Beruflich Dokumente
Kultur Dokumente
Copyright 2016
Published by
Philippine Institute for Development Studies
Printed in the Philippines. All rights reserved
The views expressed in this book are those of the authors and do not necessarily
reflect the views of any individual or organization.
Table of Contents
List of Tables, Figures, and Boxes ....................................................... vi
Foreword .................................................................................................. ix
Preface....................................................................................................... xi
List of Acronyms .................................................................................... xiii
Introduction ............................................................................................. 1
Objectives ................................................................................................. 5
Methodology ............................................................................................ 6
Review of Literature ............................................................................... 6
Analysis of Findings from Survey and Focus Group Discussion ... 18
Analysis of the Rail Transport Option ................................................ 51
Estimating the Economic Effect of Port Congestion ...................... 73
Analysis toward a Desirable Policy Direction ..................................... 74
Conclusions and Recommendations .................................................... 92
Proposed Measures and Actions, and Their Timelines .................... 96
References ................................................................................................ 97
The Authors ............................................................................................. 101
viii
Foreword
The Philippines is one of the emerging logistics hubs in the world. Our
ports give foreign and local freight forwarders and logistics services
providers not only a strategic but also a cost-effective venue to store
and trade products.
However, many problems are currently threatening the potentials
of this industry in the world market. Issues such as inadequacy of
infrastructure, absence of a national transport and logistics master
plan, and often unclear and confusing government regulations cause
investors to shy away from our local market. There is a clear need to
address these problems facing the transport and logistics industry to
attract more foreign direct investments and stimulate our economic
growth in the long run.
This book gives a review of the issues and problems in the major
Philippine ports and provides a list of action plans, programs, and
projects that can address these concerns. An important contribution
of this book is the action needed to ease the congestion in the Port of
Manila and the underutilization of the Batangas and Subic Ports.
The Institute hopes that the recommendations raised in this
study may lead to further researches, discussions, and actions on
the formulation of a national multimodal transport and logistics
development plan that can best address the concerns of our countrys
logistics industry.
GILBERTO M. LLANTO
President
ix
Preface
This book was motivated by our collective desire to improve our
transport and logistics industry, and our economy in general, and to
inspire our leaders and policymakers to instigate reforms in policies
and plans that can enhance trade flows and infrastructure.
While the national government has already bared some plans on
how to improve our countrys domestic and international trade, we
believe evidence-based policy researches, such as this one, can stir it
to take immediate and bold steps in addressing the concerns of this
industry.
Our logistics industry has so far been recognized internationally
as one of the possible growth markets for logistics service providers.
However, infrastructure, policy, regulatory, and other issues continue
to compromise its growth potential. This book is our own share in
finding a solution to the development constraints of the industry.
Through this, we hope that there will be a greater understanding
of the issues and problems facing this industry. We believe that it is
only when we are properly informed that we can do our part in the
improvement of our economy.
Sincerest thanks and appreciation go to all individuals who
shared their knowledge and experience with our team to make this
study possible.
AUTHORS
xi
List of Acronyms
AISL
ATI
BLT
BOC
BOT
CALABARZON
CICD
CNMEC
CPC
CTAP
DOF
DOTC
DPWH
DTI
DWT
EDC
EDSA
E2M
EO
FCL
FGD
FTEB
GCR
GDP
GRT
GVW
HSH
ICD
ICTSI
INFRACOM
PPA
PPP
PSB
RA
ROW
SBITC
SLEX
TEU
UNESCAP
US
UVVRP
VDT
VHT
xv
Introduction
The Port of Manila, which is the largest seaport in the country, has
been recognized as the most widely used port in the Greater Capital
Region (GCR). In 2012, the volume of foreign container traffic in
the Manila Port grew by 6.7 percenta marked increase from the
3-percent growth rate in 2011. Consequently, the operations of trucker
associations, which are engaged in the delivery of cargoes, intensify.
Recognizing the detrimental effect of such congestion in the
streets of Metro Manila, the City of Manila imposed a truck ban in
2014 that limited the operating hours of container trucks plying the
city streets. However, during a discussion among the officials of the
Department of Public Works and Highways (DPWH), Philippine Ports
Authority (PPA), Bureau of Customs (BOC), trucker associations,
and shippers, it was noted that there is an apparent mismatch in the
operating hours of the concerned stakeholders, to wit: the BOC and
the container yard operators, as well as the warehouses of retailers,
distributors, and supplierswhich are supposed to receive the
cargoesessentially start operations when the truck ban already takes
effect. Given this situation, the local government of Manila softened
its stance on the truck ban and allowed the trucks to traverse the streets
from 10:00 a.m. to 3:00 p.m. The concerned stakeholders were then
given six to eight months to address the said issue; otherwise, the local
government of Manila will reimpose the total truck ban during the day
(i.e., from 5:00 a.m. to 9:00 p.m.).
To provide a brief background, the Batangas Port was established
to support industrial trade between the Cavite-Laguna-BatangasRizal-Quezon (CALABARZON) region and the rest of the country,
and help decongest the ports in Manila. The Subic Port, meanwhile,
was developed to promote growth in Central Luzon. However, based
on the 2012 statistics on foreign container traffic volume, as reported
by the National Economic and Development Authority (NEDA),
the utilization rate of the Batangas and Subic Ports remained low at
2.3 percent and 6.1 percent, respectively, whereas the utilization rate
of the Manila Port was recorded at 71.6 percent. Noticeably, despite
Introduction
The BOC has identified 40 agencies to be connected to the NSW, but 10 agencies remain to be connected.
These agencies include the National Statistics Office and the Bangko Sentral ng Pilipinas (Llanto et al. 2013).
Objectives
This study will look into the entire logistics industry in the GCR
through a system-wide approach that would consider the situation
of the ports and port operators, customs, truckers, and warehousing,
among others.
Objectives
The objectives of this study are the following:
1. To analyze the issues and problems that gave rise to the congestion
of the Manila Port and the underutilization of the Batangas and
Subic Ports through a logistics system-wide approach;
Table 1. History of the Manila truck ban
Date
Event
February 4, 2014
City of Manila Ordinance No. 8336 prevents trucks with gross weight of
4.5 tons and above from plying city streets from 5:00 a.m. to 9:00 p.m.
The truck ban was modified to provide a five-hour window (10:00 a.m.
3:00 p.m.) for loaded trucks for six months; trucks with empty containers
were not covered.
June 9, 2014
The Metro Manila Council issued a resolution allowing cargo trucks from
Manila ports to use an express lane on Roxas Boulevard for 24 hours a
day, Mondays to Sundays, except Fridays, from June 10 to December 10,
2014.
September 1, 2014
September 8, 2014
MMDA implemented the last mile project that allowed 3,000 trucks to
move the cargoes that had long piled up at the ports and bring them to their
warehouses up to September 22, 2014. The trucks with Lastmayl stickers
were allowed to complete their journey during the hours covered by the
truck ban in Manila and other cities.
Manila Mayor Joseph Estrada issued EO 67 that lifted the truck ban
indefinitely.
President Benigno S. Aquino III issued EO 172 that declared the ports of
Batangas and Subic as extensions of Manila ports during times when there
is port congestion and other emergency cases to be determined by the
PPA.
Source: Authors
2.
Methodology
The first phase of this study investigates the factors that affect
the decision of shippers, freight forwarders, logistics services
providers, and truckers on their choice of ports. This phase employs
the survey-interview approach, as well as focus group discussions
(FGDs), to achieve its objectives. The questionnaires are tailor
fitted for each research stakeholder. The questionnaire for shippers
requires information on mode of service, types of goods shipped,
usage of port, and important attributes for choosing a port, among
others. The questionnaire for freight forwarders, logistics services
providers, and truckers requires information on fleet characteristics,
freight characteristics, commodity characteristics, usage of port,
and important attributes for choosing a port, among others.
