TRANSPORT SUMMIT 2014 Removing Barriers in Cargo Transportation and Customs

TRANSPORT SUMMIT 2014Helping Relieve the Port and Traffic Congestion in ManilaPresented by:Mr. Roberto V. GarciaChairman and AdministratorSubic Bay Metropolitan Authority04.23.2014

2SUBIC BAY METROPOLITAN AUTHORITY

The US Navy selected Subic Bay as a repair and supply depot.1909Spanish Naval Station 1800s

Spain discovered Subic Bay's natural deep harbor and soon built a naval fortress.1898After the Spanish-American war, US Forces took control of the Spanish naval facility.18001992

The Spanish Gate was the main entrance from the harbor to the inner Spanish Naval Station.

Subic during WWIIThe Japanese occupied Subic.1942The RP-US Military Bases Agreement1947

The famous Seabees started construction of the Naval Base Station.19511992Turnover of Subic to the Phil. after the Senate rejected the extension of the Treaty and Mount Pinatubo erupted.HISTORY OF SUBIC BAY FREEPORT ZONESUBIC BAY METROPOLITAN AUTHORITYSUBIC BAY: 94 Years as a U.S. Naval Base3

3Subic, then, was the largest US Facility outside America. After 94 years as an American Military Facility, Subic is turned over to the Philippines after the Philippine Senate rejects the renewal of the 1947 US-Philippine Bases Agreement.

Since its inception in 1992, the Subic Bay Freeport has become one of the countrys premier showcases for economic development, a symbol of pride for every Filipino, and one of the most successful models of military base conversion in the world.SUBIC BAY METROPOLITAN AUTHORITYSBMA Charter4SBMA Charter (RA 7227)The SBMA shall promote the Subic Special Economic Zone into a self-sustaining, industrial, commercial, financial and investment center to generate employment opportunities in and around the zone and to attract and promote productive foreign investments.

4Subic Bay Metropolitan Authority (SBMA) is the first successful military base conversion into a tax and duty free zone in the Philippines.SBMA is the first Free Port and a choice Investment site and top tourist destination in the Philippines.SUBIC BAY METROPOLITAN AUTHORITYSUBIC BAY FREEPORT ZONE TODAY1,800 Locators with US$9.3 billiontotal investments90,092 Active free port zone workforce5.23 Million visitor arrivals in 20125The countrys first free port today is a thriving maritime, industrial and tourism zone.5Subic Bay Metropolitan Authority (SBMA) is the first successful military base conversion into a tax and duty free zone in the Philippines.SBMA is the first Free Port and a choice Investment site and top tourist destination in the Philippines.SUBIC BAY METROPOLITAN AUTHORITYPORT OF SUBIC BAY6

IMO ISPS CODE

PORT OF SUBIC BAY IS A SECURITY ASSESSMENTS AND PLANS COMPLIANT PORT

ISO 9001:2008 CERTIFIEDRecently granted to SBMA the ISO 9001:2008 certification after passing the audit done by AJA Registrars, Inc., an independent certificationbody headquartered in the United Kingdom.ISO 9001-2000 certified on Quality Management, an assurance of quality services in accordance with national and internationalStandard.6SUBIC BAY METROPOLITAN AUTHORITYSubic is a complete port with 15 piers & wharves capable of handling all types of sea vessels7

South China SeaNew Container Terminal Cubi PointSubic Bay International AirportSubic Bay Techno-ParkSubic Bay Gateway Park (Phase 2)Subic Bay Gateway Park (Phase 1)Naval Supply Depot (General Cargo)Subic Bay Golf CourseCentral AreaShip Repair FacilityBoton WharfPOL PierMarine TerminalSattler PierRivera WharfBravo WharfYacht ClubPassenger TerminalLeyte PierNabasan WharfCamayan WharfHanjin Heavy Industries Shipyard (240 ha)Boton Logistics CenterNaval Magazine Ecotourism ZoneCubiRedondo PeninsulaA natural deep navigational channel ranging from 22-45 meters.The berthing facilities can accommodate up to fourteen (14) meters vessel depth requirement.

