Policy Support for Transport- Logistics Infrastructure ... · PDF fileCawayan, Masbate Daanbantayan, Cebu Mandaue City, Cebu Tagbilaran, Bohol Jagna, BoholWestern Nautical Highway

C E N T E R F O R R E S E A R C H A N D C O M M U N I C A T I O N

Policy Support for Transport-

Logistics Infrastructure

Development

Enrico L. Basilio Co-Chairman, EDC Transport and Logistics Networking Committee

Chairman, PCCI Infrastructure Committee

Director, CRC Transport and Logistics Institute

Co-Chairman. NCC Infra Working Group

EDC Representative, Pro-Performance System Steering Committee

PHILEXPORT General Membership Meeting October 30, 2008


Outline

NCC Infrastructure Working Group Policy Recommendations to the President

– Reduction of Transport Cost

– Impact of RO-RO on movement of goods

– Subic-Clark-Batangas Development Corridor

– Policy Concerns and Support Infra

WB/IFC DOING BUSINESS REPORT – Cross Border Trade

• WB IFC Reports indicate that the cost of exporting has increased

PHILS THAI VIET

• 2007-2008 Report $800 /TEU $615 /TEU $669 /TEU

• 2008-2009 Report $816 /TEU $625 /TEU $734 /TEU

• In 2007, government reduced cost by $ 25/TEU (by bringing down the wharfage

and scanning fee)

• CRC study recommends areas for cost reduction – roughly $132/TEU:

• Domestic Transshipment EO on Chassis RO-RO $ 76

• Cargo Handling Charges PPA 40

• Documentation Costs DTI-PSB and AISL 16

• NCC endorsed the EO on Cha-RO. AO 123, chaired by DOTC Usec. Len

Bautista, approved to endorse the proposed EO to OP pending report from PPA

regarding impact on (PPA’s) revenue.

• With the intervention, we can reduce cost of exporting to $ 684 /TEU.

NATIONAL COMPETITIVENESS COUNCIL

Seamless Infrastructure Working Group

EXPANSION OF RO-RO NETWORK

• PGMA inaugurated the Central Nautical Highway through a RORO

Caravan on April 27-30, 2008. Most RORO ports were completed in time

for the Caravan.

• PPA is now fast-tracking completion of Eastern Nautical Highway

RO-RO ports

• PGMA directed DPWH to issue and AO declaring all roads connecting

RORO terminals part of the Strong Republic Nautical Highway as

national roads.

• NMLC acquired from Korea a RO-RO vessel to be deployed in the Port

of Subuquin, San Juan, Batangas this September.

• RO-RO softened the impact of the domestic liner shipping crisis on

the movement of goods.



Strong Republic Nautical Highway

Matnog, Sorsogon

Allen, Samar

Liloan, Southern Leyte

Lipata, Surigao Del Sur

Pilar, Sorsogon

Aroroy, Masbate

Cawayan, Masbate

Daanbantayan, Cebu

Mandaue City, Cebu Tagbilaran,

Bohol

Jagna, Bohol

Mambajao, Camiguin

Guinsiliban, Camiguin

Balingoan, Misamis Oriental

Batangas City, Batangas

Calapan, Oriental Mindoro

Roxas, Oriental Mindoro

Caticlan, Aklan

Dumangas, Ilolio

Dumaguete, Negro Oriental

Dapitan, Zamboanga del Norte

Bacolod, Negros Occidental

CENTER FOR RESEARCH AND

COMMUNICATION

Western Nautical Highway

Central Nautical Highway

Eastern Nautical Highway

Legend:

Leyte

Cebu

To Masbate

To Tacloban

To Caticlan




Legend:

Bogo, Cebu

Tabuelan, Cebu Escalante, Negros

Occidental

Ajuy, Iloilo

Victorias, Negros Occidental

Palompon, Leyte


COMMUNICATION

Iloilo

SRNH: East-West Lateral Connection 1

Dumangas, Iloilo

Cebu

Bohol

Punta Enganio, Cebu

Jetafe, Bohol

Toledo, Cebu

San Carlos, Negros Occidental

Bacolod, Negros Occidental

Ubay, Bohol

Maasin, Southern Leyte

To Caticlan To Masbate To Samar

To Camiguin To Zamobanga


COMMUNICATION




Legend:

SRNH: East-West Lateral Connection 2

CENTER FOR RESEARCH

AND COMMUNICATION

Orion

Mariveles

Santander

Siquijor

Caglanao

Manila

San Jose

Roxas, Or. Min.

