Truck ban stirs up activity at Batangas, Subic ports

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Subic container terminal. Photo from www.ictsi.com.
Subic container terminal. Photo from www.ictsi.com.
Subic container terminal. Photo from www.ictsi.com.

There are concrete signs of more shipping activity at the Batangas and Subic ports, thanks in large part to the Manila daytime truck ban.

While the ban has somewhat eased since May 31 with the opening of 24/7 express truck lanes in certain designated Manila streets, much damage has already been inflicted on the supply chain from the time the ban was implemented in late February.

The truck ban has led to higher trucking rates, international vessels skipping Manila ports, a pileup in containers at Manila ports, reduced Bureau of Customs collections, and delays in production of goods.

But now more shipping lines and shippers are looking to use Batangas and Subic ports.

“MCC now has two vessels calling the Port of Batangas (Saturday and Sunday weekly sailing),” Philippine Economic Zone Authority (PEZA) deputy director general for policy and planning Tereso Panga told PortCalls in a text message.

“APL will do the same, also within the month of June. We were told MOL and Evergreen are seriously considering to call the Port of Batangas,” Panga added.

Batangas container terminal operator Asian Terminals, Inc confirmed MCC’s additional services, which it said “would provide greater market connectivity at faster sailing time for our customers, most especially the locators at Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon).”

ATI said more carriers are “keenly looking at adding BCT (Batangas Container Terminal) to their port rotation, including ship deployment by another international carrier within the month.”

PortCalls sources said LBC Express will soon make trial shipments at the Port of Subic. If all goes well, the country’s biggest express operator will be using Subic for their import shipments.

The executive of a big international container line also visited Subic recently to take a look at the facility.

 

Effects of Manila truck ban

Earlier, PEZA spokesperson Elmer San Pascual said close to 20,000 workers in 50 PEZA Southern Luzon companies have been forced to go on leave or work lesser hours due to delays in the delivery of raw materials because of the Manila truck ban.

About 60% of the total 3,276 PEZA registered companies are located in Calabarzon.

PEZA also reported slower growth in exports from Luzon ecozones. San Pascual said locators are cutting down production as raw materials now takes five days from the previous one day to arrive from the port to the factories.

San Pascual said PEZA is trying to convince locators to use Batangas while talking to Japanese and Korean shipping lines to call at the port.

He added an independent study showed that 65% of Calabarzon locators can ship their exports using Batangas port.

Despite attracting only a third of its investment targets, Semiconductor and Electronics Industries of the Philippines, Inc. president Dan Lachica said the group is still keeping its 2014 export growth forecast of 5%, a figure that excludes the effects of the truck ban.

Electronics account for more than 60% of the country’s total exports, with manufacturing hubs mostly in Calabarzon.

The Chamber of Food Manufacturers of the Phils in a meeting called for by the Department of Trade and Industry on May 28 said most factories are now operating at 50% because there are no more available raw materials and packaging.

It said the country’s credibility will be affected because manufacturers cannot meet demand of foreign countries on time.

The Chamber of Food said it is campaigning for manufacturers to use Batangas and Subic ports, adding that Nestle is already directing some of its shippers/containers to Batangas.

The Chamber of Automotive Manufacturers of the Philippines, Inc. also said timelines for production could no longer be met due to uncertainty in the shipment of goods. — Roumina Pablo