The second phase of this study uses a rail option model to look
at the use of the rail system to transport goods in and out of the ports.
One key aspect of this rail system revival is the location of an inland
container terminal that could consolidate the freight to be moved by
rail to and from the port.
Review of literature
Metro Manila is the most populous region in the country, with
inhabitants reaching roughly 12 million. It is not only the center of
business and commerce but also the economic and political capital
of the Philippines. To sustain the increasing demands and needs of
the metropolis, there has to be a stable flow of goods and services
Review of Literature
Review of Literature
One way to discuss the current status of the port and shipping
sectors in the Philippines is by analyzing the competition policies and
regulatory framework that directly affect the industry. In 2005, the
Philippine Institute for Development Studies (PIDS) discussion paper,
Competition policy and regulation in ports and shipping (Llanto
et al. 2005), provided an assessment of the government policies and
programs that promoted competition in these sectors. The paper
gave a detailed analysis of the state of competition and regulation of
ports in the Philippines and presented the many deficiencies, as well as
improvement measures, that were needed to be addressed. The policy
and regulatory reforms provided in the paper played a significant part
in this study.
Maritime transport, according to Llanto et al. (2005), is the
most prominent means of facilitating the movement of commodities
and people within and outside the country. The inefficiency of and
the high costs involved in the maritime transport system in the
Philippines, therefore, directly impede domestic and international
trade integration and hinder the productivity and competitiveness
of exports and tourism. As the Philippines aims to become an
international maritime hub, such as Hong Kong and Singapore,
drastic steps have to be taken to tackle these inefficiencies,
which were caused by: (1) inadequate port and vessel capacities,
(2) ineffective ports management and administration, and (3)
constraints arising from anticompetitive policies and regulation
(Llanto et al. 2005, p. 5). The paper also discussed how competition
policies and changes in the framework can encourage private sector
involvement, which, in turn, will lead to modernization and valueadded logistics services.
Port efficiency is a vital component of the maritime industry.
An efficient port needs to serve as a streamlined point for both
land and maritime transport routes. This strategy not only reduces
logistics costs but also results in greater convenience. It also lowers
the costs of goods that may otherwise be passed on to consumers.
In line with this, Llanto et al. (2005) noticed that up to 40 percent of
the predicted maritime transport costs for coastal countries can be
10
Review of Literature
11
12
forces and their effect on the society. The study showed, therefore,
that the government should design sustainable transport policies and
balance environmental, economic, and social concerns. The study
conceded that the subject concerns a large number of stakeholders
with competing priorities, but the solutions need to be acceptable to
all stakeholders and should be for the overall benefit of Metro Manila
(Sinarimbo 2001).
Another study under the NCTS gives an insight on why
CALABARZON is a favorable location for manufacturing firms, and
takes into consideration how the Port of Manila is an integral part
of the logistics supply chain of manufacturing in the region. Though
technical in its description on the use of technical concepts in the
analysis, the study gives important insights as to how manufacturers
are affected by the transport situation in the country. Chief among
the concerns of manufacturers is how to boost efficiency in the
transportation of goods from production facilities to distribution hubs.
The Port of Manila was again taken into consideration as an important
hub, and one of the recommendations and points of concern was to
create infrastructures to boost efficiency (Tiglao 1995).
With the increase of container traffic and the majority of
container cargo offloaded in the Port of Manila, there was a subsequent
increase of vehicular traffic significantly from cargo trucks in the City
of Manila. The local government of Manila, which was concerned
with the congestion of vehicular traffic on the city streets, imposed a
truck ban limiting the operating hours of container trucks transiting
the city. However, trucking associations and shippers, as well as the
DPWH, PPA, and BOC, expressed apprehension to the policy as
there was an apparent mismatch with the operating hours of the
stakeholders. The stakeholdersfrom the Customs to container
yard operators, and the warehouses of retailers, distributors, and
suppliersnoted how their normal operating hours fell within the
hours when the truck ban took effect. The local government relented
and allowed trucks to ply the streets of Manila at certain times during
the day. The stakeholders were given six to eight months to address
and adapt to the issue.
Review of Literature
13
14
Review of Literature
15
and NEDA (2014), could come from the reduced emissions and traffic
congestion in the city (Oxford Business Group 2014).
The Oxford report noted that in getting the estimate of the truck
bans effect on about a million manufacturing jobs, it assumed that the
CALABARZONs manufacturing component contributes 34 percent
of the countrys total manufacturing employment. CALABARZON,
as the second most densely populated region in the Philippines and
as an important industrial hub, is a big contributor to the countrys
GDP. Delays and inefficiencies caused by the truck ban, limited
transport options, and infrastructure bottlenecks would greatly affect
the manufacturing jobs in the region. Similarly, in estimating the
effect on GDP, the researcher expanded the real value of the export
commodities to include other nontechnology exports. After obtaining
the three-year average ratio of the larger set of non-electronic exports
to GDP, it applied the same percentages and took into account the
goods produced in the industrial zones in the region (Oxford Business
Group 2014).
Another study by Tiglao et al. (2005) assessed the effect of
the truck ban and the Unified Vehicular Volume Reduction Program
(UVVRP)2both travel demand management schemes adopted in
Metro Manila to ease traffic congestionon the freight forwarding
industry. A survey conducted for the study found that while a majority
of car users were in favor of the traffic management schemes because
of their effectiveness in reducing traffic demand during peak hours, the
freight forwarding companies were not as pleased. The implementation
of the truck ban and restrictions imposed by the UVVRP were
identified by freight forwarders to be two of the top major causes
of delay in their deliveries. The freight forwarders likewise observed
decrease in work hours and revenue.
In the study by Tiglao et al. (2005), the truck ban referred to the two types of truck ban restrictions: (1)
an all-day truck ban in EDSA from 6:00 a.m. to 9:00 p.m. during weekdays and (2) a peak-hour truck ban in
10 major thoroughfares from 6:00 a.m. to 9:00 a.m. and from 5:00 p.m. to 9:00 p.m., except on Sundays
and holidays. The truck ban applies to trucks with gross weight of more than 4.5 tons (4,500 kg). On the
other hand, the UVVRP or color coding is a restriction system based on the vehicle license plate numbers
(adoption of the odd-even scheme implemented in 1995).
16
Review of Literature
17
18
17
Gender
- Male
- Female
Mean age (years)
Number of years in position
Number of years of company in operation
Source: Authors compilation
6
11
37.88
7.53
15.50
19
12%
18%
FCL
LCL
29%
41%
FCL/LCL
FCL/LCL/Storage
4, 23%
1, 6%
1, 6%
3, 18%
2, 12%
3, 17%
20
5%
9.59%
9.59%
Manila
Batangas
76%
Subic
Others
Less travel me
0.00
0.50
1.00
1.50
2.00
2.50
2.71
2.53
2.59
3.00
2.88
3.00
3.50
3.24
3.00
3.24
No red tape
3.44
3.29
Affordable rates
4.00
3.71
3.76
21
4.47
4.65
4.71
4.59
4.59
4.59
4.71
No red tape
Affordable rate
4.76
4.82
4.88
4.94
22
Easing Port Congestion and Other Transport and Logistics Issues
23
Table 4 shows that 9 out of 17 are willing to use the train to move
their goods in and out of the port, if available, while 7 out of 17 are
not sure whether they will use the train. Those who are not sure would
like to know first the cost of freight by train as well as the security and
safety measures when shipping their goods through the trains. Only
one indicated that they will not use the train.
