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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
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
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.
NATIONAL COMPETITIVENESS COUNCIL
Seamless Infrastructure Working Group
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
Western Nautical Highway
Central Nautical Highway
Eastern Nautical Highway
Legend:
Bogo, Cebu
Tabuelan, Cebu Escalante, Negros
Occidental
Ajuy, Iloilo
Victorias, Negros Occidental
Palompon, Leyte
CENTER FOR RESEARCH AND
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
CENTER FOR RESEARCH AND
COMMUNICATION
Western Nautical Highway
Central Nautical Highway
Eastern Nautical Highway
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
Western Nautical Highway
Central Nautical Highway
Eastern Nautical Highway
Legend:
CENTER FOR RESEARCH AND
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
RORO Shipments of Agri-Fishery Products
Live Hogs
Fruits and Vegetables Fishery Products
Rice and Palay
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
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
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.
NATIONAL COMPETITIVENESS COUNCIL
Seamless Infrastructure Working Group
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
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
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
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
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
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
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
DMIA Terminal Rehabilitation and Expansion
Increased Capacity from 1M to 2M Passengers per Year
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
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
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
DMIA Terminal II Proposed Configuration
Capacity : min. 7M pax per year
Target Start : 4th Q 2008
Target Completion : 1st Q 2010
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
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
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
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
• Unlimited flights
• Provides for 5th freedom of rights
• Allows designated and non-designated carriers
Air Policies and Issues
Salient Features of Proposed EO 500-B
• Unlimited flights
• 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
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
• Foreign Cargo traffic volume
• International Port
• International shipping lines
• Ancillary Services (trucking, forwarding, logistics)
Necessary and Critical Elements
for Batangas Port
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
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
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
• 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).
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
• 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.
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
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)
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
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.
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
Supporting Infrastructures
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
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
Supporting Infrastructures
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
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
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
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
PCCI PBC Resolutions: Infra Committee
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 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
PCCI PBC Resolutions: Infra Committee
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)
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
PCCI PBC Resolutions: Infra Committee
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
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
PCCI PBC Resolutions: Infra Committee
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.