Survey reveals why shippers choose Manila port over Batangas, Subic

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Manila International Container Terminal. Photo courtesy of port operator International Container Terminal Services, Inc.
Manila International Container Terminal. Photo courtesy of port operator International Container Terminal Services, Inc.
Manila International Container Terminal. Photo courtesy of port operator International Container Terminal Services, Inc.

Philippine transport stakeholders prefer shipping through Manila port for its accessibility, availability of service providers, and reliability of shipping schedule, a recent discussion paper by the Philippine Institute for Development Studies (PIDS) showed.

In “A System-wide Study of the Logistics Industry in the Greater Capital Region”, PIDS conducted surveys and interviews and received responses from 17 shippers and consignees, mostly from the manufacturing sector and the airfreight business. The survey and focused group discussions were conducted from August to September last year.

Based on survey results, 16 of the 17 or 94% of the respondents said they used Manila for shipping. Two said they had already shipped through Batangas port, while only one had used Subic port. The study noted that respondents used more than one port.

Shippers and consignees preferred Manila port because it was the most commonly used destination by shipping companies, it was closer to their warehouse, and it hosted more carriers.

In another survey of 19 freight forwarders and service providers, findings showed that all used the Port of Manila, while seven used Batangas, three Subic, two Cebu, and three other ports.

As with shippers and consignees, the service providers said Manila port had the available shipping lines, plus it was located close to the consignees, importers, and warehouses. Moreover, the port was accessible at lower costs and cheaper rates, and the transaction and release of goods was easier with the presence of specialized Customs staff.

Respondents, however, indicated dissatisfaction with the red tape, noting there were too many Customs issues at the facility, the study said.

Most were neither satisfied nor dissatisfied with the performance of the Port of Manila.

For Batangas Port, respondents were, on average, almost satisfied (3.8 score with 5 as highest) with the convenient road condition and less stringent traffic regulation but dissatisfied (2.3 to 2.9) in terms of frequency of shipping schedule, availability of allied service providers, reliability of shipping schedule, and sufficiency of cargo-handling facilities.

For Subic Port, respondents were, on average, satisfied with the convenient road condition but dissatisfied with the infrequent shipping schedule and longer travel time.

The study group also interviewed 20 truck operators, all of who opted to use Manila port for its nearness to their garage and their destinations. Some respondents used Batangas port from time to time and none used Subic port.

Truckers considered the reliability of shipping schedule, availability of service providers/shipping companies/forwarders, travel time, and frequency of shipping schedule as the most important factors in choosing a port.

As for who got to choose which port to use, 39% of the service providers said the consignee and shipper agreed on the port choice, 22% said it was the shipper, another 22% said it was the consignee, while 17% answered that others did without specifying who.

About 69% of the truckers said they let the consignee decide, 31% gave the decision-making to the shipper, and 13% left it to the customs broker.

Similar sentiments

The survey results showed the same concerns aired by stakeholders during the Northern Luzon Shipping Summit held in Clark last year, where shippers and locators said they did not use Subic port because of the limited number of carriers. Manila, on the other hand, offered more carriers and connectivity to other ports.

Subic port to date is now serviced weekly by five shipping lines – APL, Wan Hai, SITC, NYK, and Maersk Line – which directly connect the northern Luzon hub to Japan, China, and Singapore. Swire Shipping calls the port once a month.

Batangas, on the other hand, is a port of call for MCC Transport and SITC.

Batangas port operator Asian Terminals Inc. said the number of truck operators—based either in Batangas or Manila—in the area has also increased since last year. – Roumina Pablo