SBMA grants ICTSI a 25-year extension of its concession at the Subic Container Terminal

The Subic Bay Metropolitan Authority (SBMA) has granted the subsidiaries of International Container Terminal Services, Inc. (ICTSI) permission to extend the operation of the New Container Terminals (NCTs) for another 25 years. 

The Memorandum of Agreement (MOA) was signed at the ACEA Subic Beach Resort in Subic Bay Freeport on October 3, 2025, for the “25-year Extension of Contract for the Operation and Management of the NCT.” 

SBMA Chairman and Administrator Eduardo Jose L. Aliño stated that the ICTSI subsidiaries, Subic Bay International Terminals Corp. (SBITC) and ICTSI Subic Inc. (ISI), will continue to operate and manage the New Container Terminals 1 and 2 (NCT-1 and NCT-2).

Aliño and ICTSI Executive Vice President Christian Gonzalez both signed the MOA, witnessed by SBITC Vice Chairman Juan Miguel Delgado and SBMA Director Honorio Allado III. The MOA will enable the SBITC and ICTSI to operate and manage NCT-1 and NCT-2 until 2058. 

SBITC plans to invest over USD$130 million in civil infrastructure and additional equipment as part of its investment and development plan under the extended concession. 

These will include the replacement of the terminal’s four existing quay cranes and acquisition of one additional quay crane, increasing the total to five, as well as the integration of more hybrid rubber-tired gantry (RTG) cranes. 

According to Gonzalez, these investments will further enhance terminal capabilities, boost operational efficiency, and increase the combined annual capacity of NCT-1 and NCT-2 from 600,000 twenty-foot equivalent units (TEUs) to one million TEUs.

“We are thankful to SBMA for trusting us and treating us as the right partner to continue until 2058. Across all the 30-plus terminals we operate around the world, no matter how difficult the place, no matter how challenging, the one thing that represents the trust in ICTSI and the partnership with the local authorities–the government and the regulators–is seeing your contract extended,” he added. 

The NCT serves as a critical international shipping gateway for industries in Central and Northern Luzon, including the economic zones of Subic and Clark. Part of the expansion and upgrades includes the SBITC’s increase in reefer plug capacity to 1,000 by the end of 2025 to support cold chain logistics.

Recent additions to its fleet include near-zero emission (NZE) rubber-tired gantry cranes, tractors, and trailers to improve terminal efficiency. Plans are also underway to automate gate operations by early 2026 and implement a new digital platform for online payments and truck appointments. (MPD-SBMA) 

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SBMA keeps Subic Freeport locators abreast on logistics automation, other services

The Subic Bay Metropolitan Authority (SBMA) held a Locators’ Forum at the Subic Bay Travelers Hotel on May 26, 2025 with 170 locators in attendance.

According to SBMA Chairman and Administrator Eduardo Jose L. Aliño, the Subic Bay International Container Terminal Corp. (SBITC), SBMA Seaport Department, and SBMA Trade Facilitation and Compliance Department (TFCD) collaborated to stage the forum, which was also graced by SBMA Director Cecile Bobadilla-Bitare.

During the forum dubbed “Updates on Logistics Services, Port Projects and Automation,” Senior Deputy Administrator for Port Operations Ronnie Yambao cited in his opening message the ₱233-million state-of-the-art Vessel Traffic Management System (VTMS) launched in February 2024. The VTMS significantly improved the safety and operational efficiency of vessel tracking across the Freeport.

Yambao added that the agency is in the initial stages of procurement to implement the Shore Power Connection project, which would reduce air pollution from ships at berth by 95 percent.

“Phase 1, focusing on the New Container Terminal, is set to commence in 2026 with a budget of ₱100 million, followed by Phase 2 covering the Naval Supply Depot and Ship Repair Facility from 2027 to 2028, requiring P150 million,” he said.

He also mentioned the numerous port expansion projects with a total approximate budget of US$878.7 million, including a new Container Terminal 3 with a capacity of 300,000 TEUs, estimated at US$359 million; a multipurpose terminal at Redondo Peninsula, valued at US$162 million; a multipurpose terminal in Lower Mau, supporting bulk and break-bulk industries, costing US$182 million; and a dedicated cruise terminal to boost tourism, with an investment of ₱10.2 billion.

Furthermore, he added that the SBMA is enhancing its logistics capabilities to support multi-modal transport.

“The Freeport boasts a modern container terminal with a capacity of 600,000 TEUs, expandable to one million TEUs, and is accessible by land, sea, and air. Plans include integration with the Luzon Economic Corridor via railway,” he said.

The official also stated that the SBMA has implemented various automation initiatives to streamline cargo movement and enhance efficiency, including the Automated System for Customs Data (ASYCUDA), Electronic Transit Admission Permit System (ETAPS), and Automated Export Documentation System (AEDS).

The agency is also considering a partnership with the Port of San Diego to transform Subic Freeport into a smart port city.

