The Market Monitor Minding the Nation's Business
Luis Leoncio
Port stakeholders have proposed in a report the adoption of permanent and coordinated solutions to prevent a resurgence of the congestion at the Manila ports largely brought about by the Manila truck ban which the city government lifted last Sept. 13.
The report, which was made available to logistics publication Port Calls, highlighted the need for the government to focus on stepping up delayed infrastructure works particularly roads that would provide alternate routes for cargo trucks that enters and exits the Manila ports.
Thes report called “Port and Road Infrastructure for Greater Luzon Trade September 2014” gathered inputs from port operators Asian Terminals Inc., International Container Terminal Services, Inc., and Manila North Harbour Port Inc.; and industry groups Association of International Shipping Lines, Integrated North Harbor Truckers Association, Philippine Liner Shipping Association, Philippine Inter-Island Shipping Association, and Port Users Confederation Inc. to arrive at a comprehensive solution to the port problems.
The backlog in the movement of container boxes at the Manila ports resulted in a crisis that greatly affected the economy resulting in higher prices of commodities and an noticeable slowdown in growth in the second quarter.
President Aquino issued Executive Order 172 last Sept. 16 to compel port users to work together in easing the congestion at the Manila ports and at the same time mandating both the Subic Freeport and the Batangas port as Manila port extensions during an emergency situation that the Philippine Ports Authority (PPA) will determine.
EO 172 noted that congestion at the Manila ports is “one of the major factors hindering the free flow of goods and services passing through the ports, with its domino effects immediately cascading and impacting on the demand-supply chain and eventually to the country’s economic growth and performance.”
“Supply chain disciplines underpin Philippine international and domestic trade, especially those based on the use of the container system,” the report stated, adding that “any serious disruption of cargo flow lowers efficiency, generates additional costs and ultimately represents a cost to the economy.”
Disruptions on the import side can be found along the length of the supply chain, from the ship and port to the road, warehouse, container yard, and factory, the report said. These include long berthing and waiting time, bad weather, crane and equipment downtime and stoppage, overstaying containers, strikes, slow clearances, shortage of manpower, road traffic and breakdown, truck bans, floods, security and hijacking threats, poor inventory management, full container yards, and lack of available space.
Hurdles to efficient export flows are almost the same, the report stated, with the addition of delays in production and releasing of documents from the point of production.
The report noted that bottlenecks in the supply chain manifested when the Manila truck ban was imposed in February 2014, the most pernicious being the congestion at Manila ports.
The report sought as intermediate action plans the moratorium on truck bans; operation of multiple 24-hour single lanes, especially for the North, South, and Cavite expressways for all cargoes; provision of a 24-hour free flow exemption policy for refrigerated, perishable, and dangerous cargoes; exclusion of Saturdays from truck ban rules; elimination of arbitrary apprehension of trucks by government enforcement agencies, strict implementation of laws against parking of trucks on roads within the port zone; the fast-tracking of the construction of the North Harbor Link road and Metro Pacific Port Connector Road system; implementation of the 24/7 vehicle booking system; crafting of legislation to enable transfer of long-staying boxes to inland container depots and the penalizing of use of terminals as warehouses.
Also proposed were the fast-tracking of the development of yard capacity behind Berth 7 at Manila International Container Terminal; elimination of bottlenecks caused by informal settlers and illegal businesses on Bonifacio Drive, Anda Circle, and R10; speeding up of the Manila North Harbor Port modernization program covering its facilities, cranes and manpower; maximizing efficiency of the port area by identifying and clearing underutilized areas including relocating informal settlers and providing housing for port workers; and the drafting of a study to improve the Manila port network.
Long-term measures were also proposed including the naming of an agency or person with authority and accountability to oversee planning of the transport system to ensure supply chain efficiency; formulation of a master plan for the whole Port Area of Manila to accommodate long-term growth in trade; the drafting of a master plan for staged expansion of Port of Batangas to accommodate present and future Laguna- and Batangas-based trade for both international and domestic cargoes; the creation of a master plan for staged expansion of Port of Subic to accommodate present and future Subic-Clark-Tarlac-based trade for both international and domestic cargoes.
A master plan for an access road system from Cavite to Manila Ports, including an underground tunnel running from Vito Cruz to the port and to be located under the Roxas Boulevard area that has a waterfront park above it was also proposed.
The report also sought a far-reaching strategy and master plan to encourage business relocation to other development hubs within or outside of Luzon.
The ultimate objective should be the development of five excellent ports serving international and domestic trades to give shippers, consignees, shipping lines, and logistics providers more choices based on efficiency levels taking into account robust economic growth.
The report said the combination of immediate and long-term action plans promises to deliver workable solutions that play a meaningful part in keeping Metro Manila moving while maintaining the integrity of international and domestic supply chains.
It added that “integration not separation” between city and port is “the lesson to be learnt from global experience.” it said.
“Together, the two entities can deliver a larger critical mass of beneficial commercial activity—one feeds off the other.”
The positive coexistence of both, however, requires hard work and coordinated planning, the report added, citing two notable port-cities—Melbourne, Australia and Vancouver, Canada—as examples.
A direct port access road is also seen as essential for port efficiency, vessel berth stay time, and optimum road transport, according to the report.
“The root cause of congestion is the lack of a dedicated port access road to the Manila ports,” the report said.
The North Luzon Expressway-South Luzon Expressway connector road proposed by Metro Pacific Transport Corp. with a connection to the three ports “will resolve the current issues and concerns,” it said.
The report added that Metro Manila has an urgent need to catch up with the delivery of appropriate road infrastructure and lay solid plans for the future.
These plans as spelled out by transport stakeholders “can build towards the ultimate goal of adding new port capacity in tandem with supporting road system development” and are essential to obtain optimum use of the new port facilities and achieve efficient supply chain operations to support growth in overall trade, the report said.