Polilio Island

Coron

Cultan

Binalan

Sibaltan

Taytay

Balud

Roxas, Capiz

Del Carmen

Cataingan

Calbayog

Caticlan

Bulalacao

Real

Sta. Fe




Legend:


COMMUNICATION

Surigao

Ternate

Abra de Ilog

Batangas

SRNH: Prospective Routes

Impact on Economic Growth

• Increased regional trade

• Enhanced Tourism

• Area development

• Reduction in transport cost

Increased Inter-Island Trade

RORO Shipments of Agri-Fishery Products

Live Hogs

Fruits and Vegetables Fishery Products

Rice and Palay

RORO Shipments of Manufactured Goods

Southwestern Mindanao RORO Links

Zamboanga City – Basilan Route

Agricultural products like fish products, fruits and vegetables, rubber

are shipped to Zamboanga City from Basilan (Isabela). Inbound

cargoes to Basilan include rice and palay, flour, bottled cargoes,

manufactured goods, food and other consumer products.

Source: PPA

Zamboanga City – Basilan Route

Passenger traffic between

Zamboanga City

and Basilan is also on an uptrend.

Source: PPA

Roxas-Caticlan Route

• 1 RORO operator in 2003, now 3 operators

• 1 RORO ship in 2003, now 5 RORO ships

Source: PPA

Cargo Shipments to and from Mindoro CALAPAN-BATANGAS ROUTE

• 85,000 MT of rice & palay

• 13,000 MT of fertilizer

• Other products include corn, fruits & vegetables, livestock

ROXAS-CATICLAN ROUTE

• 167,000 MT of rice and palay

• 75,000 MT of sugar

• 60,000 MT of fish products

• 84,000 MT of animal feeds

• 115,000 MT of fertilizer

• 8,000 MT of corn

Bacolod-Dumangas Route

• 1 RORO operator in 2003, now 3 operators

• 1 RORO ship in 2003, now 3 RORO ships

Enhanced Tourism and Mobility of People

Roxas-Caticlan Route

Source: PPA

Total passenger traffic reached almost 700,000 in 2006

One tourist, one job.

From 2003 to 2006, tourism

receipts in Boracay grew by 50%, Iloilo by 30%, Bacolod by 15%

and Dapitan by 200%.

Bacolod-Dumangas Route

Bacolod and Iloilio

serve as the mid-

points for the western seaboard.

Source: PPA

Reduced Transport Cost

Comparative Transport Costs

RORO vis-à-vis other Modes of Transport

BATANGAS-SUBIC-CLARK LOGISTICS

CORRIDOR

• The President’s vision is to develop a mega

logistics and transshipment hub in the

Batangas-Clark-Subic Corridor

• Initiative will improve national competitiveness,

reduce transport cost, decongest Manila.




Subic-Clark-Batangas Corridor

Mamburao

Calapan

MINDORO ORIENTAL

MINDORO OCCIDENTAL

TARLAC

ZAMBALES

PAMPANGA

BULACAN

QUEZON

BATANGAS

CAVITE LAGUNA

Lucena City

San Pablo City

Sta. Cruz

Antipolo City

Calamba

Cavite City

MANILA BAY

Tayabas Bay

Lamon Bay Laguna

de Bay

Lake Taal

Manila

Balanga City

Olongapo City

Angeles City

Tarlac City

City of San Fernando

Malolos City

San Jose del Monte City

Iba

Tagaytay City

Lipa City

Batangas City

RIZAL

CENTRAL LUZON

CALABARZON

BATAAN

Clark and

Subic as

logistics

center

SUBIC

CLARK

Urban industrial

beltway:

Central Luzon-

CALABARZON

Growth Corridor

Batangas as

Int’l. Port

south of

Manila

• Vision:

• To develop Subic-Clark-

Batangas Corridor as a Major

Transshipment and Logisitcs

Hub, as well as to decongest

Metro Manila

• Challenges:

• To complete the supporting

infrastructures that will create a

seamless infrastructure network

along the corridor,

• To address major transport

policy issues, critical to the

development of SCB corridor


Supporting Infrastructures

Subic-Clark-Batangas Mega

Logistics Hub

• Subic Seaport: New Container

Terminals 1 and 2 already

completed

• Expansion of Diosdado Macapagal

International Airport (DMIA) terminal

1 already completed. Terminal 2 to

be built soon

• Subic-Clark-Tarlac Expressway

(SCTEx) now open for commercial

operation

• Tarlac-La Union expressway to be

built soon

• Batangas International Port already

completed


Description :

The P8 billion port development project

involves the construction of two new

container terminals and support facilities,

and rehabilitation of existing wharves

Benefit/s:

The new container terminals will increase

Subic Port’s capacity from 100,000 TEUs to

600,000 TEUs. With its accomplishment,

the improved Subic Port is expected to

decongest ports in Manila.

Status :

Terminal 1 was completed on July 2007

and Terminal 2 on January 2008.

Subic Bay Port Development


DMIA Terminal Rehabilitation and Expansion

Increased Capacity from 1M to 2M Passengers per Year


Increased Capacity from 1M to 2M Passengers per Year

Area Capacity

Pre-departure : 900 pax

Check-in lobby : 504 pax

Baggage claim : 621 pax

Arrival area : 280 pax

Project Cost : PHP 54M

Expanded Passenger Terminal Bldg. total area: 6,147 sq.m.

DMIA Terminal Rehabilitation and Expansion


DMIA Terminal II Proposed Configuration

Capacity : min. 7M pax per year

Target Start : 4th Q 2008

Target Completion : 1st Q 2010


High Speed Rail System

Quezon City

(Trinoma)

Clark

Villamor Air Base/ The Fort

NAIA Terminal 3

• High Speed Rail connection

- 32 minutes connection time from NAIA to Clark

- 2-3 city stations at Metro Manila to connect to Clark


DMIA: The Future Premiere Gateway of the Philippines

Korea International Cooperation Agency

(KOICA)

Project: $2M technical grant for the Feasibility Studies on the Master

Development Plan of the DMIA

Title : The Feasibility Studies for the Master Development Plan of

the Diosdado Macapagal International Airport

Period of Design Work : 2007. 12. 19 ~ 2008. 10. 19

Project Operator/s:

Daewoo Engineering

40/85

Access Transportation Concept Design Alignment Plan for Clark Express Rail

Item Contents Remarks

Length L=120km

Mini. R / Max. Slope R=5,000 / 25‰ Main Line

Stations DMIA, QUEZON, THE FORT, NAIA

Design Speed 200km/h (350km/h)

Running Time 46min. - 180km/h, 34min. - 300km/h

Construction Period 10 years

Cost N/A

Air Policies and Issues

Salient Features of EO

500A

• Unlimited flights

• But only on 3rd and 4th freedom rights

• Requires carriers to be “officially designated”

Salient Features of E.O. 500


• Provides for 5th freedom of rights

• Allows designated and non-designated carriers

Air Policies and Issues

Salient Features of Proposed EO 500-B


• No 7th freedom

• Gives non-designated carriers an opportunity to

operate and to shift from charter to scheduled flights

DMIA to be the best international service and logistics center in the Asia-Pacific region & the premiere gateway of the Philippines.

Premiere Global Gateway Airport


• Foreign Cargo traffic volume

• International Port

• International shipping lines

• Ancillary Services (trucking, forwarding, logistics)

Necessary and Critical Elements

for Batangas Port


FOREIGN CARGOES

• There are roughly 1,000 PEZA locators in 42 industrial estates operating in the Cavite-Laguna-Batangas area

that can ship in and out of the International Port of

Batangas.

AREAS NO. OF ECOZONES

Batangas 12

Laguna 17

Cavite 13

TOTAL 42

NUMBER OF ECOZONES IN CALABA AREA

Source: PEZA


• Survey conducted recently by PEZA indicate that there is enough cargo volume to attract foreign ships to

Batangas Port

– >150 responses from 700 respondents

– Total volume of >10,000 TEUs/month

• IMPORTS = > 8,000 TEUs / month

• EXPORTS = > 2,000 TEUs / month

– Match the imports of the exporters; at 4,000 TEUs/month (or 1,000

TEUs per week), the traffic will attract one vessel to call at the

Batangas Port every week (loaded both ways).


• The attainment of a “critical mass” will make the program more feasible.

