ADDRESSING PORT CONGESTION

DR. HENRYL. BASILIO

CHIEF OF PARTY
ADVANCING PHILIPPINE COMPETITIVENESS (COMPETE) PROJECT
THE ASIA FOUNDATION, NATHAN ASSOCIATES INC., REID FOUNDATION,
FOUNDATION FOR ECONOMIC FREEDOM, ASIA PACIFIC PROJECTS INC.
SEPTEMBER29, 2014
CLARK, ANGELES CITY
COMPETE PROJECT
COMPONENT 1 - Infra/PPP COMPONENT 3- Credit
COMPONENT 2 Key Industries
The USAID COMPETE PROJECT supports government and
private sector advocacies and programs aimed at improving
the efficiency and cost effectiveness of the countrys
transport logistics sector in order to enhance industrial
competitiveness and make economic growth more inclusive.
Addressing Port Congestion
Infrastructure spending, especially on roads, has substantially
increased But infra spending as a percentage of GDP remains
low.
Philippine transport infrastructure still ranks poorly in 2014 WEF
Report
There are more Infra-related PPPs now in the market Must
continue this trend.
The sad news is that a number of key infrastructures in place are
underutilized.
Bringing down the cost of transport-logistics remains a key
challenge.
Addressing Port Congestion
The traffic in Metro Manila has worsened and the situation
will not get any better.
The City of Manila declared a day-time truck ban a few
months ago that resulted in severe congestion at the Port of
Manila.
Trucks could only do 2 trips a week instead of the usual 5 trips/week
Trucking cost more than doubled.
Long queue for ships, some skipped Manila
Exacted a huge cost on the economy
Addressing Port Congestion
The business community submitted recommendations and proposals to
the government on how the problem can be addressed.
Many of these recommendations have been implemented.
Some of the traffic in Manila have been transferred to Subic and Batangas
Ports
More shipping lines and trucking companies are now servin in Subic and
Batangas
PPA reduced the berthing fee in Batangas; ATI rates in Batangas are now
lower than (its rates for) Manila; SBMA likewise reduced its cargo handling
rate; CDC made available a depot area for containers
Subic Super Shuttle, otherwise known as S3, is now transshipping cargoes
from Manila to Subic and vice versa three times a week.
An increasing number of companies are now using Subic and Batangas
DTI issued an advisory enjoining industries to accept night-time and
weekend deliveries.
Addressing Port Congestion
A golden opportunity has opened up for Subic Port as a
result of the port congestion and truck ban in Manila.
The increasing number of cars in Metro Manila will put
more pressure on traffic.
While EO 172 is a temporary way of increasing the
utilization of Batangas and Subic Ports as extensions of
Manila Port when there is port congestion/emergency
situations, there should be a conscious effort to
Shift cargoes from Manila to Subic
Attract new cargoes to use Subic as a gateway (instead of Manila)
Addressing Port Congestion
The good news is that the necessary infrastructures in
support of Subic and Batangas Ports are already in place
The challenge is to maximize their utilization.
Addressing Port Congestion
The objective of this summit is to demonstrate that:
Shippers in Central and Northern Luzon are now willing to ship their
cargoes through the Subic;
Subic Port has the capacity to handle these cargoes;
There is an increasing number of shipping lines are now attracted to
call at the Port of Subic.
Addressing Port Congestion
THANK YOU