port of manila congestion (hamburg presentation)v2 (1)

8/18/2019 Port of Manila Congestion (Hamburg presentation)v2 (1)

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Congestion and Port Deve

The Philippine Global

(International Multi-Modal and

Transport Economist, HPC Hamburg

$ommel C% Gavieta &r!h%'

Chief Strategy Officer, All Asia Resources an


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Demand +or Container' i,uid ul. and Dry u)ervi!es in the Philippines


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Philippine *!onomi! /ramewor. Conditions

! Philippines one of the emerging markets:

" Average real GDP per capita growth 2014-2050: 32!pa

" Average GDP growth in P"P 2014-2050: 45!

pa

" Average pop#lation growth 2014-2050: 13!

pa

" GDP at PPP ranking worl$wi$e: 2014:

2%th ⇒ 2050: 20th

! rrent challenges:

" 'ow level of (D)

" )n$#strial sector largel* +ase$ on processing an$ assem+l*

operations in the man#fact#ring of electronics an$ other high-tech

components, #s#all* from foreign companies an$ locate$ in ./

" &ons#mption an$ import $riven econom*

" acklog in infrastr#ct#re investments

" "igh #nemplo*ment

Demancontrib

Investment growthcontribution


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Philippine Port )ervi!es Demand - Container

! 'ack of port infrastr#ct#re in Asia: ins#fficient port capacit* an$ pro$#ctivit* are restraints on tra$e growth, w

s#ffer most from $ela*s in #pgra$ing infrastr#ct#re! )ntra-Asian tra$es are growing fast, over 60 million 7.8 2014 compare$ to 49 million 7.8 onl* a few *ears

of tra$e in containerise$ man#fact#res an$ perisha+le foo$s, $riven +* growing cons#mer $eman$ generat

prosperit*


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Philippine Port )ervi!es Demand - Container

! &asca$ing effect lea$s to ships in intra-Asian tra$e getting +igger: average vessel sie to$a* 3,235 7.8, in

4,000-5,000 7.8 can +e e;pecte$! or pro$#ction centre so#th of anila in the ./, which creates containerise$ e;ports an$ imports a sea

present terminals in anila is consi$ere$ val#a+le

! takehol$ers agree, a$$itional port capacities in etro anila nee$e$ in 5-10 *ears t ime

9,000 TEU MSC Mariashi!"


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Philippine Port )ervi!es Demand 0 Dry1rea. ul.

! (#rther han$ling capacities for +reak +#lk are nee$e$, especiall* the

cement in$#str* is investigating a$$itional port facilities an$ steel import$eman$ is high

! Per capita cons#mption of cement in the Philippines is less than 200kg,

while in 7hailan$ 36?kg, an$ in ala*sia 616kg glo+al average stan$s at

536kg per capita

! teel pro$#ct cons#mption per capita is e;pecte$ to grow from c#rrentl*

50kg to 130kg in 2030 this compare$ to present average cons#mption of

225kg per capita worl$wi$e an$ of 25%kg per capita in Asia! Possi+le long term growth prospects for the Philippine cement an$ steel

$eman$ $#e to a rise in constr#ction activit*, government infrastr#ct#re

spen$ing, an$ the reconstr#ction of t*phoon an$ earth=#ake affecte$ areas

! .;pecte$ positive $evelopment of the constr#ction sector ma* also re=#ire

a facilit* to #nloa$ heav* lift @ pro>ect cargo, for which a port facilit* in

pro;imit* to the in$#strial centres in the so#th, with $eep water access an$

mo$ern facilities can +e favo#ra+le


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Philippine Port )ervi!es Demand 0 i,uid ul.

