Subic Port sustains 3-year growth momentum

Following the well-attended 2nd Subic Bay Maritime Conference and Exhibition last week, Subic Bay Metropolitan Authority chairman and administrator Roberto Garcia announced yesterday that the Port of Subic has kept up its growth momentum that began in 2012, on to the first quarter of the current year.

“For the past three years, the Port of Subic has continued to register positively in terms of revenues, gross registered tonnage (GRT), number of ship calls, and non-containerized and containerized cargos,” Garcia reported.

In 2011, annual port revenues were recorded at P371 million, which by 2014 had ballooned to P908 million, or a total growth of 126 per cent. Additionally, ship calls increased from 1,803 in 2011 to 2,591 in 2014, indicating a growth of 15 per cent.

Garcia added that the port’s GRT was only 14 million in 2011, but expanded to 40 million last year, growing by 186 per cent during the three-year period.

“Our port also enjoyed similar growth in terms of containerized cargo, which grew from 27,671 twenty-foot equivalent units (TEUs), in 2011 to 77,177 TEUs by 2014, reflecting a 60 per cent growth. Non-containerized cargo volume also experienced a three-year build-up of 136 per cent, from 2.6 million metric tons in 2011 to 6.1 million metric tons in 2014,” he noted.

Garcia said that SBMA is anticipating further growth, given the positive outlook for the country’s economy. This optimism seems to be bearing out, as the Subic Port’s year-on-year performance for the first quarter of 2015 shows the same uptrend it has enjoyed in the past three years.

“Our port revenue has increased by 20 per cent, GRT by 12 per cent, non-containerized cargo by 15 per cent, containerized cargo by 28 per cent, and ship calls by 18 per cent,” he detailed.

According to Garcia, the entry of more domestic and foreign vessels that call regularly on the Subic has vastly improved the port’s connectivity to the world.

“We now have NYK Line, SITC, Maersk Line, APL, and Wan Hai vessels plying to and from major Asian ports like Kaohsiung, Tanjung, Singapore, Busan, Xiamen, Jakarta, Ho Chi Minh, Shanghai, and Surabaya, among others; as well as to and from Japanese ports such as Tokyo, Nagoya, Osaka, Chiba, and Kobe,” Garcia said.

Garcia also noted that the Subic Port successfully managed to accommodate the sudden surge in container shipments at the height of the Manila congestion last year, proving its capacity and readiness to handle volume shipments.

“This year we aspire to hit a target volume of 120,000 TEUs, or 20 per cent of the 600,000-TEU combined annual capacity of the port’s New Container Terminals 1 and 2, in line with our vision to make this Freeport the premier logistics hub north of Metro Manila,” Garcia revealed. (KMF/CorComm-SBMA)

Photo: The New Container Terminal 1 (NCT1) at the Port of Subic at night

Read More

More shippers now prefer Subic port

More shipping companies and port users in Central and Northern Luzon are now preferring to use the Port of Subic as transshipment hub because of easy access and lower cost.

The shippers lauded the advantages of the Subic port during the 2nd Subic Bay Maritime Conference and Exhibit, which was held here on Friday with no less than 500 delegates from shipping firms, trucking and forwarding consortia, customs brokers, import/export-related corporations, and other port users from Metro Manila, Central and Northern Luzon, as well as Southern Luzon.
.
The conference, with the theme “Subic Bay: Your Gateway to Central and Northern Luzon,” was organized by the Subic Bay Metropolitan Authority (SBMA) in cooperation with Subic Bay International Terminal Corp. (SBITC).

Cabinet Secretary Jose Rene Almendras, who was keynote speaker in the event, said that “Most people are moving north and the number is up tremendously.”

Almendras, who is also head of the Cabinet Cluster on Port Decongestion, noted the successful transformation of Subic from a mere seaport with well-maintained facilities into an international seaport hub and the role it played at the height of the port congestion crisis and truck ban in Manila.

“The important part of the success in moving resources is the port. And when we turned to Subic in those times of crisis, there is no way turning back,” he said.

He said that delays in processing goods in Manila during the crisis had made companies turn to Subic in order to ship their replenishment stocks in less than two weeks.

