Increased cargo volume seen as Philippine, Japan gov’ts mull Manila-Subic-Osaka shipping route

Increased trade and cargo volume is seen as the Philippine and Japan governments mull a Manila-Subic-Osaka route for major shipping lines.

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Eduardo Jose L. Aliño said that the Port of Osaka and the agency are exploring cooperation possibilities in port-related business while tapping the potential of both ports in initiating cargo traffic between the Port of Osaka and the Port of Subic Bay.

“The Philippines is among the world’s fastest-growing economies with an average annual growth rate of six to seven percent per year. After diving into a slump in the growth of its Gross Domestic Product in 2022 due to Covid, we can now hope, dream, and expect to marvel at a new dawn, and proudly become an indispensable and crucial part in the financial and industrial development of international trade,” Aliño said during the Osaka Ports & Harbors Bureau Mission to the Philippines.  

Aliño added that the two ports are now pursuing to develop a Manila-Subic-Osaka route with major shipping lines to increase trade and cargo volume between the Philippines and Japan, one of the country’s top trading partners.

Osaka Ports and Harbors Bureau Director General Maruyama Junya cited that the visit to Subic Bay Freeport is an opportunity to share information on port development, port management, and logistics, and to promote mutual exchanges.

“Osaka Port has developed as an international trade port with industrial and financial development in the Kansai area. We are working actively on further development through improving port facilities and carrying out port sales,” Junya said.

“In 2023, we have decided to focus on the Philippines, one of the Southeast Asian countries that has been developing remarkably against a backdrop of high economic growth in recent years, and organized a port sales team with Kobe-Osaka International Port Corporation and other transport companies,” he added.

He also stated that during the Philippine Investment Forum 2023 last November, a lecture and interview with Business and Investment Department for Manufacturing and Maritime manager Karen Magno “triggered our great interest in the Subic Bay Metropolitan Authority.”

Chairman Aliño, Senior Deputy Administrator (SDA) Ronnie Yambao, SDA Renato Lee III, Maritime Business Manager Karen Magno, and Seaport Department Officer-in-Charge Michael Lazaro provided an extensive briefing during the visit on Thursday.

“In 2023, our cargo volume has reached to 6.4 million metric tons with lumber, tires and motor vehicles as the top commodities handled at the Port of Subic Bay, both for import and export,” Yambao said. 

“By expanding our network and developing this new shipping route, we are also providing more economic opportunities that will increase our trade and cargo volume between our ports,” he added. 

The port administrators and related parties from Osaka include Osaka Ports and Harbors Bureau Director Takahashi Hiroshi, Promotion Department Section Chief Shiba Toshihiro, Kobe-Osaka International Port Corporation President Kido Takafumi, Osaka Area Chief Facility Section Tsuji Genta, and Osaka Port Corporation Assistant Manager Yamada Akiko.

Also part of the delegation are port and harbor transportation business operators such as: Sumitomo Warehouse Co. Marine Osaka Branch Manager Machida Ryota; Tatsumi Shokai Co., Ltd. General Manager Teramoto Teruya, Chief Asai Kei; Nissin Corporation Hanshin Marine Department Deputy General Manager Imoto Masaya, and Deputy General Manager Mori Makata; Konoike Transport Co., Ltd. General Manager Kanda Shigeru; Sankyu Inc. Osaka Branch General Manager Tamura Kei; Shosen Koun Co., Ltd. Group Leader Okumura Kazunari; Nippon Express Co., Ltd. Osaka International Transport Branch Nanko International Office General Manager Hiraoka Motonobu; and Mitsubishi Logistics Corporation Osaka Branch Deputy General Manager Shinichiro Nakajima. (MPD-SBMA) 

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SBMA posts historic P387-M income in January

Boosted by a resurging seaport trade, the Subic Bay Metropolitan Authority (SBMA) recorded an income of P387 million last January, the highest monthly revenue ever recorded in the Subic agency’s almost 30 years of history.

SBMA Chairman and Administrator Wilma T. Eisma said the operating revenue posted in January 2022 was higher by 92 million, or 31%, compared to that in the same period last year.

The highest monthly revenue previously recorded by the SBMA was P358 million in “pre-pandemic” June 2019. The other record highs were P343 million in December 2021; P337 million in October 2020; P324 million in October 2018; and P298 million in July 2017.