! Philippine energ* market highl* $epen$ent on oil can +e

e;pecte$ to contin#e to rel* on fossil f#els in the f#t#reconse=#entl*, the import of petrole#m pro$#cts will pla* an

important role in the *ears to come

! a>orit* of total Philippine market $eman$ comes from

etro anila petrol stations an$ airport serve$ from

storage $eport in the centre, which has to relocate

! ising imports will re=#ire a$$itional storage facilities,

prefera+l* locate$ o#tsi$e the centre


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Philippine Port )ervi!es Demand 0 )ummary

! A$$itional port facilities will +e re=#ire$ in anila in a few *ears $#e to capacit* restrictions of e;isting term

! A location close to an$ so#th of etro anila allows access to the main cons#mption area an$ the main in$nee$ for crossing the cit*, avoi$ing critical tr#ck transports

! Direct new roa$ connection with goo$ hinterlan$ access is a pre-re=#isite for the s#ccess of a new port


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Metro Manila 2++-Port in.ages Current )tate


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Metro Manila and &rea and Population

! etro anila total lan$ area of 63% s=#are kilometers is onl* 021! of the

total lan$ area of the Philippines 300,000 s=#are kilometers an$ has an#r+an area that ranks as the worl$Bs fifth largest urban area

! etro anila has a pop#lation of appro;imatel* 12million 2010 cens#s

that is 12! of the total pop#lation of the Philippines

! etro anila has an #r+an pop#lation $ensit* that is appro;imatel* 3%,000

people per s=#are mile 14,500 per s=#are kilometer which is more than

$o#+le the pop#lation $ensit* of Cille $e Paris

! anila, Pateros an$ &aloocan are the top 3 most $ensel* pop#late$ cities

in the worl$ anila has a pop#lation $ensit* of 42,%5? people living per

s=#are kilometer

! 7he n#m+er of informal settler families in etro anila is alrea$* more than

half a million 7his n#m+er is alrea$* 20! of the total n#m+er of ho#sehol$

in etro anila 41! of these informal settlers are locate$ in government

owne$ lan$s while 34! are in privatel* owne$ lan$s

! 20! of the total income of the poor in etro anila is spent on

transportation 7his percentage is more than what the* spen$ for rice

15!, #tilities 69?!, health 299!, clothing 296! an$ e$#cation

33?!

http://www.demographia.com/db-worldua.pdfhttp://www.demographia.com/db-worldua.pdf


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Metro Manila GDP and $oad 3etwor.

! etro anila contri+#te$ 36! of national GDP last *ear where etro anilans

has a per capita GDP that earne$ 3-times higher than the national average! etro anila has a total of 1,0%6 km of national roa$s or 35! of the total

39,3?0 kilometers of roa$s nationwi$e

! etro anila has the longest length of national +ri$ges at 1,919 linear meters

per 100,000 pop#lation, which is more than five times the national ratio of 3?6

linear meters per 100,000 pop#lation

! t#$* showe$ that for a mega-cit* like etro anila, 25 percent of the total

lan$ area sho#l$ +e allotte$ for roa$s ase$ on the DAs recor$s, onl*

5,000 kilometers of roa$ network is in place instea$ of the i$eal %,000kilometers 'aw*er .merson &arlos, DA assistant general manager for

operations

! ight now, 260,000 vehicles travel per $irection along the main thoro#ghfare

on a $ail* +asis 7he total n#m+er of vehicles traverse .DA is 520,000

vehicles per $a* DA chairman (rancis 7olentino ha$ a$mitte$ that the

vol#me of vehicles #sing .DA remains a pro+lem "e sai$ .DAs carr*ing

capacit* is 160,000 vehicles per $irection


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Metro Manila 3umber o+ Vehi!les

!