Because most of the respondents who were interviewed and
have responded to the online questionnaire are currently located in
Laguna, 13 of them would like the inland terminal to be served by
Table 3. Quantifying the time delay of cargo releasing
due to the truck ban
Before the Truck Ban
1 month
23 months
1 day
34 days
710 days
1 week
23 weeks
3 days
1 week
1 month delay
24
Number of Respondents
Yes
Not sure
No
Total
17
Number of Respondents
Percent of Respondents
13
76.5
Batangas
23.5
Bulacan
5.9
Cavite
5.9
Taguig
5.9
4.20
4.30
4.40
4.50
4.53
4.10
4.41
4.41
4.53
4.53
Affordable rates (cheaper than trucks all the way to/from port)
4.60
4.59
4.59
4.59
Safety by train
4.70
4.65
4.80
4.90
5.00
25
26
of imports. The next major effect is that the company incurred production
losses due to the delay in the arrival of shipment. This is followed by the
increase in the cost of freight and delay in the shipment of export.
The following additional concerns were mentioned by the
respondents on how the truck ban has affected their companies:
1. For those who are mostly importing, the arrival of their goods
or raw materials has become unpredictable or inconsistent.
This has affected their production operation because the raw
materials to be used have not yet arrived. Another effect of
delay in the production would be the loss of clients who are
waiting for the product to be produced because they may
look for other producers of this product.
2. Given the truck ban problem, which resulted in productivity
losses, the companies are still maintaining the number of
their workforce. However, expansion plans of the company
will be delayed until such time that this issue is resolved.
3. For those that are purely shippers, the limited supply of trucks
or inadequacy in the availability of trucks is a major concern.
It seems that the shippers are at the mercy of truckers as to
when they can bring their goods out of the port.
4. One recommendation is that there should be regular contact
or forum where the shippers, truckers, freight forwarders,
concerned government agencies, local government units
(LGUs), among others, can discuss and work together to
improve the industry.
According to the JICA and DPWH (2010) study, economic
zone locators experienced the same concerns and problems (i.e.,
high transport and hauling costs) as those interviewed for this study
even before the truck ban.
Poor road
infrastructure
0.00
1.00
2.00
3.00
3.50
4.17
Open to use Subic Port for import/export of goods given the company's locaon
Experienced loss of customers due to delay in the arrival of imported raw materials to produce goods
3.17
3.33
4.00
4.00
4.00
Open to use Batangas Port for import/export of goods given the company's locaon
5.00
4.67
4.50
4.67
5.00
4.83
6.00
27
28
Lack of traffic
management
29
19
Gender
Male
Female
11
8
41.0
8.0
12.7
No
21%
Yes
79%
100%
26%
50%
16%
90%
16%
70-85%
21%
30
10
8
6
4
2
Asia Pacic
Malaysia
Japan
Hongkong
Indonesia
Korea
Europe
Hong Kong
Korea
Israel
Malaysia
Morocco
Thailand
Europe
Singapore
United
States
China
Respondents
4
3
2
1
Australia
Asia Pacic
United
States
Japan
China
31
Respondents
10
8
6
4
2
Scrap metals
Medical equipment
Hardware products
Electronic products
Others
17%
Shipper
22%
Consignee
22%
Both
Consignee
and
Shipper
39%
Dairy products
Construction materials
Balikbayan boxes
Pharmaceutical products
Packaging materials
Hardware products
Transport equipment
Electronic products
Respondents
32
Easing Port Congestion and Other Transport and Logistics Issues
12
10
33
of 19); furniture and other wood products, and organic and inorganic
chemicals (4 out of 19); other food and live animals, and transport
equipment (3 out of 19); mineral fuels, lubricants, and related materials,
and cereals and cereal preparation. Garments and textiles, hardware
products, packaging materials, pharmaceutical products, wines and
spirits, Balikbayan boxes, construction materials, and dairy products
were not part of the list but were enumerated by the respondents
(Figure 12).
The respondents were then asked to identify the person who
makes the decision in choosing which port to use for the shipment.
Thirty-nine percent said that both the consignee and shipper agree on
the port choice. Twenty-two percent said the decision is made by the
shipper alone, while another 22 percent said it is the consignee alone
who makes the decision. The rest (17%) answered others but did
not specify the entity (Figure 13).
With regard to port usage, all respondents use the Port of
Manila. Seven out of 19 use the Batangas Port, while three use the
Subic Port. Two use the Cebu Port, and three use other ports.
According to the respondents, the most frequently used port for
shipments is the Port of Manila because of (1) the availability of
shipping lines; (2) it is easily accessible with less cost and cheaper
rates; (3) the location of the port is nearer to consignees, importers,
and warehouses; and (4) the transaction and the release of goods
are easier because of the presence of specialized Customs staff
(Figure 14).
The respondents were also asked to rate the following attributes
in terms of their level of importance in choosing a port to use for
shipment. A 5-point scale was used, where 5 is very important,
4 is important, 3 is neither important/unimportant, 2 is not
important, and 1 is definitely important.
According to the respondents, efficient cargo acceptance/release is the
most important attribute, while less stringent traffic regulation is the least
important (Figure 15).
In terms of port satisfaction rating, the respondents were
asked to rate the port on their level of satisfaction for each attribute
34
Figure 14. Ports used by freight forwarders and logistics services providers
20
18
16
14
12
10
8
6
4
2
0
Manila
Batangas
Subic
Cebu
Others
4.2
4.3
4.4
4.4
4.5
4.5
4.4
4.6
4.6
4.6
4.7
4.7
4.7
4.7
4.8
4.8
4.8
4.8
4.8
4.9
4.8
Figure 15. Important considerations when choosing a port for freight forwarders and logistics services providers
4.9
35
No red tape
Less stringent trac regulation
Assured space allocation (no shutouts or rollovers/no ooading)
Ecient cargo acceptance/release
Convenient road condition
Less travel time
Large space/container yard
Sucient cargo handling facilities
Reliable shipping schedule
Aordable port rates
Frequent shipping schedule
Aordable and reliable labor force
Availability of allied service providers/shipping companies/forwarders
Geographical scope/wide area coverage
0.0
0.5
1.0
1.5
2.0
2.5
2.4
3.0
2.6
2.7
Figure 16. Satisfaction rating of the Manila Port by freight forwarders and logistics services providers
3.5
3.2
3.2
3.2
3.3
3.3
3.4
4.0
3.6
3.8
3.9
3.9
4.1
4.5
36
Easing Port Congestion and Other Transport and Logistics Issues
0.5
1.0
1.5
2.0
2.5
2.5
2.3
2.3
3.0
3.5
2.9
3.0
3.1
3.2
3.3
3.4
Figure 17. Satisfaction rating of the Batangas Port by freight forwarders and logistics services providers
4.0
3.6
3.6
3.7
3.8
3.8
4.5
37
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.0
3.8
3.8
3.7
3.5
3.5
3.5
3.4
3.2
No red tape
3.1
3.0
3.0
2.6
2.5
Figure 18. Satisfaction rating of the Subic Port by freight forwarders and logistics services providers
4.5
38
Easing Port Congestion and Other Transport and Logistics Issues
39
A series of FGDs were conducted on July 15 and 22, August 22, and
September 10, 2014. A total of 25 peoplefrom 21 companies and
one from the Chamber of Customs Brokers, Inc.participated and
identified the following issues and challenges being faced by the Port
of Manila and the logistics system as a whole.