“This collaboration aims to integrate artificial intelligence, automation, break bulk cargo handling, shore power connections, cruise ship terminal development, and ship repair capabilities,” he said. (MPD-SBMA)

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Ocean Network Express adds Subic Bay calls on Southeast Asian service

Subic Bay International Terminals (SBITC), International Container Terminal Services, Inc.’s (ICTSI) operation at the Port of Subic, is now part of Ocean Network Express’ (ONE) China-Thailand-Philippines (CTP) service.

The inaugural call of the CTP service to SBITC on 26 March was executed with the 2,741-TEU boxship MARINA ONE. The service links the Port of Subic to East Asia, complementing the existing route between the Philippines and Singapore by further enhancing convenience for customers. 

It also provides a direct link from Thailand to Subic via the Laem Chabang port.

With a turnaround time of 28 days, the service rotates through the following ports: Laem Chabang (Thailand), Cai Mep (Vietnam), Manila (Philippines), Subic (Philippines), Qingdao (China), Pusan (South Korea), Shanghai (China), Laem Chabang.

Operated by a consortium of ONE and Regional Container Lines (RCL), the CTP service utilizes four vessels ranging from 2,400 to 2,700 TEUs.

SBITC sits strategically within the Subic Bay Freeport Zone in Zambales with access to major intra-Asia shipping routes, and serves as the gateway to northern and central Luzon. (SNL)

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Three shipping lines launch service connecting Subic Bay to South China and Vietnam

Emirates Shipping Line (ESL), ASEAN Sea Line (ASL) and Pacific International Line (PIL), have launched a new service from Subic Bay International Terminals (SBITC). 

The service connects International Container Terminal Services, Inc.’s (ICTSI) Subic Bay operation in Zambales with South China and Vietnam. 

The South China-Vietnam-Philippines (SVP) service made its inaugural call at the Port of Subic on 9 June with the arrival of the 1,200-teu-Danum 175, operated by ESL. 

The feeder service, which makes weekly calls to Subic, caters to the growing trade requirements of South China and Vietnam. 

It also highlights the free trade agreement between the Philippines and other Regional Comprehensive Economic Partnership members including Vietnam, which faces a growing demand for its agriculture and manufacturing exports. 

“The service offers a good opportunity to Northern and Central Luzon traders, who can leverage the increased connectivity to markets in Vietnam and China,” said Henry Dungca, SBITC terminal manager. 

The SVP service rotation is as follows: Shekou – Nansha – Xiamen – Manila North – Subic – Xiamen – Shekou – Nansha – Ho Chi Minh – Shekou. (SNL)

Source: https://www.hellenicshippingnews.com/subic-bay-international-terminals-expand-south-china-vietnam-connectivity/

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Innovative lifting solution enhances ICTSI Subic operation

Subic Bay International Terminal Corp. (SBITC), a unit of International Container Terminal Services, Inc. (ICTSI) operating at the Subic Bay Freeport, successfully handled the first Flat Rail operation in the Philippines with the loading of a brand-new catamaran on a CMA CGM vessel.

SBITC, operator of the New Container Terminals 1 and 2 at Cubi Point, performed the carefully planned operation in collaboration with Peters & May, an international freight forwarder and yacht transport specialist, and Bespoke Load Solutions, patent owner of the Flat Rail System used to load the cargo onto the ship.

The Flat Rail System uses a simple and innovative solution that enables the shipping of out-of-gauge cargo with dimensions that exceed the specifications of 40-foot flat racks.

“The Flat Rail System consists of two beams which are secured to the flat rack with twist-locks. With lifting points at the end of each beam, the complete unit load can then be loaded using slings attached to the spreader of the container gantry crane,” explained Chris Steibelt, Bespoke Load Solutions Development Manager.

He adds: “Typically, a Flat Rail shipment will be in the range of 12 to 15.5 meters long and the width blocks the corner castings. The system can safely accommodate payloads of up to 44 tons.”

Using Flat Rails, the catamaran was loaded onto a single 40-foot flat rack. The process was simplified into two moves–first, sea to berth, and second, berth to vessel after the cargo is lashed to the flat rack and Flat Rail. Traditionally, without the rails, the shipment would require at least six flat racks. The catamaran would be loaded as breakbulk and lashing would be done on board the vessel. This method is significantly less efficient and more costly for the shipper because of the larger vessel space occupied by the cargo, and longer port stay as a result of extended loading time.

“SBITC has demonstrated its capability and flexibility to safely and efficiently handle complex shipments such as this. We have eight more catamarans on the way, and we are confident that we could further improve our process and deepen our partnerships with other businesses that require customized service to expand their markets,” said Roberto Locsin, SBITC President and General Manager.

Built by full-service yacht agent Asia Pacific Marine – Subic, the 14.3-meter, twin hull vessel is export-bound for the Maldives. The shipment is the first of 10 catamarans commissioned by an exclusive resort group operating in six continents.

