP, however, in November 2015, the jurisdiction of the cargoes was transferred to the district collectors of the extension ports in Batangas and Subic.

The need for immediate disposition of the transferred cargo container then, the bureau said, prompted them to likewise transfer the jurisdiction of the containers. (Betheena Unite, Manila Bulletin)

PHOTO:

Unloading at the New Container Terminal of the Port of Subic.


https://news.mb.com.ph/2019/02/21/boc-orders-transfer-of-empty-containers-in-manila-ports-to-batangas-subic/

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Subic port eyes container freight station

The Subic Bay Metropolitan Authority (SBMA) is pushing for the establishment of a container freight station (CFS) to make shipping a breeze at the Port of Subic.

SBMA Chairman Roberto Garcia said in a news briefing here on Monday that the planned facility will be put up by the International Container Terminal Services Inc. (ICTSI), operator of Subic’s New Container Terminal (NCT).

Garcia said the CFS will be another innovation on top of other SBMA initiatives, like one-stop-shop processing and an aggressive marketing program that were designed to further cement Subic’s stature as a competitive shipping port.

“This way, there’ll be no more warehousing as the goods could be loaded directly into delivery trucks,” Garcia added. “That means there will be no downtime, too.”

A CFS is basically a facility where goods are prepared for transport to their next destination. In the case of exports, the goods are packed and consolidated into containers, while in the case of imports, these are “devanned” or deconsolidated from containers.

Garcia announced the planned CFS project as he reported on Subic’s continuing growth as a seaport.

He said that early this month, Subic marked the unloading of the 100,000th cargo container for this year, which came from Kaohsiung, Taiwan.

“Last year we recorded just 77,000 TEUs (twenty-foot equivalent units),” Garcia recalled. “But having reached the 100,000th mark in November, we are well on our way to hit 120,000 TEUs this year,” Garcia said.

The SBMA official added that the China South International Barter Center (SIBC), one of the biggest online sellers in the world, is also proposing to make Subic a transhipment hub for its Asian shipping operations.

Garcia said earlier that the SBMA has been successful so far in marketing Subic as an alternative port to Manila because it is the only port in Luzon with a one-stop shop for cargo processing.

He pointed out that 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. (Henry Empeño. BusinessMirror)

PHOTO:
Cargo unloading at the New Container Terminal in the Subic Bay Freeport.

http://www.businessmirror.com.ph/subic-port-eyes-container-freight-station/

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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)

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House think tank outlines ways to end port logjam

TO address the problem of port congestion in Metro Manila, the House of Representatives’ Congressional Policy and Budget Research Department (CPBRD) has urged the government to consider Batangas and Subic ports as alternative main sea gateways and upgrade the country’s infrastructure.

CPBRD, the research body of the lower chamber, said in a discussion paper that it is imperative that the government seriously consider gradually shifting international container traffic to Batangas and Subic ports to solve the growing congestion problem in Metro Manila and to catalyze growth in adjacent regions.

It also encouraged the government to study carefully the proposal to cap volume in the Port of Manila (POM), and consider the impact of this policy in terms of the potential additional cost to shippers.

The CPBRD, citing a study by supply-chain stakeholders, said around 70 percent of the imported raw materials, equipment, supplies and consumer goods go to Metro Manila and Northern Cavite. About 18 percent go to Laguna, 6 percent to Batangas and Quezon; and 6 percent to Pampanga and other areas north of Metro Manila.

A big part of the exports come from Metro Manila and Northern Cavite, at 73 percent.

“The Joint Foreign Chambers [JFC] of the Philippines has suggested that the local government units of Metro Manila impose higher taxes on factories and warehouses as incentives to move to hubs like Batangas and Subic,” the research body said.

It added that “various groups have [also] advocated for the Batangas and Subic ports as alternatives of the POM to deliberately address the issue concerning the underutilization of these ports, albeit, improving in recent years.”

According to the CPBRD, around P17.5 billion was borrowed during President Gloria Macapagal-Arroyo’s administration to finance the development of Batangas and Subic ports, excluding the additional investments of around P111.1 billion that funded the expressways leading to these ports.

The CPBRD also proposed separating the regulatory and operational functions of the Philippine Ports Authority (PPA).

“While the Batangas Port is under the PPA, the Subic Port is owned by the Subic Bay Metropolitan Authority [SBMA]. Thus, it may seem challenging for the PPA to strongly promote the Subic Port as a competitor to the PPA-owned ports, including the POM, because of its potential to erode the PPA’s revenues substantially,” the paper said.

According to the CPBRD, the port-congestion problem in 2014 was unprecedented.