This record-breaking income in January, Eisma said, was accompanied by other positive indicators: an 11% increase in operating expense that was higher by P10 million; a 41% growth in earnings before interest, taxes, depreciation and amortization (EBITDA); and a 20% increase in net income before tax with subsidy, which at P222 million was higher by P38 million.

Eisma pointed out that SBMA’s seaport operations alone contributed P221.4 million, with P91.62 million from cargo charges; P75.32 million in SBMA share from terminal income; P34.17 million in leases and rentals; and P12.28 million in vessel charges.

“We are hoping that this January record will be a foretaste of what’s to come in the succeeding months, as we ease down into normalcy with the waning Covid-19 pandemic,” said Eisma.

The SBMA, she added, “has really set its sights higher this year, especially with seaborne trade, after realizing an actual increase in container cargo traffic even at the height of the pandemic in 2021.”

According to a profit and loss statement from the SBMA Financial Planning and Budget Department, other than the P221 million from seaport operations, the agency’s January 2022 revenue of P387 million was enhanced by P111 million in land and building leases; P28 million in regulatory income; P8 million in housing leases; P6 million in airport operations; P.67 million in tourism collections; and P12 million in miscellaneous income.

Although land and building leases suffered a 1.8% decrease from its 2020 level of P113 million, it still contributed P64.73 million in land leases and P45.98 million in building leases this year, said SBMA budget officer Edith Marzal.

The slight decline in land and building leases was easily offset by a 65% increase in seaport income, a 35% rise in housing leases, and a 20% growth in miscellaneous income, Marzal added. 

She also said that SBMA airport operations income likewise showed a 6% increase in January 2022 compared to last year’s record, while regulatory fees grew by 8%, and tourism income by 48%.

Meanwhile, the SBMA reported an aggregate 11% increase in its expense accounts with P67 million in manpower payroll services; P12 million in debt servicing; P10 million in occupancy costs; P1 million in repair and maintenance; P.07 million in advertising and promotion; and P14 million in various services.

The single biggest item in SBMA expenses was manpower cost for regular employees, which stood at P64.7 million, followed by contractual services at P14 million. (MPD-SBMA)

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Subic among productive freeports in PH

Exports from Subic Freeport rose 89 percent in total value in 2017 from 2016, making Subic one of the most productive freeports in the Philippines.

Subic Bay International Terminal Corp. (SBITC) said products exported by new customers in 2017 include fashion accessories like bags from Bataan, trucks and agricultural equipment from Subic, grains, feeds, and fertilizer from Bulacan, and electronic parts and general department store merchandise from Clark.

SBITC operates the New Container Terminals (NCT) 1&2 which handle shipments for businesses in Central and Northern Luzon.

Roberto Locsin, SBITC president, said many of SBITC’s customers are manufacturers that import raw materials and export finished goods.

Most of the products are exported to Asia, the United States and Europe.

“We welcome the growing number of local businesses employing our facilities in the Subic Bay International Terminal NCT 1&2,” Locsin said. “We are glad to see that these industries are discovering and taking advantage of Subic Bay as a gateway to the global market,” he added.

Locsin also sees an uptick of industries importing goods for domestic consumption.

“There is a good balance of import and export volume in the Subic terminal of about two exports for every three imports. In the succeeding months, we expect an increase in the import volume of fast-moving cargoes because of improved facilities in the terminal,” Locsin said.

For 2017, the Philippine Statistics Authority reported import growth rate of 10.2 percent and export growth rate of 9.5 percent.

The National Economic and Development Authority continues to push for the implementation of more strategies to promote Philippine products in the global market.

“More initiatives are in the works to attract more firms to avail of our services and make use of our facilities. We will continue to improve and develop our terminals to realize the full potential of Subic Bay.” Locsin said. (Malaya Business Insight)

PHOTO:

Cargo unloading at the Container Terminal in Subic Bay.

http://www.malaya.com.ph/business-news/business/subic-among-productive-freeports-ph

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SBMA waives $200 accreditation fee for container shippers

The Subic Bay Metropolitan Authority (SBMA) has waived the $200 accreditation fee for all port-related businesses for a limited period as part of its efforts to turn Subic into a major transhipment center in the country.

