161
1 INTRODUCTION
The Philippine maritime sector has a considerable
economic impact on the country. Several relevant
sectors, subsectors, and regulatorFy and contributor
supervisorybodiesmustadjusttothechangingtimes
and contemporary technologies to continue playing
theirrespectiveroles.Modernization,automation,and
other emerging technology would help three
important
maritime industries: shipping,
shipbuilding, ship repair, and maritime personnel.
Theports,harbors,container,andfreightfirmsshould
executeparallelplansandcoordinatedactivitiesthat
will result in a more amicable and successful
partnership because their work and services
complement and are related to those of the three
sectors. This synchronization would
be a suitable
answertothegrowingdemandformoreappropriate
andefficientservices.(ManilaTimes,2018)[11]
In the Philippines, arrays of major transport
projects are being rolled out under the Build, Build,
and Build (BBB) program. The Philippines transport
authorities are doing their best to address problems
brought
onbytrafficcongestionandtheovercapacity
ofportsandharbors.Thegovernmentisaccelerating
itsinfrastructureinvestmenttoaddressthissituation
by integrating the islands of the archipelago and
exciting development, such as considerable systems
improvements in the roads, railways, and ports.
(OxfordBusinessGroup,n.d.)[21]
As a background,
nearly all of the Philippinesʹ
large public ports are controlled by the Philippine
Ports Authority. The Philippine Ports Authority
Super Seven “S” Trends (SSST) that Shape the Future of
Philippine Global Ports
A.Baylon
M
aritimeAcademyofAsiaandthePacific,MarivelesBataan,Philippines
ABSTRACT:ThepaperpresentstheportinvestmentsandinitiativesthePhilippinePortAuthorityspearheaded,
including financial performance and operational highlights. The extensive readings on the Philippine Port
Authority (PPA) report, online searches, documentary analysis, observations from the press, etc., and
interviews
wereevaluatedanddividedintoSevenSuperʺSʺTrends(SSS‐T).This7S‐TincludesSTEMS,SIZEor
SCALE,SPEED,SMARTNESS,SUSTAINABILITY,SAFETYandSECURITY,SCARCITY,andSUPPLY,which
togetherwouldinfluencethefutureofglobalports.TheseʺSʺTrendswillbeexplainedinlightofcurrent(2017–
2018) projects, trends,
best practices, and port investments that are being started and carried out in the
Philippinesdespiteobstaclesanddifficulties.Thepaperconcludeswitha fewclosingthoughts.Theviewsand
analysissetoutinthispaperarethoseoftheauthor(s)andnottheofficialviewpoint ofthePhilippinePort
Authority(PPA)unless otherwisethestatement(s)oftheperson(s) have beenquotedʺintoto.ʺTheanalyses
providedinthispaperareideasandinterpretationsoftheauthor(s)asmaritimeeducatorsandresearchersand
aresolelyintendedforacademicdiscourse.AlthoughtheSevenSuperTrends(SST)mayusedifferentterms,
theymay
representthesametrendsseenbyportspecialistsbecausetrendsinportsareaglobalconcern.
http://www.transnav.eu
the International Journal
on Marine Navigation
and Safety of Sea Transportation
Volume 18
Number 1
March 2024
DOI:10.12716/1001.18.01.16
162
granted a joint venture between Asia Terminal
InternationalandAriesArrastreServicesforacargo‐
handling franchise in Batangas. In 1994, the
government issued Order 212 to promote private
sectoractivityintheportsector.Thisallowedprivate
portstocompeteforthird‐party cargo and hadlittle
impact
because of the low public port tariffs in the
subsidizedregionalports.PrivateArrastrecompanies
provide Cargo‐handling, but the Philippine Ports
Authority licenses only a few companies to provide
eachportʹsservices.Attemptstoopencargohandling
to competing firms, as part of Order 212, were
stymiedbythe
existinglicenseesʹefforts.Manyofthe
portservicesinManilahavebeenlicensedtoprivate
providers.(ADB,2000)[1]
2 PORTINFRASTRUCTURESINVESTMENTS
The Philippine Ports Authority (PPA) is accelerating
port infrastructure projects nationwide due to the
revenuesindicatingasolidincreaseinthefirstquarter
of2018.PPArevenues
for2017werePHP3.78billion
(USD72million)inQ12018,9%morethanPHP3.48
billion. The high performance of the government
programswascorrelatedwiththestoragefees,which
climbedby50%,andthelay‐upfee,whichincreased
by183%.(Louppova,2018)[9].
ThePPAportsincreased
byapercentfromthefirst
quarter of 2017 to 55.2 mln mt. in Q1 2018. The
Manila/North Luzon accounts for 24,7 mln mt—half
oftheentirevolume.Manilahandled1.198mlnTEU,
almost 70% of this volume. It is observed that the
containertrafficroseto1.76mlnTEU,
asignificant7%
increase.Duetoitsstrongfinancialperformance,the
agency can enhance other overcrowded ports with
cargo and passengers. Although, PPAʹs net income
decreasedby4%toPHP2.26billion(USD43million)
fromPHP2.37billionlastyearduetosignificantfirst‐
quarter maintenance costs, mainly for
dredging,
repair,andmaintenance.(Louppova,2018)[9].