“The PPA had dealt with port-congestion problems in the past but only during Christmas season, when there is substantial increase in import volume. But the port congestion last year was far more complex and urgent, triggered by the Manila truck-ban ordinance,” it said.

The port-congestion problem last year has prompted the government to establish a Cabinet cluster, whose task was solely to address the port logjam, a result of the Manila truck ban, limited road capacity in Metro Manila and the growing trade volume.

Infrastructure projects

The research body also backed the proposals to construct a “mega port” within or outside Manila to support a growing trade volume in the next five to six years.

“Undoubtedly, the root of the congestion problem in the country is the lack of well-planned and efficient infrastructure,” it said.

The CPBRD added that the country’s infrastructure is among those identified by multilateral companies as one of the major weaknesses in its growing economy.

“Indeed, solving the country’s congestion problem requires more investment in infrastructure development,” the body said.

Also, it added that port stakeholders have suggested the need to build a dedicated elevated expressway connecting the POM directly to the North and South Luzon expressways.

“Some have even proposed to revive the railways from POM to Divisoria and Tutuban to Caloocan, and connecting them with North and South Luzon. The fast and cost-effective service by rail transport makes it a preferred mode of transporting passengers and cargoes,” the CPBRD said.

It said the country’s remarkable economic growth in recent years, as well as the expected gains from the upcoming Asean Economic Integration, is seen to facilitate robust international trade to support a consumption-driven economy and a booming manufacturing industry, adding: “The increasing capacity of ships calling at world ports requires port infrastructure that could accommodate post-Panamax vessels containing more than 14,000 to 18,000 20-foot equivalent units [TEUs], from the current 8,000 to 10,000 TEUs.”

National transport policy

One of the major shortcomings of the country’s infrastructure sector is the lack of an integrated national transport plan, the CPBRD said.

“The port-congestion problem would have been prevented had there been a national transport policy in place that guides and harmonize the development goals of the national and local governments. It is, therefore, imperative to put in place a comprehensive long-term National Transport Policy toward achieving a well-coordinated and integrated multimodal transport system in the country,” the research body added.

A national transport policy will also institutionalize and insulate the country’s national transport- development plan from political interventions as the case of the Manila truck ban, it said.

“[Also] it is vital for the transport-infrastructure network, such as port, airport, roads, rail transport, to be planned as a system to ensure the stability and sustainability of the key industries’ supply chain,” it said.

The CPBRD also adopted the proposal of the JFC for the formulation of a “master plan,” which should aim, for instance, to transform Manila into a financial and service center—tourism, finance, education, medical and business-process outsourcing.

“This would require moving factories and manufacturing activities to the outskirts of Metro Manila, particularly Cavite, Laguna, Bulacan, Pampanga, Batangas and Subic. Moreover, it is important to equip Batangas and Subic ports with world-class logistics facilities, including warehouses and distribution centers,” the lower chamber’s research body said. (Jovee Marie de la Cruz, BusinessMirror)

PHOTO:
The New Container Terminal 1 (NCT1) at the Subic Bay Freeport, recently declared as berth no. 8 of the Port of Manila.

http://www.businessmirror.com.ph/house-think-tank-outlines-ways-to-end-port-logjam/

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Maersk makes maiden voyage to Port of Subic

Maersk Line, listed among the largest container shipping companies in the world, brought to this premier Philippine free port the first good news for 2015, as it marked its maiden direct voyage from Singapore to Subic.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia said Maersk’s MV Stadt Dresden arrived in the Port of Subic directly from Singapore at around 12:30 in the morning of January 3.

“This starts Maersk’s weekly service for a direct Singapore-Subic route,” Garcia said.

The SBMA official added that the entry of Maersk Line ushered in the new year here with good luck and good news.

Maersk Line, the largest operating unit of the Danish conglomerate A.P. Moller-Maersk Group, is considered the biggest container shipping company in the world in terms of revenue and operates more than 600 vessels with a total container capacity of 3.8 million twenty-foot equivalent units (TEUs).

MV Stadt Dresden, which started the direct Singapore-Subic route, is a registered Antigua Barbuda-flag carrier with a gross tonnage of 27,971.

According to Jerome Martinez, manager of the SBMA Seaport Department, the Stadt Dresden unloaded 12 cargo containers here. Of these, 11 were consigned to Keppel Subic while the other one was for Petron in Mandaluyong City.

Martinez further said that several international shipping lines have opened direct routes to Subic starting in November last year when China-based SITC Container Lines (Phils.), Inc. began a direct route from Xiamen, China to Subic.

SITC’s container ship MV Sicilia unloaded 22 containers at Subic’s New Container Terminal (NCT) 2 during its maiden voyage here.