SBMA Chairman and Administrator Wilma T. Eisma said port users could avail of the free accreditation program if they will guarantee to bring in at least one container within one month from filing of application or renewal of accreditation certificate.

The offer is good from October 18 to December 31, 2017 only.

With the hashtag #GoSubicBay, the SBMA began offering its open-window access initiative for container port-related businesses during the 43rd Philippine Business Conference and Exposition at the Manila Hotel on Wednesday.

Eisma said the agency’s port marketing program aims to showcase and broaden industry awareness of the use of the container terminal at the Port of Subic, as well as increase container port traffic and utilization rate.

“Subic Freeport has a faster turnaround time, there’s no red tape, has reduced processing time, no congestion, no traffic and no truck ban,” she told prospective port users during the program launch.

Eisma also pointed out that vessels using the Port of Subic can immediately dock upon their arrival, and gain from Subic’s built-in advantages of lower tariff and higher efficiency with ISO quality service by the SBMA.

“The hashtag #GoSubicBay actually has two meanings: first, it is an invitation to go to Subic Bay to use our port facilities, and second, it is a clarion call to let the industry know that the Port of Subic is ready to serve their businesses,” Eisma explained.

Eisma added that the SBMA’s port marketing program would also help decongest the Port of Manila and accommodate small and medium enterprises (SMEs) in pursuance of the agency’s commitment to promote inclusive business (IB).

SBMA Seaport Promotions Manager Ronnie Yambao said that under the SBMA’s open window access program, the agency will waive the $200 accreditation fee for the first 80 new business entrants and the first 20 accredited entities due for renewal of accreditation certificate.

The promotion covers ship agents, freight forwarders, brokerage firms and trucking services related to container movement.

Yambao stressed, however, that failure by applicants to guarantee the entry of at least one container would cause the Port of Subic to require the payment of the $200 accreditation fee.

Yambao also assured port users of the quality of service at the Port of Subic, pointing out that container port here is managed by the Subic Bay International Terminal Corporation (SBITC).

The SBITC, he added, is an affiliate of International Container Terminal Services Inc. (ICTSI), which is acknowledged as one of the best port management firms in the world. (JRR/MPD-SBMA)

PHOTO:

SBMA Chairperson and Administrator Wilma T. Eisma meets with PBC Chairman Jose Leviste Jr. (left) and PCCI President George T. Barcelon at the SBMA booth during the 43rd Philippine Business Conference and Expo at the Manila Hotel on Wednesday. The SBMA launched the "#GoSubicBay" open access program for container port-related businesses at the PBC exposition. (JRR/MPD-SBMA)

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DOTr approves Subic-Manila railway project

The Subic Bay Metropolitan Authority said Wednesday it secured the green light from the Transportation Department to include a P100-billion elevated railway and expressway project from Subic Freeport to the port of Manila among priority projects.

SBMA chairman Martin Dino said the 100-kilometer multi-modal elevated railway and expressway project would greatly relieve port and traffic congestion in Metro Manila and increase cargo transit in Subic Port, which was currently operating at only a third of its rated capacity of 600,000 twenty-foot equivalent unit containers.

Dino said the construction of the project could be completed in 48 months. He said he would ask for Malacañang’s approval to have the project included for financing under the Philippine-China Framework of Cooperation.

Cargo unloading at the Port of Subic

Dino also said his team was already working on increasing Subic Bay Port’s capacity for new container terminals 3 and 4 by an additional 600,000 TEUs.

He also welcomed the appointment of lawyer Wilma Eisma as SBMA administrator, saying the Freeport now had “an excellent working team.”

“Now we can really move forward at Subic in our goal to raise investments and revenues, eliminate smuggling and stamp out corruption,” Dino said.

Eisma replaced former administrator Roberto Garcia and brought to Subic her wide management experience. She is expected to take over the post next week in what Dino described as “a great start to a new year in our effort to turn Subic into an anchor of national growth.”

This developed as the new win-win tandem vowed to promote Subic as a major alternative gateway for international cargos.

Dino, who was appointed by Malacañang in September, said there were “no more roadblocks to a wide-ranging reform in Subic, because now we can truly say we have an excellent working team.”

