More idle cargo slated for transfer to Subic port

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NCT_1The Philippine Ports Authority (PPA) will ship out more overstaying Customs-cleared cargoes from Manila ports to Subic port on September 10, including from some multinational companies.

The state-owned agency in a statement said the immediate transfer of overstaying containers is needed to free “yard space as held-up containers from foreign ports start to flood the two Manila ports.”

At a press conference on September 8, Manila port operators said there were around 2,000 overstaying containers at the Manila International Container Port and 2,058 boxes at the Manila South Harbor.

PPA general manager Juan Sta. Ana said “a significant number” of overstaying Customs-cleared cargoes will be loaded onto vessels starting Sept 9 for transportation to Subic on Sept 10. On the priority list are containers that have lingered at ports for more than 90 days.

PortCalls sources said first to be transferred are cargoes owned by a food and beverage multinational, a highly diversified Philippine conglomerate, tire manufacturer, cement and building materials manufacturer, and a tobacco company.

Cargoes will initially be shipped on the Subic Super Shuttle (S3), a container barge service that offers an alternative transport mode for shippers hampered by the Manila truck ban. The service uses a vessel that can ship 138 twenty-foot containers between MICT and Subic Bay’s New Container Terminals 1 and 2.

“We will continue with this initiative until we have met the desired number of containers inside the two Manila ports, which is equivalent to a 60% yard utilization,” Sta. Ana said.

At the height of the port congestion in May and June, yard utilization at Manila ports were around 90% to a little over 100%. The congestion at one point has caused some international carriers to skip Manila ports and to leave behind containers in neighboring ports Hong Kong, Singapore and Taiwan, which are now starting to find their way to Manila.

In a separate venue, President Benigno Aquino said the government is “on track” in addressing port congestion.

“Everything and anything that has been thought of that can address these congestion problems is being done,” he noted, citing in particular the October 1 imposition of P5,000 per day penalty for overstaying Customs- and arrastre-cleared containers.

“We are clearly on track to bring the situation to normal levels,” Aquino said, but acknowledged that the Christmas peak season poses a problem due to influx of shipments.

Last week, PPA and Manila port operators had already transferred over 1,000 overstaying boxes to Subic port.

Christian Gonzalez, ICTSI Asia-Pacific head, told PortCalls on the sidelines of the press conference that the port operators will soon issue implementing rules for the transfer of overstaying containers to Subic.

Those rules include freezing storage and arrastre fees from the time cargoes are taken out of Manila ports. After settling Manila-related charges, cargo owners of the transferred containers must pay charges they will incur in Subic, including the cost of transfer by ship.

Based on its inventory, PPA said a “significant number” of Customs-cleared cargoes as well as Customs-cleared cargoes with gate pass are stuck at the Manila Port, while a “modest number” of pre-cleared containers are waiting for anchorage or are in transit.

Customs-cleared containers are those whose duties and taxes have been paid at the Bureau of Customs (BOC), but not the cargo-handling fees. Customs-cleared cargoes with gate pass have paid both duties and taxes and cargo-handling fees.

 

Last mile route

Other measures being implemented by the Cabinet Cluster on Port Congestion (CCPC) to help in decongestion efforts include the “last mile” route so trucks can deliver cargoes from ports to warehouses.

The scheme allows cargo trucks to ply, from Sept 8 to 22, practically any route without restrictions even during truck ban hours, provided they also pull out cargoes from Manila ports on Sunday and Monday morning (Sept 7-8 and Sept 14-15). These trucks should also have been issued on Sept 7 and Sept 14 stickers by the Metro Manila Development Authority (MMDA), and their rear bumpers painted with the word “Lasmayl”.

The only areas off limits to last mile route-authorized trucks are EDSA from Magallanes to Balintawak; Katipunan from Santolan to Commonwealth Avenue; Ortigas Avenue from Santolan to Sta. Lucia; Taft Avenue; C.M. Recto; and España from Rotonda to Quezon Boulevard.

Starting Sept 8 the CCPC, led by Cabinet Secretary Rene Almendras, also opened an extra lane on which trucks may operate along express trade lanes during truck ban hours (from 6 am to 10 am and 5 pm to 10pm). The double lane policy excludes Roxas Boulevard.

The CCPC is likewise allowing MMDA and the National Capital Region Police Office to take over traffic management along national roads leading to and coming from the Port Area to guarantee smooth flow of operations and facilitate the unclogging drive.

The cabinet cluster continues to appeal to the private sector to take advantage of weekends, Monday mornings and holidays to pull out their containers, as traffic flow on these days is lighter and restrictions more relaxed.

PPA and port operators will also offer incentives to cargo owners pulling out their cargoes this coming weekend and Monday morning.– Roumina Pablo

Photo courtesy of Subic Bay International Terminal Corp.