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Metro Manila Tra++i! Congestion

! Tra%c demand is &'() million tri!s in Metro Manilaand * million in the ad+oining !rovinces o #ulacan,

i.al, /aguna and Cavite( Most o these tri!s aredone using the !ublic trans!ort owing to its *9share o total tri!s( The lesser share of the trips is doneby private mode and yet it is this mode that takes up 78%of road space (JICS and N!"#

! Congested streets and tra%c +ams cost the countr1as much as 2'(3 billion a da1 ($&$# and the stands tolose up to ' billion a day by $) in lost productivity andpotential income because of *orsenin+ tra,c -ams./

accordin+ to a study by the Japan InternationalCooperation "+ency

! Com!ared with neighboring countries, the2hili!!ines s!ends signi4cantl1 less on !ublicinrastructure at onl1 '(5 o 6D2'0&'"/ a+ainst the0 percent avera+e spendin+ in other Southeast "siancountries.

! 1e+a 1anila is envisioned to evolve from a monocentricurban development plan into a north2south polycentric

urban development plan. This is pro-ected to decon+estthe population of 1etro 1anila from hi+h risk 3ones into


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4IC&5s Master Mega Manila In+rastru!ture Developm

! JIC"4s '$.)2trillion infrastructure road map to decon+est 1etro1anila involves the establishment of ne* infrastructure and

improvin+ tra,c mana+ement. Ne* roads and e5press*ays *ill bebuilt/ and this is intended to improve accessibility to rail systems/tra,c enforcement and education. The public transport system *illalso be improved/ and in the process/ the country *ill be able tocut its tra,c losses and even +enerate revenues.

! The JIC" reckons that the 'hilippines can save as much as '&.$trillion in $). This is e6uivalent to '&. billion a day/ or '07billion a year from time cost savin+s and '$.& billion a day or ')

billion annually from vehicle operatin+ cost savin+s. The+overnment can also +enerate up to '&& billion a year in toll andfare revenue. Commuters/ on the other hand/ *ill be able to saveat least '&8 daily and cut their travel time by minutes per trip.

! JIC" said rail*ays should ideally take up a &% share of the overalltransport system/ *ith -eeps and buses at ))% and cars at $%.


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2ort o Manila and Manila InternationalContainer Terminal Congestion


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! 1arch )&/ $&0. "fter that/ the rate *ill be increasedto :S! .& for harbor and :S! .$ for berthin+

! 02percent discount provided by the 'hilippineconomic ;one "uthority on processin+ fees for fullcontainer shipments to be dischar+ed or loaded at


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Port o+ Manila and Manila International Container T

The Port of Manila, which handles 80% of the Philippines' maritime cargo, is badly in need of expansion. t is notorious for bott

pile up, and ships are often left waiting offshore.

! ICTSI concession is until $)8 *ith ri+ht to e5pand the capacity of 1anila International Contain! At the start of this *ear, Port of anila an$ anila )nternational &ontainer 7erminal were reporte$ to +e in all essence f#ll, at 9%! cap

port contin#ing to +e a ma>or pro+lem The terminal, which handles *5 !ercent o Manila7s cargo, ismore than 90 !ercent o its ca!acit1 / Christian Aon3ale3 C== of ICTSI said. It doesn4t usuapercent this time of year.

! Cessels are c#rrentl* ta!ing #$ days from arri&al to berth in the doc!s and a&erage transit times &ia Manila ha&e increased b

waiting times o#tsi$e an$ within the port are also ma>or pro+lem 7he com+ination of these has heavil* p#she$ #p prices

! 7he anila )nternational &ontainer 7erminal )&7 an$ anila o#th "ar+or c#rrentl* have a +acklog of ?3,500 container vans To congestion, go&ernment must fast$trac! the transfer of empty containers to other under$utili(ed ports, )rti($*uis said, Phi

&onfe$eration, )nc .

! Port congestion fees are now being charged at +00$+-00 along with +#00 emergency reco&ery costs. &erage truc!ing pr

P8,000 /0 "1P2 to P#0,000 E402 GP

Port ccessibility s also 3ongested

! &hristian Gonale sai$ that the port, which cant +e accesse$ witho#t going thro#gh anilas roa$s, han$les more than half of the n

1anila4s docks as a rush2hour truck ban threatens to dent +ro*th in the 'hilippines/ Southeaste5pandin+ economy.