“We intended to deliver the catamaran in brand-new condition. With the guarantee by SBITC that they can safely handle our cargo, we know it is the best option for us,” said Miguel Ramirez, Asia Pacific Marine Managing Director.

Yacht shipping remains an uncommon service in the Philippines with importers and exporters opting to discharge and load their boats in nearby countries before sailing them directly to and from the Philippines. SBITC hopes the success of this particular project would eventually pave the way for yachts to be transported using Philippine ports. (SNL)

PHOTO:

Innovation. The 14.3-meter long catamaran is loaded onto a 40-foot flat rack fitted with a pair of Flat Rails at both ends.

https://www.ictsi.com/press-releases/innovative-lifting-solution-enhances-ictsi-subic-operation

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SBITC installs reach stackers to enhance Subic port operations

The Subic Bay International Terminal Corporation (SBITC) has added four reach stackers to ensure efficient port operations and optimize container yard space of the Subic port terminal.

The installation of reach stackers is part of the terminal operator’s initiative to further enhance its capacity in handling unladen containers from the surge of imports, after being assigned as an empty evacuation center last year.

“Our investments in global standard port equipment and systems help in maintaining robust operations in NCT 1 & 2 to meet the needs and demands of our partners. These firm up our position as a competitive international gateway for industries in the freeport area and the North and Central Luzon region,” said SBITC.

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Wilma T. Eisma welcomed the private terminal operator’s efforts in boosting the capacity of Subic as a major transhipment hub.

She said the SBMA has also started last year the rehabilitation of roads leading to the Subic Container Terminal and other major piers in the Subic Freeport in order to increase port-related activities here.

“Together with SBITC and the Bureau of Customs, we have also set up One-Stop-Shop document processing in the terminal to further enhance efficiency and customer service in the port,” Eisma added.

SBITC said the reach stackers which arrived at the terminal this month will be fully operational by April. Each stacker will have a load capacity of 45,000 kg and can stack up to five containers high.

The port currently has seven reach stackers for yard and vessel operations. SBITC said that there will be two more improvements within the first half of 2019.

“We are expecting two more equipment to arrive in the coming months. This is only the first leg of the improvements planned for the year,” SBITC said.

Subic Bay International Terminal Corporation is one of the leading port operators in the world which leverages on fast, reliable, and cost-efficient system. It is the container port operator of the Subic Freeport Area in Subic, Zambales, and serves the industries in Northern and Central Luzon. (MPD-SBMA)

PHOTO:

INCREASED EFFICIENCY. The reach stacker, which can lift, shift and stack empty containers, will augment port’s ability to securely and efficiently pile containers to optimize container yard space. (MPD-SBMA)

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ICTSI Subic hits 200,000-TEU target

International Container Terminal Services, Inc. (ICTSI)’s subsidiary Subic Bay International Terminal Corp. (SBITC) has expected that container volume will further grow this year, after hitting its milestone 200,000th twenty-foot equivalent unit (TEU) move last December.

SBITC President Roberto Locsin said SBITC, which operates the New Container Terminals 1 and 2 at the Subic Bay Freeport, capped 2018 with a milestone after reaching its 200,000th TEU move last December 23.

“We are proud of reaching this latest milestone. More than hitting our targets, this new record highlights Subic Bay International Terminal’s capability to continuously outpace market growth, and readiness to serve the vibrant Subic Freeport market,” he said.

The event was marked by the offloading of a milestone CMA CGM steel box from MV Sinar Sangir.

He said this achievement was made possible through their customers, the collaboration of the Subic Bay Metropolitan Authority (SBMA) and other stakeholders, and more especially through their passionate, humble and committed workforce.

“Along with further investments in port equipment and systems, we continue to work hand-in-hand with our customers to improve the efficiency of our operations and processes, and inevitably make their experience a more pleasant one,” he added.

Subic Bay International Terminal, one of the country’s most technologically-advanced box terminals, has an annual capacity of 600,000 TEUs.

The increasing volumes at the Subic Bay Freeport have enabled ICTSI to streamline and interface the operations of New Container Terminal (NCT) 1 and 2.

The merged operations were ready to serve an improving local economy in Central and Northern Luzon regions, alongside with its continued support to facilitate the box market of Metro Manila.

In 2007, under the Subic Port Development Project, the Subic Bay Metropolitan Authority (SBMA) awarded ICTSI subsidiary SBITC the concession for NCT 1, with commercial operations commencing in 2008.

In 2011, under the Subic Port Project’s second phase, SBMA awarded ICTSI Subic Inc. the concession to operate NCT 2. (Manila Times)

PHOTO:

The event was marked by the offloading of a milestone CMA CGM steel box from MV Sinar Sangir. (photo from ICTSI)

https://www.manilatimes.net/ictsi-subic-hits-200000-teu-target/499980/

Read more --> https://www.ictsi.com/media-center/our-releases/2019/01/ictsi-subic-hits-milestone-200-000th-teu-move/

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Top corporate performers in Subic named

Twelve companies in the Subic Bay Freeport Zone received the 2018 Mabuhay Awards from the Subic Bay Metropolitan Authority (SBMA) for being the top performers last year.

