Maximizing the use of Batangas International Port

1. Maximizing the use of Batangas International Port

2. Current Scenario • Port of Manila is already experiencing congestion • Metro Manila itself is also congested and polluted • The Government borrowed more than US$ 240 million from JBIC to develop the international ports of Batangas and Subic in order to de-congest Metro Manila and the Port of Manila • The Batangas and Subic ports were completed in 2006 and 2008, respectively.

3. Current Scenario • The Batangas and Subic ports are highly under-utilized TEUs = Twenty Equivalent Units (20-footer container) Source: PPP Batangas PMO, SBMA

4. Luzon Logistics Corridor • The National Competitiveness Council recommended in 2009 the development of a Luzon Integrated Logistics Hub that covers the Batangas-Clark-Subic corridor • The vision is to develop new “economic magnets” outside of Metro Manila • Regions 3 and 4 are the fastest growing economies in Luzon outside of the National Capital Region, accounting for almost 20% of the country’s total output (GDP) • The CALABARZON area alone has more than 1,000 PEZA locators in 42 industrial estates

5. Major Infrastructure are in place • The good news is that the major road infrastructure network is already in place. • Expanded and extended SLEX, completed the second phase of the Southern Tagalog Arterial Road that leads all the way to the port of Batangas • Improved NLEX, completed SCTex that leads all the way to Subic Port. Now we are even extending SCTEx all the way to La Union via TPLEx. • New port capacities (additional 1 million container capacity per year) in Subic and Batangas provide new “gateways”.

6. Our Advocacy • We recommend the issuance of a policy (i.e., Executive Order) that would shift foreign cargoes from the port of Manila to the newly developed international ports starting with the Batangas Port. • The capacity of Batangas Port is only 1/5 of the current foreign cargo traffic being handled in Manila. According to the Philippine Economic Zone Authority (PEZA), 86% of export-import cargoes come from the PEZA-registered companies, of which 60% originate from the CALABARZON area.

7. Our Advocacy • It is hereby recommended that all exports and imports going to and coming from South Luzon should be handled at the Batangas Port. PPA and PEZA must simultaneously issue the following Memorandum Circulars to the effect: • The Philippine Ports Authority (PPA) to issue a Memorandum Circular directing the International Shipping Companies, through its association (AISL), to service their clients based/operating in South Luzon at the International Port of Batangas. • The Philippine Economic Zone Authority (PEZA) to issue a Memorandum Circular directing its Economic Zone locators to load and unload their foreign cargoes at the International Port of Batangas.

8. Our Advocacy • It likewise dovetails President Aquino’s initiative at the ASEAN which calls for the establishment of an ASEAN RORO Network aimed at enhancing regional connectivity. “[t]he Philippines has major interests here, with its existing nautical highway or RO-RO project. Once it is implemented, ASEAN connectivity will bridge our nation to our neighbors, shorten transfer distances and open more economic opportunities for more people.” President Benigno S. Aquino III August 9, 2010 • At the 17th ASEAN Summit in Ha Noi (Oct 2010), the Leaders adopted the Masterplan on ASEAN Connectivity which lists the ASEAN RORO initiative among the 15 flagship projects.

9. Greater Mekong Sub-region Shenzhen, China A Vision for Regional Connectivity Da Nang Archipelagic ASEAN RO-RO Network Batangas Sinahaoukville Zamboanga Davao Kota Bahru Sandakan Labuan Manado BIMP-EAGA Sub-region

10. THANK YOU