Batangas Port: Connecting Calabarzon to Global Markets

By Sean Perez, Vice President - ATI April 23, 2014, Wednesday | Hotel Sofitel, Pasay City | Transport Summit 2014

Supporting Industries. Connecting Economies.

Discussion Outline

In the news: All eyes on Batangas Port Growth drive: BCT gains ground, sustains momentum in 2014 Readiness: An insight on BCTs world-class capabilities Competitiveness: Modernity, Proximity and Cost-Efficiency Future-proofing: BCT is headed towards the right direction

Supporting Industries. Connecting Economies.

Batangas Port Footprint

Current view of BCT

Supporting Industries. Connecting Economies.

BCT is good news for Calabarzon

Supporting Industries. Connecting Economies.

Upward growth: 2012 vs. 2013

120% increase

76% VOLUME INCREASE

(Year-on-Year)
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Upward growth: 1Q2014

1Q2014: 3,819 TEUs

2014 volumes are even more encouraging 144% growth

1Q2013: 1,564 TEUs

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Growing Number of Customers

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Specific Customer Base

TOTAL IMPORT 12,270 TEUS / MONTH
TAIWAN SINGAPORE 2% 5% MALAYSIA 2%

TOTAL EXPORT 9,715 TEUS / MONTH

MIDDLE EAST SINGAPORE 2% 2% TAIWAN MALAYSIA 2% 3% THAILAND 11%

THAILAND 18%

USA 5% VIETNAM 3% OTHERS 7%

JAPAN 22%

USA 13%

JAPAN 33%

CHINA 5% EUROPE 5% HONG KONG 6%

INDONESIA 10%

INDONESIA 9%

HONG KONG 5% EUROPE 9%

CHINA 11%

VIETNAM 4% OTHERS 5% CANADA 1%

OTHERS COMPRISE OF: Africa (.4%) , Argentina (.3), Australia (.3%), Canada (1.1%), India (1.3%), Korea (2%), Mexico (.1%), New Zealand (.3%) & Middle East (.3%)

OTHERS COMPRISE OF: Africa (.4%) , Australia (.4%), Brazil (.1%), India (.8%), Korea (2.3%), Mexico (.5%), & Myanmar (.6%)

BCT is for Calabarzon imports and exports This translates to 300,000 TEUs annually
Supporting Industries. Connecting Economies.

Fundamental Inquiry

Can ATIs BCT handle 300,000 TEUs of potential cargo of Calabarzon annually, given its terminal footprint and equipment fleet?

YES. BCT is more than ready, willing and capable of efficiently serving Calabarzon shippers.

Supporting Industries. Connecting Economies.

Terminal Footprint

350,000 TEUs capacity per year 12 hectares of terminal space Can handle 7,152 TEUs (4-high) at any given day Expandable facility as needed
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Equipment at par with Industry

Industry standard is 1 Quay Crane supported by 2 RTGs 1 QC + 2 RTGs = 180,000 TEUs annual capacity Thus, BCTs 2 QCs + 4 RTGs = 360,000 TEUs annually
Supporting Industries. Connecting Economies.

Investments to come
ATI is committed to its long-term concession at BCT Additional equipment will be deployed in response to market and customer demand

Quick deployment of equipment is possible through global procurement strength of DP World

- Ex: Additional QC for South Harbor in 6 months time

Strong synergy between ATI and DP World

Supporting Industries. Connecting Economies.

BCT delivers Key Competitiveness

MODERNITY COST EFFICIENCY PROXIMITY

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Competitiveness: Modernity
Batangas Container Terminal
CAPACITY LAND AREA EQUIPMENT/ FACILITIES

350,000 TEUs 12 hectares 2 Quay Cranes; 4 RTGs; Reefer area for 480 TEUs; CFS; Loaders; Trucks with chassis; 6-lane terminal gate with weighbridges 13-meter deep berths

BERTHS

Closest port to Calabarzon (within 60 kilometers) Port has direct link to main expressways Supporting Industries. Connecting Economies.