Port the itself is con ested

C


18/39

Manila International Container Terminal and Intern

Container Terminal )ervi!es In!%

"dditional 'ort Capacity

! 1anila International Container Terminal (1ICT# is set to ?nish

the ?rst sta+e e5pansion of Bard 7 before the end of $&0 Thene* development *ill increase by &8% the terminals e5istin+import capacity 2 considered key by the company to optimisin+terminal usa+e 2 an important consideration in 1anila *herecon+estion has been a real problem in the past year.

! (ICTSI# added ha of yard capacity to 1ICT *ith thecompletion of 'hase & of its


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Metro Manila $:-2ort /in8ages Conges


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Port 2+ Manila and MICT in.age Metro Manila

DA &hairman (rancis 7olentino sai$ .DABs carr*ing capacit* is 160,000 vehicles per

$irection ight now, 260,000 vehicles travel per $irection along the main thoro#ghfare on

a $ail* +asis FAng total n#m+er of vehicles na nag-ta-traverse sa .DA a* 520,000vehicles per $a* ag+anggaan lang ang $alawa $i*an, wala na ta*o,F he sai$

7he following are the +#siest roa$s in etro anila mainl* comprise$ of highwa*s an$

streets forming its circ#mferential an$ ra$ial roa$ network:

1&-3 Araneta Aven#e, Gil P#*at Aven#e, A*ala Aven#e

2&-4 .DA, amson oa$, 'etre

3&-5 &P Garcia, . o$rig#e, atip#nan

4-1 o;as o#levar$, onifacio Drive

5-2 7aft Aven#e

6-? .spaHa Aven#e, I#eon Aven#e

?-5 'egar$a treet, amon agsa*sa*, haw o#levar$, Pasig o#levar$

%-6 A#rora o#levar$, arcos "ighwa*

9Gil P#*at Aven#e

10Jrtigas Aven#e

11-? .spana o#levar$, I#eon Aven#e, &ommonwealth Aven#e

12-9 ial Aven#e, cArth#r "ighwa*

2ort o

Manila andManilaInternationalContainerTerminal

Sangle12oint site o!ro!osed2hili!!ine6lobal6atewa1

I + h i ) l i di


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Impa!t o+ the port !ongestion )urvey results indi!ate

o+ shipping a 67-+oot or a 87-+oot !ontainer by tru!. d

the tru!. ban

! anilas main pro+lem seems to +e o#tsi$e the Port


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Port 2+ Manila "andling Congestion

! )ncoming cargo +o;es lingers facilit* an average of 10-$a*s from the

#s#al 6-$a*s at )nternational &ontainer 7erminal ervices )ncs 100-

hectare port - since a*or Koseph .stra$a $eclare$ the +an in

(e+r#ar*L, sai$ &hristian Gonale, the compan*s regional hea$, sai$ in

an interview

! &itigro#p )nc estimate$ in a note $ate$ arch ? that delays could lead

to an annual loss of 4 billion pesos /+.5 billion2 to #-0 billion

pesos, or as much as -.6 percent of gross domestic product in

7outheast sias second$most populous nation which wo#l$ $warf a

potential ann#al gain of ro#ghl* 30 +illion pesos from having less-

congeste$ roa$s in the capital, sai$ K#n 7rini$a$, a &itigro#p economist

+ase$ in anila

! There is also a backlo+ of &$/ t*enty2foote6uivalent units (T:# of empty containers do*nfrom the previous $$/ T:s. 2 See more atE httpEHH***.+manet*ork.comHne*sHstoryH)708$HmoneyHeconomyHho*2do2you2solve2a2problem2like2port2con+