This was followed by Japan-based Nippon Yusen Kaisha (NYK) Line, another one of the largest shipping companies in the world, which made its first direct route to the Port of Subic from Kaohsiung, Taipei.

NYK’s MV Jakarta Towers, meanwhile, also docked at NCT-2 in Subic and unloaded 110 containers destined to various consignees in Central and Southern Luzon, as well as Metro Manila.

SBMA officials also noted that the entry to Subic of new shipping lines with direct routes from foreign ports started after President Aquino issued Executive Order 172, which classified Subic’s NCT-2 and the Port of Batangas as extension ports to help ease congestion in the Port of Manila. (RAV/MPD-SBMA)

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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)

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ICTSI to expand capacity of its Subic terminal

As government hesitates to allow International Container Terminal Services Inc. (ICTSI) to expand its Manila port operations, the company is seeking to expand its container terminal in Subic Bay, whose capacity utilization is increasing, as part of its strategy to “future-proof” its terminals.

Christian Gonzales, vice president and Asia Region head of ICTSI, told reporters in an interview that this is part of its five-year $300 million to $400-million Medium Term Development program.

Initially, the company has allocated $12 million for rubber-tire gantry (RTG) cranes for both Subic New Container Terminal-2 (NCT-2) and Manila International Container Terminal (MICT).

Gonzales said it is not yet certain how many RTGs will go to Subic, which has already six, and MICT as this will depend on market demand.

“We won’t be adding quay cranes in Subic because they have already four.

In Manila, we plan on adding two but that’s over 2 years depending on how we see the market developing,” he said.

Gonzalez noted that ICTSI’s strategy in its strategic expansion planning has always been to “future proof” its terminals. Subic has been designated by the government as alternative to Manila port in light of the ongoing port congestion.

While the additional equipment and capacities may only be a small portion of its overall MTD plan as there is no need to expand the pier but to continue with two berths for the big ships, Gonzales said they may also need to expand the port area in coordination with Subic Bay Metropolitan Authority.

NCT-2 has a total of 13.16 hectare terminal Area; 14-hectare container yard; 280 meters quay; controlling depth of 13 meters; 6 truck lanes; 0.7 hectare truck holding area; and 60 ton weigh bridge.

He noted there are still available lots in Subic that they can expand into.

ICTSI has already discussed this plan with SBMA Chairman and Administrator Roberto Garcia who told them to possibly do it in stages.

“Chairman Garcia is very flexible, very aggressive. We are just making sure that Subic is ready to accommodate more traffic as much as possible,” he said.

According to Gonzalez, the capacity utilization of NCT-2 in Subic is expected to reach 21 percent by next year. NYK shipping line has their first call on Monday.

The government has been against further expansion of the Manila port, but Gonzalez said there has been some softening of government stance as they now allowed the expansion of berth 7.

Gonzalez explained there are two kinds of expansion, one is just expanding capacity to allow bigger but fewer ships to call and making the Manila port operations more efficient. The other type of expansion is where a player just wants to get a bigger market share.

Gonzalez does not want to divulge its market share in the Manila port but said that they understand the government’s move to promote Subic and Batangas.

He, however, stressed that the “promotion for Batangas and Subic should be done by getting industries to move there not by taking the cargo of somebody.”

Gonzalez even said that the shift of cargoes from the MICT to Subic following the port congestion and the designation of Subic and Batangas as alternative to Manila ports has been very small and just temporary.

Those that shifted permanently are those that are really from the nearby areas.

“It does not mean that while you have the port, the cargo volume will go to you,” he stressed. (Bernie Magkilat, Manila Bulletin)

http://www.mb.com.ph/ictsi-to-expand-capacity-of-its-subic-terminal/

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PPA assigns specific berths for vessels calling at Manila ports

Vessels calling at the ports of Manila will be temporarily assigned to specific berths to maximize port utilization this month, according to the Philippine Ports Authority (PPA).

In a memorandum circular (MC) dated November 3, 2014, PPA General Manager Juan Sta. Ana informed terminal operators in the Manila about the temporary arrangement in the assignment of berths for vessels calling at the port of Manila.

“All ad hoc vessels calling at the Port of Manila including those presently on queue shall be berthed at South Harbor or Subic Bay Freeport. Meanwhile, A dual-caller vessel shall be directed by PPA to berth at South Harbor or at the Manila International Container Terminal upon its arrival at pilot boarding station,” Sta. Ana said.

According to the MC, ad hoc vessels refer to vessels designated or arranged to call at the port of Manila for a specific purpose and not on a regular basis whole a dual-caller vessel refers to a vessel whose ports of loading or unloading are both South Harbor and MICT.

