Port Development Summit 2013 (PAC-ATLANTIC)

Philippines Port Development Summit 2013
Hyatt Hotel and Casino Manila
Philippines
August 13-16, 2013
PORT CONGESTIONPORT CONGESTION
andand
WHAT NEEDS TO BE DONEWHAT NEEDS TO BE DONE
Mr. Ramon T. de Leon
Chairman – Pac-Atlantic Group
Philippines Port Development

CONTENTS OF PRESENTATION
A. Introduction
B. Current Situation
C. Causes of Congestion
D. Proposed Actions
E. What Needs to be Done

INTRODUCTION
1. “Port Congestion”  “Port-Related Congestion”
1. Limited to Sea Ports only

CURRENT SITUATION
1. Traffic Handled by Manila Ports
4 MILLION4 MILLION
TEUs / YEAR
MICT
South Harbor
North Harbor
HCPTI
About 98% of total volume passing through
the country

CURRENT SITUATION
2. Batangas and Subic Ports: capacity vs. utilization
Batangas Port
Operator
Capacity
Utilization
ATI
400,000 TEUs
4.2% (2011)
Subic Port
Operator
Capacity
Utilization
SBITC
600,000 TEUs
5.6% (2011)

CURRENT SITUATION
3. Expansion at Manila Ports
MICT • Increased capacity to 2.5 million TEUs
• Another P4B for Berth 7
South
Harbor
• Target capacity of 1.2 million TEUs
• P4.2B for Pier 3 extension, CY expansion,
fleet improvement, IT enhancement

CURRENT SITUATION
4. Existing Metro Manila Road Network
• Shared with private and
public utility vehicles
• Illegal vendors
• Illegally parked vehicles
• Makeshift basketball courts
• Makeshift market stalls
• Truck Ban
• Anti-Overloading
Law

CAUSES OF PORT-RELATED CONGESTION
1. Proliferation of Obstructions
• Informal settler communities
near port areas
• Tricycles and pedicabs in
truck routes
• Illegal vendors
• Road diggings

2. Lack of Truck Holding Areas
• Forced to park along
city roads

3. Lack of Cargo Rail System
• Will reduce number
of trucks on the road

4. Lack of Road Linkages from Port to Ecozones
• Will reduce number
of trucks on the road

5. Truck Ban
• Good or Not?
• 9 hours per day
• 39,543 trucks plying
M.M. roads daily
• JARI study
NLEX
12,004
11,116
SLEX
9,910
Rizal
4,641
MacArthur
* others are within MM
METRO
MANILA

6. Anti-Overloading Law
• Requires more truck
trips
• Unclear road
tolerable weight
• Substandard roads
vs. overloading?

7. Overstaying Containers
• Hampers efficiency
of port operations

PROPOSED ACTIONS
1. Diversion of Cargoes to Batangas and Subic
• Support for compulsory diversion

PROPOSED ACTIONS
METRO
MANILA
S
U
B
I
C
BATANGAS
110 kms
110 kms
Cargo of PEZA
locators from
CALABARZON
Cargo of Subic,
Clark, Bataan,
Tarlac, La
Union locators

PROPOSED ACTIONS
• JICA Study: 50% reduction in port dues
and docking fees
• DOTC plans mandatory diversion by
3Q2013
• Port operators oppose diversion and
favor road upgrade

PROPOSED ACTIONS
2. Stop Expansion at Manila Ports
• JICA Study: 6-year moratorium in capacity
expansion at South Harbor and MICT
• Both ports have already undertaken major
expansion activities

PROPOSED ACTIONS
• Capex of P4.2B for port improvement over next three years
• Add 1,960 TEUs of CY space by 2014
• Add 100 slots in truck holding area
• Acquire RTG cranes, empty container handler, spreader,
tractors
• 2014: add 1 quayside crane and 2 RTG cranes
• Technological improvements
Asian Terminals Inc. (ATI)

PROPOSED ACTIONS
• $200 million for additional 300 meters at Berth 6
• Acquire 3 quay cranes and reach stackers
• CY expansion
• P135 million for Berth 7
International Container Terminal Services, Inc.

PROPOSED ACTIONS
3. Cap in Manila Ports
• Limit cargo volume at Manila sea ports
• To lessen congestion in Manila, increase
utilization of Batangas and Subic ports and
boost growth in these areas

PROPOSED ACTIONS
3. Cap in Manila Ports
• 1 million TEU cap at
Port of Bangkok
• Cargo diversion to Laem Chabang port
• In 2009, Laem Chabang was world’s 20th
busiest port
• Present capacity: 6 million TEUs

PROPOSED ACTIONS
4. Infrastructure Upgrade
• Create a better road network
• Remove obstructions
• More truck holding areas
• DOTC roadmap:
• ICDs north and south of Manila
• Rail connectivity from Manila ports to ICDs
• Barge transfers to Cavite and Batangas

PROPOSED ACTIONS
4. Infrastructure Upgrade
• NLEX Harbor Link
• Port access road
• NLEX-SLEX
connector road
NLEXMac Arthur
Highway
Harbor
LinkHarbor Link
Phase 2
Port
Access
Road
North
Port
South
Port
NLEX-SLEX
Connector
SLEX

PROPOSED ACTIONS
5. Conduct Further Studies
• Study by PPA and OFC-DOJ
• Signed MOA
• Prepare a Competitiveness Action Plan
• Equip PPA and OFC-DOJ personnel with
expertise to effectively implement the
Competitiveness Action Plan
• JICA study

WHAT NEEDS TO BE DONE
1. Increase Utilization of Batangas and Subic Ports
• Batangas and Subic ports are ready
• Overcome “chicken vs. egg” obstacles
• Convince shipping lines
• Get truckers, brokers and forwarders to
locate near the ports
• Ensure lower port and docking charges
• Establish policies for continuous port
development

2. Government Intervention through Policy
Formulation and Implementation
• Shipping lines may be content in calling
Manila ports only
• Importers and exporters may be content in
shipping though Manila ports
• Government must step in: Reduction in
port and dockage fees, PPA and OFC-DOJ
study, JICA study, Implementation

3. Pro-active Coordination Among Concerned
Bodies
4. Implementation

End of Presentation
Thank You.

Port Development Summit 2013 (PAC-ATLANTIC)

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