SEAPORTS controlled by the Philippine Ports Authority (PPA) can accommodate the expected spike in cargo volume brought about by the amendment of the decades-old Cabotage law.
This was the assurance of PPA General Manager Juan C. Sta. Ana, who said the state-owned agency has been improving the capacity and capability of Philippine ports in anticipation of the implementation of the Asean Economic Community at the start of next year.
Those measures, somehow, help the state-owned agency adjust easily in the amendment to the Cabotage law, he added.
“Philippine ports are ready even prior to the signing of the law relaxing the country’s Cabotage law,” he said. “The major gateways have long been capable of handling bigger ships and our secondary gateways are being improved to handle international vessels.”
The port chief, however, noted that the effect of the sweetening of the Cabotage law will not immediately trickle down to port operations.
“Our ports will not have a hard time adjusting to expected influx of vessels and cargoes in the different ports,” Sta. Ana said.
Currently, there are 10 major Philippine gateways where foreign-flagged ships dock, like the Manila International Container Terminal, the Manila South Harbor and the Manila North Harbor in Manila; Port of Batangas; Port of Davao; Makar Wharf in General Santos; and the ports of Iloilo Zamboanga, Ozamiz and Cagayan de Oro. Other government ports where ships call include Cebu and Subic Bay.
These ports handle about 90 percent of the total cargo movement in and out of the Philippines, while the Manila ports corner about 85 percent of the percentage. The remaining 10 percent is scattered in other private ports like the Manila Harbour Centre.
President Aquino signed last month the Foreign Ships Co-Loading Act, amending the 50-year-old Cabotage law.
In a nutshell, the law frees up the strains on foreign operations in the country. It allows ships from other nations to dock in multiple ports in the Philippines.
The law is seen to cut logistics costs, improve the efficiency of the import and export system, and lower costs of consumer goods.
Philippine cargo volume rose modestly in the first four months of the year, anchored on strong foreign container cargo—specifically exports—and healthier domestic cargo volume.
Total volume reached 66.60 million metric tons (mmt), higher by 6.34 percent from 62.63 mmt posted in the same period of 2014.
Domestic cargoes registered a 6.87-percent hike to 27.75 mmt from only 25.97 mmt in the January to April 2014 period.
Foreign cargo volume increased by 5.97 percent to 38.85 mmt from 36.66 mmt a year ago.
Import volume rose by 7.69 percent to 22.21 mmt from 20.63 mmt in 2014, while export volume inched up by 3.75 percent to 16.63 mmt compared to the 16.03 mmt posted last year.
The North Harbor is the top performer in terms of cargo volume with a share of 8.19 mmt of the total cargo volume nationwide, followed by Batangas with 7.79 mmt, Bataan/Aurora with 6.15 mmt and Davao 4.14 mmt.
Private ports handled 41.21 mmt, or 57.38 percent, of the total cargo volume nationwide, while government ports accounted for 25.39 mmt or 42.62 percent.