Port congestion
The participants were one in expressing that the logistics system of the
country is in a state of crisis today. Congestion at the Port of Manila
was common in the past, especially during the months starting from
July up to December, as imports are at its peak (see Box 1: Defining
port congestion). While this was the case, adjustments in the system
were appropriately made; thus, the reliability and predictability of
cargo movements were still achievable at an acceptable level. However,
the congestion at the Port of Manila triggered by the imposition of
the daytime truck ban by the City of Manila is considered the worst
Box 1. Defining port congestion
Port congestion is the term used for situations where ships have to queue up and wait
for a spot so they can load or offload. Ports only have a limited amount of dockage
and only so many cargo or container cranes. Ships usually have to wait in line to get
to the cranes or the pier because there is a high demand on the limited resources of
the port. The high traffic volume causes congestion.
The inadequacy of port capacity to cope with ship/cargo traffic to and from
the port results in delays in working the vessel and in handling cargoes beyond
reasonable period.
The causes of congestion are the following: increased demand for container
shipping, port constraints, poor management, strikes and other work-related
problems, truck driver shortage, too many vehicles being directed at a port, and the
increasing number of giant ships that causes unloading problems at the port.
Policies to relieve port congestion include congestion pricing, expanded rail
connections, establishment of off-dock container yard, and installation of highspeed gates that rely on optical character recognition, digital imaging, and other
technologies to speed truck processing and integrate truck/terminal operations.
Source: Ward (2014)
40
41
The City of Paraaque has imposed a truck ban on trucks weighing more than 5 tons on city roads from
6:00 a.m. to 9:00 a.m. and from 4:00 p.m. to 8:00 p.m., Mondays through Fridays. The ban, which was
initially enforced on the citys secondary roads, was expanded to cover the citys major roads starting August
25, 2014. It applies to 10-wheeler cargo trucks, trailer trucks, and transit mixers.
42
20
Gender
Male
Female
19
1
41.85
12.53
16.13
43
25.00%
Outsources services
Does not outsource services
75.00%
Figure 20. Commodities for outgoing shipment based on the truckers survey
Electronic products
18.75%
31.25%
31.25%
12.50%
Transport equipment
25.00%
18.75%
6.25%
25.00%
56.25%
37.50%
37.50%
25.00%
Others
the respondents use the Batangas Port from time to time, but none of
them use the Subic Port (Table 8).
The respondents were also asked to rate the level of importance
of each attribute in choosing which port to use (i.e., 5 for very
important, 4 for important, 3 for neither important/unimportant,
44
Figure 21. Commodities for incoming shipment based on the truckers survey
Electronic products
31.25%
37.50%
25.00%
Transport equipment
25.00%
25.00%
12.50%
31.25%
12.50%
31.25%
50.00%
100%
19%
0%
Source: Authors
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.1
4.1
4.5
4.6
4.5
4.5
4.3
4.3
4.3
4.2
4.1
4.1
3.9
3.8
No red tape
5.0
4.8
45
0.0
0.5
1.0
1.5
2.0
2.5
2.6
2.7
2.8
2.0
3.0
3.2
Less travel me
2.5
3.3
3.3
3.1
3.2
2.9
No red tape
2.9
3.5
3.5
4.0
46
Easing Port Congestion and Other Transport and Logistics Issues
47
48
Rent-seeking traffic
enforcement encountered by
truck drivers when on the
streets of Metro Manila
Constrained movement of
trucks (i.e., limited hours on
streets, assigned trucking
routes) due to the truck ban
Reduced number of
turnaround, effect on
revenue
49
50
policy for trucks for hire with green plates. The resolution provides
for a one-month suspension (June 28July 28, 2014) of Joint
Administrative Order 2014-01, which imposes higher penalties and
stiffer sanctions on traffic violations including colorum operations.6 The
LTFRB later extended the suspension until August 29, 2014 to give
more time for truckers to franchise Provisional Authority and to apply
for a Certificate of Public Convenience.7
MMDA, meanwhile, asserted its regulating power and continued
the crackdown of trucks even with the enactment of the resolution.
Hence, the trucks that operated during the onset of the resolution still
encountered corrupt law enforcers when plying the streets of Metro
Manila. Also reported was the delay in the release of the yellow plates,
which further restricted the operations of trucks. In addition, truckers
also faced the wrecking of trucks outside the assigned truck lanes
conducted by the Traffic Management Group of the City of Manila.
This group charged PHP 4,500 to claim each wrecked truck. MMDA
also took over the traffic enforcement in the City of Manila after the
truck ban was lifted.
All of these led to a more constrained movement of goods.
Truckers reported cases of delay in the delivery of goods to clients.
Businesses, therefore, incurred production losses and interruptions
that caused a temporary shortage of goods in the market. As a
consequence, consumers suffered from the slight increase in the
commodity prices during the latter part of the third quarter of 2014.
Further price increases may have been realized if the disruption in the
supply chain continued until the last quarter, which is the peak season
of imports. The abovementioned problematic scenarios and negative
economic impacts may still persist even after the issuance of EO 67.8
LTFRB (2014a)
LTFRB (2014b)
8
There is a Cabinet Cluster on Port Decongestion, which consists of the PPA, BOC, DTI, Department of
Finance, DOTC, Philippine Economic Zone Authority (PEZA), MMDA, and the private sector (i.e., Philippine
Chamber of Commerce and Industries, truckers [CTAP], shipping lines, and port operators).
6
7
51
52
Highlight/Remarks
Only a total of 452 kilometers of rail network were operational due to war devastation.
195456 Steam locomotives were replaced with diesel ones for modernization.
1955
The Bacnotan branch line, with a distance of 20.34 kilometers, was opened.
1964
1973
The San Pedro-Carmona branch line, with a distance of 4 kilometers, was opened.
1974
PNR reduced its railway operation from 1,059 kilometers to 811 kilometers due to
damages caused by typhoons that hit the country.
1975
The rehabilitation of the South Main Line started through a loan provided by the Asian
Development Bank.
1983
PNR suspended its operation between Dagupan and San Fernando, La Union.
1984
PNR abandoned the branch line between Guinobatan and Camaliga distance of
18.5 kilometers.
1986
PNR restored the branch line between Guinobatan and Daraga for long-distance service.
However, operations between Travesla and Legazpi were suspended due to weak railway.
1987
PNR suspended its operation between Polangui and Travesla due to weak railway tracks.
1988
1989
PNR suspended its operation between Malolos and Tarlac. PNR announced the
METROTREN plan for commuter service.
1990
The revitalization of the South Line Project started with financial assistance from the
Overseas Economic Development Fund of Japan.
1991
PNR partially suspended the operation of the North Main Line due to Mt. Pinatubos
eruption.
1996
A memorandum of agreement was signed between PNR and ICTSI, where the latter
leased the track of PNR Main Line South for the short-range railway cargo service
between MICT and the Calamba Inland Container Depot (CICD).
1997
The ICTSI introduced a short-range railway cargo transport service between MICT and
CICD.
2003
2003
The Arroyo administration contracted the North Rail Project with the China National
Machinery and Equipment Corp. (CNMEC) for an original contract cost of USD 421 million.
2009
CNMEC increased the North Rail Project contract price to USD 593 million.
2011
The Aquino administration terminated the North Rail Project upon declaration as
anomalous by the Supreme Court after legal questions and allegations of corruption
hounded the project.
2011
The Bicol Express train service operations was restored in September 2011.
