and some short-, mid-, and long-term solutions April 23, 2014

Stakeholders
Port operators
Shipping lines Truckers LGUs DPWH, DOTC, MMDA, PPA, PEZA, Customs, NHA Business (exporters, importers, local and foreign

chambers, SEIPI)

Container Volume in the Port of Manila in TEU (20ft equivalent units

2013 2.840 million TEU
2014 2.954 mio (assuming 4% growth p.a.) 2015 3.072 mio 2016 3.200 mio 2017 3.320 mio (capacity limit Port of Manila) Capacity Subic: 600,000 TEU Capacity Batangas: 300,000 TEU

Economic Cost of Truck bans

As per Citi Economist Jun Trinidad:
Pesos 61.2 to 320 billion GDP reduction between 1% and 5%

Immediate damage of truck bans

Increase in trucking costs (doubled already)
Ineffective port services Delayed shipments of incoming materials for

manufacturing and delayed exports Containers stuck at the ports undermining companies ability to expand their businesses Additional trucking and barging costs to keep operations going to avoid layoffs

Issues:
Empty containers
Informal settlers Truck traffic Supply chain efficiency

Customs related Trucking related Container terminal related Shipping line related

Some actions:
Customs 24/7
PPA empty container depots / overstaying containers DPWH

connectors to NLEX and to NLEX-SLEX connector reconsider ban of trucks carrying 2x20ft containers City of Manila improve traffic on Bonifacio Drive regulate empty container depots on Bonifacio Drive open Roxas Boulevard at night

Some actions:
DOTC
Shift of container traffic to Batangas and Subic Ports through incentives

rather than penalties Improve Manila Port operations to give additional time for capacity expansion in at Subic and Batangas Ports

PEZA
Continue strategies to move traffic to Batangas Help find depots for empty containers near Zones

Big importers and exporters Move more cargo to Batangas and Subic Operate your warehouses 24/7

Effects of truck bans:

Reduce trucking time by 50% to 12 hours:
double the number of trucks on the streets

Reduce trucking time to 25% or 6 hours: 4 times as many trucks on the streets

In conclusion:
Closing the Manila ports is not an option if the well-

being of the economy matters;

Making the Manila ports more effective, improving the

infrastructure into the ports is an urgent option;

Moving traffic / cargo to Batangas and Subic Ports is a

necessity.

Thank You!
Henry J. Schumacher
VP for External Relations ECCP

schumacher@eccp.com
schumacher@integrityinitiative.com