SBMA Chairman and Administrator Wilma T. Eisma said the SBMA keeps tab of the performance of Subic companies and recognizes the best performers through the SBMA Mabuhay Awards.

In the ceremony, Eisma urged locators to continue to enshrine transparency and compliance in their operation “because it is only with transparency and compliance that we can ensure a stable and predictable environment for the country, and for the Freeport.”

The Subic business locators that received the citation were:

- Toyota Subic, Inc., which received the “New Business of the Year” award for demonstrating remarkable results in customer service, marketing, and competitive positioning since its opening here on Nov. 8, 2018;

- HHIC-Phil Inc., was cited as “Top Importer of 2017” and “Top Exporter of 2017” for attaining the biggest import value of US$388 million and export value of US$1.25 billion;

- Subic Duty Free Shops, Inc., which runs and operates Meatplus Café, received the “Responsible Tourism Award” for creating positive business impact and significant economic, environmental and social benefits as one of the most popular food outlets inside SBFZ with a consistent strong following from local and international tourists;

- Philippine Coastal Storage & Pipeline Corporation (PCSPC), was “Top Net Income Earner of 2017”. PCSPC operates the petroleum storage and pipeline facilities at the former US military bases in Subic and Clark, and its 160-hectare facility here includes a marine terminal, fuel storage tank farms and tank truck loading facilities;

- Brighterday Subic Ltd., Inc. which manages and operates All Hands Beach, was given the “Eco-Innovation Award” for its efforts in biodiversity conservation, particularly in monitoring and releasing more than 4,000 sea turtles to their natural habitats since 2011;

- S-CORP Philippines, Inc., which offers end-to-end transaction processing services, intricately linked enterprise information management systems, and personalized multi-channel communications solutions for over 3,500 clients in distinct industry verticals across the globe, received the “SME Employment Award” for its non-discriminatory hiring system and generation of remarkable number of jobs for local and indigenous people;

- Allied Care Experts (ACE) Medical Center – Baypointe, Inc., which operates a tertiary medical tourism facility, received the “Health and Wellness Business of the Year” award, for its Biggest Loser Program that drew 181 participants, and for regular Zumba classes conducted at its auditorium and view deck;

- Converge ICT Solutions, Inc., was the “Service Business of the Year for Information and Communication Technology Industry” for offering the country’s only Pure End-to-End Fiber Network and its advocacy to upgrade the Filipino web experience;

- Subic Enerzone Corp., an Aboitiz Power Corporation, Inc. company, was “Service Business of the Year for General Business and Investment Industry” for its commitment to deliver, at most reasonable cost, safe and reliable electric service to the people and businesses they serve;

- International Container Terminal Services, Inc. was “Service Business of the Year for Logistics” for serving the growing economy of the northern regions of the Philippines through world-class container handling services at the Subic Bay Freeport;

- One Subic Power Generation Corp., a subsidiary of PHINMA Energy Corporation, meanwhile, received the “Corporate Social Responsibility Award” for its Cawag Reforestation Project whereby around 3,000 coffee seedlings were planted by mobilizing both upland farmers and employee volunteers; and

- Subic Superfood Inc., which produces the Mt. Mayon Premium Pili Nuts, received the “Special Recognition Award” for its exemplary dedication and passion in turning its locally-sourced main raw material into a quality product that has brought pride and honor to the Subic Bay Freeport and the Philippines for being recognized in various prestigious and international awards. (RFD/MPD-SBMA)

PHOTO:

SBMA chief Wilma T. Eisma (center) and other SBMA officials congratulate winners of the 2018 Mabuhay Awards, which recognized top business performers in the Subic Bay Freeport (AMD/MPD-SBMA)

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SBITC, Royal Cargo team up for expansion

ICTSI subsidiary Subic Bay International Terminal Corp. (SBITC) has teamed up with Royal Cargo Inc. to provide seamless movement of goods to and from North and Central Luzon (NCL) and help small and medium-sized enterprises expand their operations.

The partnership between the two firms seeks to provide the business community in NCL a world-class and highly efficient fourth party logistics combination delivering superior customer service and attractive pricing.

Unloading at SBITC's Container Terminal 1 in the Subic Bay Freeport Zone

“The joint efforts of the terminal and Royal Cargo have increased cold-storage options that will improve the quality of refrigerated cargo coming in and out of the country in a fast and efficient manner. This creates opportunities within the value chain to allow local businesses to promote their market further outside of traditional centers like Manila,” SBITC president Roberto Locsin said.

