New cargo rail line from Subic to Batangas is flagship project of the Luzon Economic Corridor

The Luzon Economic Corridor steering committee has identified the cargo railway directly connecting Subic Bay in Zambales and Batangas province as the flagship project of the new corridor. 

During the Philippine Economic Briefing at the Philippine International Convention Center in Pasay City, Special Adviser to the President for Investment and Economic Affairs Secretary Frederick Go called the project the Subic-Cargo-Manila-Batangas (SCMB) railway. 

Transportation Secretary Jaime Bautista confirmed that the SCMB railway is a new train line aimed at spurring investment opportunities along the corridor. 

This project supersedes the previously stalled 71-km Subic-Clark Railway Project (SCRP) which aimed to link Subic Bay with the Clark International Airport. 

“The only line we approved is only Subic to Clark, but we will extend it to Manila and to Batangas -- one line,” Bautista said. 

Bautista told reporters that the DOTr is preparing a new feasibility study for the SCMB cargo railway.  

“We’re in the process of procuring the consultant who will prepare the feasibility study. Hopefully, in a few weeks or a few months, we will already start the procurement,” Bautista said. 

Meanwhile, Go, who co-chaired the inaugural meeting of the Luzon Economic Corridor steering committee in Manila last week, noted that the SCMB cargo railway will open up significant investment opportunities. 

 

The steering committee consists of United States Senior Advisor to the President for Energy and Investment Amos Hochstein and Japan Ministry of Foreign Affairs Director-General for International Cooperation Bureau Ishizuki Hideo. 

 

Go said that aside from the United States and Japan, the United Kingdom government also wants to get involved in the development of the Luzon Economic Corridor. 

“The UK just came up to me, from the UK Embassy, they said they been wanting to get in touch because they want to get involved in this Luzon economic growth corridor,” Go said. 

 

“And in fact, we were informed by the United States steering committee that the UK indeed has been calling to ask how they can participate in this Luzon economic growth corridor. It can now be potentially be three countries,” the economic czar said. 

Go also pitched renewable energy projects within the growth corridor to support future requirement in the area. (SNL)

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PH, US, Japan tie up to boost Luzon Economic Corridor, connectivity between Subic Bay, Clark, Manila & Batangas

The Philippines, United States and Japan have partnered on a venture that will boost connectivity between the key economic hubs of Subic Bay, Clark, Manila, and Batangas comprising the Luzon Economic Corridor.

According to a joint statement of the leaders of the three nations following a trilateral meeting in Washington, D.C., the Luzon Economic Corridor is the latest economic corridor of the G7 Partnership for Global Infrastructure and Investment (PGI) and the first in the Indo-Pacific region.

“Today we are launching the Luzon Economic Corridor, which will support connectivity between Subic Bay, Clark, Manila, and Batangas in the Philippines,” the joint statement said.

Through this corridor, Japan, the Philippines, and the United States commit to accelerating coordinated investments in high-impact infrastructure projects.

These projects include rail, ports modernization; clean energy and semiconductor supply chains and deployments, agribusiness and civilian port upgrades at Subic Bay.

Japan has long been supporting connectivity in this area, including rails and roads, through the Japan International Cooperation Agency (JICA).

“We plan to work with multilateral organizations and the private sector to attract quality, transformative investments,” the statement said.

“Together we intend to hold a trilateral event promoting investment in the Luzon Corridor on the margins of the Indo-Pacific Business Forum in Manila in May—the premier U.S. commercial event in the region,” it added.

The U.S. International Development Finance Corporation also intends to open a regional office in the Philippines to facilitate further investments across the Philippines.

According to the statement, the Luzon Corridor is a demonstration of the three nations’ enhanced economic cooperation, focused on delivering tangible investments across multiple sectors.

Japan, the Philippines, and the United States are also partnering to expand cooperation and investments in other areas of the Philippines. (SNL)

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Gov't to pursue use of Subic, Batangas ports to decongest Manila roads

The Duterte administration will push for the use of the ports of Subic and Batangas to ease bottlenecks at Manila ports.

This scheme is one of five infrastructure projects expected to decongest Metro Manila road traffic. The other projects are: The North-South Railway Project (NSRP)-South Line; the Metro Manila Bus Rapid Transit (BRT)-EDSA project; Bonifacio Global City (BGC)-Ortigas link bridge; and, a common station for MRT 3, LRT 1, and MRT 7.

Container truck traffic at the port of Manila

The Infrastructure Committee has specified measures to urgently address Metro Manila’s traffic crisis and decongest the city, Socioeconomic Planning Secretary Ernesto Pernia said in a press conference in Malacañang on Tuesday.

The projects will be carried out in partnership with private sector.

Road traffic congestion in Metro Manila cost the country at least P3 billion a day, according to a study that Japan International Cooperation agency conducted in 2012.

Two of the projects—NSRP South Lane and BRT-EDSA—alone will cost P238.96 billion. Costing of others is yet to be finalized.

According to the Public-Private Partnership (PPP) Center website, the NSRP, which has an indicative cost of P170.7 billion, aims to revive the railway to provide improved transport and logistics services to currently underserved areas and encourage more productive activities.

The proposed NSRP South Line PPP covers Metro Manila to Legazpi City, Albay, plus a number of existing and proposed branch lines totaling 653 kilometers.

It consists of commuter railway operations between Tutuban and Calamba and long haul railway operations between Tutuban and Legazpi, including extended long haul rail operations on the branch line between Calamba and Batangas and extension between Legazpi and Matnog.

The railway between the existing Tutuban station and the city of Calamba, in the Laguna province is a 56km section of the NSRP and is proposed to have commuter rail operations in addition to long haul rail operations of NSRP.

This section represents an existing Philippines National Railway (PNR) right-of-way (ROW) which runs through
Metro Manila. Currently, the NSRP has a narrow gauge railway.

However, the PPP Center said extensive rehabilitation and reconstruction is needed to bridges and road crossings to bring it to safe operating condition.

Meanwhile, the Metro Manila BRT-EDSA, is a rapid transit infrastructure of 48.6km through EDSA, Ayala Avenue, Ortigas-BGC, and Ninoy Aquino International Airport with 63 stations. It will add accessibility infrastructure like greenways, pedestrian walkways, and bikeways. The total project cost is estimated at P68.26 billion, of which public sector component is P37.76 billion, with an implementation schedule of 2017 to 2019.

The bridge that will link Bonifacio Gobal City (BGC) in Taguig City and Ortigas Center in Pasig City will include vehicular underpasses below the Makati Business District.

“The immediate implementation of the Bonifacio Global City-Ortigas link bridge… is expected to divert 25 percent of the EDSA traffic,” said Pernia.

The link bridge will add up to C5, which is located on the east side of Metro Manila.

“So we need another one there to add road space for those traveling between the two parts of Metro Manila that is cut by the Pasig River,” he explained.

Another, Pernia said, is the early resolution of the Common Station for MRT 3, LRT 1, and MRT 7.

“The Department of Public Works and Highways will hand the final configuration of the station to the Department of Transportation,” he said. (Mayvelin U. Caraballo, Manila Times)

http://www.manilatimes.net/govt-picks-5-schemes-to-decongest-mm/281709/

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PCCI urges PNoy to prioritize the expansion of Subic, Batangas ports

The business community hopes President Aquino will finally put to rest the port congestion issue by making a priority the expansion of Subic and Batangas international ports before his term ends next year.

Alfredo M. Yao, President of the Philippine Chamber of Commerce and Industry, (PCCI) said the resolution of the port congestion at the Manila ports tops its wish list of priority issues that they want President Aquino to make a policy statement during his last State of the Nation Address this month.

“The port operation has improved a lot but sooner or later we will be hounded again by port congestion,” said Yao. Trade volume is expected to pick at the start of the second semester and with the robust economic growth, Yao expects congestion to be back again this year.

The port congestion that hit the Manila port last year has caused considerable damage to businesses in the country and potential economic potentials.

Yao stressed that the port congestion is a vicious cycle that come again and again if it is not addressed.

Yao would like the government to have the will to push for the expansion of the Batangas International Port, which is being operated by the Asian Terminals Inc.

If the capacity of the port is expanded all import and export cargo volume from and into the south should use the Batangas port rather than going to the Manila port and subject themselves to the burgeoning traffic of the city.

Expansion of the Subic ports, where the International Container Terminal Services Inc. has existing operations, need to be further enhanced.

It should be easier though to expand Subic because the Subic Bay Metroplitan Authority, which runs Subic freeport, is a government agency.

Subic port should be the main port for businesses operating in the northern part of Luzon, Yao stressed.

“At present, we are all relying on Manila ports and that is so inefficient,” he added.

“Government should come in and exercise its political will,” said Yao.

Aside from the port congestion issue, the PCCI also hopes the President to push for the enactment into law the long overdue Customs and Tariff Modernization Act among other priority bills pending in Congress. (Bernie Magkilat, Manila Bulletin)

http://www.mb.com.ph/pcci-urges-pnoy-to-prioritize-the-expansion-of-subic-batangas-ports/

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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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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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Gov’t, private sector tackle port congestion on Nov 27

Government officials would meet next week with various stakeholders in the Port of Manila to update them on the ongoing efforts to ease the port congestion and other concerns, Communications secretary Herminio Coloma Jr. said yesterday.

Coloma said the meeting had been set for November 27 at the Manila Diamond Hotel with some 300 people representing the government, port operators and the private stakeholders like the importers, exporters and truckers are expected to attend.

Coloma said Cabinet Secretary Jose Rene Almendras would represent the government including members of the Departments of Public Works and Highways (DPWH), Transportation and Communications (DOTC), and Finance (DOF), Land Transportation Office (LTO), Land Transportation Franchising and Regulatory Board (LTFRB), Philippine Ports Authority (PPA), Metropolitan Manila Development Authority (MMDA), Bureau of Customs (BOC) and the Subic Bay Metropolitan Authority (SBMA).

The congestion of the Manila Port had worsened over the past months following the imposition of a truck ban by the Manila local government early this year.

This resulted in use of the Ports of Batangas and Subic as an alternate port to Manila, and release of cargoes on Sundays, among others. (Malaya Business Insight)

http://www.malaya.com.ph/business-news/business/gov%E2%80%99t-private-sector-tackle-port-congestion-nov-27

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Apple supplier Foxconn mulls a manufacturing facility in PH

Foxconn Technology Group, the world’s largest computer manufacturer and supplier to Apple Inc., is looking a closer look at the Philippines as company officials visited various economic zones in the country.

Amadeo R. Perez Jr., chairman of the Manila Economic and Cultural Office (MECO), told reporters that Foxconn officials came over three months ago and were brought to various ecozones, including the country’s Freeport zones Subic and Clark, and Calabarzon areas such as Batangas, Laguna and Cavite.

“They are looking into several areas and they have lots of considerations, including fung shui,” Perez said. So far, Perez said there has been no word yet from Foxconn.

Government investment promotion agencies Board of Investments and the Philippine Economic Zone Authority started courting this Taiwanese firm in 2012 yet.

Foxconn has been mulling about relocating some of its capacities outside of its production hub in mainland China due to rising wage rate and shortage of available workers and has included the Philippines in its shortlist of countries as investment destination.

The company employs 1.2 million people at its China facilities producing laptops, tables and PCs for the export market. Aside from the rising cost of wage, the lack of available manpower has turned off some of multinational firms, which relocated in China based on these attractions.

Foxconn is a multinational business group anchored by the Hon Hai Precision Industry Co., Ltd., a Republic of China-registered corporation headquartered in Tucheng, Taiwan.

As the world’s largest manufacturer of electronics and computer components, Foxconn mainly manufactures on contract to other companies. Among other things, Foxconn produces the Mac mini, the iPod, the iPad, and the iPhone for Apple Inc.; Intel-branded motherboards for Intel Corp.; various orders for American computer manufacturers Dell and Hewlett-Packard; motherboards for UK computer manufacturer Zoostorm; the PlayStation 2 and PlayStation 3 for Sony; the Wii for Nintendo; the Xbox 360 for Microsoft, cell phones for Motorola, the Amazon Kindle, and Cisco equipment.

It assembles an estimated 40 percent of the smartphones, computers and other electronic gadgets sold around the world. Foxconn’s decisions set standards other manufacturers must compete with.

It has 13 factories in nine Chinese cities employing 1.2 million. Foxconn is the world’s largest maker of electronic components and the largest exporter in Greater China. Foxconn is primarily an original design manufacturer and its clients include major American, European and Japanese electronics and information technology companies. Notable products which the company manufactures include the iPad, iPhone, Kindle, PlayStation 3, Wii and Xbox 360.

Foxconn has been identified by the Global Marketing Intelligence System (GMIS) of the Department of Trade and Industry as a potential investor. Companies targeted under GMIS for investment promotion must have four common characteristics: Mass employers, the technology used in their current production is within the capability of the Philippines and can be serviced by Filipinos; if a potential company is located outside of Asia, that company must have an existing operation in Asia; and if located in the Middle East or in the Americans, they must have operation abroad. (Manila Bulletin)

https://ph.news.yahoo.com/apple-supplier-foxconn-mulls-manufacturing-facility-ph-162738637.html

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40th PBC submits 8-point Resolutions to PNoy

The following are the approved 8-point Resolutions of the 40th Philippine Business Conference and submitted to President Benigno S. Aquino III during the final day of the conference on October 24, 2014 at the Manila Hotel.

1.ENERGY AND POWER:

•Resolution urging the National Government to formulate an integrated and sustainable energy and power development roadmap with a clear, definite target level of power supply capacity and rate; doable and time-bound strategies to achieve the desired goals; a well-defined process that shall be directed, facilitated and regularly reviewed by an authoritative body; and, premised on the goal to revitalize manufacturing, attract more quality foreign investments and achieve sustainable and inclusive growth

•Resolution supporting the implementation of the Department of Energy’s (DOE) Demand Aggregation and Auctioning Policy (DASAP) which will induce transparent and efficient supply contracting, attract more direct investments in power generation, create greater competition and generation adequacy and thereby defining a firm process policy of specified periodic public international bidding for base load and reserve capacity based on 100% of aggregated projected demand and standardized Power Supply Agreement (PSA) with strong participation and role of the Energy Regulatory Commission to expedite simultaneous approval of the Power Supply Agreement .”

•Resolution to support the implementation of the Philippine Qualifications Framework (PQF) and the ASEAN Qualifications Framework for global competitiveness.

•Resolution to support the K-12 Program of the government thru the Department of Education and the Technical Education and Skills Development Authority (TESDA).

•Resolution for government and business chambers, associations and enterprises to enter into partnerships in the implementation of the National Qualification and Certification System, and thereby ensure the preparation of our human resources with relevant competencies for the world of work.

3.ASEAN INTEGRATION:

•Resolution urging the Government to draw strategies and programs that would promote and support the integration of the small and medium enterprises (SMEs) in the global and regional value chains.

•Resolution urging the Government to come up with a clear program, developed jointly with the private sector, for the promotion and security of Philippine brands in view of the ASEAN.

•Resolution urging the Government to improve the physical connectivity of Mindanao to BIMP-EAGA and the rest of ASEAN.

4.PORT CONGESTION:

•Resolution urging the National Government to decongest Metro Manila, develop the countryside and strengthen provincial and regional economic growth areas to complement, supplement, fortify and sustain Metro Manila’s Economic Growth and Development.

•Resolution urging the relevant government authorities to maximize the utilization of the Subic and Batangas Ports by shifting container traffic and focusing all future port developments thereat.

5.TRAFFIC CONGESTION:

•Resolution urging the National Government, the Metropolitan Manila Development Authority and local governments within Metro Manila to ensure the smooth flow of traffic within the Metropolis, instill discipline among drivers and operators of public utility vehicles (PUVs), promote road use efficiency and safety and driver/operator responsibility by designating and strictly enforcing pick-up and drop-off points for passengers and designating terminals for said PUVs

6.TRANSPORTATION AND INFRASTRUCTURE:

•Resolution urging the prioritization of the full development of the Clark International Airport parallel/twin with the Ninoy Aquino International Airport before other airports.

•Resolution urging the President to revisit the plan to construct C-6 and to complete the construction of C-5.

7.AGRICULTURE:

•Resolution urging the National Government to implement the proper infrastructure and policy directions to ensure food security specifically hastening Agri-Mechanization and modernization to be at par with our ASEAN neighbors especially with the advent of the AEC Integration in 2015.

8.REHABILITATION OF EASTERN VISAYAS:

•Resolution urging President Benigno Simeon Aquino III to start and fast track the completion of the Yolanda rehabilitation and recovery projects in Eastern Visayas.

http://www.mb.com.ph/40th-pbc-submits-8-point-resolutions-to-pnoy/

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

PHOTO: Gantry cranes at the Port of Subic

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

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DOTC: No need to expand Manila ports

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

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

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

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

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

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

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

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

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

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

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

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

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Cap on Manila ports expansion pushed

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

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

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

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

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

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

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

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

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

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

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

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

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Subic 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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Overstaying containers will still be moved to Subic

THE PHILIPPINES will continue moving twenty-foot metal containers to a facility outside Manila and charging storage fees for overstaying boxes to decongest its premier port.

The Philippine Ports Authority (PPA) and two harbor operators -- the International Container Terminal Services Inc. (ICTSI) and the Asian Terminals Inc. -- made this announcement on Sunday, a day after a truck ban was lifted in Manila which was blamed for the port congestion.

“The lifting of the truck ban has given us the chance to decongest the port and get back to our normal way of life sooner than anticipated,” Philippine Ports Authority (PPA) general manager Juan C. Sta. Ana said in a statement.

Starting Oct. 1, the two port operators will be charging P5,000 per container if these remain parked at their facilities after the 5-day free storage period offered by the PPA, the statement said.

The move intends to discourage cargo owners from using terminals as their virtual warehouses, the statement said.

“However, instead of imposing the fine on the sixth day, the operators will impose the fee on the 11th day after getting clearance from the BoC (Bureau of Customs), effectively allowing cargo owners at least 10 days to get their cargoes out of the Manila ports,” the statement said.

On Friday, ICTSI and ATI transported 135 overstaying containers to the Subic port onboard the MV West Ocean 3, a vessel run by Super Shuttler Service of the ICTSI.

The vessel is again set to sail Tuesday to carry another 135 overstaying Customs-cleared containers and every Friday and Tuesday, thereafter, the statement said.

One thousand trucks have also been rented to carry some 2,000 overstaying Customs-cleared containers from Manila to a four-hectare facility in Cabuyao, Laguna, that started early Sunday morning, Sept. 14. They are expected to complete the transfer at noon Monday. This decongestion effort will be repeated for four Sundays by the terminal operators.

The operators are trying to remove about 5,000 TEUs of overstaying Customs-cleared ready-to-go containers at the Manila International Container Terminal and the Manila South Harbor to provide enough space for incoming cargoes. (BusinessWorld)

http://www.bworldonline.com/content.php?section=Nation&title=overstaying-containers-will-still-be-moved-to-subic&id=94472

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Subic, Batangas to be designated extension ports

MANILA, Philippines - The government is set to designate Subic and Batangas as extension ports to help decongest the ports in Manila in time for the surge in cargo shipments for the Christmas season, a Cabinet official said.

Transportation Secretary Joseph Emilio Abaya said the Philippine Ports Authority (PPA) is set to sign a memorandum of agreement with the Subic Bay Metropolitan Authority designating a few berths in the former US military base as extension of the ports of Manila.

“So if your bill of lading specifies Manila, it could be dropped off in Subic,” Abaya said.

Likewise, he added that the same arrangement is being considered for the port of Batangas.

He said shipping lines could call on two ports so it could offload either in Batangas or Subic and load shipments in the ports of Manila.

“Most of the cargo being offloaded in Manila are bound for Batangas or Southern Luzon. So I think we could make arrangements that these shipments could be offloaded in Batangas, in the same way, those who are northbound could be offloaded in Subic,” he said.

The PPA has given importers and brokers until today to remove overstaying customs-cleared cargoes inside the congested ports of Manila, otherwise these containers would be shipped immediately to Subic and Batangas.

At present, importers, exporters and brokers have a five-day grace period after Customs clearance to remove their containers. The cargo would be seized in favor of the government after 15 days.

“We are giving them five days to ship out their goods effective Sept. 8. If they don’t we’ll ship them out to Subic. They are using the ports as their warehouse instead of investing in their own warehouse so we are removing them,” he said.

Starting Oct. 1, Abaya said the government would impose a 10-fold increase in storage fees to decongest the ports of Manila.

Fees for unclaimed cargo would increase to P5,000 from the current P500 for each 20-foot container; to P8,750 from P842 for 35-foot containers; P10,000 from P962.6 for 40-foot containers; and to P11,250 from P1,082.90 for 45-footers.

Congestion at the Manila International Container Terminal of International Container Terminal Services Inc. and South Harbor of Asian Terminals Inc. has caused massive traffic jams in major streets in Metro Manila, extending up to the North Luzon Expressway as trucks trying to get inside the ports clogged major thoroughfares.

Utilization rate at the ports of Manila is expected to improve to 88 percent towards the end of the week after climbing to 90 percent due to the long weekend as containers being released at ports continue to climb to 4,400 per day from 4,200.

As of end June, the number of laden containers piled up at the Manila ports totaled 85,000 twenty-foot equivalent units (TEUs), which occupied about 104 percent of the port yard, while total empty containers also reached a high of 22,000 TEUs.

The congestion was caused mainly by the daytime truck ban imposed by the Manila city government from Feb. 24 to end May that practically limited the movement of cargo in and out of port to nighttime only.

House probe

Valenzuela City Rep. Sherwin Gatchalian filed a resolution urging the House committee on transportation to conduct an inquiry into the immediate use of the Subic and Batangas City ports as part of a long-term solution to the problem of congestion at the Manila ports.

Gatchalian filed the resolution last week to allow Subic and Batangas City ports to “share the load of processing containers” and will greatly help in decongesting the ports in Manila.

Both facilities have a combined capacity of 600,000 TEUs and are strategically located near Metro Manila, which means Subic and Batangas ports can substantially ease port congestion in Manila.

“Goods heading to Northern and Southern Luzon may instead be assigned to the Subic and Batangas ports, thereby easing the congestion in Manila ports. Those ports have a huge potential in contributing to the economy. They just have to be fully utilized,” he said.

Gatchalian is a senior vice chairman for the House committee on Metro Manila development and a majority member of the committee on trade and industry.

Quezon City Rep. Winston Castelo urged the PPA to hire container vessels, not trucks, to transfer the empty containers to Subic to decongest the Port of Manila.

Castelo, chairman of the House committee on Metro Manila development, said the use of ferries would spare the streets of all the trucks that cause monstrous traffic, slowing down economic activity. (Lawrence Agcaoili, with Delon Porcalla, Paolo Romero, Philippine Star)

PHOTO:
Vessel hired by the Philippine Ports Authority (PPA) loading empty containers bound for Subic and Batangas ports

http://www.philstar.com/headlines/2014/09/08/1366602/subic-batangas-be-designated-extension-ports

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Solon files resolution to tap Subic and Batangas ports

A senior administration congressman called on the House Committee on Transportation to inquire into the possibility of immediately tapping Subic and Batangas City ports as a long-term solution to the worsening congestion of Manila ports.

In a resolution, Valenzuela City Rep. Sherwin Gatchalian said the House panel should conduct the inquiry in order that legislative measures may be pursued to support the planned decongestion of the Manila port.

Gatchalian, a member of the Nationalist People’s Coalition, said the Subic and Batangas City ports, which have a combined capacity of 600,000 twenty-foot equivalent units (TEUs) and are strategically located near Metro Manila, can share the load of processing containers and will greatly help in decongesting the ports in Manila.

“Goods heading to Northern and Southern Luzon may instead be assigned to the Subic and Batangas City ports respectively, thereby easing the congestion in Manila ports. Those ports have a huge potential in contributing to the economy,” said Gatchalian.

The Valenzuela solon called for congressional action to swiftly respond to the alarming overcrowding of the Port of Manila mainly triggered by the Manila City government’s daytime truck ban ordinance.

Gatchalian filed the resolution in response to the alarming bottleneck in the Port of Manila caused mainly by Manila City government’s daytime truck ban ordinance. (Ben Rosario, Manila Bulletin)

http://www.mb.com.ph/solon-files-resolution-to-tap-subic-and-batangas-ports/

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Gov't gives ICTSI incentives for declogging Port of Manila

The government has decided to give port operator International Container Terminals Services Inc. (ICTSI) incentives for its share in declogging the ports of Manila.

Port dues for the vessel chartered by ICTSI to bring out overstaying cargoes from the Port of Manila to Subic has been reduced from the $0.081 per GRT per call to only $1 per call while dockage at berth has been cut to $1 per vessel from $0.039 per GRT per calendar day or fraction thereof.

The purpose of the reduction is to “incentivize” ICTSI since the port operator is the one to shoulder the cost in moving out all overstaying cargoes at the Port of Manila. The vessel will ship out about 6,000 containers out of the Manila ports to the Subic ports.

ICTSI is chartering a vessel with a capacity of about 1,300 twenty-foot equivalent units (TEUs) with a GRT of 18,321 tons for at least 14 days to ferry empty containers and other overstaying containers from the ports of Manila to Subic. During its stay in the country, the vessel is expected to ship about 4,000 to 6,000 TEUs out of the Manila ports.

Government slashes vessel-handling fees and port charges at Batangas Pier

The Office of the President has approved the proposal of the state-owned port body to give incentives to vessels that will dock at the Port of Batangas in a bid to further decongest the ports in Manila.

In a statement, the Philippine Ports Authority (PPA) said Malacañang has given the go signal for the reduction of port charges and other vessel-handling related fees at the Port of Batangas to attract more direct callers and port users to utilize the gateway in the Southern Tagalog region.

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

New rates

THE new rates, however, will be applicable only for six months wherein the discount for the succeeding six months will be reduced to 50 percent for both, or from $0.081 GRT per day to $0.040 per GRT per day, and from $0.039 per GRT to $0.020 per GRT per day.

The new rates took effect at the start of this month.

“This is a big boost in our bid to increase utilization of the Batangas port,” PPA General Manager Juan C. Sta. Ana said. “The new directive has, likewise, changed the basis in the computation of the dockage at berth from per GRT per calendar day or fraction thereof to per GRT per block of 24 hour or fraction thereof.”

Currently, there are at least six international carriers calling at Batangas port since June. This includes MCC Transport Corp., NYK Shipping Lines, SITC Container Lines, American Presidents Lines, Regional Container Lines/Pacific International Lines and CMA-CGM.

Sta. Ana noted that would aid the ongoing decongestion efforts being undertaken by the government at the ports in Manila.

Booming economy

THE tight bottleneck situation at the ports in the country’s capital was caused by the booming economy that resulted in the spike of cargo throughput due mainly to the increase in shipments from the imports and exports sector.

The ongoing truck ban imposed by Manila City and traffic congestion in major roads were also blamed for the port gridlock, which has resulted in the accelerated inflation last month. Inflation was at 4.9 percent, a three-year high from October 2011.

Manila ports’ decongestion

STA. Ana reported that the gridlock at the ports of Manila continues to decline with yard utilization almost down to the desired level of 80 percent.

The port body aims to arrest the adverse economic impact of the port congestion through several measures which include a 24-hour dedicated trucking lane and a weekend facility for the release of cargo. The government also is pushing for a longer moratorium period on the truck ban for certain routes and the promotion of the Batangas and Subic ports.

The Cabinet Cluster on Port Congestion also continues to find ways on how to further decongest the ports including the opening up of additional empty container depots with close proximity to the Manila ports including a 10-hectare empty lot inside the Cultural Center of the Philippines Complex to temporarily house empty containers bound to be collected by the international shipping lines.

The CCP depot will only be operated from 12 midnight to 5 a.m. to allow the free-flowing of trucks to and from the area. The facility will be maintained by the two listed firms.

Earlier, PPA ordered the two port operators ICTSI for MICT and ATI for Manila South Harbor, to come up with the list of shipments containing food items and other perishables and prioritize its release in order to reduce the inflationary effects of congestion to food items in the market. (Lorenz S. Marasigan, BusinessMirror)

http://businessmirror.com.ph/index.php/en/news/economy/37292-govt-slashes-vessel-handling-fees-and-port-charges-at-batangas-pier

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Congested ports stunting growth

Trade Secretary Gregory Domingo said port congestion due to the truck ban will slow down economic growth before picking up toward year-end.

“We expect that much but the situation will improve by the fourth quarter. With the continuing improvements in port operations by all sectors involved, we can expect quasi-normal operations within 10 days and full normalization by end-September,” he said, admitting things “were doing well before the truck ban”.

Domingo said the situation of the industries dependent on port operations eased up compared to 10 days ago “but may still impact on the GDP (gross national product)”.

In an update last Friday on port and shipping operations, Trade Undersecretary Victoria Dimagiba of consumer protection group said ports had accumulated a backlog of 135,000 twenty-foot equivalent units (TEU) in three months.

He said six shipping lines were now making as much three portcalls a week in Batangas while Subic Port increased portcalls to twice a week with 600,000 combined TEUs of Wan Hai Philippines Inc. and APL Philippines Co.

To ease port crowding, Customs-cleared overstaying cargo will move to a 10.6-hectare lot at the Cultural Center of the Philippines complex.

Also lined up are at least 36-hectares of off-dock facilities to park empty container vans--5 hectares near the Cavitex toll gate; 9 hectares between the IRS Eastern depot and the Philippine Economic Zone Authority; a 4-hectare depot in Malvar, Batangas; 5 hectares within the Asian Terminal facility in Calamba, Laguna; the planned 6-hectares property of ICTSI in Cabuyao and 2 hectares in North Harbor.

Other decongestion measures being proposed include nightime private warehouses to shorten truck dwell time and make more turnaround or trips, weekend cargo release and a five-day port clearance processing. (Othel V. Campos, Manila Standard Today)

http://manilastandardtoday.com/2014/08/11/congested-ports-stunting-growth/

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PPA acts to ease congestion at Manila ports

Congestion at the ports of Manila is expected to ease up and start to return to optimum operational level by August 15 due to the various government and private sector-led measures and initiatives, according to the Philippine Ports Authority (PPA).

PPA General Manager Juan Sta. Ana said public and private cooperation has been consistent in bringing port utilization down to its optimum level.

Sta. Ana lauded, among others, the Federation of Filipino-Chinese Chamber of Commerce for agreeing to take advantage of the government’s weekend release of cargo for at least two months, which the PPA will reciprocate by giving discounts on cargo-handling charges.

Sta. Ana also cited the direct callers led by MCC Transport, NYK, CMA-CGM, Pacific International Lines, APL, among others, in choosing to utilize Batangas for southbound cargoes and Subic for Northbound cargoes instead of coursing everything via Manila.

He added that private shipping lines have sent its sweepers at the Manila Ports clearing approximately a fifth of the estimated 17,000 to 22,000 empty containers occupying space at the Manila Ports. Three more sweepers are expected to arrive prior to August 15 to clear the remaining number of empty containers at the port.

For its part, PPA has started to implement a trucking scheme wherein only trucks that will have business or cargo to be taken out of the port will be allowed inside the port for a specific time. Likewise, empties to be deposited inside will also observe this kind of scheme.

Sta. Ana said the PPA is also contemplating on reducing free storage of Customs-cleared cargoes at the three ports.

“From the usual five days after the 45-day clearing period allowed by the Bureau of Customs, the PPA is planning reduce it and put a premium wherein any cargo staying inside the port after free storage period after clearance will be levied a penalty of more than three-fold of their existing fee for every day the cargo stays at the port,” he explained.

Meanwhile, International Container Terminal Services, Inc. (ICTSI), operator of the Manila International Container Terminal (MICT) has offered to use its two Subic terminals with a combined capacity of about 600,000 TEUs to be a temporary container depot for empties free of charge.

Sta. Ana said ICTSI likewise offered its 21-hectare property in Cabuyao, Laguna as another facility to house empties as well as customs-bonded cargoes that has yet to be cleared by the BOC.

The port official also disclosed that the government is sending Customs-cleared and overstaying cargoes out of the Manila ports wherein transportation of such cargo back to Manila will be shouldered solely by the cargo owners. Sta. Ana said the move will drastically reduce the number of laden containers at the MICT and the Manila South Harbor to ease congestion brought about by the backlog caused by the Day-time truck ban imposed by the City of Manila since February.

“The cargoes will be stored in any of Subic’s two ports, Batangas Port or at the 21-hectare ICTSI facility in Cabuyao, Laguna. Cargo owners, however, are still given the choice to have their cargoes stored inside the two ports but will be slapped with a stiff penalty that will encourage them to takeout their cargoes within the allowable time prescribed by laws, policies and orders instead of temporarily stacking their shipments inside the ports,” Sta. Ana pointed out.

There is also a parallel move by the Cabinet Cluster on Port Congestion to lease a 15-hectare lot in CCP Complex, adjacent to the World Trade Center and behind the PICC tent to serve as temporary holding area for empty containers.

“The Government has started negotiations with the owners through a representative from the Department of Finance. The area will house all empty containers bound for both MICT and MSH. The area will be operated by both operators,” Sta. Ana disclosed.

“Under this process, all empty containers from MICT and/or MSH will go directly to this facility and no withdrawal of empties for export use in this facility. Such will be done using the existing process. To manage traffic, the port operators will dictate which time and date such empty containers will be accepted at the said facility,” he added.

According to recent PPA records, congestion continues to ease up with yard utilization at MICT — the country’s top gateway — reduced to 89 percent while utilization at South Harbor’s empty container depot is at 89 percent and its laden depot at 88 percent Both ports estimate that utilization will be reduced to 87 percent and 86 percent respectively this weekend. (Kris Bayos, Manila Bulletin)

PHOTO: MICT at the Port of Manila

http://www.mb.com.ph/ppa-acts-to-ease-congestion-at-manila-ports/

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