INTERNATIONAL vessels have dropped
Batangas Port as one of its major port of calls due
to lack of international cargo traffic at the port.Philippine
Ports Authority (PPA) Assistant General Manager Benjamin
Cecilio said the vessel operators have shifted back
to the ports of Manila where there is enough international
cargo volume.
"We now have zero imports passing through Batangas
Port due to the lack of cargo traffic," Cecilio
explained during the 31st anniversary celebration of
the PPA the other day.He added that vessel operators
signified their intentions to call instead at the country's
premiere ports, particularly Manila, wherein there is
enough cargo traffic.
The PPA, however, expects international-going vessels
to return to the Batangas port once commercial operations
are in full swing in the next two weeks.Batangas port,
which is being groomed as one of the top ports of the
country that could compete internationally by 2010,
will open its completed phase 2 project on July 18,
2005.
PPA is eyeing Calamba-Laguna-Batangas-Rizal-Quezon (Calabarzon)
locators such as semiconductor companies as well as
Nestle to transfer to Batangas. "We are targeting
all locators at the Calabarzon area to shift their operations
to the Batangas port," said PPA Assistant to the
General Manager for Special and Corporate Affairs Raul
Santos, adding that at this time, these companies are
still in a wait-and-see mood but will eventually divert
their business to the port due to proximity to their
trade.
PPA said Calabarzon locators alone will single handedly
increase international cargo traffic in Batangas port
by 30 to 40%. Another 20% to 30% of international cargoes
are expected to be redirected to Batangas from the ports
of Manila.
"I think once these companies use Batangas, direct
callers will eventually move back to Batangas. It is
easier to woo direct callers when there is adequate
cargo volume," Santos said. "But for now,
they are hesitant due to the lack of cargo volume at
the port."
SHIPPERS from Mindanao will soon get
a 30% discount on freight rates to make their products
competitive.Philippine Ports Authority (PPA) General
Manager Oscar Sevilla said the agency is now formalizing
a memorandum of understanding with all shipping lines,
cargo handlers and port authorities for such an incentive.
"To make agriculture products from Mindanao competitive,
we would like to give shippers a minimum 30% discount
on freight rates to all ports of destination in the
country," Sevilla stressed.The discount may be
applied as early as next month.
Businessmen from Mindanao have long complained of high
logistics cost that make their produce uncompetitive
compared to products coming from the Visayas and Luzon."The
discount is designed to help businesses while the economy
is suffering and will last until the economy recovers,"
Sevilla stressed.
Last month, 2GO, the logistics arm of Aboitiz Transport
System (ATS), started giving a 15% tariff discount to
all manufacturers, particularly from the Visayas and
Mindanao.2GO is being backed by the ATS ro-ro fleet
which regularly calls on 23 ports nationwide.The regular
2GO RRTS rate for Manila-Visayas is P2,780 per lane
meter; Manila-North Mindanao, P3,107 per lane meter;
Manila South-Mindanao, P4,306 per lane meter; Visayas-Visayas
P1,744; Visayas-North Mindanao, P2,017; Visayas-South
Mindanao, P3,434, North Mindanao-North Mindanao, P1,090
and South Mindanao-South Mindanao, P2,344.
THE Subic Bay International Airport
(SBIA) expects domestic and international traffic to
pick up following the installation of its new Instrument
Landing System (ILS).The ILS was installed to enhance
the standards of air navigation facility and ensure
aircraft and passenger safety.
"Subic has friendlier skies today after the recent
upgrade and we are banking on this to give us more business,"
SBIA said.
The upgrade was made possible under a facilities lease
operating agreement between the SBMA and Federal Express
(FedEx).To date FedEx, local carriers Cebu Pacific and
Air Philippines as well as Mandarin Airlines have landing
rights in Subic. SBIA authorities expect to double the
number of customers within the next few months.
Lately, SBIA has been registering rapid growth in tourist
arrivals from Japan, South Korea and other Asian countries.In
2004, international passenger traffic was 17,733 compared
to 525 domestic arrivals.During the first three months
of the year, 6,111 came in through the international
flights while 264 flew in onboard domestic flights.
SBIA said more airlines could be enjoined to make Subic
their hub for international flights particularly now
with a newly-improved facility."We will continue
to improve the airport facilities of Subic airport to
spur business development and help realize the vision
of making Subic a logistics and tourism hub for Asia,"
SBIA said.
North
Luzon expressway extension completed by 2009
THE Department of Public Works and
Highways (DPWH) expects to decongest the North Luzon
expressway by 2009 by completing the P15-billion 85-kilometer
extension of the Northern Luzon Expressway linking Manila
to La Union.
The project involves extension of the existing Manila
North Expressway and the Subic-Clark-Tarlac Expressway
to Rosario, La Union via San Manuel, Gerona, Paniqui
and Moncada towns in the province of Tarlac. It will
also include extension of existing roads Villasis, Urdaneta,
and Manaoag towns in Pangasinan to the town of Rosario
in La Union.
According to the DPWH, the project is expected to decongest
Manila, Subic and Clark and facilitate the transfer
of cargoes to and from the country's three major hubs
to the rest of Luzon.
Traffic from Tarlac to Urdaneta in Pangasinan is expected
to grow from 2,650 vehicles a day in 2006 to 15,750
in 2010 then to 23,500 in 2015.
Traffic from Urdaneta, Pangasinan to Rosario, La Union
is expected to grow from 4,410 vehicles a day in 2006
to 8,760 in 2010 and 13,240 in 2015.The Japan Bank for
International Cooperation will help fund the project
from Capaz, Tarlac to Urdaneta, Pangasinan. Official
development assistance (ODA) is proposed under the 27th
Yen Loan with the start of construction in 2007 to be
completed in 2009. Bidding for the build-operate-transfer
portion will be undertaken simultaneously with the ODA
section.
Suplicio
Lines eyes recovery with new vessel deployment
LOCAL carrier Sulpicio Lines, Inc.
(SLI) expects to recover its losses for the first semester
with the introduction of its newest vessel, the Princess
of the South.SLI is projecting a 28 to 30% growth in
operations for the second half of the year with the
new vessel and the recent deployment of another vessel,
Princess of the Earth.
SLI also projects a 3 to 5% increase in market share
for the period in the Nasipit, Butuan-Jagna, Bohol-Cebu
route where the new vessel will be deployed. The line
holds about 20% of both cargo and passenger traffic
in and out of the region.
Salvacion Buaron, SLI vice president for Passage, in
an interview said the new vessel will plug the lack
of tonnage being experienced by the company particularly
in the combined passenger-cargo business."Compared
to last year, I think the peak season this year is shorter,
contributing to lower passenger and cargo traffic nationwide,"
she added.
"With the impending deployment of our newest vessel,
probably within the last quarter of the year, we will
be able to recover some of our losses last summer,"
Buaron added.SLI expects a 10 to 15% growth for the
entire 2005.The MV Princess of the South is being refurbished
in Cebu to tailor it for local operations. The vessel
will be the third to be introduced by SLI in a span
of less than 10 months after deploying MV Princess of
the Stars in September of 2004 and MV Princess of the
Earth only last May.
Buaron explained the new vessels will enable the company
to take in more passengers and cargoes, resulting in
higher revenues. Among its customers are San Miguel
Corporation, Del Monte and soft drink company Coca-Cola
Bottlers Inc.