The temporary arrangement in the assignment of berths will be valid until November 30 and will coincide with the shipping peak season due to the yearend holidays.

“This measure will reduce the number of vessels waiting at anchorage. It will also prevent double calls of vessels because instead of calling at two ports, operators will only call now at only one port,” the PPA said, explaining the consequence of the MC.

Despite the lifting of the Manila Truck ban, yard utilization went up from 80 to 90 percent as of October 31 due to the recent holiday, according to PPA. However, empty yard utilization declined from 90 to 70 percent.

The Cabinet Cluster on Port Congestion is targeting to reach the 80 percent yard utilization level for the ports of Manila. This translates to approximately 64,800 twenty-foot equivalent units (TEUs) inside the ports to have enough room for optimum terminal efficiency and productivity. (Kris Bayos, Manila Bulletin)

PHOTO: A container ship docks at the New Container Terminal of the Subic Bay Freeport, now assigned as a port extension of Manila.

http://www.mb.com.ph/ppa-assigns-specific-berths-for-vessels-calling-at-manila-ports/

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More shipping lines eyeing Subic Freeport

The shipping community in the Southeast Asian region is starting to notice the potentials of the Port of Subic as an ideal port to move and transship both containerized and bulk cargo shipments.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia said the container ship MV Sicilia made its maiden voyage on the Xiamen-Subic route recently and unloaded its cargoes at the New Container Terminal (NCT) 2.

“We’ve been informed that within the next two weeks or so, there will be more ships that will be coming to unload at Subic,” Garcia said.

“The arrival of Sicilia on her maiden voyage to Subic Bay may be a precursor of more good times to come,” he added.

The commercial vessel MV Sicilia, a 927-ton Liberian flag container ship with 21 crewmen and officers led by skipper Capt. Penev Deyan Penko, sailed to Manila and then Subic Bay from Xiamen, China. The vessel is owned by China-based SITC Container Lines Philippines, Inc.

Sicilia unloaded products from Guangxi, Sichuan and Shanghai, all in China, for Orica Philippines in Limay, Bataan; Nestle Philippines Inc. in Cabuyao, Laguna; and Manila World Transport, Inc. in Metro Manila, respectively, bringing in 22 containers.

SBMA Seaport Dept. general manager Jerome Martinez said that aside from MV Sicilia, three more foreign container ships will be arriving in Subic direct from their origin.

“They are not diverted vessels from the Port of manila as a result of port congestion. They really are to come to Subic as part of their itinerary,” Martinez pointed out.

Another shipping company, the NYK Line, is seriously thinking of establishing a Subic-Singapore route as Singapore will be opening Europe, Africa, and Middle East to exporters and importers.

Earlier, Garcia reported that there is a proposal for a Shanghai-Subic route that will open ports in China on a more direct basis, instead of passing through Kaohsiung.

For these developments, Garcia hopes the cargo volume Subic’s container port will grow from 38,000 TEUs last year to more than 70,000 TEUs this year.

In preparation for the expected increase of traffic flow in the Freeport, the SBMA recently hosted a “Traffic Safety Forum”, which aimed to find ways to prevent traffic build-up along the main route taken by cargo trucks at the Freeport.

“Let us all cross our fingers that things turn out for the best for Subic,” Garcia said, stressing that Subic is the only port on the Western seaboard of the Philippines that now has the capacity to accept a great volume of containers.

He added that if Subic gets congested because of heavy container traffic, it will be a “happy problem” for the SBMA. (RAV/MPD-SBMA)


PHOTO:
The MV Sicilia, a Liberian-registered cargo ship plying the China–Manila route, docked on its maiden voyage last Friday at the New Container Terminal in Subic Bay Freeport to unload cargo from Xiamen. Subic, which was recently designated as an extension port of Manila, now draws a higher volume of containerized traffic for Central and Northern Luzon areas. Together with American President Lines and Wan Hai, SITC which handles the Xiamen-Subic route is the third major shipping line to regularly call on Subic on a weekly basis. (AED)

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SBMA mulls new traffic rules amid growing truck flow

In preparation for the expected increase in traffic flow here starting the last quarter of the year, the Subic Bay Metropolitan Authority (SBMA) will be implementing new traffic policies in the free port.

In the recent “Traffic Safety Forum” organized by the newly-formed SBMA Traffic Safety Board (STSB), SBMA Chairman Roberto Garcia said Subic will experience an increase in traffic volume with the arrival of cargo ships that will unload container vans.

The forum was attended by operators and drivers of cargo-hauling companies, truckers’ groups, concerned units from the Bureau of Customs, and the Subic Bay International Terminal Corp. (SBITCI), which operates Subic’s New Container Terminal 1 and 2.

