The Philippine Economic Zone Authority (PEZA) has again extended for one year the 50% discount on processing fees for ecozone import and export shipments that go through the Batangas International Port (BIP) to facilitate full utilization of the Southern Luzon port.
Under PEZA memorandum circular (MC) 2015-005 dated January 22, 2015 and signed by PEZA director general Lilia de Lima, the discount covers the period January 2015 to December 2015.
Philippine Ports Authority general manager Atty. Juan Sta. Ana told PortCalls in a text message they will also renew for another six months the 90% reduction in port charges and other vessel-handling related fees in Batangas that expired last January. Sta. Ana, however, did not provide details.
“We are glad to note that since we started this advocacy in 2008 through our conduct of seminars for ecozone locators and the grant of reduced processing fees in 2011 for ecozone shipments in BIP, the utilization of the said port by our ecozone location has now increased,” said de Lima.
Batangas port operator Asian Terminals Inc. (ATI) reported that volume at the Southern Luzon facility soared 762% in 2014, ending the year with 98,000 twenty-foot equivalent units, its highest thus far in a single year.
ATI said BIP continues to expand its role as a comprehensive gateway for the Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) area, providing shippers direct connectivity to Hong Kong, Singapore, Taiwan, Japan, Indonesia, and other global hubs through regular weekly vessel calls.
Low utilization of Batangas port
But even with record container volumes BIP, which has an annual capacity of 400,000 TEUs, is still apparently underutilized.
De Lima noted that “despite the 50% reduction in all PEZA processing fees for ecozone import/export FCL shipments, the BIP remains to have low utilization. We need to bring in more container volumes and at the same time enhance the trade facilitation services at the BIP so we can be assured of more ship calls and freight cost savings to the benefit of our ecozone locators and all BIP users and stakeholders.”
She urged ecozone locators to “make an extra effort to promote and maximize the use of the BIP by nominating in the Bill of lading the discharge and/or loading of their containerized cargoes via the said port. As key drivers of seaborne trade, the ecozone locators can do so much to help balance the port container traffic distribution by shifting their Calabarzon-destined shipments from Manila ports to the BIP.”
Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) president Dr. Danilo Lachica told PortCalls the 50% reduction in PEZA processing zones for Batangas port users helps “especially since Manila port was congested again through the holidays.”
Lachica noted that about 30 SEIPI member firms and companies from other industries such as Nestle and San Miguel ship through Batangas.
The PEZA incentive program was initially launched from December 10, 2011 to June 10, 2012 under Memorandum Circular No. 2011-035 to support MCC Transport, the intra-Asia subsidiary of Maersk Line that had started weekly calls at BIP.
Two days before the memorandum expired, PEZA inked MC No. 12-18 extending the discount for another six months ending December 2012. This was followed by PEZA Board Resolution No. 13-296 that again extended the discount from April to December 2013.
On January 20, 2014, PEZA once more made an extension for another year, ending December 2014. – Roumina Pablo