http://www.gmanetwork.com/news/story/375820/money/economy/how-do-you-solve-a-problem-like-port-congestion#sthash.hxDGRpDB.dpufhttp://www.gmanetwork.com/news/story/375820/money/economy/how-do-you-solve-a-problem-like-port-congestion#sthash.hxDGRpDB.dpufhttp://www.gmanetwork.com/news/story/375820/money/economy/how-do-you-solve-a-problem-like-port-congestion#sthash.hxDGRpDB.dpufhttp://www.gmanetwork.com/news/story/375820/money/economy/how-do-you-solve-a-problem-like-port-congestion#sthash.hxDGRpDB.dpufhttp://www.gmanetwork.com/news/story/375820/money/economy/how-do-you-solve-a-problem-like-port-congestion#sthash.hxDGRpDB.dpufhttp://www.gmanetwork.com/news/story/375820/money/economy/how-do-you-solve-a-problem-like-port-congestion#sthash.hxDGRpDB.dpuf


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Port o+ Manila Tru!. Congestion

! " source of ma-or road con+estion in the portarea itself/ are the lon+ 6ueues of trucks *aitin+

to +et into the port. The hi+hly ine,cient K?rstcome ?rst served4 entry system that could beeasily solved by implementin+ a vehicle bookin+system/ *here truckers that turn up *ithout abookin+ are turned a*ay and in some casespenalised.

! !aily truck trips to the port of 1anila have fallento as lo* as )/0 from about / beforestrada4s order/ Suansin+ said. =ne round trip 22from the +ara+e to the port to the importer andback 22 can take t*o days or more/ he said.Confederation of Truckers "ssociation of the

'hilippines

! L=f the number of container vans in '=1 and1IC'/ 0 percent are empty/M ;apata of the"duana


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$ail !onne!tivity o+ e!onomi! 9ones and ports

! the trains could not run at the desired speed and be punctual due t

deterioratin+ conditions of the rail tracks! lon+ turnarounds and *aitin+ times because only one train set *as

! In $&/ the avera+e speed in road se+ments desi+nated as truck rpeak hours is 0.$ kilometers per hour (kph# compared *ith the ave&.07 kph for all other roads.

! Simulation results sho* that only .&7 percent of the estimated volfrei+ht *ould be shifted to rail transport durin+ peak and nonpeak h

SourceE 'ort con+estion and underutili3ation in the Areater Capital Fe+ionE :npackin+ the is'atalin+hu+/ Ailberto 1. Dlanto/ "le5is 1. Gillone/ Noriel C. Ti+lao/ Christine Futh Sala3ar/ Chand 1a. !iyina Aem "rbo 'hilippine Institute for !evelopment Studies No. $&027 (1arch httpEHHdirp.pids.+ov.phH*ebportalHC!NH':


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! Proposed Development /ramewor. +or the )

and )pe!ial *!onomi! one Component o+ th


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The trend to*ard buildin+ capacity

ahead of demand is like*isee5empli?ed by the airport buildin+bin+e in "sia.

lack of capacity may not be the onlycause of port con+estion but alsomanpo*er and truck availability as

*ell as access to road infrastructurealso matter

! =n the policy re+ardin+ containertra,c comin+ from or +oin+ to thesouth and north of 1etro 1anila


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Multi-Modal ()eaport# and ogisti!s "ub Developm


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Multi-Modal ()eaport# and ogisti!s "ub Developm

Potential in the Philippines

! 'hilippines plays a ma-or role in the international shippin+

industry.! !ue to its uni6ue +eo+raphic advanta+e/ the 'hilippines

depends on *ater +reatly/ and thus it develops services suchas shipbuildin+ and repair/ supplyin+ seafarers/ and tourism inparticular.

! Oith re+ards to the international trade/ the ports in the'hilippines handle most of the imported and e5portedmaterials and products/ and brin+ economic +ro*th.

! 'ort con+estion and 1etro 1anila4s tra,c con+estion areslo*in+ do*n economic +ro*th. !ue to its insu,cient

infrastructure and facilities/ transportin+ +oods to factoriesand consumers faces bottlenecks/ and thus makin+ it di,cultfor the 'hilippines to hit its economic +ro*th tar+et of $&.