NCT 2 has recently been designated Berth No. 8 of Port of Manila to help ease port congestion in the metropolis.

Garcia stressed in the forum that the Subic agency, along with stakeholders in the free port, should find ways to prevent traffic build-up along the main route of the trucks to prevent congestion, like what is happening in the Port of Batangas, also an extension port of Manila.

“I don’t want the same thing to happen to Subic, so we need to be very efficient with the inflow and outflow of containers,” Garcia said.

Garcia also stressed that Subic has to be prepared for more cargo traffic because of reports that it was not only the Port of Manila that is congested, but also some major Asian ports like Shanghai, Hong Kong, and Singapore. “This is going to have a ripple effect,” he said.

Meanwhile, SBMA Traffic Safety Board chairman retired P/Gen. Orlando Maddela Jr. said that one of the major contributors to traffic congestion is road vehicular accidents.

Maddela said that based on SBMA statistics, road accidents in the Freeport usually occur along the Tipo Road and frequently involve cargo trucks with heavy loads. The accidents were usually attributed to human error and slippery road during the rainy season.

“The portion of Tipo Road after the tunnel, which is almost an all-down grade and all-curve road, is considered an accident-prone area,” Maddela said.

Rex Ramos, head of the Traffic Management Safety and Security of Manila North Tollways Corp., noted that driver’s error involving over-speeding and miscalculation are the common causes of accidents involving cargo trucks in the Tipo Road.

The other significant causes of accidents are overloading of cargos, truck mechanism or brake distribution failure, flaws in road design, unsafe road conditions, and drivers’ non-familiarity with the terrain.

To help prevent accidents, the STSB recommended that all truck drivers who are newly-assigned to Subic should undergo a two-hour familiarization seminar that would cover traffic rules and regulations and road familiarization tour before allowing them to drive cargo trucks inside the Freeport.

It was also recommended that cargo trucks entering the Freeport should have operational maxi-brakes, and drivers will only operate under the mandatory maximum speed of 40 KPH.

Truck owners and drivers welcomed the suggestions, saying the measures will save not only lives and properties, but also precious time to exit from piers and avoid congesting the port.

A representative from REMCO Trucking Corp. said that one of their company vehicles was recentlyinvolved in a vehicular accident along Tipo Road. “After the accident, we enjoined our drivers to attend seminars on road safety and traffic rules,” he said. (RAV/MPD-SBMA)


PHOTOS:

[1] SBMA Law Enforcement Dept. chief Orlando Maddela Jr., who chairs the SBMA Traffic Safety Board, signs a road safety manifesto enjoining motorists to support road safety efforts in the Subic Bay Freeport Zone. (AED)

[2] The road safety manifesto signed by all truckers and Subic port operators attending the Summit.

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Shipping firms opening routes from Subic to key regional ports

More shipping firms are considering opening routes from Subic to Singapore and Shanghai, as more enterprises start using this port in Central Luzon to avoid the container congestion in Manila, the Subic Bay Metropolitan Authority said.

In a statement, SBMA Chair Roberto Garcia said NYK was “seriously thinking of establishing a Subic-Singapore route.”

Garcia said there were also reports about the planned opening of a Shanghai-Subic route “which will open China to shippers directly, instead of passing through Kaohsiung, Taiwan.”

“Subic is really lucky because we are the only port on the Western seaboard of the Philippines that has the necessary capacity at this point in time. Manila is congested. Batangas is congested. I hope we get congested soon, but that will be a happy problem,” Garcia explained.

For this year alone, Subic’s container port intake is expected to surge by 84 percent to 70,000 twenty-foot equivalent units (TEUs) from only 38,000 TEUs in 2013, according to the SBMA.

While the increase in volume would mean a significant increase in Subic port revenue, Garcia said there was a need for the Subic port not to get congested just like what happened to Batangas port after just one month of serving as an extension port of Manila.

“We’ve been informed that within the next two weeks or so, there will be ships that will be coming to unload and use Subic as an extension port,” Garcia said. “With the expected arrival of these ships, it is very important that the Port of Subic does not get congested or it will defeat the purpose of promoting Subic as an alternative port to Manila.”

Garcia added that Subic will have to be prepared for more cargo traffic because of reports that it was not only the Port of Manila that is congested, but also some major Asian ports like Shanghai, Hong Kong, and Singapore.

“This is going to have a ripple effect,” he added. (Amy R. Remo, Philippine Daily Inquirer)


http://business.inquirer.net/180276/shipping-firms-opening-routes-from-subic-to-key-regional-ports

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Manila truckers pledged to ensure road safety in Subic

Operators and drivers of cargo-hauling companies and truckers’ groups vowed to follow traffic rules strictly enforced here to ensure road safety and efficient flow of container vans at the newly-designated Manila extension port in this Freeport.

