Home » Breaking News, Events, Maritime » Subic eyes incentives for logistics players

Subic Bay Metropolitan Authority (SBMA) is proposing an incentive program for logistics players to help transform the freeport into a major player in the Asia-Pacific logistics industry.

“The plan is to make the Port of Subic a port of choice,” SBMA director Norberto Sosa said in his presentation at the recent Subic Bay Maritime Conference and Exhibit in Subic Bay, Philippines.

Among proposed incentives for vessel operators are the waiving of berthing fees for the first three years of operation, 50% discount on the same fee on the fourth and fifth year, and 25% discount on the sixth and seventh year. A 50% cut on the harbor fee for the first seven years is also proposed.

In addition, Sosa said SBMA is looking at cutting by half its Subic Bay International Terminal Corp (SBITC) share per twenty-foot equivalent unit (TEU) on stevedoring and on arrastre for the first seven years. SBITC is the operator of the New Container Terminal 1.

There will also be a 50% discount on SBMA’s share in tug and pilotage services per move for the first seven years.

For manufacturers, shippers, port users and locators, incentives proposed are a 50% discount on cargo wharfage fees for the first three years and the same amount of discount for SBMA’s SBITC share per TEU, also for the first three years.

These incentives may, however, be availed of only for shipments from Subic to Singapore/Japan/Hong Kong and Subic that will reach a minimum weekly volume of 200 TEU per voyage for import; 100 TEU per voyage for exports; and 50 TEUs per voyage for transhipment.

SBMA is proposing that consolidators and brokers get a 12.5% commission from cargo wharfage fees applicable for the first three years. Their permit to operate and the accreditation fee will also be waived for the succeeding year provided their individual total reaches at least 500 TEUs per year for the first three years.

For truckers, their permit to operate and accreditation fee will be waived for the succeeding year with an average total of at least 500 TEUs per year for the first three years. The road users’ fee will be waived for the succeeding year with an individual aggregate volume of 500 TEUs over a year.

SBMA’s proposals are expected to address current low capacity utilization (10%) at NCT 1. NCT 2, which will be operated by ICTSI Subic Inc, an affiliate of SBITC, will open within the year. NCT 1 and 2 have a combined capacity of 600,000 TEUs annually.

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