2012
In March 2012, PNR added more train trips to Bicol: Mayon Limited De Luxe (runs every
Monday, Wednesday, and Friday) and Mayon Limited Ordinary (runs every Tuesday,
Thursday, and Sunday).
53
Table 9 (continuation)
Year
Highlight/Remarks
2013
All operations going to the Bicol Region have been suspended (September 2013).
2014
PNR Charter was extended for another 50 years and set to expire in 2064.
2014
DOTC proposed the PHP 271 billion North-South commuter rail project to NEDA,
stretching 89.7 kilometers from Malolos, Bulacan to Calamba, Laguna, using the existing
PNR right-of-way through the Greater Manila area (June 2014).
2014
ICTSI has indicated the incorporation of rail provisions into the new MICT yard to augment
the 21-hectare Laguna Inland Container Depot, linking the port to MICT by road and later
on by rail, for seamless transfer of cargo from the Port of Manila to the economic zones in
the South (September 2014).
54
Source: Metro Manila Urban Transport Integration Study (MMUTIS), JICA et al. (1999)
55
as shown in Table 10 and Figure 26. These growth rates are used to
estimate the total daily trips generated for the design years 2020 and
2030.
Occupancy factors. The occupancy factors used especially for
private vehicle users are shown in Table 11. This occupancy factor
is needed when modeling the transit assignment part. Table 11 is
used to convert person trips to vehicle trips, and this is explicitly
done for private car users. In the case of public transport, the
transit assignment modeling process distributes the public transport
commuters to the available public transport routes in the network.
Hourly truck and other vehicular flow trends. Based on the study by
Castro et al. (2003), the shape of the hourly truck traffic does not
1996
2010
2015
1.84
1.00
1.62
20092020
20212030
2.5
1.5
Figure 26. Estimated and projected passenger trips based on MMUTIS (1999),
and JICA and DPWH (2010) projections
56
Occupancy
3.5
9.3
30.8
2.6
coincide with the peak-hour volume during the day as shown in Figure
27. Using this finding, the impact of the truck traffic volume during
the peak hour, even though the former is less compared to other
vehicular traffic, as well as during the off-peak hour (after the truck
ban) will also be modeled.
Truck traffic is only around 34 percent during the morning or
afternoon peak-hour period of its 16-hour traffic volume. It reaches
its peak at around 9 percent of its 16-hour traffic volume during the
10:0011:00 a.m. period, and does not go lower than 8 percent during
the 10:00 a.m. to 3:00 p.m. time period. It is further assumed that
during the 8:00 p.m. to 6:00 a.m. period, truck traffic averages around
6 percent of the 16-hour traffic volume. These conditions were then
used in modeling the impact of truck traffic on vehicular flow, as well
Figure 27. Temporal distribution of vehicular traffic at cordon stations
57
58
Annual Growth
Rate
Increase Ratio
2009
2020
2030
2009
2020
2009
2030
2009
2020
2021
2030
Metro Manila
1,602,847
2,138,180
2,584,875
1.7%
1.7%
1.33
1.61
Neighboring
provinces of Metro
Manila
878,332
1,227,513
1,548,574
3.1%
2.1%
1.40
1.76
84,443
112,989
139,065
2.7%
1.9%
1.39
1.65
2,565,622
3,478,682
4,292,515
2.8%
1.9%
1.36
1.67
Total
Passenger car
1.0
Jeepney
1.5
Bus
2.2
Truck
2.5
59
60
Mining/
Construction
Manufacturing
Gross Average
Loading*
Net Average
Loading**
2-axle truck
5,840
5,060
3,589
4,917
2,401
3-axle truck
14,069
13,990
11,509
13,323
6,943
Truck-trailer
16,067
18,197
11,911
15,663
8,294
Delivery van
3,370
2,960
1,760
2,573
1,559
Weighted
mean truck
7,667
10,694
5,033
7,413
4,008
public trips are constrained to use the public transport system. Private
vehicle trips, meanwhile, can use whichever path they would like to
take, as they travel from their origin to their destination.
Furthermore, the scenario modeling conducted is shown in
Figure 29, with 2014 as the base year (without rail freight), and 2020
and 2030 as the design years (with and without rail freight). It should be
noted that by 2020, only the Calamba ICD is available; while in 2030,
it is assumed that the whole PNR rail network, as shown in Figure
25, is available with another operating ICD somewhere in Angeles,
Pampanga. JICA (2013b) recommends the establishment of the ICD
in the Angeles-Clark area of Pampanga.
Summary of data used in the modeling
1. Passenger demand in terms of person-trips using both the public
and private transport was obtained from MMUTIS (JICA et al.
1999), as well as from the JICA and DPWH (2010) report. The
passenger demand projections for both are not that different,
and the MMUTIS (JICA et al. 1999) was used.
2. The truck OD matrix in terms of the number of truck traffic
used was obtained from the JICA and DPWH (2010) report,
which has baseline data for 2009 and truck OD projections
for years 2020 and 2030 (Tables 15, 17, and 18). Table 15 was
obtained by dividing Table 16 by 4 (i.e., average truck load of
61
4 tons from Table 14). Table 16 is the commodity flow for 2009.
Tables 17 and 18, which are the estimated truck trips per day in
2020 and 2030, respectively, were used in modeling the future
traffic flow in these years. These are used to obtain the peakhour and off-peak hour trips, and are used together with the
peak and off-peak hours of both the public and private transport
passenger demand. As the data in the tables would show, more
than half of the truck trips occur within Metro Manila, and more
than two-thirds of the truck either originate from or destined for
Metro Manila. High volume of truck traffic also occurs within
each of the provinces aside from Metro Manila, such as Cavite,
Laguna, Rizal, and Bulacan. Note that Tables 15 to 18 were
directly obtained from the JICA and DPWH (2010) study.
3. The zoning system used was that of MMUTIS (JICA et al.
1999), with a total of 196 zones comprised of 181 zones plus 15
additional zones that consider the location of PEZAs external
zones and ports (i.e., Subic, Batangas, and Manila).
4. The roads, where truck traffic is allowed, and the truck ban
period were considered in the modeling.
5. In the design years 2020 and 2030, transport infrastructure
projects, both expressways and mass transit systems that have
been given a go signal to be constructed or are underway, were
incorporated in the transport scenario modeling.
6. It is further assumed that in year 2020, only the inland
container terminal in Calamba, Laguna is operational but with
the Batangas spur line of the PNR network already available.
By 2030, it is further assumed that the rail line going to Subic
is open, and another inland container terminal is available in
Angeles, Pampanga.
7. Because shippers and locators are open to the use of the rail
option, those that are competitively located with respect to the
proposed International Container Terminal, such as in Calamba,
Laguna, the percentage of those going to shift that was used in
the scenario modeling is 50 percent. Based on the survey, around
50 percent of the respondents favor the rail option.
