It’s not just locators eyeing the Port of Batangas, south of the Philippine capital Manila.
The Philippine Liner Shipping Association (PLSA), a nine-member grouping of domestic shipping lines, is also looking at shifting some operations to Batangas due to the adverse effects of Manila’s truck ban and high trucking costs.
PLSA member lines 2GO, Gothong Southern Shipping Lines, Inc., Lorenzo Shipping Corp., Meridian Cargo, Moreta Shipping Lines, Inc., Philippine Span Asia Carrier Corp. (PSACC), and Solid Shipping Lines Corp. recently paid a courtesy call on the Philippine Ports Authority (PPA) Batangas and Batangas port operator Asian Terminals, Inc.
The liners, however, have several considerations before making a final decision, the executives told PortCalls, which joined the Batangas tour. These include tariff rates, trucking costs, port charges, availability of container yards, and tugboat services.
In an interview, Gothong Southern vice president-Manila Operations Rex Yuviengco said the company is open to using Batangas but would have to look at certain things first. “One is, if we send a ship there, would we be able to fill it? Number two is, can they (Batangas port) really handle us? Three, our assets. If we send a ship there, that means we have to add forklifts, we have to add containers and things like that, even manpower. Is it OK relocating people?”
Moreta Shipping’s officer-in-charge, Melody Moreta, shared the same sentiment, saying the firm will first have to study trucking rates as these are “a big chunk of costs”. She noted revenue of shipping lines “is only on the freight and a lot of the rates are passed on”.
Eliseo Manalang Jr., 2GO vice-president for freight sales, said a meeting with Batangas truckers might be good idea. “Maybe they can be more competitive than trucks from Manila.”
Meridian Cargo assistant general manager Christine Tio said due to “constraints in Manila North Harbor, like lag of equipment… constant delays,” there is a possibility the shipping line will shift to Batangas, although cooperation from clients will have to be solicited.
Meanwhile, the absence of a nearby offdock container yard is one of the domestic shipping lines’ major concerns, as aired by PSACC vice-president Dexter Go said.
Go raised the issue when PPA Batangas acting manager-Port Services Division Maceduño Banuelos said the port does not allow prolonged storage so as not to sacrifice efficiency.
Batangas port is underutilized, at less than 4% of its 300,000 twenty-foot equivalent units annual capacity in use last year. –– Text and photo by Roumina M. Pablo