He said President Rodrigo Duterte was expected to name the remaining members of the SBMA board, the policy-making body, so the Freeport “can move rapidly and urgently in seeking new investments and building much-needed infrastructure.” (Darwin G. Amojelar, Manila Standard)

http://www.thestandard.com.ph/business/225298/dotr-approves-subic-manila-railway-project.html

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House leaders back vital Subic-Manila coastal highway

HOUSE Leaders yesterday endorsed the construction of the 65-km coastal highway from Subic Bay to Manila to dramatically unclog the premier international shipping gateway to the country and decongest traffic in the metropolis.

In separate interviews, Quezon City Rep. Winston “Winnie” Castelo, Ako Bicol party-list Rep. Rodel Batocabe, and Eastern Samar Rep. Ben Evardone joined Subic Bay Metropolitan Authority (SBMA) chairman Martin Diño in seeking the approval of President Rodrigo “Rody” Duterte to prioritize the project.

“Any road development towards MM is welcome due to the magnitude of the traffic problem. However, we should study further the best infrastructure available as the best alternative,” Castelo said.

“I am one hundred percent behind this proposal. However, let us start to lessen the centralization of economic activities in Metro Manila and prioritize the dispersal of industries to the provinces. And we can not start this process if we continue building structures going to Manila,” Batocabe, president of the Party-List Coalition (PLC) and chairman of the House special committee on climate change.

For his part, Evardone, who chairs the House committee on bank and financial intermediaries, said: “Any good plan that will help decongest Manila and its worsening traffic should be supported.”

Diño was referring to the new multi-modal highway for rail cargo and vehicular traffic, linking the Subic and Manila ports by the shortest route possible, dovetails with the Freeport’s planned expansion of its Container Terminals 3 and 4 to increase its handling capacity to 1.2 million TEUs or Twenty-Foot Equivalent Unit.

He said the SBMA would boost as well the handling capacity of the Naval Supply Depot Compound and Bulk Cargo Port Wharves for loose cargoes, and rehabilitate the Sattler Pier, as modernizing its port facilities and rebuilding its aging infrastructure shift to high gear.

Diño said he has also sought the help of Public Works Secretary Mark Villar to provide technical assistance for the proposed widening of the narrow Tipo Road, which links the Freeport facility to the Subic-Clark-Tarlac Expressway (SCTEX), into a four-lane highway and the construction of a new tunnel and bridge to accommodate the new lanes are also among his priorities.

He stressed that these projects should be undertaken simultaneously in this “golden age of infrastructure” as the Philippines rides the momentum as the best-performing economy in the region.

Also considered a vital part of the new road network is the 17.273-km bypass road for cargo trucks that would connect the Freeport terminals directly with the SCTEX in Hermosa, Bataan to provide easy transport for goods and services at the export processing zones in the area and in nearby towns in Pampanga, he said.

The bypass road would also relieve traffic buildup at the steep Tipo Road for vehicles and heavy trucks going in and out of the Freeport.

“Our goal is to connect Subic to Manila and the economic zones in Luzon,” Diño said. (Ryan Ponce Pacpaco, Journal Online)

PHOTO:
Aerial shot of the Port of Subic showing its container terminal, piers and warehouses.

Read More: http://www.journal.com.ph/news/top-stories/house-leaders-back-vital-subic-manila-coastal-highway

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Ship calls at Subic Port jump by 53% in September

Even more ships now call on the Port of Subic, as indicated by a 53 per cent buildup in its number of ship calls, as of end-September compared to the same month last year.

Living up to the promise of being an alternative port to Manila, the Subic Port saw a rise in the number of domestic and foreign vessels by 56 per cent and 47 per cent, respectively, for the month.

These vessels brought in a 10 per cent increase in gross registered tonnage (GRT), as domestic vessels mustered a substantial spread of 126 per cent in GRT and foreign ships, a modest gain of six (6) per cent.

“Our port likewise enjoyed a 55 per cent hike in revenues, from P63 million in September 2014 to P99 million last month,” Subic Bay Metropolitan Authority chairman and administrator Roberto Garcia reported.

A major contributors to the Port’s revenue figures were port leases and rentals, which surged up by 126 per cent; and SBMA shares, which improved by 110 per cent, Garcia added.

Also contributing to this increase in revenues were cargo charges, which went up by 19 per cent; and processing fees and other charges, which expanded by 27 per cent and 26 per cent, respectively.