Meanwhile, Vincent Gottman, operations manager of Hansa Creation, said that since they started using the Port of Subic for shipping in raw materials and transporting finished products to a factory in Manila, they never encountered a single problem.

“Since using Subic, our deliveries always arrived on time,” said Gottman whose company based in the Clark Special Economic Zone supplies toys to many zoos and wild parks worldwide.

He added that the government should tell stakeholders in the shipping industry about the changes that the Port of Subic underwent to provide better services, and to convince more companies to use Subic for their export and import operations.

For his part, Gary Algodon, the procurement manager of San Miguel Brewery, told delegates that as of 2014 San Miguel Brewery’s port operations had moved its transshipment to Subic because of the ease in moving goods in and out of the container yard.

“There was no problem that we encountered in transporting our shipments. Instead, we have a bonus from Subic and that is cost-saving,” Algodon said.

He noted that using Subic is more economical because of its easy access to Northern Luzon, adding that the company is now moving 80% of its product supply in Luzon, with only 20% contracted to Manila.

“Hopefully, this year, we can make that 100%,” he added.

For Anthony Eugenio, operations manager of Atlas Brokerage and Express Padala, Inc., using the port of Subic for receiving “Balikbayan” boxes from the United States has the same cost as in Manila—“Except that in Subic there is no problem about traffic and the threat of port congestion that might put the company’s service to test.”

Philippine Exporters Confederation Inc. (PECI) in Region III president Cris Venzon, who spoke in behalf of his group, announced that PECI is supporting the initiatives of SBMA in improving the Port of Subic.

“We want to ship out (our products) through Subic,” Venzon said, adding that doing so will save them time and the cost of transportations compared to using Manila ports.

He explained that from anywhere in Central Luzon, Subic is accessible through major road networks, which are now undergoing widening and improvement to address the imminent increase of trucks and forwarders plying to Subic from various origins in the region.

For his part, SBMA Chairman Roberto Garcia said that the continuous improvement of the Port of Subic has already resulted in the entry of four more shipping lines.

Garcia said that the Japan-based Nippon Yusen Kaisha (NYK) Line, one of the largest shipping companies in the world, made its first direct route to the Port of Subic from Kaohsiung, Taipei in November last year with its MV Jakarta Towers.

China-based SITC Container Lines (Phils.), Inc. has also opened a direct route from Xiamen, China to Subic.

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

“Subic, today, is the most preferred and most competitive gateway to Central Luzon and Northern Luzon with its newly opened One-Stop-Shop Center at the New Container Terminal 1 that can connect shippers to the SBMA-Bureau of Customs and SBITC for faster transactions,” Garcia also told the conference delegates.(RAV/MPD-SBMA)

PHOTOS:
[1] Cabinet Secretary Jose Almendras (left) and SBMA Chairman and Administrator Roberto V. Garcia prepare to cut the ceremonial ribbon to officially open the One-Stop-Shop at the New Container Terminal-1 to fast-track port transactions inside Subic Bay Freeport Zone. (AMD/MPD-SBMA)

[2] Cabinet Secretary Jose Almendras (left) and SBMA Chairman and Administrator Roberto V. Garcia officially open the One-Stop-Shop with SBITC general manager Roberto Locsin, SBMA Deputy Administrator Mar Sanqui and other port officials at the New Container Terminal-1 in the Subic Bay Freeport Zone. (AMD/MPD-SBMA)

Read More

NYK line makes first port call in Subic

Japan-based Nippon Yusen Kaisha (NYK) Line, one of the largest shipping companies in the world, made its first direct route to Port of Subic from Kaohsiung, joining other major shippers in using this free port as a more viable alternative to the congested Port of Manila.

NYK’s MV Jakarta Towers, a 688-gross tonnage Liberian-flagged cargo vessel, made its first port call at Subic on Saturday and docked at the New Container Terminal (NCT)-2 after sailing a day-and-a-half from Kaohsiung, Taiwan.

The cargo vessel unloaded about 110 container vans destined to consignees in Southern Luzon, including Toyota Motor (Phils.) Corp. in Santa Rosa, Laguna; Canon Business Machines (Phils.) Corp. inTanauan, Batangas; and parts of Metro Manila.