7PORT INFRASTRUCTUREThe Port of Subic Bay is complemented with port facilities and infrastructure that can support a wide range of businesses.8SUBIC BAY METROPOLITAN AUTHORITYPIER / WHARFUSEAlava WharfForeign naval vessels, passenger ships, ferry boats and general cargo vessels (rice, corn, etc.)Bravo WharfTug boats and cargo shipsRivera WharfFerry boats, Philippine naval ships and landing of small watercrafts / general cargo (lumber, heavy lifts, livestocks etc.) and naval ships, cable ships, cargo ships and for ship lay-upsAccess PierShip repair facilityBoton PierTransshipment vessels, fishing boats and bulk cargoes, fertilizers terminalMarine TerminalGeneral cargo (rice, corn, etc.), RoRo, cargo ships and tug boats, tankers, fishing boatsPIER / WHARFUSEPOL PierOil tankersLeyte PierGrain terminalsFishermans WharfYacht repair & refurbishingPure Petroleum Corporation Jetty used for discharging of diesel fuelNabasan WharfMaritime training facilityCamayan WharfEco-tourism areaGrande Island PierRecreational areaNew Container TerminalContainerized cargoes 8SUBIC BAY METROPOLITAN AUTHORITYNew Container Terminal 1 & 29Terminal Area: 26.32 hectaresBerthLength of quay: 560 metersNumber of berthing positions: 4Controlling depth: 13 metersContainer YardStorage areas: 11.14 hectaresReefer stations: 84 units at 440 voltsGatesTruck lanes: 6Weigh bridge: 2 (60-ton capacity)Truck Holding Area: 0.7 hectaresFACILITIESSUBIC BAY METROPOLITAN AUTHORITYNCT 1 & 2 HISTORICAL VOLUMEShipment20092010201120122013Import14,80917,49617,46619,14720,277Export6,8147,7729,8908,1668,359Transshipment283393315759684Empty In68115936815311Empty Out7,2788,5434,9667,4177,840Total29,25234,31833,57336,30437,46910SUBIC BAY METROPOLITAN AUTHORITY11WHY SUBIC CONTAINER PORT IS NOT FULLY UTILIZEDA chicken-and-egg situation prevails, limiting present capacity utilization to 6% only.Only 2 shipping lines call regularly due to low cargo volume.Central Luzon shippers do not come due to limited shipping calls.SUBIC BAY METROPOLITAN AUTHORITYWHAT SBMA HAS DONE TO RESOLVE THE PROBLEMCalled the First Subic Maritime Summit in September 2012Formed a Technical Working Group composed of various stakeholders to carry out recommendations of the SummitWorked closely with JICA on studies on how to increase capacity utilizationIdentified exporters and importers for Central LuzonMarketed Subic Port aggressivelyEnacted domestic tariff for local shipping lines for companies that ship from Subic to other domestic ports12SUBIC BAY METROPOLITAN AUTHORITYMANILA TRUCK BAN OR BANE?13SUBIC BAY METROPOLITAN AUTHORITYNo need for Central and Northern Luzon cargoes to pass through ManilaJICA study shows that out of the 2.8 million containers passing through the Port of Manila, 450,000 containers originate from or are destined for Central and Northern Luzon.The increased cost of congestion by passing through Manila results in higher prices of commodities.Subic is the perfect gateway for Central and Northern Luzon.14STRONG POINTS FOR PORT OF SUBICStrategic locationISPS compliant port Natural deep harbor Capable of handling all types of sea vessels World class and reliable infrastructure Skilled and service-oriented workforce15SUBIC BAY METROPOLITAN AUTHORITYACCESSIBILITY16SUBIC BAY METROPOLITAN AUTHORITYSUBIC-CLARK-TARLAC EXPRESSWAY (SCTEX)A modern four-lane, 94-km. highway from Clark to Subic up to Tarlac, linking three growth centers in the area: Subic Bay Freeport Zone, Clark Freeport Zone and Tarlac Industrial Park.