According to Garcia, the Subic Port also showed marked improvements in cargo volume at the end of September, as containerized cargo shipments swelled by 50 per cent in terms of twenty-foot equivalent units (TEUs).

“As of last month, we have already broken our 2014 yearend record of 77,000 TEUs,” Garcia disclosed, noting that total TEUs from January to September this year have already reached 93,757 TEUs.

Although transshipments went down from 65 TEUs in September 2014 to six (6) TEUs in September this year, this drop was compensated by a 51 per cent increment in import shipments and a 19 per cent upturn in export shipments, along with a 52 per cent and a 84 per cent growth in incoming empties and outgoing empties, respectively.

Similarly, non-containerized cargo volume registered a growth of 48 per cent in terms of metric tons (MTs) in September, as compared to the same month last year. These cargoes largely consisted of liquid bulk and petroleum shipments, which jumped by 99 per cent, followed by bulk and break bulk by 16 per cent, and heavy equipment, lo-lo, and ro-ro shipments by four (4) per cent.

Garcia attributes the port’s positive performance to several factors such as Subic’s one-stop shop, which is the only one of its kind in Luzon; SBMA’s port marketing programs, which includes two recent maritime summits; and the formation of a Maritime Technical Group.

“All these initiatives plus the fact that Subic Bay is the only port in the Philippines western seaboard that still has enough capacity to handle additional container volume have further sharpened our port’s competitive edge,” the top SBMA official explained. (KMF/MPD-SBMA)

PHOTO:
Containers unloaded at the New Container Terminal in Subic Bay Freeport. (AMD/MPD-SBMA)

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Container volume doubles at Port of Subic

Container shipments at the Port of Subic doubled as of August this year as Manila continues to experience massive port congestion.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto V. Garcia, in a press briefing, told reporters that as of August this year, container volume at the Port of Subic has already reached 83,000 twenty-foot equivalent units (TEUs) compared to 43,000 TEUs for the same period last year.

This indicated a 93 percent increase, Garcia pointed out.

The SBMA official said efforts by the agency and partner locators to ensure ease in cargo processing at the Port of Subic, as well as other marketing initiatives, contributed to the rise in container volume here.

“We are the only port in Luzon that has a one-stop shop, and this gives us the competitive edge,” Garcia also explained. “They come to our container port, go to our one-stop shop where offices of the SBMA, Customs, and the Landbank are there all in one place, and in just a matter of 30 minutes, their papers are already processed.”

“The one-stop shop and our marketing programs such as the two recent maritime summits and the formation of a Maritime Technical Group, are all coming into play right now,“ Garcia added.

At the rate the Port of Subic is performing, Garcia said he expect shipping volume this year to double last year’s yearend record of 77,000 TEUs.

The SBMA chair also concurred with Senator Ferdinand Marcos Jr. who said in a recent forum here that Subic is the answer to the current traffic congestion in Manila.

“Senator Marcos hasn’t been here for some time, but he was really impressed with Subic. We are really pushing very hard to increase the volume here to help decongest Manila,” Garcia said.

Subic Bay is the only port in the western seaboard of the Philippines that still has enough capacity to handle additional container volume.

Garcia said that unlike the Port of Batangas, which has now reached its full capacity, shippers can come to Subic any time.

Seven major shipping lines are now calling on the port of Subic on a regular basis. These include Maersk, APL, NYK, and SITC, among others. (RBB/MPD-SBMA)

PHOTO:
Container ships unloads cargo at the New Container Terminal in the Subic Bay Freeport. (AMD/MPD-SBMA)

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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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Subic cargo volume seen to increase by 40%

Shipping volume at the port of Subic will hit around 130,000 TEUs this year, for a 40% increase from last year’s figure which stood at 77,000 TEUs, officials said Monday as they cited the boon from the recently signed Cabotage Law and continuing port congestion in Manila.

“The Subic port continues to do very well this year as we celebrate the anniversary of the New Container Terminal 1 (NCT1), Subic Bay Metropolitan Authority Chairman and Administrator Roberto J. Garcia said in a press conference.

As of July this year, the port of Subic has already hit its target of 73,000 TEUs, way before the peak months from September to December as far as imports are concerned, according to Garcia.

“Again we are going into the heavy months starting September and if the port congestion in Manila persists, we can expect more containers to come to Subic,” Garcia told reporters.