“The north hub will take us one step closer to helping companies across the country achieve growth and expand the new markets such as the Asia-Pacific region. With SBITC, we are now able to provide a direct connectivity to major Intra-Asia and global ports which makes our operations a lot easier,” Royal Cargo president Elmer Sarmiento said.

According to SBITC, Subic’s terminal handling charges are 48 percent less expensive compared to other terminals despite being the first and only on-dock warehouse in Region 3 that can connect to NCL largest cold-chain facility operated by Royal Cargo.

“Businesses that ship via Royal Cargo can now take advantage of SBITC’s perks such as its one-stop shop service facilities and 10-day free storage period while enjoying the terminal’s world class container handling services, not to mention SBMA’s deferred payment of duties and taxes,” Locsin said.

SBITC said the completion of the Plaridel Bypass Road Phase 3 in Bulacan would also allow for faster delivery service, at the same time reduces travel time going in and out of the north hub.

“The best thing about this collaboration with Royal Cargo is its sustainable shipping services we can offer to the Filipino entrepreneurs in NCL despite their increasing logistics demands. NCL is a successful, strong business hub in the making and I couldn’t be more proud knowing SBITC is going to be part of that success,” Locsin said.

SBITC is a common-user, multi-purpose terminal, providing on and off-dock marine port cargo and container handling services in Subic Freeport Area. (Richmond Mercurio, The Philippine Star)

Read more at https://www.philstar.com/business/2018/08/15/1842569/sbitc-royal-cargo-team-expansion#JZsPxS69RjXTU6vu.99

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Port efficiency to attract more shipping lines, users to Subic

International Container Terminal Services, Inc. (ICTSI) continues to make a strong case for the Subic Bay Freeport as a key international trading gateway of the Philippines after achieving productivity levels at par with that of the Manila International Container Terminal (MICT).

Two Panamax quay cranes at the New Container Terminal (NCT) 1 recently handled close to 400 twenty foot equivalent units (TEU) with each crane averaging 40 and 33 moves per hour, respectively. The productivity levels were achieved during the inaugural call of Evergreen Marine Corp.’s 1,440-TEU boxship Cape Fulmar.

Cape Fulmar berthed at the New Container Terminal 1 in Subic Bay Freeport Zone

The call signaled the start of Evergreen’s South Korea-Taiwan-Philippines (KTP) service, a new route to facilitate improving regional trade between the three economies. The service plies the ports of Incheon and Kwang Yang, South Korea; Kaohsiung, Taiwan; and Batangas, Manila and Subic Bay, Philippines. Aside from Cape Fulmar, 1,440-TEU boxship Cape Faro is also chartered to the weekly service.

“It was a great effort and a big win for ICTSI’s Subic operations. This goes to show that Subic is at par with the productivity levels in MICT. We are continuously working on improving our services to attract more shipping lines, and for northern and central Luzon businesses to use the container terminals in Subic,” says Roberto Locsin, Subic Bay International Terminal Corp. (SBITC) President.

He adds: “As a national port operator, ICTSI ensures that each Philippine marine terminal under its helm remains competitive. Subic, in particular, was developed not only for the industrial locators of the Freeport but for the local markets in Luzon north of Metro Manila.”

MICT, ICTSI’s flagship terminal, primarily serves the Metro Manila market and its adjacent markets, where most of the economic activities of the country happen being the country’s capital. “Metro Manila as a market will continue to grow,” says Locsin.

“But, as the northern and central Luzon countryside develops driven by industrial centers like Subic, Clark, Bataan and Tarlac also continuing to grow, the Subic Bay Freeport is that gateway ready to link its products to global markets. We have the equipment and facilities. We carry ICTSI’s brand of service and efficiency,” he adds. (Manila Bulletin)

http://business.mb.com.ph/2017/05/08/port-efficiency-to-attract-more-shipping-lines-users-to-subic/

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Evergreen adds Subic to Korea-Taiwan-Philippines service

Taiwan’s carrier Evergreen will add Subic to its existing Korea-Taiwan-Philippines (KTP) service from next month, utilising Subic’s New Container Terminals 1 and 2 operated by Manila-based International Container Terminal Services, Inc. (ICTSI).

The addition of Subic to Evergreen’s KTP service will open the port to direct trade links with South Korea and Taiwan. The trade will also include transshipment service for overseas cargo.

Cargo unloading at the container terminal in Subic Bay Freeport

The first Evergreen container ship is scheduled to make its maiden call at Subic on 19 April. The weekly KTP service port rotation is Korea’s Incheon and Kwangyang, Taiwan’s Kaohsiung, the Philippines’ Batangas, Manila and Subic, and back to Kaohsiung.

Roberto R. Locsin, general manager of ICTSI subsidiary Subic Bay International Terminal Corp, commented: “Our inclusion in the KTP service is a clear indication that the markets of central and northern Luzon are growing, and will benefit from another large global carrier participating in this growth.”