! In order to enhance ports4 competitiveness at a +lobal level/the 'hilippine 'orts "uthority included the development of the

nation4s port into the master plan as bein+ crucial toeconomic development. The 'ort of 1anila is the heart of the'hilippine port system/ and it serves as the country4s +ate*ayto ma-or cities of the *orld and the -unction of domestic andinternational trade


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Philippine Ports in $elation to its Peer Ports in the

$ationale +or Improved Port Conne!tivity and ogi


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$ationale +or Improved Port Conne!tivity and ogi

"ub Conne!tivity

! Improved connectivity at a re+ional level *idens the potentialmarket available to local producers/ providin+ opportunities to

speciali3e in a+ricultural or industrial production accordin+ tocomparative or competitive advanta+e.

! The bulk of the "S"N 4s international trade is carried by sea/access to hi+h 6uality international shippin+ services is ofparamount importance.

! The 'hilippines imports a *ide variety of containeri3edconsumer +oods and manufactures *hile containeri3ed e5portsare limited. =ver % of containers are e5ported empty.

! In contrast/ 1alaysia has a healthy t*o2*ay tra,c in

containeri3ed car+oes/ as does Sin+apore. The tradin+ patternsof 'NA and Timor2Deste do not +enerate lar+e container o*s toand from aS" member economies.

! " substantial share of intra2aS" trade is carried on vesselsemployed either in mainline trades or on intra2"sian feedercontainer services. In times of relatively lo* demand/ mainlinecarriers fre6uently carry intra2aS" car+o on vessels employedin the "sia2urope and trans2'aci?c trades

! breakbulk vessels usually carry hetero+eneous car+oes inparcel si3e lots. They may also carry +eneral and pro-ectcar+oes.


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Proposed International Multi-Modal ogisti!s "ub

/ramewor. +or the Philippine Global Gateway


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Philippine Global Gateway


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Inte+rated TransportationGacilities

The concept of "FFC is based on a +reater vision of a combined international +ate*holistic approach/ inte+ratin+ dependent systems and layers to one uni6ue lon+ term

Philippine Global Gateway Development Paramet


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Philippine Global Gateway Development Paramet

and )pe!ial *!onomi! one#

1uch of ast "sia uses containers only forthe maritime part of trips/ loadin+ and

unloadin+ them in the ports rather than atthe ori+in and destination of their car+o. Thiseliminates the main cost2savin+ advanta+esof container use. Countries that can bestencoura+e door2to2door movement ofcontainers usin+ multimodal transport *ill bebest e6uipped to compete and to brin+ tradebene?ts to their more remote re+ions. To

achieve this inte+ration they *ill need toE

! 1atch inland *ith maritime infrastructure

! Simplify trade documentation.

! !evelop an e,cient frei+ht for*ardin+industry

! !evelop e@ective communications systems

Development o+ )eaport and ogisti!s "ub Comp


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Development o+ )eaport and ogisti!s "ub Comp

the Philippine Global Gateway Pro;e!t

! !evelopment of a Seaport

*ith a startin+ capacity of)million T:

! !evelopment of Di6uid


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2$;ECT DE


37/39


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Than8 1ou or 1our time and !atience

Manila International Container Terminal and Intern


39/39

Container Terminal )ervi!es In!%

! If conditions persist, ICTSI will consider diverting some containersto a '&-hectare acilit1 about 50 8ilometers ()& miles# from 1anila/in Da+una province/ he said.

! 1anila4s docks as a rush2hour truck ban threatens to dent+ro*th in the 'hilippines/ Southeast "sia4s fastest2e5pandin+economy.

! International Container Terminal Services ICTSI", the largest !orto!erator in the 2hili!!ines, has rolled out at the ManilaInternational Container Terminal MICT" its new online containerboo8ing s1stem, the Terminal !!ointment #oo8ing S1stemT#S"( T"

port of manila congestion (hamburg presentation)v2 (1)

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