Garcia also welcomed the passage last month of the Cabotage Law (Republic Act No. 10668) that allows foreign vessels to transport and co-load foreign cargo for domestic transshipment and for other purposes, which he said will increase cargo traffic in Subic.

“Under the current arrangement, international sips are allowed to go to only one port of destination. Under the Cabotage Law, they can go to any port – from Subic to Puerto Princesa, to Iligan, wherever,” Garcia explained.

He said he believes the beneficial effect of the new law is that the local shipping lines will be more competitive, and consequently, shipping cost will decrease

“As you know, the Philippines has one of the highest interisland shipping rates, and reports have it that it is more expensive to ship a container from Manila to Davao than from Manila to Singapore,” Garcia said. “It doesn’t make sense, and that is not good for business,” he added.

The SBMA chair also said he followed up with the newly appointed Customs Collector Emelito Aquino his earlier request to send back to the ports of Manila the 15 containers of trash which came from Canada, and that the latter immediately endorsed this request to the Customs Commissioner.

“We made our position very clear – we don’t want that trash here,” he stressed. (Ansbert Joaquin, InterAksyon.com)

PHOTO:
Subic Bay Metropolitan Authority Chairman and Administrator Roberto J. Garcia. (Photo by Ansbert Joaquin)

http://www.interaksyon.com/business/115767/subic-cargo-volume-seen-to-increase-by-40

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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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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

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Maersk makes maiden voyage to Port of Subic

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

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

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

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

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

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

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

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

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

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

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

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

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Subic expands port, road for P11B

The Subic Bay Metropolitan Authority is expanding Subic port as well as build a new road that will directly connect to SCTEX (Subic-Clark-Tarlac Expressway) for an estimated cost of P11 billion in preparation of a huge spill over from the Manila port three years from now.

SBMA Chairman and Administrator Roberto Garcia told reporters during an interview at the recent Manila Ports Summit that the expansion of the port could cost P7 billion while the new road at P4 billion.

“This expansion is immediate because the volume of cargoes going to Manila is expected to reach 6 million twenty-footer equivalent units (TEUs) in two to three years the existing 3 million TEUs at present,” he said. Of the 3 million TEUs, 15 percent of that comes from the northern and central Luzon areas, which could easily shift to Subic.

“We are in the process of updating an old study of the seaport so we can submit this proposal to NEDA and we can start this project immediately because it will take three years to build a new port and a road network,” Garcia said.

Garcia explained that the two ports in New Container Terminal 1 and 2, which are owned and operated by Subic ICTSI Inc., a unit of International Container Terminal Services Inc., have berthing capacity of 300,000 TEUs each or a combined capacity of 600,000 TEUs.

The current Subic port cargo volume is only 75,000 TEUs or at least 15 percent port capacity. But with 4 international shipping lines (SITC, APL, Wan Hai and NYK) now calling in Subic, they have opened the freeport to wider international coverage that includes China, Jàpan, Taiwan and Singapore.

“These four shipping lines are expected to boost cargo volume to 250,000 to 300,000 TEUs next year,” he said.

This means NCT 1 and 2 could increase their capacity utilization to 30 percent by next year already.

“If we don’t expand the port now, it might be too late when cargoes in Manila reach 6 M TEUs in three years,” he added. Subic and Batangas ports have been designated by the government as alternative Manila ports following the port congestion in Manila.

Garcia said they have already identified another 15-hectare lot for the new port. SBMA may bid out the new port, he said.

The other component in the SBMA plan is to construct a bypass road that will run through Bataan and into the SCTEX.

Garcia stressed that the current TIPO road is running out of capacity with 68 trucks an hour plying this Clark-Subic expressway.

‘So even if we don’t expand the port we still have to build this new road,” he added. It will be a 23-kilometer bypass road that will run through Bataan and into SCTEX.

“This is the long term solution to the Manila port congestion, but this can happen in the short term,” he said.

Meantime, Garcia said that SBMA revenues in the first ten months this year went up by 21 percent while operating revenues grew 42 percent. Combined with unrealized foreign exchange savings in 2013 and 2014, the freeport is expected to post 152 percent increase in net income this year over last year, which was already a record year.