On its 44
th
Anniversary (July 11, 2018), the
PhilippinePortsAuthority(PPA)announcedthatthe
agencyisinvestingsignificantlyinportinfrastructure
toachieveitsvisionby2020.Themovealsoparallels
one of the International Maritime Organizationʹs
(IMO) major programs to build better ports for the
future. These infrastructure projects involve
the
completecontainerizationofPhilippineports.Amore
expansive space will be set up for more excellent
backup facilities. There will also be secure and
practical Passenger Terminal Buildings (PTBs) and
cruiseterminalsbeingupgradedandbuiltinstrategic
locationsnationwide.[14]
It can be surmised that the 53‐ha Manila
North
Harbour Port can support the countryʹs current and
futureexpansion.Withmorethan1.2millionTEUsof
domesticcargo,ithasacapacityatparwiththoseof
foreignoperatorsinManila.[21]
Theexistinginfrastructureandongoingexpansion
strengthened the portʹs profile, as evidenced by the
operatorʹs P14.5 billion ($306.7 million) investment
commitmentin2016fortheportmodernizationslated
for the next 25 years. The terminal anticipates that
increasingitsterminalcapacityto approximately4m
TEUs would finally finish the modernization over
several years. The fully air‐conditioned passenger
terminalcomplexat the port can
accommodate 2000
passengers. The portʹs cargo terminal is undergoing
renovation.[22]
ThePhilippinesʹcriticalportpriority istoacquire
modern equipment (eight (8) quay cranes and 27
rubber‐tired gantry cranes) to facilitate faster cargo
turnaround.Expanded840‐meterquayareaswillaid
inaccommodatinglongervesselswhileimplementing
a NAVIS N4 terminal operating system. A one‐stop
shop has also been built to streamline transaction
services and offer faster service from the point of
origintothepointofdestination.Portperformanceis
good if it achieves a high throughput of TEUs in a
year, as it will mean
a high record of vessel
turnaroundrates.Portperformanceisalsodependent
ontheportusers.[22]
Furthermore, as the governmentʹs infrastructure
push is anticipated to increase shipments to the
Philippines,AsianTerminals Incorporated (ATI), the
operator of Manila South Harbor, and the Batangas
Container Terminal are investing in
a multibillion‐
pesoexpansionprogram.[2]
3 FINDINGSANDANALYSIS
Based on various readings of Philippine Ports
Authority reports, internet searches, observations,
documentaries, content analysis, and interviews, the
informationanddatageneratedhavebeennotedand
analyzed, focusing on Philippine portsʹ investment,
trends, and best practices that impact the port
industry.
ThesehavebeensummarizedintotheSeven
Super Sevenʺ7 Sʺ trends (ʺSSSTʺ or 7ST), which
wouldshapethefutureglobalportsandShippingfor
easyrecall.[7]
TheSevenSuper“S”standsforthe7ST:STEMS,
SIZE, SPEED, SUSTAINABILITY, SMARTNESS,
SAFETY&SECURITY,andSCARCITY&SUPPLY.
3.1 STEMS
STEMSprofileasapriorityinaKnowledgeIntensive
labor Market for the port sector. Knowledge and
innovationwillbecomeincreasinglydominantfactors
in determining the competitive strength of the port.
[14] It is envisioned that the STEM (Science,
Technology,Engineering,andMathematics)trackwill
be required for maritime
students. STEM students
will become more sought after. Competition for
skilled employees is increasing, and as a result, the
(port)labormarketwillfurtherinternationalizeinthe
next few years. Western shipping companies facing
this talent shortage will look for Asia and Africa to
secure their human capital. Universities and
port
authoritiesinthePhilippinesareworkingtogetherto
secure talent potential. The mismatch between high
school(youth)unemploymentandthelackofskilled
workersisasocialchange.[7]
163
3.2 SIZEorSCALE
The increasing size of ships, trains, and trucks will
continuefor15years.Forexample,thelargestvessels,
suchasthe22,000‐TEUships,canonlycallatlimited
ports. Larger ships require more depth, more
expansive docks, stronger quays, and more massive
cranes. Implementing
major infrastructural projects
typically takes 15 years. [14] Transshipment is
becoming more structural; the need for cooperation
withotherportsincreasestosecureoptimaltransport.
Portsfocusingonlargeshipsresultinmoreessential
butalsofewerportsandcarriers.
According to PPA reports, there was an
extraordinary rise in cruise
ship arrivals over the
previous12months,culminatinginmanycruiseships
arriving simultaneously at Manilaʹs South Port in
March 2018. The fact that cruise tourist passengers
haveincreasedbymorethan1000%demonstratesthat
the Philippines gradually realizes the advantages of
thoseprograms.[10]Internationalcruisetourismhas
alsocontributedtothePhilippinesʹpassageindustryