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

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

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

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

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

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

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

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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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Manila truckers pledged to ensure road safety in Subic

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Subic, Batangas named extensions of Manila port

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

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

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

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

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

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

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

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

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

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

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

Biz groups back EO 172

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

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

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

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

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

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

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

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

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

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

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

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

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

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Overstaying containers will still be moved to Subic

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

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

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

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

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

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

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

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

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

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

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

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Solon files resolution to tap Subic and Batangas ports

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

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

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

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

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

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

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

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Cabinet cluster agree on measures to decongest Port of Manila

Members of the Cabinet cluster for port decongestion, during a meeting on Tuesday morning, agreed on measures for the immediate decongestion of the Port of Manila, a Palace official has said.

In a press briefing in Malacañang on Tuesday, Presidential Communications Operations Office Secretary Herminio Coloma, Jr. said the President prioritizes the immediate resolution of the problem of congestion in the Port of Manila.

The cluster meeting agreed that effective September 8, all cargoes cleared by the Philippine Ports Authority and Bureau of Customs will be given five days to pull out of the Manila ports or they will be shipped out by the government to the Subic and/or Batangas ports.

It also agreed that effective October 1, all cargoes that have been cleared by port authorities but have failed to pull out within the prescribed five-day period will be charged a fine of P5,000 a day.

Coloma further said that the meeting reached a resolution on the implementation of a 24-hour last-mile truck routes for two weeks.

"Ang isang susi dito kasi ang pag-operate ng mga truckers kapag araw ng Linggo at Lunes ng umaga, so they can maximize the utilization of the 24-hour last-mile truck routes," he said, adding that the government will give incentives to truckers who will operate on Sundays.

These truckers will be tagged by the Metropolitan Manila Development Authority (MMDA) so they can use the 24-hour last-mile truck routes, he said, explaining that with the last-mile routes, truckers can complete their trip, even during the truck ban.

Truck routes that will be open 24/7 include the Roxas Boulevard and Quirino Avenue truck lanes going to the south and the A. Bonifacio C3 to NLEX truck lanes going to the north.

The Cabinet cluster for port decongestion is composed of the respective heads of the Department of Public Works and Highways, Department of Transportation and Communication, Department of Finance, Department of Trade and Industry, the National Economic and Development Authority, and the MMDA.

Joining them during Tuesday’s meeting were the respective heads of the Philippine Ports Authority (PPA), Land Transportation Franchising and Regulatory Board, and the Bureau of Customs. (PCOO/PND)

http://news.pia.gov.ph/index.php?article=1751409661526

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Sept 8 deadline set to clear Manila ports

The Philippine Ports Authority (PPA) announced that importers and brokers have until September 8 to remove their overstaying customs-cleared cargoes from Manila ports.

Containers that will be left unclaimed after the cited date will be transferred to the ports in Subic and Batangas or any other location designated by the Cabinet Cluster on Port Congestion (CCPC). Cargo owners will shoulder all costs related to the transfer of their containers upon their release.

PPA General Manager Juan Sta. Ana in a statement said that the measure is aimed at further decongesting two Manila ports. He noted that erring importers seem to use the ports as virtual warehouses for their customs-cleared cargoes.

“This will serve as notice to all importers and brokers to withdraw their customs-cleared cargoes from the ports, otherwise, we will immediately transfer these cargoes to any of the said destinations at their own expense,” Sta. Ana said.

He added that the PPA issued notices of the cited measure and published these in different newspapers of general circulation.

“We already identified and reasonably informed the owners of these containers, which varies from big-time to small-time, and we will no longer notify them if they fail to meet the September 8 deadline,” Sta. Ana stressed.

According to the PPA’s inventory, many customs-cleared cargoes and container boxes that are customs-cleared with gate passes are still piled in Manila’s ports.

Customs-cleared containers are boxes that already paid the proper duties and taxes to the Bureau of Customs but have yet to pay the cargo-handling fees. Customs-cleared cargoes with gate passes, meanwhile, are boxes that already paid customs duties and cargo-handling fees but remain stored at the ports.

“Please understand that this is not to punish our importers but only to clear as much space as possible in preparation for the influx of cargoes due to the peak season and reduce pressure on inflation,” Sta. Ana told importers and brokers.

At present, yard utilization at the two Manila ports has jumped back to 90 percent after a long weekend in mid-August.