In December 2016, the Taiwan Maritime and Port Bureau (TMPB) expressed interest to partner with the Subic Bay Metropolitan Authority (SBMA) to increase container transhipment traffic between the ports of Taiwan and Subic.

The Philippines has been able to capitalise on Taiwan’s ‘Southbound Policy’ which aims to strengthen trade and investment relationship between Taiwan and countries south of the latter’s territory.

Taiwan is the Philippines’ sixth biggest trading partner, facilitating around $7.85bn worth of bilateral trade in 2015. South Korea, on the other hand, is the Philippines’ fifth largest trading partner in 2015 with bilateral trade reaching $13.4bn in 2014.

Recently, SBMA has urged local government units around the Subic Freeport Zone to start developing industrial parks to accommodate the growing number of investors.

“We’re now seeing the results of our campaign to promote Subic. We are doubling our efforts to sustain the current momentum to ensure we don’t lose on the gains we have achieved in putting Subic at the center of economic growth in central and northern Luzon, ” said ICTSI’s Locsin. (Lee Hong Liang, Seatrade Maritime)

http://www.seatrade-maritime.com/news/asia/evergreen-adds-subic-to-korea-taiwan-philippines-service.html

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ICTSI offers Subic port to ease Port of Manila congestion

THE International Container Terminal Services Inc. (ICTSI), operator of the Manila International Container Terminal (MICT), is renewing its proposal of an infrastructure “master plan” to the Duterte administration to improve the flow of trade in the country’s key port.

Speaking to reporters at the sidelines of the Management Association of the Philippines’ (MAP) 14th International CEO Conference, ICTSI Senior Vice President and Head of Asia Pacific Operations Christian Gonzalez suggested a holistic approach to facilitate goods inflow into the country.

Christian R. Gonzalez, ICTSI Senior Vice President and Asia Pacific Region Head

“We all need roads, we know how many cars there are in the streets and public transportation needs to be improved. What we’ve heard from the current government is positive because they intend to build more roads, but they need to fast-track it. The critical one is really the roads,” Gonzalez said.

The establishment of a proper logistics network should be looked at outside of Metro Manila, such as in Subic port, where ICTSI operates Terminals 1 and 2 through its subsidiaries.

Aside from road infrastructure, creation of inland facilties, such as warehouses, can incentivize more businesses to use the Subic port instead of the crowded Manila port. These initiatives can encourage the shift of more cargo from the Port of Manila to Subic.

Last year ICTSI moved 100,0000 twenty-foot equivalent unit (TEUs) of cargo previously accommodated in Manila, to Subic. The Subic port’s installed capacity is at 600,000 TEUs.

The port operator is constrained from moving more because of the disjointed infrastructure network in the area.

Creating alternative modes to deliver cargo, such as water transport, and a dedicated railway track for cargo to connect Subic and Bataan, is also a welcome move, he said.

“If the government wants to talk about this, we are open to it,” Gonzalez said. (Catherine Pillas, BusinessMirror)

http://www.businessmirror.com.ph/2016/09/06/ictsi-offers-subic-port-to-ease-port-of-manila-congestion/

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Subic now most advanced logistics hub in Phl

The Subic Bay Freeport Zone is ready to accommodate rising demand in local and international trade with recent facility upgrades and enhanced logistics solutions, the Subic Bay Metropolitan Authority (SBMA) said.

SBMA chairman Roberto Garcia said Subic’s facilities now stand as the most advanced of its type in the country.

Garcia said the freeport’s available services likewise give locators in Asia and around the world the perfect venue for exports and imports while offering dealers, institutions, and companies a stable and secure location to store and trade products.

“Some of the best-known and biggest freeports like those located in Geneva, Singapore and Luxembourg have effectively attracted investments from small, medium and large industries through seamless logistics solutions. These are the same solutions available now in Subic and we expect more and more companies to come here to take advantage of what we can offer them,” he said.

According to SBMA, freeports were originally intended only to provide space to store goods in transit, but this role soon evolved to include the complete conduct of trade and business both inside and outside the country.

With recent developments, SBMA said Subic Bay Freeport has emerged as the main logistics hub for business and industries in Northern and Central Luzon.

“We’ve consistently provided cost-effective logistics for foreign and local industries in Central and Northern Luzon. That is necessary for the country’s competitiveness so that we can attract more foreign direct investments and propel the Philippines towards continued growth. More than that, we want to provide the necessary support to all companies in the Philippines that need access to the rest of the world,” Garcia said.

Located in Olongapo, Zambales, the Subic Bay Freeport is the largest in the country and is supported by the Subic Bay International Terminal Corp. (SBITC), a subsidiary of the International Container Terminal Services Inc. which operates New Container Terminals 1 and 2.

SBITC has terminals with a combined area of 28 hectares and an annual capacity of 600,000 twenty-foot equivalent units or the total number of container vans ships can carry in the terminal.