8,520
4,956
5,514
Laguna
Rizal
Bulacan
220
244
257
108
166
14
289
Bataan
Zambales
Tarlac
Nueva Ecija
Pangasinan
Aurora
Outside of
study area
26
91
149
241
14
15
1,698
2,947
6,107
173
350
111
305
171
12
211
1,252
22
86
74
716
64
27
14
121 74,029
173
41
998
5,808
21
37
12
30
190
1,519
18
263
1,180 57,262
1,675
13
5,930
289
11
Total
34
365
Quezon
538
1,335
Batangas
632
Pampanga
1,023
50
1,605 33,516
1,288
2,283
Cavite
17,682
Metro
Manila
6,664
212
12
13
11
147
2,100
148
89
2,112
336
1,463
2,166
57
1,478
172
32
23
131
34
223
1,229
13
10
23
26
116
263
19
284
154
19
292
978
11
15
232
339
149
12
199
2,033
22
170
46
1,422
19
24
100
62
154
1,251
265
143
209
63
20
28
412
89
Metro
Nueva
Manila Cavite Laguna Rizal Bulacan Pampanga Batangas Quezon Bataan Zambales Tarlac Ecija
1,555
414
402
239
149
10
33
73
204
Pangasinan
1,844
70
430
333
39
10
82
84
29
360
37
23
336
Outside
of Study
Aurora Area
Total
642,714
1,700
27
1,546
1,350
2,203
923
1,226
2,397
6,033
4,442
85,287
63,772
47,772
22,752
401,284
62
Easing Port Congestion and Other Transport and Logistics Issues
2,528
Zambales
16
12
684
28
692
1,400
444
1,220
104
20
364
596
964
56
60
6,792
11,788
24,428
148
28
32
48
12
24
48
844
5,008
Total
32
120
256
108
56
484 296,116
88
344
296
2,864
84
16
32
12
36
44
32
760
6,076
72
1,052
692
164
3,992
23,232
1,156
56
Aurora
1,156
664
Pangasinan
Outside of
study area
432
Nueva Ecija
1,028
976
Bataan
Tarlac
880
Quezon
136
5,340 2,152
1,460
Batangas
24
22,056 4,092
Bulacan
Pampanga
4,720 229,048
19,824
200
Rizal
52
Laguna
5,152
9,132 70,728
26,656
848
32
48
28
52
44
588
8,400
24
592
356
8,448
1,344
5,852
8,664
228
32
20
5,912
688
12
128
92
524
136
892
4,916
52
40
92
104
464
1,052
76
1,136
616
32
76
1,168
3,912
12
44
32
60
928
16
1,356
596
48
796
8,132
88
680
184
5,688
76
96
24
400
248
16
616
5,004
1,060
12
572
836
252
20
80
112
1,648
20
36
356
6,220
1,656
1,608
956
596
16
40
20
28
132
292
36
24
816
12
7,376
280
1,720
1,332
156
16
40
328
336
116
1,440
28
148
92
1,344
Outside
Nueva Pangaof Study
Rizal Bulacan Pampanga Batangas Quezon Bataan Zambales Tarlac Ecija sinan Aurora Area
Cavite
Metro
Manila
Metro
Manila Cavite Laguna
Total
2,570,856
6,800
108
6,184
5,400
8,812
3,692
4,904
9,588
24,132
17,768
341,148
255,088
191,088
91,008
1,605,136
63
2020
306
339
357
150
231
19
402
Bataan
Zambales
Tarlac
Nueva Ecija
Pangasinan
Aurora
Outside of
study area
4,126
36
126
207
335
19
21
2,360
8,479
10
240
487
154
424
238
17
293
1,740
89
38
19
169 103,641
31
120
104
954
29
51
10
11
17
42
11
264
2,111
25
368
242
57
1,397
7,737
402
11
13
15
11
47
748
527,835
507
Quezon
Total
1,856
Batangas
7,720 1,432
878
Bulacan
Pampanga
2,345
18
7,899
9,205
295
11
17
10
18
15
204
2,919
207
125
2,957
470
1,949
3,000
79
11
2,054
239
45
32
183
48
297
1,693
18
14
32
36
161
366
26
395
216
11
27
389
1,350
15
11
21
322
471
209
17
265
2,818
31
236
64
1,977
26
33
139
87
205
1,738
368
199
291
88
28
39
577
13
119
2,151
575
559
332
207
14
10
46
102
13
272
2,548
97
598
463
54
14
114
117
40
504
10
52
32
448
Outside
Nueva Pangaof Study
Rizal Bulacan Pampanga Batangas Quezon Bataan Zambales Tarlac Ecija sinan Aurora Area
1,652 80,167
6,938
70
Laguna
Rizal
1,803
3,196 24,755
Cavite
Metro
Manila
Metro
Manila Cavite Laguna
Total
872,329
2,363
38
2,149
1,877
3,062
1,283
1,704
3,332
8,386
6,174
119,402
89,281
66,881
31,853
534,545
64
Easing Port Congestion and Other Transport and Logistics Issues
2030
8,738
13
18
15
599
361
400
421
177
272
23
474
Quezon
Bataan
Zambales
Tarlac
Nueva Ecija
Pangasinan
Aurora
Outside of
study area
5,196
43
149
244
395
23
25
2,785
10,381
11
284
574
182
500
280
20
346
2,053
39
152
130
1,154
10
105
44
23
213 130,519
305
72
1,760
9,362
34
61
11
13
20
49
13
312
2,491
30
464
2,080 100,957
2,953
23
9,559
11,218
348
13
20
11
21
18
241
3,444
10
261
157
3,724
592
2,358
3,573
93
13
2,424
282
56
41
231
60
359
2,030
21
16
38
43
190
431
31
466
272
14
33
471
1,619
18
13
25
380
556
263
21
321
3,338
36
279
75
2,332
31
39
10
164
109
248
2,102
435
235
343
103
33
46
726
16
143
2,555
679
659
392
244
16
11
54
129
16
11
329
3,067
115
705
546
64
16
134
138
48
635
12
65
41
542
Outside
Nueva Pangaof Study
Rizal Bulacan Pampanga Batangas Quezon Bataan Zambales Tarlac Ecija sinan Aurora Area
474
13
882
Total
56
2,189
Batangas
10
Pampanga
1,804
9,722
1,036
Bulacan
88
2,830 59,091
15,021
Laguna
Rizal
2,271
2,120 23,300
4,025 31,175
596,603
Cavite
Metro
Manila
Metro
Manila Cavite Laguna
Total
1,069,841
2,788
44
2,535
2,214
3,613
1,514
2,011
3,931
9,894
7,285
150,368
112,435
84,226
40,114
646,870
65
66
8.
Based on the result of the survey, most shippers and locators are
open to the use of rail option to ship their goods to and from
the port. When information regarding the rail option become
available, they would consider it in comparison to the current
option of using trucks to directly transport goods to and from
the port. However, because most shippers and locators would
be far from the proposed inland container terminal of the rail
system, where the goods will wait to be transported by rail or
will be unloaded from the rail, the trucks are still needed to
transport these goods to and from the location of the shippers
and locators. On the other end of the rail line, it is understood
that it will end inside the ports, with the goods directly carried to
the waiting ships or unloaded from the ships and carried to the
trains by overhead cranes or forklifts.
Discussion of results
Shown in Figure 30 are the locations of export processing zones in
Luzon. The higher the concentration of these zones on a particular
area, the higher would be the concentration of the freight transport.
To bypass the congested roads in Metro Manila, inland container
terminals could be designed in the peripherysuch as in Calamba,
Laguna and Angeles, Pampangawhere rail freight services could be
offered whether going to the ports of Manila, Batangas, and Subic and
vice versa.
It should be noted that in the year 2020 scenario, it was assumed
that only the CICD is operational, and the freight coming from and
going to the provinces of Laguna, Batangas, and Cavite would avail
of the service by rail through the CICD. Based on the survey, around
9 out of 17 respondents said they would avail of the services of the
CICD if it is as competitive or even better than using the truck all the
way to or from the port.