Productivity at the Manila International Container Terminal is still tallied at 20 moves per hour – a significant improvement from 10 to 12 moves per hour seen two months ago. Meanwhile, productivity at the Manila South Harbor soared to 15 moves per hour from only eight moves per hour two months ago.

The PPA and port operators are also trying to maintain the number of container empties inside the ports to gradually accommodate 20,000 held-up containers in foreign ports.

As of the end of June, the number of laden containers piled at Manila ports numbered 85,000 twenty-foot equivalent units (TEU) which occupied about 104 percent of the yards of the ports while empty containers reached a high of 22,000 TEUs.

Importers and other stakeholders blamed the daytime truck ban imposed in Manila from February 24 to the end of May for the congestion of containers in Manila ports.

Meanwhile, the CCPC also continues to appeal to the importers and brokers to take advantage of weekends and holidays in transporting cargo on account of light traffic and looser restrictions.

Last week, the government has shipped out some 1,154 TEUs out of the identified 3,000-TEU customs-problematic containers to the Subic ports and expects to complete the transfer this coming weekend. (Rosalie C. Periabras, Manila Times)

http://www.manilatimes.net/sept-8-deadline-set-clear-manila-ports/123037/

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Govt moves to decongest Manila ports as peak season starts

PORT authorities have started to ship out overstaying containers to Subic to partly decongest the ports in Manila in anticipation of the start of the pre-Christmas peak season that is expected to start next week.

The chartered vessel, MV Asterix, left the Manila International Container Terminal (MICT) on Thursday en route to Subic carrying 1,154 twenty-foot equivalent units (TEUs). The vessel is expected to be back in Manila over the weekend to carry the remaining overstaying containers.

The government, through the Bureau of Customs, the Philippine Ports Authority (PPA) and port operators International Container Terminal Services Inc. and Asian Terminals Inc., has identified about 3,000 TEUs that can be relocated and is in the process of identifying several more to be moved out of Manila.

“The shipping out of these overstaying containers is only one of the few measures aimed at unclogging the ports before the start of the peak season,” PPA General Manager Juan C. Sta. Ana said. “This will be complemented by the increase in storage fees that will encourage shippers to get their cargoes immediately instead of leaving them inside and use the ports as virtual warehouses.”

“This will enable the port of Manila to have sufficient port space to take in the influx of cargoes needed for the Christmas season, which is expected to come in toward the end of next month,” he added.

The port chief noted that, while the ports will remain a bit congested in terms of yard capacity, the productivity and efficiency of the two Manila ports are slowly returning back to normal in time for the expected spike in cargo volume.

The MICT, the country’s top international gateway, has an annual capacity of 2.5 million TEUs. It has a surplus capacity of more than 1 million TEUs for the year, as it only handled about 1.1 million TEUs thus far.

The Manila South Harbor, operated by Asian Terminals Inc., has an annual capacity of 1.3 million TEUs. It has so far handled 800,000 TEUs and has an excess capacity of about 500,000 TEUs more.

“While it seems that we have a shortage in yard space, it doesn’t mean we don’t have enough capacity. We have the capacity, we just have to work at a slower pace compared to last year,” Sta. Ana explained.

As of the moment, yard utilization at the two Manila ports has returned to 90 percent, brought about by the long weekend. Nonetheless, utilization is expected to go back down to 88 percent at week’s end, after containers being released at the ports continue to climb from 4,200 a day to about 4,400 a day.

Productivity and efficiency at MICT, on the other hand, has already reached 20 moves an hour, a significant improvement from the 10 to 12 moves an hour two months ago, while MSH productivity has jumped to 15 moves an hour from only eight moves an hour during the same period.

The PPA, along with the port operators, meanwhile, is trying to maintain the number of empties inside the ports at 12,000 TEUs as it also slowly takes in the 20,000 containers at foreign ports.

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

The congestion was caused mainly by the daytime truck ban imposed by the city government of Manila from February 24 to end- May of this year, which practically limited the movement of cargoes in and out of the ports during nighttime only. (Lorenz S. Marasigan, BusinessMirror)

http://www.businessmirror.com.ph/index.php/en/news/economy/37889-govt-moves-to-decongest-manila-ports-as-peak-season-starts

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Overstaying containers off to Subic

MANILA, Philippines - Starting this weekend, the two private port operators in Manila will transfer about 3,000 shipping containers to Subic to decongest the two main seaports in the metropolis.

The Philippine Ports Authority (PPA) said a containerized cargo ship owned by Hanjin Shipping docked in Manila last Wednesday from Hong Kong.

It was chartered by the International Container Terminal Services Inc. (ICTSI), which runs the Manila International Container Port (MICP), and Asian Terminals Inc.(ATI), which handles the Port of Manila (POM), will be transporting cargoes cleared by the Bureau of Customs (BOC) and cargoes overstaying for over 60 days at the MICP and POM to Subic.

For 15 days, the Hanjin vessel has been chartered to make three trips between Manila and Subic to transport a total of 3,000 container vans. For its initial trip, it would transport 900 containers.

The MICP and ATI would shoulder the charter cost of P14 million.

In today’s scheduled Cabinet Cluster on Port Congestion meeting, PPA general manager Juan Sta. Ana is reportedly intending to propose to the BOC if it is open to the idea that aside from the 60-day cargoes, they would also move to Subic the containers that have been cleared by the bureau and those that have been overstaying between 30-60 days.

This would bring the total number of containers to be brought to Subic from 3,000 to about 7,000.

If the BOC is amenable to the proposal, Sta. Ana is inclined to make a second proposal to extend the hiring of the Hanjin vessel for another 15 days and pay an additional P14 million or a total of P28 million.

Meanwhile, the PPA said in a statement there has been a “significant” decline in the cargo backlog and number of empty container vans that have been clogging the two ports.

“Based on our current inventory, we have to clear about 8,175 twenty-foot equivalent units (TEUs) as we are now below the 90 percent yard utilization threshold,” said Sta. Ana.

He added that the number of empties inside the ports also went down to only 12,000 TEUs, and the held-up containers at foreign ports have likewise declined from 37,000 TEUs some two months ago to only 20,000 as of this August.

“The reduction in the number of laden and empty containers suggests that productivity has increased dramatically, resulting in better efficiency in handling cargoes and vessels at the Manila ports,” Sta. Ana added.

About two months ago, the number of laden containers that piled up at the Manila ports totaled 99,000 TEUs, which occupied about 105 percent of the yard while the total of empty containers also reached a high of 22,000 TEUs.

The congestion was caused mainly by the daytime truck ban imposed by the Manila city government from Feb. 24 to end-May of this year that effectively limited the movement of cargoes in and out of ports during nighttime only.

House seeks lifting of truck ban

The House committee on Metro Manila development passed on Wednesday a resolution urging Manila Mayor Joseph Estrada to suspend the truck ban in his city for three months to help ease the massive congestion in the ports.

Quezon City Rep. Winston Castelo, chairman of the panel, said the committee passed the resolution during the hearing on port congestion.

Manila Rep. Amado Bagatsing and Caloocan City Rep. Edgar Erice, a known critic of Estrada, pushed for the passage of the resolution during the committee’s public hearing the other day.

The resolution also asked the BOC and PPA to speed up moves to decongest the ports of thousands of containers.

“They (BOC and PPA) keep pointing fingers at each other but this kind of problem does not have only one culprit,” Castelo said.

He also prodded the two agencies to cut red tape and corruption to speed up the processing of containers to facilitate the delivery of goods to businesses and the general public.

The lawmaker also asked the two agencies to speed up the confiscation of overstaying containers.

Also present during the hearing were representatives of importers and exporters.

The committee bared a partial list of at about 40 entities that have overstaying containers in the ports, including the Department of Health.

Castelo said various firms also cited the slow government procedures for the delay of the release of cargo in the ports of Manila.

They also told the panel that it would be cheaper for them to pay fines to the PPA and the BOC for their containers overstaying in the ports rather than leasing warehouses.

Aklan Rep. Teodorico Haresco has proposed five steps to decongest the ports of containers, including using the empty and unclaimed containers for classrooms and other facilities in remote areas.

Haresco, chairman of the House committee on Millennium Development Goals, said empty containers that remain unclaimed for six months and over should be turned over to the Department of Public Works and Highways for conversion to classrooms and other needed facilities. (Evelyn Macairan, Paolo Romero, Philippine Star)

PHOTO:
A vessel hired by the Philippine Ports Authority starts loading the shipping containers that will be transferred to Subic yesterday. (Edd Gumban)

http://www.philstar.com/headlines/2014/08/22/1360328/overstaying-containers-subic

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Congested ports stunting growth

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

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

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

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

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

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

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

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

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

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PPA acts to ease congestion at Manila ports

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

PHOTO: MICT at the Port of Manila

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

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Truck ban hurting economy–chamber

The truck ban measure in Manila is partly to blame for a recent spike in the inflation rate and may hold back economic growth, locally-based foreign businessmen say.

The Foreign Chamber Council of the Philippines (FCCP) said that City Ordinance 8336 on road decongestion has increased the cost of doing business nationwide. FCCP chairman Philip Chien said transport and storage charges have risen significantly since the truck ban took effect.

The cost of trucking alone has nearly doubled following the truck ban in Manila, he said because cargo firms have been forced to charge more for the same services because their trucks can make fewer round trips daily.

“Our members are paying for the idle time of those trucks,” Chien said.

The chamber has recommended the immediate suspension of CO 8336 to avert the “derailment” of the economy; decongestion of the Port of Manila by relocating some of its key operations to other viable ports, such as the Batangas Port and the Subic Bay Port; removal of 35,000 empty containers; inclusion of the business sector in the formulation of a long-term solution to the present transport problems.

Chien said CO 8336 is likely to be reflected in the 3rd quarter Gross Domestic Product (GDP) figures. He said a growth of “less than 6 percent” is probable because of higher costs, delays in delivery and losses in business opportunities. The Aquino Administration is reportedly targeting upwards of a 7 percent growth.

FCCI’s membership includes the local chambers of commerce of Taiwan, India, Finland, Israel, Singapore, Spain, France, Turkey and Malaysia.

Chamber insiders said the Federation of Philippine Industries is being tapped to join the move to have the ban revoked.

The group has indicated plans to go directly to Malacañang for an audience.

“The Administration’s economic growth targets are at stake, so we think the President will support us,” it said in a statement. (Miguel C. Gil, Manila Standard Today)

http://manilastandardtoday.com/2014/08/08/truck-ban-hurting-economy-chamber

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PH gov’t urged to fast track projects that will propel cargo traffic to Batangas, Subic

Philippine business groups and joint foreign chambers (PBG-JFC) have expressed their support for shifting cargo traffic from Manila to Batangas and Subic to help stimulate economic activities in the two areas.

Prior to the President Benigno Aquino III’s State of the Nation Address on July 28, the PBG-JFC sent him a letter dated July 21 containing a list of key issues and proposed measures the group strongly believes will “help achieve our shared vision of inclusive growth through job generation, poverty reduction, and global competitiveness.”

One of group’s suggestions is “to shift cargo traffic from the Port of Manila to the Ports of Subic and Batangas and support these with parallel initiatives to stimulate economic activities in these areas, and to reduce the cost of logistics.”

The group is also asking to fast track construction of the North Luzon Expressway-South Luzon Expressway Connector, as well as the feeder road that will connect it to the Port of Manila.

The group believes this will “facilitate the movement of goods to and from production sites and our major ports.”

For the aviation sector, the group reiterated its call for a multi-airport system, in which the Ninoy Aquino International Airport (NAIA), Clark International Airport, and a future third airport will serve the country’s current and prospective aviation requirements.

“On this note, we strongly believe that we should continue to enhance the advantages given by an international gateway in close proximity to the National Capital Region, while complementing this with further improvements in the capacity of Clark International Airport,” the letter said.

Noting that public-private partnership initiatives have steadily gained steam since 2010, with close to 50 projects for implementation, PBG-JFC said they fully support the government’s efforts to raise infrastructure spending to 5% of GDP by 2016.

The PBG-JFC also underscored the pressing need to bridge the wide infrastructure gap to support the economy, mainly through completion of these pipeline infrastructure projects as soon as possible.

The business sector likewise welcomed Aquino’s pronouncement at the recent Daylight Dialogue that he plans to issue an executive order institutionalizing a mechanism for public-private cooperation that instills integrity in governance.

It encouraged government agencies to follow the Department of Public Works and Highways’ lead and compel companies bidding for government contracts to sign an integrity pledge and commit themselves to ethical business conduct.

Furthermore, the group is pushing for the immediate enactment and enforcement of the Customs Modernization and Tariff Act currently pending in both chambers of Congress.

PBG-JFC noted that in a forum with business organizations, Customs Commissioner John Sevilla estimated the value of smuggled merchandise in 2011 alone to be between P350 billion and P1.4 trillion.

“This hole must be plugged,” the group said.

Moreover, PBG-JFC reiterated its proposal for high-level government representatives to continuously engage the private sector in a joint effort to address smuggling, similar in form to a Cabinet-level oversight committee with private sector participation, something that was done in previous administrations.

The letter was signed by representatives from the Makati Business Club, Semiconductor and Electronics Industries in the Philippines Inc., Employers Confederation of the Philippines, IT and Business Process Association of the Philippines, Management Association of the Philippines, Alyansa Agrikultura, Philippine Exporters Confederation, Chamber of Mines of the Philippines, Federation of Filipino-Chinese Chambers of Commerce and Industry, Financial Executives Institute of the Philippines, Philippine Chamber of Commerce and Industry, American Chamber of Commerce, Australian-New Zealand Chamber of Commerce, Canadian Chamber of Commerce, European Chamber of Commerce, Japanese Chamber, Korean Chamber of Commerce, and Philippine Association of Multinational Companies Regional Headquarters. (PortCalls Asia)

PHOTO: The New Container Terminal (NCT) in Subic Bay Freeport

http://www.portcalls.com/ph-govt-urged-to-fast-track-projects-that-will-propel-cargo-traffic-to-batangas-subic/

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PCCI says diverting other cargo to Subic may boost Luzon trade

NORTHERN Luzon can draw more investments and expansions if the government shift the traffic of container cargoes in the Subic Bay Freeport and put a cap on the container volume to be handled by Manila, said the country’s largest business groups on Friday.

The Philippine Chamber of Commerce and Industry (PCCI) is advocating a mandatory cap on the capacity of Manila’s ports and reiterates the maximizing of Subic ports, echoing the call of its Northern Luzon members.

PCCI President Alfredo M. Yao met with presidents and delegates of PCCI member-chambers in Northern Luzon during the North­ern Luzon Business Conference in Baguio City in July.

Northern Luzon member - chambers said the shift of car­goes to Subic will benefit not only business communities in Luzon outside Metro Manila but also the port users.

Reg ions in Luzon out side Metro Manila account for about 20 percent of gross domestic product.

“Efficient movement unleashes a lot of business projects in prov­inces,” Yao said in a statement.

“Subic uses only 6 percent of its capacity because cargoes do not go there. It’s time for the Philippine Ports Authority to look seriously at recommendations for a manda­tory cap.

The port in Manila is now at about 120 percent and have long overstretched its capacity,” Yao said.

Trucking costs have shot up to about P50,000 per trip from P18,000 per trip in the first quar­ter, he said.

The shift also will remove uncer­tainties about the reliability of port users as part of the production and distribution links of global supply chains.

The chambers are confident that the mandatory cap makes growth of future earnings of port users sustainable, Yao said.

Member-chambers that recom­mended the limit on container traffic in Manila’s congested ports and the use of Subic Freeport by international shipping lines are the Metro Angeles Chamber of Commerce and Industries, Clark Investors and Locators Associa­tion, and the Export Processing Zone Chamber of Exporters and Manufacturers.

The government and private sector collaboration on logistics and transportation issues will be a topic to be taken up between Cabi­net officials and business execu­tives during the 40th Philippines Business Conference, scheduled this October. (Catherine N. Pillas, BusinessMirror)

http://www.businessmirror.com.ph/index.php/en/news/regions/36407-pcci-says-diverting-other-cargo-to-subic-may-boost-luzon-trade

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SBITC waives port fees for ships bringing empty containers to Subic

Subic Bay International Terminal Corp. (SBITC), a subsidiary of International Container Terminal Services, Inc. (ICTSI) has agreed to waive any port fees including stevedoring on all shipping lines bringing their empty containers to Subic port.

The Philippine Ports Authority (PPA) said that starting August 10, container empties will be transferred to Subic Bay’s new container terminals 1 and 2.

International shipping lines and port operators have agreed to send empty containers piling up at Manila ports to Subic port and in order to ease congestion brought about by the Manila truck ban.

Association of International Shipping Lines (AISL) President Patrick Ronas said as of July 11, there were 11,000 twenty-foot equivalent units (TEUs) empty containers at Manila ports, down 21% from 14,000 TEUs recorded on July 7.

PPA said foreign shipping lines agreed to send “sweepers” to the Port of Manila to ship out empties to Subic Bay port following a July 7 meeting attended by representatives of the Bureau of Customs, Department of Trade and Industry (DTI), and Philippine Economic Zone Authority (PEZA), port operators ICTSI and Asian Terminals, Inc, AISL and Confederation of Truckers Association of the Philippines (CTAP).

PPA said all parties are looking at directly sending container empties originating from north of Manila to Subic instead of bringing them to Manila then sending them back to Subic via the sweepers.

Approximately 30% of cargoes passing through Manila ports are northbound. PPA said CTAP agreed to come out with a “favorable fare matrix” for this scheme. The transportation of container vans via trucks is on account of importers, which are clients of truckers.

PPA said for southbound cargoes such as Laguna, Batangas, Rizal and Quezon, empty containers will be directly transported to Batangas Port. On the other hand, empties to and from Cavite will be transported back to neighboring Manila.

For exporters needing boxes for shipments out of Manila, they can secure containers stored in Batangas or Subic.

Aside from Subic and Batangas as temporary empty container depots, PPA is also looking at tapping a 21-hectare property of ICTSI in Cabuyao, Laguna as depository for empties.

The PPA expects yard utilization at Manila ports will normalize within a month’s time if all agencies acted their part. (Edu Lopez, Manila Bulletin)

http://www.mb.com.ph/sbitc-waives-port-fees-for-ships-bringing-empty-containers-to-subic/

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Subic Bay ports to be used as temporary container depots starting August 10

MANILA - Foreign shipping lines will soon be sending sweepers to the Port of Manila, composed of the Manila International Container Terminal and the Manila South Harbor, to ship out the empty containers to Subic Bay.

This setup was agreed upon in the cluster meeting on the Manila Port Congestion presided by Philippine Port Authority (PPA) General Manager Juan Sta. Ana.

It was attended by the Bureau of Customs, the Association of International Shipping Lines, ICTSI, Asian Terminals, Inc., the Trade Industry, the Philippine Economic Zone Authority, among others.

According to the PPA, the move was to help reduce the number of empty containers piling up at the ports of Manila, which have been a major contributor to the Port's congestion worsened by the day-time truck ban.

In turn, Subic Bay International Terminal, Corp. (SBITC) and mother firm International Container Terminal Services, Inc., operators of Subic’s New Container Terminals 1 and 2, will not levy any port fee.

This includes arrastre and stevedoring, to all shipping lines that will bring their empties to these ports.

To give ample time for both parties to iron out the kinks of the process, both the foreign shipping lines and ICTSI agreed to start the process tentatively for August 10.

Meanwhile, instead of bringing it back to Manila and sending it to Subic via the sweepers, all parties are also eyeing at directly sending boxes bound for North of Manila to Subic once the consignees empties the containers.

Approximately 30 percent of cargoes passing through the Manila ports are northbound.

The Confederation of Truckers Association of the Philippines has agreed to come out with a favorable fare matrix for this alternative as shipping of containers via trucks will be in the account of the importers.

For Southbound cargoes, particularly those for Laguna, Batangas, Rizal and Quezon, empty containers will be directly transported to Batangas Port while empties to and from Cavite will be transported back to Manila with other empties that will be pick-up immediately by the shipping lines.

Port rates, on the other hand, will be levied with an obscene discount.

For exporters needing boxes for shipments that will be ship-out via Manila can get boxes in Batangas or Subic before it will be transported to Manila.

As of the moment, there are about 17,000 20-foot equivalent units (TEUs) empty containers occupying spaces at the Ports of Manila. Once shipped out of Manila congestion will greatly be reduced.

Containers are owned by the shipping lines. Shipping out these boxes from ports is the sole decision of the carriers. (PNA)

PHOTO: The New Container Terminal 1 (NCT 1) in Subic Bay Freeport Zone

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Subic feeder to provide better service to Central Luzon shippers

A faster, cheaper transport system will soon be available to cargo shippers in Central and Northern Luzon when a new feeder service that will ship containers from Manila to Subic begins its operation next month.

The Subic Bay Metropolitan Authority (SBMA) announced last Friday that a Manila-Subic shuttle service operated by the PTC Agency & Transport, Inc. will serve as a common feeder for shipping lines serving locators and shippers in and around Northern Luzon.

SBMA Chairman Roberto Garcia, who welcomed the shuttle project as a new gain for the Subic Bay Freeport, pointed out that it would make shipping more efficient and also help address difficulties that shipping lines and truckers face because of the truck ban imposed by the Manila city government.

Garcia also said that the Subic Bay Freeport would generate additional income from the feeder service, as it would increase ship calls in this free port.

“The common complaint of shippers in Manila is that we have very few ship calls here. But once the feeder service is established, eventually there will be an increase in container volume, thus attracting major shipping lines to make their calls here,” Garcia said.

Garcia added that because of this new development the SBMA is looking at doubling the current volume of cargo unloaded at Subic’s container terminal.

The SBMA official also pointed out that Subic is a better alternative to shipping via Manila, as it would be cheaper and more convenient for shippers, especially those in Central and Northern Luzon, to load and unload their cargo here.

“Out of the 2.8 million containers that are shipped through the port of Manila every year, 450,000 of these go to Central Luzon. So it is definitely cheaper and more convenient if they ship and deliver from here,” he said.

Garcia also said that the SBMA would coordinate closely with Manila North Tollways Corp. regarding the maintenance of the Subic-Clark-Tarlac Expressway in order to accommodate trucks that will be coming in and out of Subic. (FMD/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto Garcia (right) looks on as PTC Agency & Transport, Inc. President Edgar Milla discusses the schedule of the Manila-Subic shuttle service that will open early next month.

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New shuttle service to ship boxes from Manila to Subic

A NEW service that will ship containers from Manila to Subic and vice versa could start operating in June.

The Subic Super Shuttle service will act as a common feeder for shipping lines serving locators and shippers in and around Northern Luzon.

“Since we cannot get [liner] connections directly from Singapore, Hong Kong, Thailand and Indonesia, the Subic Super Shuttle will get cargoes from Manila and bring them to Subic,” Subic Bay International Terminal Corp. (SBITC) General Manager Reimond Silvestre told PortCalls at the sidelines of the Transport Summit 2014. The summit was organized by the Philippine International Seafreight Forwarders Association and PortCalls.

“The Subic Super Shuttle is just a catalyst so that feeder vessels calling Manila will look at the Subic Port and see that they can do a direct call to Subic instead of discharging their cargoes in Manila,” he said, noting that as a catalyst service it may run for two years at the longest.

By then, shipping lines and shippers would have established the volume coming in and out of the area, possibly justifying the introduction of additional direct international liner services to and from Subic.

“The cargo is there. We’re just waiting for everybody in Northern Luzon to understand that they can use the Port of Subic,” he said.

While there seems to be a growing momentum to seriously consider Subic and also Batangas as alternative ports to Manila because of the effects of the Manila truck ban, the constant issue among shippers is the lack of shipping lines directly calling the areas.

To date there are only three international carriers directly calling Subic-NYK, APL and Swire Shipping.

Silvestre said the proposed shuttle service will use a 190 twenty-foot equivalent unit vessel which will call the Manila International Container Terminal (MICT)-Subic route three times a week.

MICT is operated by International Container Terminal Services Inc., the mother company of SBITC.

The shuttle service, Silvestre said, is a joint venture between Subic Super Shuttle Inc. and “a few companies” that SBITC supports, and is still subject to regulatory requirements from the Maritime Industry Authority, Philippine Ports Authority and Subic Bay Metropolitan Authority.

Asked if there are potential clients for the service, the SBITC executive replied, “When we started discussing this with a few key potential clients in Clark and Subic, we were only looking at big industrial players and big container generators in Northern Luzon.”

Nestlé is “committing their volume, Yokohama as well together with the Japanese accounts in Northern Luzon.

“In terms of costs, it will be competitive for them to realize that Subic can be their final destination point instead of Manila.”

As for other shipping lines, Silvestre said, “There are several interested but their issue is container imbalance”, which is why there is a “need for a common vessel service to solve that issue.”

There are also plans to put up an inland container depot somewhere in Bulacan to address the problem of where to store empty containers.

Silvestre noted there has been a 21-percent increase in volume at Subic Port this year.

Yokohama has increased its boxes out of Subic and so has Phillip Morris, he said. (www.portcalls.com)

http://www.businessmirror.com.ph/index.php/en/news/regions/32286-new-shuttle-service-to-ship-boxes-from-manila-to-subic

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