SBITC’s New Container Terminals 1 and 2 have a combined 11.14-hectare container yard with a modern fleet of mobile container handling units for moving and hauling duties. (Richmond Mercurio, The Philippine Star)

PHOTO:

The New Container Terminal 1 (NCT1) in Subic Bay Freeport Zone (AMD/MPD-SBMA)

http://www.philstar.com/business/2016/06/26/1596583/subic-now-most-advanced-logistics-hub-phl

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Bataan, Clark cargoes to boost Subic Port's volume growth this year

Subic Bay Freeport is expected to hit record cargo volume growth this year as more cargoes from Bataan and Clark businesses utilize the nearby Port of Subic.

Christian Gonzales, Vice President for Operation of International Container Terminal Services, Inc (ICTSI) said their port facilities in Subic are likely to exceed last year's cargo volume of 120,000 TEUs (twenty-foot equivalent unit).

A cargo ship docks at the Port of Subic (AMD-MPD/SBMA)

“Our Subic port is expected to post record volume this year. Subic is very exciting because it would be very illogical for companies in Bataan to still bring their cargoes to Manila,” he said.

The only thing needed to boost cargo volume in Subic is to further widen the roads leading to Subic, especially the one connecting Bataan. It takes half the distance only for Bataan-based companies to ship through Subic than Manila.

“So any growth in cargo volume in Bataan will logically go to Subic,” Gonzales said.

ICTSI's terminals 1 and 2 in Subic Freeport operated by its two subsidiaries - Subic Bay International Terminal Corporation (SBITC) and ICTSI Subic Inc., were built to accommodate 600,000 TEUS.

Its Subic port incurred some cargo volume losses when second hand car importation was no longer allowed to enter through Subic. It has gained new cargo volume as more companies locate in Bataan and Clark and ship their cargoes through Subic.

This has caused some cargoes from its Manila International Container Terminal to be diverted to Subic, but increased cargo volume from Laguna and Cavite-based companies have more than made up for lost volume. MICT has a capacity of 4.2 million TEUs.

Read more - http://www.mb.com.ph/ictsi-to-open-4-intl-ports-with-1-b-investment-this-year/

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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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Rising volumes push Manila, Subic to upgrade ports

HONG KONG — International Container Terminal Services Inc. is investing heavily in construction and port equipment to improve productivity that will be required to deal with rising container volumes expected through its Manila and Subic import gateways.

Manila International Container Terminal (MICT), the ICTSI flagship, has had a request to spend $107 million on expanding yard capacity approved by the Philippines Board of Investments, while Subic Bay International Container Terminal Corp. (SBITC) recently deployed three new reach stackers and 16 new Kalmar Ottawa terminal tractors.
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Port equipment upgrades are being made by ICTSI, and six new rubber tired gantries have been ordered that may be deployed at either MICT or Subic terminals. This will be added to the three new reach stackers and 16 new Kalmar Ottawa terminal tractors that SBITC commissioned recently.

There has been renewed interest in Subic port that played a large role during the congestion. At the height of the bottlenecks, an order from the government temporarily lifted cabotage restrictions on Subic and Batangas ports that allowed foreign carriers to be loaded or unloaded there if Manila was backed up. Now that the Philippines has scrapped the cabotage law, there is expected to be greater volumes flowing through the country’s smaller ports.

The cabotage reform will bring down the exorbitant costs of domestic shipping and improve efficiency as foreign carriers compete on an equal level with the few local players that have cornered the market, and it has received a warm welcome from the Philippine Ports Authority.

"The major gateways have long been capable of handling bigger ships and our secondary gateways are being improved to handle international vessels," said PPA general manager Juan Sta. Ana.

"They have been improving the capacity and capability of the Philippine ports in anticipation of the implementation of the ASEAN Economic Community at the start of next year, and those measures somehow help the state-owned agency adjust easily to the amendments in the cabotage law,” he said.

Roberto Locsin, SBITC general manager, said terminal productivity and efficiencies will continue to improve as SBITC makes key investments in equipment and technology. “It is also part of our effort to persuade more customers to use Subic as it is logically the gateway for these regions (central and northern Luzon),” he said.

“The new equipment, along with the opening of a one-stop shop, will allow us to continue to deliver superior customer experience for our customers from the quay to the gate including brokers, forwarders, and truckers and ultimately, the cargo owner.”

The one-stop shop Locsin was referring to is a move to house the relevant customs and port authorities under one roof to revamp the often tedious documentation process and hasten the processing of import transactions. It allows the seamless flow of transactions as port users no longer have to travel to different areas around Subic to process documents.
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The MICT project will see the construction of Berth 7 in Manila’s North Harbor that will include a 300-metre wharf and back up area that when completed will be able to handle up to 2.5 million 20-foot containers.

A key part of the MICT project will be an expansion of yard space for storage of empty containers as ICTSI tries to resolve what was a significant part of the chronic port congestion that brought Manila to a standstill for most of last year.