The ship also unloaded cargos for consignees in Central and Northern Luzon. These included Sumi Phils. WiringSystem Corp. at the Hermosa Ecozone Industrial Park in Bataan; International Wiring System (Phils.) at Luisita Industrial Park and Special Ecozone inTarlac; and Yokohama Tires at Clark Freeport Zone in Pampanga.

The ship departed on the same day for the Port of Manila, and then later for Singapore after loading almost the same number of containers.

NYK Group National Sales, Marketing and Outports manager Mary Grace Golez said that the port call is part of the ad hoc operation of NYK in Subic and will serve as basis of assessment for opening a full operation here or have Subic only as an alternate port.

“It all depends on the outcome of the assessment after several port calls. But we hope everything would go well,”said Golez.

She added that should the assessment go well, the new route—Kaohsiung-Subic-Singapore—would open Port of Subic to major transshipment ports that connect to the rest of the world’s trade routes, especially in ASEAN countries, Africa, Europe, and North America.

Subic Bay Metropolitan Authority(SBMA) Chairman Roberto Garcia earlier announced that a number of shipping companies in Southeast Asia are starting to consider using the Port of Subic after experiencing long delays in unloading and loading of containerized cargos in Manila.

This was attributed to the congestion at the Port of Manila, which forced cargo vessels to wait off Manila Bay for at least a week before docking and unloading cargos.

Because of this, President Aquino through Executive Order 172, has classified the Port of Batangas and the New Container Terminal-2 in Subic as extensions of the Port of Manila.

Golez noted, however, that the Port of Batangas, which is nearer Manila, was already congested a month after the issuance of EO 172.

Golez also noted the overwhelming support extended by the SBMA to NYK, especially in working out the agreement for the new route to Subic.

Early this month, China-based SITC Container Lines (Phils.), Inc. also opened a direct route from Xiamen,China, to Subic with its container ship MV Sicilia making its maiden voyage to Subic and unloading 22 containers at NCT-2. (RAV/MPD-SBMA)


PHOTO:
A trailer truck hauls off a cargo container from MVJakarta Tower, a vessel chartered by the Nippon Yusen Kaisha (NYK) Line for its first ad hoc call at the Port of Subic. MV Jakarta Tower, which will be used exclusively for NYK bookings, arrived at Subic’s New Container Terminal on Sunday, November 23. (AED/MPD-SBMA)

Read More

Bright outlook for Subic all the way to 2016

The stability of the SBMA (Subic Bay Metropolitan Authority) and its unyielding performance, coupled with the current business in-flow in the Freeport will definitely create a strong economic surge in the Freeport Zone in 2015 and in 2016.

This was the prediction of Subic Bay Freeport Chamber of Commerce (SBFCC) President Rose Baldeo during the Subic Bay Outlook Towards 2016 Economic Employment Summit held at the Olongapo City Convention Center last week.


The prediction Baldeo made was based on SBMA’s accomplishment of besting 2012’s net profit record of P824 million with last year’s P1.2-billion net profit, highest in the entire 21 years of existence.

SBMA Chairman Roberto Garcia also stated that the agency’s gross revenue last year of P2.09 billion and the Earnings Before Interest Taxes Depreciation Amortization (EBITDA) of P992 million are the highest levels in the history of the SBMA.

Garcia also pointed out the increase in port traffic as this Subic Freeport became the alternative port for Manila, thanks to Executive Order 172. Garcia said that Subic’s cargo volume is expected to hit more than 70,000 TEUs this year from 38,000 TEUs last year.

Nippon Yusen Kaisha (NYK) Line made its first direct call at the Subic Port to help solve the current concerns in Manila. According to NYK Manager Mary Grace Golez, the Subic call is marked by many firsts, opening more opportunities for Philippine shipping.

“This will be the first service in the Philippines to make a direct call from Japan to Subic, in addition to the regular Taiwan-Subic call. It will also be the first service to call from Subic to Singapore, a major transshipment port providing numerous connections to East Asia, the Middle East, South Asia, Europe, Africa, North America, Australia and New Zealand ports,” she said.

Baldeo said, “Outlook-wise, we as locators and investors are beginning to feel the change of the business climate in the Subic Bay Freeport. Slowly and steadily, the SBMA has begun to adjust to the needs of its investors businesses.”