• In this regard, EDC/NCC Chairman Meneleo Carlos recommends the conduct a study the viability of a

coastwise “floating crane barge” (FCB) operation

between Batangas and its environs (Cavite, Manila,

Bataan and Subic) to consolidate export cargoes to

Batangas (and distribute import cargoes from Batangas).

• This will not only enlarge the traffic but will shift traffic from the road network to the sea.


PORT OPERATIONS

• The terminal operator offered a 14% discount on cargo handling and international shipping lines

expressed interest to call in Batangas.

INTERNATIONAL SHIPPING LINES

• Initial discussions indicate AISL’s strong interest on the program

• Team (PEZA and CRC) will present to the members of AISL on October 8, 2008 (GMM)


ANCILLARY SERVICES

• Trucking Firms. Trucking will be confined within the Cavite-Laguna-Batangas area. Cost is expected to

go down because the trucks will (a) cover less

distance and (b) not be subjected to the truck

ban.

• Forwarding. Cargo consolidation will be done at the Port of Batangas. Will have to work on a new

cost for the PEZA locators shipping out of Batangas.


Coastal Crane Barging


Subic



Continuous Highway from Clark to

Metro Manila to Batangas Port

• North Expressway already completed

• NLEX-SLEX Link or North Expressway

to C-5 interconnection (on-going)

• C5 already connected with South

Expressway

• Rehabilitation and Widening of Alabang-

Calamba Section of SLEX (on-going)

• Extension of the SLEX to Sto. Tomas,

Batangas (on-going)

• Sto. Tomas to Lipa (STAR 1) already

completed

• STAR 2 connecting Lipa to Batangas

City now passable

• C-6 Expressway to be alternative route

that will connect NLEX & SLEX



Metro Manila

Infrastructure Projects

• Coastal Road to Bacoor (on-going)

• MRT and LRT interconnection

from Monumento to North EDSA

(ongoing)

• MRT-7 (on-going)

• MRT-3 Capacity Extension

• LRT extension to Bacoor

C5

EDSA

SLEX

NLEX

Coastal Rd


PCCI PBC Resolutions


PCCI PBC Resolutions: Infra Committee

A. ROAD

To encourage greater private sector participation in toll road

development

RESOLUTION: Support the issuance of an Executive

Order (EO) directing the Toll Regulatory Board (TRB) to:

(a) Automatically grant the franchise for NEDA ICC-

approved toll road projects as provided for under

the BOT Law.

(b) Discontinue issuing two types of franchises for the

same project



B. SHIPPING

1) To develop the Batangas-Clark-Subic Corridor as transshipment

and logistics hub

RESOLUTION: support the shift of cargo traffic from Manila to the Ports of

Batangas and Subic. This move will decongest Manila, reduce

cost and improve competitiveness.

2) To reduce domestic shipping Cost

RESOLUTION: (a) support the Issuance of an EO amending EO 170 to

expand the RORO service to include the Chassis-RORO.

This will reduce the domestic transshipment of domestic and

foreign-bound cargoes.

(b) supporting the permanent reduction in wharfage dues from

$6 to $1 per 20-foot container



C. AIR

To increase air access

RESOLUTION: urge more bilateral talks/negotiations with

other countries (key markets like Singapore, Russia,

Australia and Middle East – UAE, Qatar) to improve the

country’s accessibility by tourists and Overseas Filipinos

(permanent residents, immigrants, and overseas

workers)



D. LIGHT/METRO RAIL

To enhance the mass transit system in the metropolis and its

environs

RESOLUTION: (a) support the development of a Central Terminal for

the four light and metro rail projects (MRT-3, MRT-7,

LRT 1 North Extension, and proposed MRT-9) in

EDSA cor North and West Avenues.

(b) supporting the capacity expansion and network

extension of existing LRT/MRTs, as well as the

development of new and more routes



E. PRIVATE SECTOR PARTICIPATION

RESOLUTION: support the implementation of priority infrastructures

through solicited bids under the BOT Law. Less emphasis should be

given to unsolicited and joint venture modes.


THANK YOU!!!

Policy Support for Transport- Logistics Infrastructure ... · PDF fileCawayan, Masbate Daanbantayan, Cebu Mandaue City, Cebu Tagbilaran, Bohol Jagna, BoholWestern Nautical Highway

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