Philippines Port Development Summit 2013
Hyatt Hotel and Casino Manila
Philippines
August 13-16, 2013
PORT CONGESTIONPORT ...
CONTENTS OF PRESENTATION
A. Introduction
B. Current Situation
C. Causes of Congestion
D. Proposed Actions
E. What Needs to...
INTRODUCTION
1. “Port Congestion”  “Port-Related Congestion”
1. Limited to Sea Ports only
Philippines Port Development
CURRENT SITUATION
1. Traffic Handled by Manila Ports
4 MILLION4 MILLION
TEUs / YEAR
MICT
South Harbor
North Harbor
HCPTI
A...
CURRENT SITUATION
2. Batangas and Subic Ports: capacity vs. utilization
Batangas Port
Operator
Capacity
Utilization
ATI
40...
CURRENT SITUATION
3. Expansion at Manila Ports
MICT • Increased capacity to 2.5 million TEUs
• Another P4B for Berth 7
Sou...
CURRENT SITUATION
4. Existing Metro Manila Road Network
• Shared with private and
public utility vehicles
• Illegal vendor...
CAUSES OF PORT-RELATED CONGESTION
1. Proliferation of Obstructions
• Informal settler communities
near port areas
• Tricyc...
CAUSES OF PORT-RELATED CONGESTION
2. Lack of Truck Holding Areas
• Forced to park along
city roads
Philippines Port Develo...
CAUSES OF PORT-RELATED CONGESTION
3. Lack of Cargo Rail System
• Will reduce number
of trucks on the road
Philippines Port...
CAUSES OF PORT-RELATED CONGESTION
4. Lack of Road Linkages from Port to Ecozones
• Will reduce number
of trucks on the roa...
CAUSES OF PORT-RELATED CONGESTION
5. Truck Ban
• Good or Not?
• 9 hours per day
• 39,543 trucks plying
M.M. roads daily
• ...
CAUSES OF PORT-RELATED CONGESTION
6. Anti-Overloading Law
• Requires more truck
trips
• Unclear road
tolerable weight
• Su...
CAUSES OF PORT-RELATED CONGESTION
7. Overstaying Containers
• Hampers efficiency
of port operations
Philippines Port Devel...
PROPOSED ACTIONS
1. Diversion of Cargoes to Batangas and Subic
• Support for compulsory diversion
Philippines Port Develop...
PROPOSED ACTIONS
1. Diversion of Cargoes to Batangas and Subic
Philippines Port Development
METRO
MANILA
S
U
B
I
C
BATANGA...
PROPOSED ACTIONS
1. Diversion of Cargoes to Batangas and Subic
• JICA Study: 50% reduction in port dues
and docking fees
•...
PROPOSED ACTIONS
2. Stop Expansion at Manila Ports
• JICA Study: 6-year moratorium in capacity
expansion at South Harbor a...
PROPOSED ACTIONS
2. Stop Expansion at Manila Ports
• Capex of P4.2B for port improvement over next three years
• Add 1,960...
PROPOSED ACTIONS
2. Stop Expansion at Manila Ports
• $200 million for additional 300 meters at Berth 6
• Acquire 3 quay cr...
PROPOSED ACTIONS
3. Cap in Manila Ports
• Limit cargo volume at Manila sea ports
• To lessen congestion in Manila, increas...
PROPOSED ACTIONS
3. Cap in Manila Ports
• 1 million TEU cap at
Port of Bangkok
• Cargo diversion to Laem Chabang port
• In...
PROPOSED ACTIONS
4. Infrastructure Upgrade
• Create a better road network
• Remove obstructions
• More truck holding areas...
PROPOSED ACTIONS
4. Infrastructure Upgrade
• NLEX Harbor Link
• Port access road
• NLEX-SLEX
connector road
Philippines Po...
PROPOSED ACTIONS
5. Conduct Further Studies
• Study by PPA and OFC-DOJ
• Signed MOA
• Prepare a Competitiveness Action Pla...
WHAT NEEDS TO BE DONE
1. Increase Utilization of Batangas and Subic Ports
• Batangas and Subic ports are ready
• Overcome ...
WHAT NEEDS TO BE DONE
2. Government Intervention through Policy
Formulation and Implementation
• Shipping lines may be con...
WHAT NEEDS TO BE DONE
3. Pro-active Coordination Among Concerned
Bodies
Philippines Port Development
4. Implementation
End of Presentation
Philippines Port Development
Thank You.
