Shift in container traffic to Batangas, Subic pushed

The Joint Foreign Chambers (JFC) is recommending a gradual shift in international container shipment volume from Manila to Batangas and Subic, citing the “gross underutilization” of the Batangas Container Terminal.

In a statement, the JFC said it had submitted to the House Committee on Ways and Means a policy paper called “Arangkada Philippines 2010” and a follow-up paper titled “Assessment on Infrastructure: Seaports and Logistics,” which contained recommendations on how to address the congestion problem in South Harbor and Manila International Container Terminal.  The papers were the group’s inputs to the hearing on port issues conducted by the House committee in late November.

The JFC said the Philippine government could adopt a firm policy to gradually shift international container shipment volume from Manila (South Harbor and MICT) to Batangas and Subic.

Certain quarters in the business sector claimed the Philippine Ports Authority and the Department of Transportation and Communications had not acted on the proposed shift to Batangas and Subic, the JFC said.

“Private sector representatives strongly advocate shifting container traffic from the Manila ports to the outer ports of Subic and Batangas. However, the national government, through the PPA and the DOTC, has not acted upon the request,” the JFC quoted a businessman as saying.

In the meantime, some progress is being made with feeder operators and shipping lines serving Batangas and Subic, the JFC said. These companies are considering making port calls outside Manila as soon as volumes increase.

“The shift to Batangas and Subic will follow if the industrial zones  in Clark and in other areas south of Manila are master planned to attract investments in industry and manufacturing,” JFC said.

The group said there was some resistance from customers to pay added trucking costs to Batangas and Subic.

The JFC said logistics firms were in discussion with the major port operators to come up with “win-win solutions” that would ensure lower fees and improved efficiency.

“They are also looking at the lack of support infrastructure in the form of easy access to the ports (including Batangas). The intent is to draw up short-term, mid-term and long-term solutions,” JFC said.

While undertaking these discussions, the JFC said it would continue promoting the use of port assets in Batangas and Subic and push for an evaluation on the impact of expanding the Manila port.