NCT 1 & 2 ACCESS ROADA 3.6-km. access road, connecting New Container Terminals 1 and 2 to the Freeports Argonaut Highway all the way to the Tipo Expressway, Subics nearest entry-exit point to and from ManilaNORTH LUZON EXPRESSWAY (NLEX)A 84-km., 4 to 8-lane access toll expressway from Metro Manila to Central Luzon provinces and one the most modern infrastructure projects undertaken in the country over the past ten years.MAJOR ROAD NETWORKS FOR EASE OF DOING BUSINESS IN SBMA.16

SUBIC BAY METROPOLITAN AUTHORITYOPENING OF TARLAC-PANGASINAN-LA UNION EXPRESSWAYTARLAC-PANGASINAN-LA UNION EXPRESSWAY (TPLEX)An 88.5-km. four-lane expressway to serve as the extension of North Luzon Expressway (NLEX) and SCTEX from Tarlac to Rosario, La, Union17

SUBIC BAY METROPOLITAN AUTHORITYITS CHEAPER TO IMPORT INTO SUBIC18CHARGESSUBIC RATEper 20-footer containerMICT (Manila)per 20-footer container + VATDIFFERENCEPERCENTAGEShipping LinesOcean Freight (Kaoshiung)US$450.00US$350.00(US$100.00)-28%Terminal Handling Charge129.55129.550Cargo Handling-SBITCStevedoring60.7891.2630.4833%Arrastre39.7684.7044.9453%Stripping/Stuffing69.18179.50110.3261%Wharfage Fee12.7511.80-0.95-8%Trucking Clark - Subic227.27Clark - Manila295.4568.1823%TFCD- Processing FeePer SAD12.50Rate: $1 = Php44.00Total Cost in US$US$1,001.79 US$1,142.26US$140.4712.3%NOTE: Ocean freight and trucking rates are negotiable.Comparative figures of Subic Rate vis--vis Manila

18SUBIC BAY METROPOLITAN AUTHORITYITS CHEAPER TO EXPORT FROM SUBIC19CHARGESSUBIC RATEper 20-footer containerMICT (Manila)per 20-footer container + VATDIFFERENCEPERCENT VARIANCEShipping LinesOcean Freight (Kaoshiung)US$320.00US$220.00(US$100.00)-28Terminal Handling Charge129.55129.550Cargo Handling-SBITCStevedoring60.7891.2630.4833Arrastre32.4769.1536.6853Stripping/Stuffing69.18179.50110.3261Wharfage Fee6.385.900.48-8Trucking Clark - Subic227.27Clark - Manila295.4568.1823%AEDS charge1.70Rate: $1 = Php44.00TOTAL COST IN US$US$847.33US$990.81US$143.4814%FREE STORAGE:SUBIC-Import & Export: 10 DAYSMANILA-Import: 5 Days / Export - 4 Days Comparative figures of Subic Rate vis--vis Manila

1920SUBIC BAY METROPOLITAN AUTHORITYSHORTER DISTANCEROUTEDistance (Km)ROUTEDistance (Km)Subic - Bataan20Manila - Bataan123Subic - Clark60Manila - Clark85Subic - Pampanga50Manila - Pampanga65Subic - Tarlac60Manila - Tarlac125ITS FASTER TO SHIP TO & FROM SUBICSHORTER DELIVERY TIMETO/FROMSUBICMANILADistance (Km)Estimated Travel Time (Hrs)Distance (Km)Estimated Travel Time (Hrs)MANILA1384TARLAC602.51254BATAAN201.751234PAMPANGA502.5573ZAMBALES (IBA)8032105CLARK602.5853Advantage20SUBIC BAY METROPOLITAN AUTHORITY1) Lower cost2) Faster turnaround time3) Improved convenience / ease of doing businessOne-day, one-stop-shop accreditation for cargo trucksGreen lane for trucks at Tipo Sentry Gate8-hour processing time by Bureau of Customs6-hour processing time for issuance of gate pass by SBMA Seaport Dept.Subic Shuttle21SAY YES TO SUBICSUBIC BAY METROPOLITAN AUTHORITY22The SBMA is ready, willing and able to help relieve port and traffic congestion in Manila.End of presentationthank you

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