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Port Development Summit 2013 (PAC-ATLANTIC)

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Transcript of "Port Development Summit 2013 (PAC-ATLANTIC)"

  1. 1. 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
  2. 2. CONTENTS OF PRESENTATION A. Introduction B. Current Situation C. Causes of Congestion D. Proposed Actions E. What Needs to be Done Philippines Port Development
  3. 3. INTRODUCTION 1. “Port Congestion”  “Port-Related Congestion” 1. Limited to Sea Ports only Philippines Port Development
  4. 4. 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 Philippines Port Development
  5. 5. 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) Philippines Port Development
  6. 6. 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 Philippines Port Development
  7. 7. 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 Philippines Port Development
  8. 8. 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 Philippines Port Development
  9. 9. CAUSES OF PORT-RELATED CONGESTION 2. Lack of Truck Holding Areas • Forced to park along city roads Philippines Port Development
  10. 10. CAUSES OF PORT-RELATED CONGESTION 3. Lack of Cargo Rail System • Will reduce number of trucks on the road Philippines Port Development
  11. 11. CAUSES OF PORT-RELATED CONGESTION 4. Lack of Road Linkages from Port to Ecozones • Will reduce number of trucks on the road Philippines Port Development
  12. 12. CAUSES OF PORT-RELATED CONGESTION 5. Truck Ban • Good or Not? • 9 hours per day • 39,543 trucks plying M.M. roads daily • JARI study Philippines Port Development NLEX 12,004 11,116 SLEX 9,910 Rizal 4,641 MacArthur * others are within MM METRO MANILA
  13. 13. CAUSES OF PORT-RELATED CONGESTION 6. Anti-Overloading Law • Requires more truck trips • Unclear road tolerable weight • Substandard roads vs. overloading? Philippines Port Development
  14. 14. CAUSES OF PORT-RELATED CONGESTION 7. Overstaying Containers • Hampers efficiency of port operations Philippines Port Development
  15. 15. PROPOSED ACTIONS 1. Diversion of Cargoes to Batangas and Subic • Support for compulsory diversion Philippines Port Development
  16. 16. PROPOSED ACTIONS 1. Diversion of Cargoes to Batangas and Subic Philippines Port Development 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
  17. 17. PROPOSED ACTIONS 1. Diversion of Cargoes to Batangas and Subic • JICA Study: 50% reduction in port dues and docking fees • DOTC plans mandatory diversion by 3Q2013 • Port operators oppose diversion and favor road upgrade Philippines Port Development
  18. 18. 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 Philippines Port Development
  19. 19. PROPOSED ACTIONS 2. Stop Expansion at Manila Ports • 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 Philippines Port Development Asian Terminals Inc. (ATI)
  20. 20. PROPOSED ACTIONS 2. Stop Expansion at Manila Ports • $200 million for additional 300 meters at Berth 6 • Acquire 3 quay cranes and reach stackers • CY expansion • P135 million for Berth 7 Philippines Port Development International Container Terminal Services, Inc.
  21. 21. 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 Philippines Port Development
  22. 22. 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 Philippines Port Development
  23. 23. PROPOSED ACTIONS 4. Infrastructure Upgrade • Create a better road network • Remove obstructions • More truck holding areas • DOTC roadmap: Philippines Port Development • ICDs north and south of Manila • Rail connectivity from Manila ports to ICDs • Barge transfers to Cavite and Batangas
  24. 24. PROPOSED ACTIONS 4. Infrastructure Upgrade • NLEX Harbor Link • Port access road • NLEX-SLEX connector road Philippines Port Development NLEXMac Arthur Highway Harbor LinkHarbor Link Phase 2 Port Access Road North Port South Port NLEX-SLEX Connector SLEX
  25. 25. 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 Philippines Port Development
  26. 26. WHAT NEEDS TO BE DONE 1. Increase Utilization of Batangas and Subic Ports • Batangas and Subic ports are ready • Overcome “chicken vs. egg” obstacles Philippines Port Development • 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
  27. 27. WHAT NEEDS TO BE DONE 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 Philippines Port Development
  28. 28. WHAT NEEDS TO BE DONE 3. Pro-active Coordination Among Concerned Bodies Philippines Port Development 4. Implementation
  29. 29. End of Presentation Philippines Port Development Thank You.
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