Competitiveness: Proximity
LOCATION (OF BIZ PARKS) KMS FROM/TO MANILA (SH) 40 45 KMS FROM/TO BCT 68 63 AVERAGE TRAVEL TIME DIFFERENCE FROM MANILA 150 MINS 160 MINS FROM BCT 90 MINS 80 MINS

STA. ROSA CABUYAO

+28 +18

SILANGAN
CANLUBANG CALAMBA STO. TOMAS (FPIP)

47
49 53 61

61
59 55 47

+14
+10 +2 -14

160 MINS
170 MINS 180 MINS 210 MINS

70 MINS
70 MINS 70 MINS 60 MINS

MALVAR (Limatech)

71

37

-34

230MINS

45 MINS

Major advantage in haulage and road transit time Less road miles = Less cost = Less carbon emissions
Supporting Industries. Connecting Economies.

Competitiveness: Proximity
South Luzon Express Way (SLEX)

SLEX-STAR Interlink

Southern Tagalog Arterial Road (STAR) Express Way

STAR

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Competitiveness: Proximity
DISTANCE TO PEZA ZONES AND LOCATORS FROM BCT

1 within 5-10 km
2 within 11-20 km 3 within 21-30 km 4 within 31-40 km 5 within 41-50 km 6 within 51-60 km 7 within 61-70 km

Supporting Industries. Connecting Economies.

Competitiveness: Cost-Efficiency
Savings for customer (based on actual customer feedback) Trucking cost down by at least 16% for export; 13% for import Port charges down by 5-10% Quick processing at the Bureau of Customs Flexible storage free-time Savings for truckers (based on actual 3rd party trucker feedback) Less fuel consumption with better traffic flow No truck ban Better truck turnaround / more trips possible Shorter transaction time Savings through government incentives and support via BCT Significant discounts offered by PPA on port tariffs PEZA incentives and active support for users of BCT Fast response time and online transactions from Bureau of CustomsBatangas for BOC processes and requirements

Supporting Industries. Connecting Economies.

BCTs Competitiveness
Offers the most modern and nearest integrated port facility for Calabarzon manufacturers / importers / carriers One-stop-shop providing expedient processing of exports and imports with the presence of relevant port authorities PPA, BOC, BAI, BOQ, etc. with online transactions 24/7 operation import and export pick-up and delivery; empty return and pick-up Unimpeded road access as there is no truck ban along main thoroughfares to BCT Offers importers and exporters on schedule deliveries and receival without long gate queuing Flexible storage free-time

Supporting Industries. Connecting Economies.

Current Shipping Line Service

MCC Inter-Asia 7 Service

Supporting Industries. Connecting Economies.

Summary
KEY AREA
Shipping Line

ACTUAL FACTS & FIGURES

MCC Transport weekly IA7 service More shipping lines seriously looking to call Batangas; Major developments in the coming months South Luzon Expressway, Southern Tagalog Arterial Road, SLEX-STAR interlink No truck ban and Number Coding Scheme Zero incidents of hijacking or the likes ATI Laguna ICD trucking services Nippon Express and local truckers in Batangas CTAP looking to expand services in Batangas In-house brokerage via ATI Laguna ICD Systems are interconnected with BOC 12 main industrial parks with over 700 businesses Potential of 300,000 TEUs annually in Calabarzon Php3,700 Php7,500 savings per 40-footer

Road network, accessibility and safety

Reliable Trucking Services

Customs and brokerage services Volume Cost

Supporting Industries. Connecting Economies.

Whats next for Batangas Port

Batangas Port will remain as the best alternative (not a replacement) to Manila ports for Calabarzon cargoes - It is the natural gateway for the Calabarzon hinterland due to its modernity, proximity and cost-efficiency More truckers are expected to operate via BCT as customers take advantage of its convenience and competitiveness - CTAP has expressed full confidence on the viability of BCT
More port-related businesses will emerge: warehousing, freight forwarding, brokerage and cargo consolidation - The Port Users Confederation members are looking at this keenly - LGUs welcome Manila-based port users to expand business in Batangas Network momentum will continue to build-up - More shipping lines are seriously eyeing inclusion of BCT in port rotations - Nomination of BCT by customers as their preferred port will be critical Simultaneous road network and infrastructure development in Manila will all the more highlight the competitiveness of Batangas Port

Supporting Industries. Connecting Economies.

Thank you.

Batangas Port: Connecting Calabarzon to Global Markets

By Sean Perez, Vice President - ATI April 23, 2014, Wednesday | Hotel Sofitel, Pasay City | Transport Summit 2014

Supporting Industries. Connecting Economies.