The Subic Bay Metropolitan Authority (SBMA) recently held a “Traffic Summit” with firms engaged in shipping and other port-related businesses to discuss measures on ensuring efficient traffic flow of container trucks in the Freeport and avoiding congestion.

SBMA Chairman Roberto Garcia said with the expected arrival of ships that will unload container vans, it is very important that the Port of Subic does not get congested or it will defeat the purpose of promoting Subic as an alternative port to Manila.

During the summit, participating truckers signed a road safety manifesto pledging support and cooperation with the SBMA to ensure road safety in the Freeport zone. The manifesto was also signed by concerned units from the Bureau of Customs and the Subic Bay International Terminal Corporation (SBITC) which operates New Container Terminals 1 & 2.

“We’ve been informed that within the next two weeks or so, there will be ships that will be coming to unload and use Subic as an extension port,” Garcia said.

Garcia added that because of this development, Subic’s container port intake is expected to grow from 38,000 twenty-foot equivalent units (TEUs) last year to 70,000 TEUs this year.

While the increase in volume would mean a significant increase in Subic port revenues, Garcia emphasized the importance of the Subic Port not to get congested just like what happened to Batangas after just one month of serving as an extension port to Manila.

He said that the Batangas problem had led Toyota (Philippines) to unload its shipment in Subic because its ship could not berth in Batangas. However, the firm had to drive its cargo containers all the way to Sta. Rosa, Laguna.

“I don’t want the same thing to happen to Subic, so we need to be very efficient with the inflow and outflow of containers,” Garcia said.

Garcia also stressed that Subic has to be prepared for more cargo traffic because of reports that it was not only the Port of Manila that is congested, but also some major Asian ports like Shanghai, Hong Kong, and Singapore.

“This is going to have a ripple effect,” Garcia said.

The SBMA official also revealed that another shipping company, the NYK, is seriously thinking of establishing a Subic-Singapore route. He also added that there were reports about a planned Shanghai-Subic route, which will open China on a more direct basis, instead of passing through Khaoshiung, Taiwan.

“Subic is really lucky because we are the only port on the Western seaboard of the Philippines that has the capacity at this point in time. Manila is congested. Batangas is congested. I hope we get congested soon, but that will be a happy problem,” Garcia said.

“Things are looking good for Subic as far as that’s concerned,” he added. (RBB)

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DOTC: No need to expand Manila ports

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

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

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

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

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

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

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

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

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

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

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

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

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RDC moves to implement vital projects in Central Luzon

The Regional Development Council (RDC) of Central Luzon has paved the way for the implementation of at least five priority projects expected to stimulate economic progress in the region.

In a council meeting in San Jose, Palayan City in Nueva Ecija, officials and representatives from Aurora, Baler, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac and Zambales approved resolutions that would prime up the region for more commerce and industry by providing alternative ports and additional mass transit from Metro Manila.

The approved resolutions included the fast-tracking of the implementation of Phase 1 of the North-South Commuter Railway (NSCR); the reconsideration of Clark as the location of a new NAIA terminal and to provide national government subsidy for the Budget Terminal Expansion and Facility Modernization of Clark International Airport; and urging the Clark International Airport Corporation (CIAC) to intensify its promotion and marketing development activities.

The RDC likewise endorsed Subic Bay Metropolitan Authority’s (SBMA) request to encourage importers and exporters of Region III to utilize the Port of Subic which has recently been declared as an extension of the Port of Manila.

Bulacan Gov. Wilhelmino Sy-Alvarado said the council also endorsed the appointment of Renato G. Romero, private sector representative for Trade and Industry as co-chairman of the Sectoral Committee on Economic Development (SCED) of the 14th RDC.

Moreover, Pampanga Gov. Lilia G. Pineda, chair of social development committee, called on the
National Housing Authority (NHA), Housing and Urban Development Coordinating Council (HUDCC) and the Department of Environment and Natural Resources (DENR) to work together in the identification of unoccupied hectares of publicly-owned land so that the government could use these for its housing and other infrastructure needs.

She said the local government units are “in need of vacant lots, new facilities for the homeless and the sick, especially now that we are experiencing climate change.’’

Pineda said line agencies must also work and coordinate among each other to rehabilitate and maximize the use of many abandoned day care centers and health clinics.

