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.
of 29

Port Development Summit 2013 (PAC-ATLANTIC)

Published on: Mar 4, 2016
Published in: Investor Relations      Business      
Source: www.slideshare.net


Transcripts - Port Development Summit 2013 (PAC-ATLANTIC)

  • 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. 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. INTRODUCTION 1. “Port Congestion”  “Port-Related Congestion” 1. Limited to Sea Ports only Philippines Port Development
  • 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. 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. 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. 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. 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. CAUSES OF PORT-RELATED CONGESTION 2. Lack of Truck Holding Areas • Forced to park along city roads Philippines Port Development
  • 10. CAUSES OF PORT-RELATED CONGESTION 3. Lack of Cargo Rail System • Will reduce number of trucks on the road Philippines Port Development
  • 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. 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. 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. CAUSES OF PORT-RELATED CONGESTION 7. Overstaying Containers • Hampers efficiency of port operations Philippines Port Development
  • 15. PROPOSED ACTIONS 1. Diversion of Cargoes to Batangas and Subic • Support for compulsory diversion Philippines Port Development
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. WHAT NEEDS TO BE DONE 3. Pro-active Coordination Among Concerned Bodies Philippines Port Development 4. Implementation
  • 29. End of Presentation Philippines Port Development Thank You.

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