The Philippines is a net importer of containerised goods with around 900,000 empty TEUs shipped out every year being handled by MICT. At one point during the congestion in Manila, 75,000 TEUs were waiting to be collected in the port.

Phase 1 of the Berth 7 yard development has been completed, adding four hectares of empty container depot that will be able to store up to 4,300 TEUs. An additional two hectares able to store more than 2,000 TEUs will be added by the end of the year.

The whole project is expected to be completed by 2017 and will complement the development of Laguna Gateway Inland Container Terminal, a dry port operated by ICTSI 36 miles south of Manila.

Laguna dry port’s phase 1 expansion will include extended and dedicated storage areas for loaded and empty containers, a runway for rubber-tired gantries (RTG), container care facilities, weigh bridges at the gates, an upgraded access road and a direct rail service to the sea port. The full project will effectively add 250,000 TEUs of capacity to MICT.

“Once everybody starts using Laguna dry port, we can expect even better productivity levels at MICT,” said Christian Gonzalez, ICTSI vice president and head of Asia-Pacific.

Philippine business and government officials appear to be at odds over whether Manila will experience a return of port congestion when container volumes increase ahead of the Christmas season.

Cabinet Secretary Rene Almendras, who heads Task Force Pantalan that is charged with finding solutions to port bottlenecks, told the House of Representatives Ways and Means Committee this week there will be a smooth flow of goods with no congestion in and out of the country's ports for the upcoming Christmas season, when the volume of imported goods naturally increases.

"Everything is moving well. We don't expect problems in December," Almendras told the committee during a hearing at the legislature, according to online news portal InterAksyon.

However, the Philippine Chamber of Commerce had the opposite opinion. Local media quoted chamber president Alfredo Yao as saying port congestion might be inevitable during the last quarter because of a surge in container volumes.

“There should be tightening in the ports again because the truck ban is gone and it’s also the last quarter which is the peak season for importers,” Yao told reporters. “I hope not but there is that possibility.” Yao did concede that “it may not be as bad as last year.” (Greg Knowler, Senior Asia Editor, JOC.com)

PHOTO:
Subic Bay International Terminal Corporation has added 16 new Kalmar Ottawa terminal tractors to its prime mover fleet ahead of an expected increase in container movement in the coming months.

full story: http://www.joc.com/port-news/rising-volumes-push-manila-and-subic-upgrade-ports_20150929.html

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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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ICTSI beefs up container handling equipment in Subic

International Container Terminal Services, Inc. (ICTSI) has deployed four new mobile container handling equipments to improve its port operations in Manila and Subic.

In a statement, ICTSI said four new generation reach stackers are now stationed at the Manila International Container Terminal (MICT) and at the new container terminals 1 and 2 at the Subic Bay Freeport which are operated by ICTSI subsidiaries Subic Bay International Terminal Corp. and ICTSI Subic, Inc.

According to Antonio Coronel, ICTSI Purchasing Director, the new reach stackers are the first of their kind to operate in the Asia-Pacific region. Supplied and manufactured by Kalmar, the port equipment and technology unit of Cargotec Oy of Finland, the “Gloria” or “Generation G reach” stacker has a 45-ton total lift capacity, which is considered an “industry-best” for its class.

“They don’t just provide highly productive and reliable equipment; they appreciate the dynamics of the business and as a result, can provide solutions that boost productivity yet reduce our costs of operation. We have an ambitious development strategy to become one of the world’s leading port management companies and on the same global stage, Kalmar is clearly a trusted partner,” he added.

Explaining the features of the new “Gloria” stackers , Kalmar Asia Sales Director Björn Jonasson said that the equipment offers three ECO driving modes, namely power, normal and economy, making it the most energy efficient reach stacker in the market today. “Gloria” also sports an automatic stop-start function, which is responsible for reduced emissions and fuel efficiency of up to 10 percent.

Jonasson hailed the ICTSI for becoming “the first customer to specify Kalmar Gloria reach stackers in Asia and particularly so soon after their launch into the region. We have enjoyed considerable success in launching Gloria into other key territories and the product has now become the benchmark for reach stacker performance throughout the industry.”

MICT, ICTSI’s flagship operation and the Philippines’ largest international container terminal, has an annual capacity of 4.2 million twenty equivalent units (TEUs). Meanwhile, the New Container Terminal Compound (NCT-1) and New Container Terminal Compound (NCT-2) in Subic have a total of 600,000 TEU capacity.

ICTSI is an international operator of common-user container terminals serving the global container shipping industry. ICTSI is the largest port operator in the Philippines and has a portfolio of 29 container terminal operations in 21 countries across six continents. (Kris Bayos, Manila Bulletin)

PHOTO:
The new Gloria 45-ton reach stacker lifts a container at the New Container Terminal-1 in Subic

http://www.mb.com.ph/ictsi-beefs-up-container-handling-equipment-in-subic/

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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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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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