“Instead of asking the national government for more funds for the construction of facilities like day care centers and health centers, the local government units can just renovate the abandoned buildings with minimal expense,’’ she said. (Franco C. Regala and Freddie Velez, Manila Bulletin)

http://www.mb.com.ph/rdc-moves-to-implement-vital-projects-in-central-luzon/

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Subic cuts container-port fees by more than 80%

The Subic Bay Metropolitan Authority (SBMA) has announced the reduction of port charges at the New Container Terminal (NCT) here by more than 80 percent effective on October 1.

SBMA Chairman Roberto Garcia said in a news conference on Friday that the agency will reduce the harbor fee at both NCT-1 and NCT-2 from the current $0.046 per gross register tonnage (GRT) to $0.008, and the berthing fee from $0.0345 per GRT per day to only $0.004.

Garcia said Subic’s container terminals and the extension port in Batangas will impose the new unified rates to attract more shipping lines, as well as to support President Aquino’s initiative to ease port congestion in Manila.

Before the implementation of the new rates, the Port of Batangas charged a harbor fee of $0.0810 per GRT and a berthing fee of $0.0390 per GRT per day.

“In the case of Subic, the new harbor fee is 83 percent lower than the regular rates here, while the new berthing fee is 88 percent lower,” Garcia pointed out in Friday’s briefing.

“However, the reduced rates will be applicable only at the NCT-1 and NCT-2, and not at the other ports in Subic,” Garcia added.

The NCT-1 is currently being used by regular shippers like Yokohama Tires and HLD Pipes, while NCT-2 has recently been declared, along with the Port of Batangas, as an extension of the Port of Manila under Executive Order 172.

Garcia also clarified that the reduced rates at NCT will be effective for the next six months from October 1. “After that, the rates will increase a little for the next six months, but will still be lower than the regular rates today,” he added, ticking off the second phase of unified Subic-Batangas extension port rates at $0.0410 for harbor fees and $0.0200 for berthing fees.

Garcia said that, in reducing port fees at the NCT, the SBMA expects to lose as much as $10 million to $15 million.

“But we hope to recoup the losses in the long run, as we’re also doing this to encourage new lines to come over, as well as to show our appreciation to existing shipping lines that had stuck with Subic in all its lean years,” he added.

In the same occasion, Garcia unveiled a proactive market positioning program for the Port of Subic to further attract both shippers and shipping lines to the Subic Bay Freeport.

This includes continuous communication with stakeholders like shipping lines, locators and port users; establishment of a simplified accreditation process for port-related services like trucking, freight-forwarding and customs brokerage; systems integration for real-time monitoring and management of container inventory bound for NCT-1; and enactment of domestic tariff for local shipping lines for companies that ship from Subic to other domestic ports.

He also bared other plans to further develop Subic as a center for maritime trade. These include the development of a P2.1-billion bypass road to be used exclusively for the transport of container vans here; the establishment of a one-stop shop to facilitate release of shipments and minimize corruption; installation of fiber-optic system dedicated for the Subic seaport; the expansion of a gatepass management system; and the implementation of the Subic Bay Greenport Program.

Garcia said Subic’s NCT has lately experienced a spike in container traffic, with projections of 70,000 containers this year compared to 38,000 last year, ever since overstaying containers in Manila ports were moved to Subic for temporary storage. (Henry Empeño, BusinessMirror)

http://www.businessmirror.com.ph/index.php/en/news/regions/39058-subic-cuts-container-port-fees-by-more-than-80

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Subic, Batangas named extensions of Manila port

MANILA, Philippines - President Aquino has signed Executive Order 172 declaring the ports of Subic and Batangas as extensions of the Port of Manila during congestion and other emergency situations, such as strikes, lockouts and natural calamities, a Palace official said yesterday.

Under the EO, foreign vessels with the Port of Manila as their destination or origin may be directed to Batangas port or Subic Bay Freeport. Even if these vessels use these alternate ports, the Port of Manila will still be considered their berthing point.

Deputy presidential spokesperson Abigail Valte said berthing and other port fees in Subic and Batangas will be applied to foreign vessels if they are directed to these alternate ports.

She said the EO was signed on Sept. 13 to give the Philippine Ports Authority (PPA) and the Subic Bay Metropolitan Authority (SBMA) the power to designate alternate piers for shipments to the Manila port.

“It is no secret that port congestion in Manila is one of the major factors that hinders the free flow of goods passing through the ports,” Valte said.

“We have seen the effects on the demand-supply chain, and on economic growth. The EO seeks to alleviate these problems,” she added.

The SBMA welcomed the President’s signing of EO 172 as it would stir business activities in Subic port.

Subic Bay Freeport’s New Container Terminal-2 has been assigned as an extension of the Port of Manila.

SBMA chairman Roberto Garcia said there are 4,000 shipping containers “overstaying” at the Port of Manila.