Revenues this year could exceed the P2.5-billion target for the year. For 2015, Garcia expects revenues to reach P2.8 billion largely driven by higher port revenues.

SBMA is the 9th biggest government-owned and controlled corporation revenue contributor to the national coffers with P243 million in cash dividends to the government in 2013. (Bernie Magkilat, Manila Bulletin)

PHOTO:
BUSY PORT – Hauling trucks and reach stackers move some of the container vans in Subic Bay Freeport at the New Container Terminal-1 in Subic Bay Freeport. Manila port has transferred most of its overstaying cargoes to Subic to help ease the port congestion felt in Manila. (Jonas Reyes)

http://www.mb.com.ph/subic-expands-port-road-for-p11b/

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NYK line makes first port call in Subic

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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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/

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Port of Subic bustles with more ship calls

[1] The MV Front Runner, a Panamanian-registered vessel, unloads grains at the Mega Grain Terminal while Singaporean-registered container vessels MV Thana Bhum and MV Spirit of Colombo unload cargo containers at the New Container Terminal in the Subic Bay Freeport in this photo taken November 4, 2014. (AED)

[2] A stacker truck gets moving at the New Container Terminal in the Subic Bay Freeport, as the Singaporean-registered cargo vessels MV Thana Bhum and MV Spirit of Colombo unload container boxes in this photo taken November 4, 2014. (AED)

[3] Trailer trucks get busy at the New Container Terminal in the Subic Bay Freeport, as Singaporean-registered cargo vessels MV Thana Bhum and MV Spirit of Colombo unload container boxes in this photo taken November 4, 2014. (AED)

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PPA assigns specific berths for vessels calling at Manila ports

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

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

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

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

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

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

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

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

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

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

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Subic Freeport now San Miguel Brewery’s alternative gateway

San Miguel Brewery, Inc. (SMB), a subsidiary of conglomerate San Miguel Corp., recently shifted a substantial volume of shipments from the port of Manila to Subic, a move that has meant less shipping fees and greater availability of stocks.

Due to the adverse effects of port congestion triggered by the Manila truck ban, Subic port provided a “new gateway” for SMB shipments, according to the company’s procurement manager, Gary Algodon, during a presentation at the Northern Luzon Shipping Summit in Fontana Clark on September 29.

Starting in June, Algodon said “Subic Port provided a new gateway for our shipments to the City of San Fernando, Pampanga, which accounts for 70% of container volumes (of SMB) in Luzon.” The shift was designed to “rectify delays” due to the Manila port congestion; as a result the company experienced availability of stocks for the next three months, he said.

The brewery in Pampanga is also nearer Subic port at 66.2 kilometers away compared with Manila International Container Port’s distance of 76.3 kms.

Further explaining the shift, Algodon said vessels calling Subic port are “basically on time, thus providing us the necessary stocks security.”

He added, “Through Subic Port, SMB was able to increase the inventory level of our raw materials to manage the uncertainties of the Manila port.”

Servicing of trucks is also faster through the Northern Luzon facility, he said.

It was only relatively recently that SMB shipped out of Subic port because “Manila port then was viable in terms of total landed cost”, Algodon said.

Since the implementation of the Manila truck ban in February and before the shipping shift to Subic, SMB encountered a lot of fees they were “not used to paying”, including demurrage and storage, which had reached P600,000, Algodon said.

It must be noted though that Manila mayor Joseph Estrada has lifted indefinitely the truck ban on Sept 13 although its effects, according to transport stakeholders, are expected to linger until early next year.

Since June, SMB has transported 447 containers out of Subic port. The company likewise plans to ship from Southeast Asia and Europe through the Northern Luzon gateway.

Algodon said Subic port has also become SMB’s “alternative port” for shipments bound to its Polo, Valenzuela brewery. Subic port and its Valenzuela brewery are 124 kms apart or a two- to three-hour trip.

Algodon said that with the lifting of the Manila truck ban and government’s efforts to decongest Manila ports, Algodon said they hope this would lessen costs incurred by its Valenzuela brewery.

“I think Subic port is becoming a new gateway,” Algodon noted, adding that SMB shipping through Subic means “there is no more danger in the stock out of beer.” (Roumina Pablo, PortCalls)

http://www.portcalls.com/subic-port-now-san-miguel-brewerys-alternative-gateway/

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