For the year 2030 scenario, it is assumed that the PNR rail
network, as shown in Figure 25, would be in place. It is also assumed
that there would be a rail line going to the Subic Free Port. Furthermore,
it is proposed that an inland container terminal would be available in
67
Subic Port
Manila Port
Batangas Port
Source: Base map of economic zones and industrial parks (JICA and DPWH 2010)
68
2,793,312
1,862,170
2,793,312
1,862,170
2,793,312
1,862,170
2,793,312
1,862,170
Peak hour
Off-peak hour
No rail
With 100-percent
shift to rail (to/from
ports including other
areas)
Peak hour
Off-peak hour
2,406,735
1,604,539
2,406,735
1,604,539
Peak hour
Off-peak hour
No rail
Peak hour
Off-peak hour
2,075,416
1,383,608
Peak hour
Off-peak hour
No rail
Public
(no. of passengers)
Period
Scenario
Year
2,005,307
1,002,641
2,005,307
1,002,641
2,005,307
1,002,641
2,005,307
1,002,641
1,728,039
863,973
1,728,039
863,973
1,490,139
744,974
Private
(no. of passengers)
3,745 (4.17%)
9,108 (4.17%)
2,822 (3.11%)
6,862 (3.11%)
1,875 (2.04%)
4,522 (2.03%)
0 (---)
0 (---)
846 (1.12%)
2,067 (1.13%)
0 (---)
0 (---)
0 (---)
0 (---)
89,874
218,226
90,797
220,472
91,744
222,812
93,619
227,334
75,447
183,328
76,343
185,395
24,669
60,033
Trucks
(in PCU)
Table 19. Estimated traffic volume of public and private vehicles as well as trucks during peak- and off-peak hour periods
under different scenarios
69
Peak hour
Off-peak hour
Peak hour
Off-peak hour
13.36
21.92
Peak hour
Off-peak hour
No rail
18.34
24.18
Peak hour
Off-peak hour
Peak hour
Off-peak hour
14.87
24.18
Peak hour
Off-peak hour
No rail
16.57
26.51
Peak hour
Off-peak hour
No rail
13.36
21.92
13.36
21.92
13.36
21.92
Period
Scenario
Design year
(2030)
Design year
(2020)
Year
8,608,614
4,242,488
8,608,614
4,242,488
8,608,614
4,242,488
8,608,614
4,242,488
5,458,010
3,635,540
5,458,194
3,635,990
4,666,829
3,117,866
VDT
(vehicle per kilometer)
3,723,377.0
543,033.4
3,723,377.0
543,033.4
3,723,377.0
543,033.4
3,723,377.0
543,033.4
1,082,390.0
370,417.6
1,082,395.0
370,448.5
723,026.5
256,610.0
VHT
(vehicle per hour)
Table 20. Estimated traffic characteristics during peak-hour and off-peak hour periods under different scenarios
70
Easing Port Congestion and Other Transport and Logistics Issues
71
Base year
(2014)
Design
year
(2020)
Design
year
(2030)
Scenario
Period
Average Travel
Average Travel
Speed along Truck
Speed along
Routes (kph)
All Roads (kph)
No rail
Peak hour
Off-peak hour
5.2
12.8
16.57
26.51
No rail
Peak hour
Off-peak hour
3.1
11.4
14.87
24.18
Peak hour
Off-peak hour
3.1
11.7
14.87
24.18
No rail
Peak hour
Off-peak hour
2.4
9.1
13.36
21.92
Peak hour
Off-peak hour
2.4
9.1
13.36
21.92
Peak hour
Off-peak hour
2.4
9.1
13.36
21.92
Peak hour
Off-peak hour
2.4
9.1
13.36
21.92
72
Figure 31. Comparison of average travel speeds along truck routes during
peak and off-peak hours under different scenarios
Average travel speed along truck routes, off
PkHr (kph)
Average speed along truck routes, PkHr (kph)
16
14
12
10
8
6
4
2
0
Base year 2014 (No rail)
73
74
75
76
of the Manila Port during times when there is port congestion. This
EO gives the DOTC secretary the authority to declare the existence of
a port congestion situation based on the recommendation of the PPA.
Table 22. New storage rates (PHP per day)
Container Type
Storage Charge
20-footer
5,000
35-footer
8,750
40-footer
10,000
45-footer
11,250
77
78
79
Box 2. (continuation)
The trend toward building capacity ahead of demand is likewise exemplified
by the airport building binge in Asia. Jakarta airport is expanding three times its
capacity, Kuala Lumpur airport is doubling capacity to 100 million people by 2020,
and Beijing, which already has an airport servicing 80 million people, is building a
second airport to handle 40 million passengers by 2018. Ho Chi Minh City airport has
planned a new international airport as its existing Tan Son Nhat airport will reach its
capacity of 25 million passengers in 2016. On the other hand, DOTC-JICA plans for
the Sangley International Airport intend to serve 55 million in 2025 and complement
NAIAs servicing of 59 million passengers. Phase II of Sangley envisions serving 130
million passengers per year by 2050.
Anticipative capacity buildup in airport infrastructure is also applicable to
buildup in port infrastructure.
http://www.laemchabangportphase3.com/port_01_en.html
http://www.laemchabangportphase3.com/port_02_en.html
3
http://www.laemchabangportphase3.com/port_03_en.html
4
http://www.laemchabangportphase3.com/port_04_en.html
1
2
Phase 1
Phase 2
Phase 3
Structure of port
U-shaped
U-shaped
U-shaped
14 meters at mean
sea level
16 meters at mean
sea level
18 meters at mean
sea level
Channel depth to
terminals
16 meters at mean
sea level
16 meters at mean
sea level
18 meters at mean
sea level
Breakwater length
1,300 meters
Panamax size
(60,00080,000
DWT, with capacity
to carry more than
3,000 TEU)
Post Panamax
(80,000 DWT, with
capacity to carry
more than 5,000
TEU)
Super-Post Panamax
(100,000 DWT with
capacity to carry
more than 10,000
TEU)
Number of quays
11
4 million TEU
8 million TEU
Size of port
Size of ships
80
During the July 30, 2013 INFRACOM meeting, the DOTC and
PPA also informed the committee that they already agreed on the
restriction of the Manila Port expansion. During its September
11, 2013 meeting, the INFRACOM decided to raise the issue to
the president for appropriate policy decision to provide proper
information dissemination to the private sector investors to assist
them in their future investment plans and decisions.14
Table 23 shows the annual capacity, traffic volume, and
utilization rate for each GCR port in 2013. Although the Manila
truck ban was lifted on September 13, 2014, the utilization rates of
MICT and South Harbor reached 94 and 97 percent, respectively,
on October 7, 2014.15 This is way above what is considered the ideal
utilization rate of 80 percent.
JICA (2013a) reported that the Batangas and Subic Ports were
utilized at a mere 4.2 percent and 5.6 percent of their respective
capacities. In contrast, the ports in Manila (i.e., MICT and Manila
South Harbor) handled about half of the total container volume in
13
But in reality, the situation is more complex. Diverting traffic to Subic and Batangas is only a shortterm solution; high utilization rates for both may mean that we run the risk of transferring the problem we
encountered in the Port of Manila to those very ports. (Excerpt from the speech of President Benigno S.
Aquino III delivered at the 40th Philippine Business Conference, Manila Hotel, October 24, 2014.)
14
NEDA Aide Memoire on Study on Logistics, March 18, 2014
15
Port capacity utilization far from ideal. Malaya Business Insight. October 8, 2014: A1
81
Capacity
Actual Volume
3,700,000
2,500,000
1,250,000
2,884,029
1,901,476
982,553
Utilization Rate
(in percent)
77.9
76.1
78.6
Batangas
300,000
23,251
7.8
Subic
600,000
37,470
6.3
82
83
84
Other issues
Lack of container depot
Shipping lines are mandated to operate their own container depot
outside the port where their empty containers should be returned.
However, shipping lines are not operating container depots that could
accommodate the number of containers they keep. These shipping
lines also take advantage of using the port as a container yard. The
study team recommends that the shipping lines be compelled to provide
their own depot for empty containers as stated in their mandate.
Alleged corrupt practices in processing export and import documents
The study team has no findings to support the alleged corrupt practices
of those responsible in processing export and import documents during
85
the port congestion period. Similarly, the truckers revealed during the
FGDs that they are being extorted from PHP 2,000 to PHP 4,000
per container, each trip, when unloading empty containers in yards or
just for container yards to accommodate the empties. Shippers and
consignees complain that the high trucking rates imposed during the
height of port congestion-cum-truck-ban period has not been lowered
during the period after the truck ban was lifted by the City of Manila
government.
Integrated truck dispatching system
The Association of International Shipping Lines (AISL) has initiated
a project for a web-based 24-hour integrated truck dispatching,
appointment, and booking system for an online system to retrieve empty
containers. The system is designed to interconnect all stakeholders (i.e.,
shipping lines, truckers, and depots) directly involved in empty container
returns. AISL has hired the services of technology provider Cargo Data
Exchange Center to develop and implement the integrated system.16
The Cabinet Cluster on Port Decongestion has affirmed this initiative
on October 16, 2014 at the Senate public hearing on port congestion.
Rationalization of port development and investment programs
The Philippine Development Plan (PDP) infrastructure projects
are heavily concentrated in Metro Manila and Luzon Island. The
port component of the PDPs national infrastructure plan lists the
development of the New Cebu International Port (Phase I) located
in the northern Cebu town of Consolacion. However, JICA (2013a)
gives a detailed description of the long-term development of the
GCR ports. Nevertheless, this report has not discussed long-term port
development and investment programs beyond the ports in Batangas,
Subic, and Manila. There was a discussion on the development of
regional ports in an earlier JICA study on the Master plan for the strategic
development of the national port system (2004).
Port relocation to new sites is not easy because of the huge sunk
investments made by existing operators (e.g., ICTSI and ATI). Moves to
16
Cahiles-Magkilat (2014)
86
shift cargoes to the Batangas and Subic Ports will not address the longterm congestion problem unless port development and investment
plan are made where port development in targeted sites is developed in
multiple-phased scheme in which a target volume is specified to trigger
the start of the construction of the next phase ahead of demand. The
Cabinet Cluster on Port Decongestion and INFRACOM can create a
Land Acquisition Committee to conduct an inventory of all lands and
properties that can serve as new port sites if the Batangas and Subic
Ports have no more vacant areas to be used for capacity expansion.
A policy to put a cap on the capacity of the ports in Manila must be
accompanied with the capacity expansion of the Batangas, Subic, or
new port sites.
Cargoes coming from or bound for CALABARZON
The actual cargo traffic in the Batangas Port in 2013 was 23,251 TEUs
or approximately 7.8 percent of its capacity. JICA (2013a) estimated
that cargoes coming from or bound for CALABARZON range from
646,508 TEUs to 912,626 TEUs during the 20092014 period. The rail
option model (Table 12) presented on this study has a lower estimate
of cargo demand in the CALABARZON area (from 62,293 to 87,058
TEUs) for the same period, taking into account the impact of the
truck traffic.
PNR expansion and freight operation
Although the rail option may not provide a significant impact on
the improvement of road congestion, it, however, gives shippers
and locators an alternative way of transporting their goods. The
recommendations of this study to rehabilitate and improve the PNR
line (in the medium term) and to pursue a total upgrade of the rail
system through public-private partnership (PPP) arrangement (in the
long term) are consistent with DOTCs railway master plan, which
covers the following lines: (1) Manila to San Fernando, La Union;
(2) Manila to Legazpi, Albay; (3) Legazpi to Matnog, Sorsogon; (4)
Calamba to Batangas; (5) Tarlac to San Jose, Nueva Ecija; and (6) San
Jose to Tuguegarao, Cagayan. These new lines cover more than 700
87
88
at least one of the freight studies, while the MUCEP study has
the OD survey on passenger movement, the raw data, as well as
the outputs of these studies, could be merged to come up with
a freight and passenger study in the GCR. As highlighted by
the truck ban in the City of Manila to solve traffic congestion
along its streets, studies on freight and passenger movement
should not be treated in isolation but should be integrated as
they compete for the use of the limited road space. Hence,
infrastructural needs of the freight transport could also be
identified and proposed and not only focus as always to the
needs of the passenger travel.
3. Proposed inland container depot of international shipping lines.
In order not to congest the ports, especially with empty
containers, international shipping lines handling high volume
of exports and imports should put up inland container depots.
It is recommended that the inland container depot should
be accessible by rail or should be near the inland container
depot to be put up by PNR. This can easily be put up given the
minimal infrastructural needs of the facility.
iii. Long term
1. Proposed North and South container depot/hub. This proposed North
and South container depots and hubs should be adjacent or can
be integrated with the inland container depot of PNR. Given
the ever-decreasing road space for trucks in Metro Manila, the
need to use the services of PNR to move goods from outside
Metro Manila to the Port of Manila and vice versa would become
relevant. The depot or hub could also be used to break bulk
the goods brought by trucks using smaller vans when entering
Metro Manila or vice versa, thereby, circumventing the truck ban
being implemented within Metro Manila.
2. Upgrading of PNR through PPP. This plan has long been identified
by the government through its PPP Center to speed up the
rehabilitation and upgrade of the PNR system. The analysis
of the economic and financial feasibility of this project would
89
90
91
92
Figure 32. Timing and phasing of PNR rehabilitation and opening of ICDs, ports, and ecozones
93
94
95
96
References
References
97
98
References
99
The Authors
Ma. Diyina Gem T. Arbo is currently a student of Master of
Social Sciences in Applied Economics at the National University of
Singapore (NUS) under the ADB-Japan Scholarship Program, and
an intern at the Institute of Water Policy in the NUS Lee Kuan Yew
School of Public Policy. Prior to this, she worked as a research analyst
at the Philippine Institute for Development Studies (PIDS). She
graduated with a bachelors degree in Economics from the University
of the Philippines-Diliman.
Alexis M. Fillone is a full professor at the Civil Engineering
Department of De La Salle University-Manila. He earned his PhD in
Urban and Regional Planning at the School of Urban and Regional
Planning, University of the Philippines-Diliman. He has more than 20
years of experience as a teacher in the field of transportation and more
than 15 years of experience in transport research focusing on travel
behavior, urban transportation planning, and traffic impact studies. He
has published several articles in abstracted and ISI-listed journals.
Gilberto M. Llanto is president of PIDS. He obtained his
PhD in Economics from the University of the Philippines School
of Economics. He was formerly deputy director-general of the
National Economic and Development Authority, vice president of
PIDS, executive director of the Agricultural Credit Policy Council,
and president of the Philippine Economic Society. He has written
and published papers on financial markets, public economics, local
governance, institutional economics, and infrastructure regulation.
Cherry Ann D. Madriaga is a student of the GRIPS Global
Governance (G-cube) program at the National Graduate Institute for
Policy Studies (GRIPS) in Tokyo, Japan. She was a supervising research
specialist at the PIDS for two years before leaving for graduate school.
She graduated from the University of the Philippines-Baguio with a
Bachelor of Arts degree in the Social Sciences, Major in Economics
and Minor in Psychology.
Epictetus E. Patalinghug is professor emeritus of Economics
and Finance at the Cesar Virata School of Business, University of the
102 Easing Port Congestion and Other Transport and Logistics Issues