“But these positive outlooks require a great cooperation; we the locators see the need for an improved working relationship or partnership with the local governments, the educational institutions, the SBMA, and other concerned government agencies including the local businesses in the city and in the nearby provinces,” she said.

To help entice more shipping lines to use Subic, the SBMA cut its port fees starting October 1, even if this would result in losses of about $10 million to $15 million for the state agency. (Jonas Reyes, Manila Bulletin)

PHOTO:
SUBIC SHIPPING SHAPES UP — A truck hauls off a cargo container from the ‘M/V Jakarta Tower,’ a cargo vessel chartered by the Nippon Yusen Kaisha (NYK) Line, after docking at the NCT-1 of Subic Bay Freeport. The NYK Line made its first direct call at the Subic Port to help solve the current concerns in Manila.

http://www.mb.com.ph/bright-outlook-for-subic-all-the-way-to-2016/

Read More

NYK opens direct routes to Subic Freeport

Another international shipping line has opened a direct route between this free port and the major ports of Japan and Singapore, joining a growing number of shippers that now call on Subic following its classification as an extension port of Manila.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto V. Garcia announced on Wednesday that Nippon Yusen Kaisha (NYK) Line, one of the world's leading transportation companies, will open direct routes from Japan to Subic and from Subic to Singapore.

Garcia finalized an agreement for the new shipping route late last month with Capt. Chak Kwok Wai, chairman and managing director of the NYK Group; Ian T. Maambong, NYK sales manager for export; Dan Florentino, chief operating officer of the Transnational Diversified Group; and Tony Ramos, administrative officer of Subic Bay International Terminal Corp.

“The opening of NYK’s direct routes to Subic is intended to provide an alternative solution to the port congestion in Manila,” Garcia explained.

“NYK has stressed that it opened the routes as a contribution to help solve the current concerns in Manila and in response to the Philippine government’s request to decongest Manila ports,” Garcia added.

The NYK Group, which is based in Japan, is a comprehensive global-logistics enterprise offering ocean, land, and air transport services.

Under the agreement, NYK will be providing Subic discharge and load options for urgent cargoes, thereby helping to minimize their vessel’s overall port stay in Manila.

Garcia said that NYK will start an adhoc call at the Port of Subic using its 2,300-TEU capacity target vessel MV Jakarta Tower exclusively for NYK bookings. Jakarta Tower is scheduled to make its first Subic call on November 22.

Daniel Ventanilla, general manager of NYK Fil-Japan Shipping Corp., said in a message to Garcia that NYK’s new line to Subic is marked by many milestones.

“This will be the first service in the Philippines to make a direct call from Japan to Subic, in addition to the regular Taiwan-Subic call,” Ventanilla said.

“It will also be the first service to call from Subic to Singapore, a major transshipment port providing numerous connections to East Asia, the Middle East, South Asia, Europe, Africa, North America, Australia and New Zealand ports,” he added.

The SBMA said earlier that the Southeast Asian shipping community is starting to notice the potentials of the Port of Subic as an ideal port to move and transship both containerized and bulk cargo shipments.
​
"With the entry of NYK, our port would virtually become a gateway to ASEAN, Africa, Europe, and North America," Garcia noted.

Last month, China-based SITC Container Lines Philippines, Inc. opened a direct route from Xiamen, China to Subic when its container ship MV Sicilia made its maiden voyage to Subic and unloaded 22 containers at the New Container Terminal (NCT) 2.

The cargoes included products from Guangxi, Sichuan and Shanghai, all in China, respectively for Orica Philippines in Limay, Bataan; Nestle Philippines Inc. in Cabuyao, Laguna; and Manila World Transport, Inc. in Metro Manila. (HEE/MPD-SBMA)

PHOTO:
NEW SHIPPING LINE: SBMA Chairman Roberto V. Garcia (left) meets with representatives of the NYK Group South Asia Pte Ltd. to discuss the potential of NYK Shipping Line calling on the Port of Subic. Present during the meeting are, from far left: Tony Ramos, admin officer of Subic Bay International Terminal Corp.; Ian T. Maambong, sales manager for export, NYK Group; Capt. Chak Kwok Wai, chairman and managing director, NYK Group; and Dan C. Florentino, chief operating officer, Transnational Diversified Group.

Read More