To address port congestion, he said the SBMA and PPA have agreed to ship the overstaying containers from Manila to Subic twice a week.

Garcia said the SBMA is considering reducing its current port fees to be competitive with fees in other ports so that more shippers would use Subic.

Biz groups back EO 172

Business groups support President Aquino’s declaration of Batangas and Subic ports as extension of the Manila port to address congestion.

Management Association of the Philippines president Gregorio Navarro said yesterday the issuance by Malacañang of EO 172 is a welcome development.

“This is a good move… I would assume that all the port fees would also be harmonized,” Navarro said.

For his part, Makati Business Club (MBC) executive director Peter Perfecto said “the EO will be more useful in the context of a comprehensive and long term logistics and transport plan for the country.”

With port congestion affecting the country’s competitiveness rankings, the MBC sees the need for such to be addressed urgently.

Sergio Ortiz Luis Jr., president of the Philippine Exporters Confederation Inc., said they support Malacañang’s move to solve port congestion.

He said the EO will help encourage greater utilization of the Batangas and Subic ports.

For his part, American Chamber of Commerce of the Philippines senior advisor John Forbes said they are hopeful utilization of Batangas and Subic ports will remain high.

“We would like to see two added cranes installed in Batangas port within the year to double its capacity,” he said.

The truck ban imposed by the city government of Manila in February has resulted in the pileup of cargo at Manila’s ports.

Last Saturday, Mayor Joseph Estrada lifted the truck ban. (Delon Porcalla, with Louella Desiderio, Bebot Sison Jr., Philippine Star)

PHOTO: The New Container Terminal (NCT) at the Port of Subic

http://www.philstar.com/headlines/2014/09/17/1369962/subic-batangas-named-extensions-manila-port

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Subic’s NCT-2 now Manila’s extension port

Subic Bay Freeport’s New Container Terminal-2 (NCT-2) has been formally assigned as an extension of the Port of Manila as part of government efforts to solve cargo congestion in Manila.

This developed as executives of the Subic Bay Metropolitan Authority (SBMA) and the Philippine Ports Authority (PPA) signed a memorandum of agreement (MOA) that would take effect on Friday (Sept.12).

The MOA was signed by SBMA Chairman Roberto Garcia and PPA General Manager Juan Sta. Ana.

Under the agreement, NCT-2 will be known as “Subic Bay Freeport-Manila Port Extension” and will be used to load, unload or transship containerized cargoes with Manila as port of destination, origin, or transshipment, but which cannot be accommodated in either the Manila International Container Port (MICP) or the South Harbor.

Garcia said the SBMA will retain the right to collect fees from the ships and containerized cargoes under this agreement, as well as to reject any cargo or ship that may pose risks to the health, environment, and security of inhabitants and stakeholders of the Subic Freeport.

In a briefing held here on Wednesday, Garcia also told reporters that the Port of Manila presently has about 4,000 container vans declared as overstaying, thereby exacerbating congestion in the country’s major port.

Garcia said that to help solve the problem, it was agreed upon that a ferry will start shipping the overstaying containers from Manila to Subic twice a week, or more frequently as needed.

For this, SBMA will charge the consignees P1,000 per twenty-footer container a day. However, starting October, the fee will be raised to P5,000 a day to force consignees to pick up their cargoes and to bring them out of Subic, the SBMA official explained.

“After the Bureau of Customs has inspected, cleared, and issued release documents for the container, the consignee should immediately remove it from NCT-2, otherwise a penalty of P5,000 a day will be charged against him,” said Garcia.

Garcia also assured the public that the SBMA is doing everything to maintain orderliness at NCT-2, and has considered measures to prevent traffic congestion due to the expected increase in the number of trucks hauling containerized cargoes in and out of the Freeport.

He said that the SBMA has consulted the management of the Subic-Clark-Tarlac Expressway (SCTEx), which assigned Lane Number 3 on both sides of the toll road exclusively for cargo trucks.

Garcia added that the SBMA is also proposing to the Department of Public Works and Highways (DPWH) to fund the construction of a new road that will directly link Subic’s New Container Terminal to the SCTEx. This project is estimated to cost more than P2 billion.

The SBMA chairman also noted that the Subic agency is considering reducing its current port charges to make them competitive with fees in other ports so that more shippers would use Subic.

“While the Manila extension is a done deal, we make sure that everything is already in place before more container vans are shipped here in Subic. At the same time, we are still finding ways to make Subic more competitive than its neighboring ports,” Garcia said.

The NCT-2 and NCT-1, which is being used by existing port users in Subic, have a total capacity of 600,000 TEUs. (RAV/MPD-SBMA)

PHOTO:
Container ship docked at NCT2 in Subic Bay

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