Subic Bay NCT 2 now official extension port of Manila

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Subic_with_shipSubic Bay New Container Terminal 2 (NCT 2) has been designated as an extension of the Manila port as part of government measures to decongest the country’s main gateway.

The designation of NCT 2 is covered by a memorandum of agreement (MOA) signed by Philippine Ports Authority (PPA) general manager Juan Sta. Ana and Subic Bay Metropolitan Authority (SBMA) chairman Roberto Garcia.

As a “Subic Bay Freeport-Manila Extension Port,” NCT 2 can now be the destination of foreign vessels that have cargoes to load, unload, and transship indicating the Port of Manila as port of destination in the bill of lading and other shipping documents.

At a press conference on September 10, Garcia clarified that SBMA is neither ceding its authority nor turning over jurisdiction over the ports in Subic to the PPA.

Under the agreement, PPA will solely determine whether laden and empty containers should be loaded and unloaded at NCT 2 if it sees there is no available berth for a vessel and its cargo at the Port of Manila (POM).

In making the decision, however, it must consider not only availability of berth at POM but also other factors such as the amount of time before a vessel could berth, as well as a MOA provision stating that if SBMA determines that, for a given time, NCT 2 cannot accommodate the loading, unloading, and transshipment of vessels, NCT 1 may be utilized as temporary port with the approval of SBMA’s chairman.

SBMA also retains the right to reject containers that pose health or security risks to the residents of Subic Bay Freeport Zone (SBFZ) where the port is located, emit noxious odors, or violate any health, security, or environmental regulations of SBMA.

Recently, SBMA shipped back 16 containers to the Manila International Container Terminal because they emitted a foul smell and had leaks of an unknown substance. The containers were part of a batch of overstaying containers at Manila ports that was transferred by the government to Subic to free up space in Manila.

SBMA, under the MOA, also has the right to implement its own decongestion measures, when necessary, “to ensure the efficiency and attractiveness of the SBFZ (Subic Bay Freeport Zone) as an investment, tourism, and logistics hub, including, but not limited to rejecting vessels and/or cargoes.”

PPA and SBMA will issue operational guidelines within 15 days of the MOA’s effectivity.

The two agencies will also coordinate with the Bureau of Customs, port operator International Container Terminal Services, Inc., NCT 1 and NCT 2 operator Subic Bay International Terminal Corp, and other public or private stakeholders to hasten cargo processing and resolve any issues on cargo movements.

SBMA-prescribed rules and regulations will apply on all vessel and cargo movements within NCT 2, as well as on port fees and other charges on vessels and cargoes covered by the agreement. In addition, revenue from NCT 1 “including vessel charges, cargo charges, storage charges and overstaying penalties shall accrue solely to the account of the SBMA.”

The agreement is valid for 12 months “unless sooner revoked in writing by mutual agreement and circumstances so warrant.” – Roumina Pablo