NEDA proposes steps to defuse berthing tensions in Iloilo port

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Photo from www.flickr.com/photos/29421855@N07/3316728089
Photo from www.flickr.com/photos/29421855@N07/3316728089
Photo of Iloilo port from www.flickr.com/photos/29421855@N07/3316728089

National Economic and Development Authority (NEDA) Region VI has recommended several measures the Philippine Ports Authority (PPA) can take to resolve berthing issues at the Iloilo port that have led domestic liners to threaten to stop calling the port.

In a letter to Panay/Guimaras port manager Rosenda Sumagaysay, NEDA VI regional director Ro-Ann Bacal suggested that PPA temporarily require foreign ships to offload their bulk cargo first then have the consignee conduct bagging operations elsewhere.

“This will substantially reduce the number of days in which the ships have to stay (currently averaging seven days) while unloading its cargo for bagging at the port,” NEDA said.

If this is not possible, NEDA said PPA Panay must require foreign vessels docking at the Iloilo Commercial Port Complex (ICPC) to have their own standard bagging equipment (hopper, automatic sewing machine, weighing scale, etc.) with capacities proportional to their loaded cargoes.

Right now, only one foreign vessel docking at ICPC has sewing machines, according to PPA Panay.

A general advisory regarding the proposed directive must be disseminated to all vessels carrying bulk cargo for bagging, NEDA said.

Limit docking

To further reduce congestion, NEDA said that pending completion of ICPC’s pier extension, PPA Panay should limit docking at ICPC to only one foreign vessel at a time. This is to proportionately allocate the limited berthing space to the frequency of port calls by both domestic liners and foreign vessels.

According to PPA Panay, only 14 foreign vessels dock at ICPC every year. Domestic liners, on the other hand, call 13 times weekly.

PPA is now extending the ICPC pier by 102 meters at a project cost of P271.6 million. When completed by July 2016, it can allow two vessels to berth, one on each side of the extended pier.

PPA Panay must also ensure that “both sides of the soon-to-be completed extended pier at the ICPC is ready for berthing upon its completion, that is, required dredging (if necessary) has been made on this pier section.”

Port dredging

PPA-Panay has also started the P15-million maintenance dredging of the ICPC last June 24 to reach a depth of 10.5 meters; around 30,000 cubic meters of silt will be dredged around the berthing area within 60 calendar days.

The port agency also awarded last April 20 the P14.6-million maintenance dredging of the Fort San Pedro Port. The project will either proceed right after or simultaneous with dredging of the ICPC, since the dredging contractor is the same for both ports. Last June 1, PPA Panay requested the PPA-Head Office to dredge the Iloilo River Wharf.

Moreover, the 51-meter pier extension of the Port of Dumangas will be completed this December, and Philippine Liner Shipping Association (PLSA) member vessels are encouraged to dock at this port. PPA Panay will likewise require its cargo-handling operators to procure additional or more efficient cargo-handling equipment and deploy enough manpower to serve growing ship and cargo traffic at the two ports.

NEDA said an evaluation tool gauging the performance of cargo handlers must be developed to serve as a basis for whether to continue or terminate their services.

At the same time, NEDA said PPA-Panay “should come up with innovative and transparent means to update the queuing vessels (either through radio calls, Twitter, text messaging, emails, etc.) on the day and time the berthing area will be available to them.”

NEDA noted, “It was pointed out that no information is provided to representatives of queuing vessels during berthing meetings called by PPA.”

PLSA’s list of complaints

The suggestions from NEDA are an offshoot of the meeting on June 19 between PPA-Panay and PLSA.

In a letter to PPA dated June 4, PLSA members said they were seriously considering stopping calls to Iloilo ports due to berthing problems. PLSA, during the June 19 meeting in Iloilo, emphasized they have been raising their concerns since May 2014 but these remained unaddressed.

Among their issues were the shallow depth at the Fort San Pedro Port (Iloilo Domestic Port); re-bagging operations by foreign vessels docking at ICPC resulting in two to seven days of queuing for PLSA member vessels; and lack of berthing space at both Fort San Pedro and ICPC.

These compounded the domestic liners’ costs (fuel and onboard provisions), increased unnecessarily pay claims filed against them by clients for delayed cargo delivery, and led to loss of other revenue opportunities.

During the June 19 meeting, Sumagaysay and PPA Panay’s department managers explained that vessel queuing and congestion at the ICPC and Fort San Pedro Port are due to several factors.

One is the increasing ship calls from 69 vessels in January 2015 to 72 in May 2015 because of increasing demand for fertilizer, transport equipment, grains (wheat and soya beans), and cement/construction materials for use in road widening; and construction of the two coal-fired power plants in Ingore and Concepcion.

Another is that new vessels calling the ports are bigger and longer, but the berth can only accommodate a limited number of vessels and cargo-handling operators have limited equipment and manpower.

Moreover, the City Government of Iloilo, in coordination with the Department of Public Works and Highways, is converting portions of the berthing space at the Iloilo River Wharf into an eco-tourism (river esplanade) area.

Docking vessels sometimes overstay due to their slow unloading, the unexpected breakdown of vessel gears, and the delayed arrival of Philippine Coast Guard (PCG) personnel assigned to conduct pre-departure inspection.

PPA-PLSA cooperation

PPA-Panay, during the meeting, agreed to provide PLSA with the profile of other ports in Panay and Guimaras islands which can serve as alternative docking areas. It also agreed to implement a first-come-first-serve berthing policy; consistently formulate and implement guidelines imposing fines and measures against overstaying vessels; and formally request the PCG to conduct inspections eight hours before the vessel departs.

As for PLSA, it said it will consider constructing its own pier at the ICPC under a public-private partnership (PPP) scheme to have priority berthing at the port. It also intends to advise member-vessels to properly stow their cargoes for efficient unloading at the port of destination.

The members will also be asked to secure a Certificate of Berthing Space Availability from PPA as support document to their Maritime Industry Authority-issued Certificate of Public Conveyance. – Roumina Pablo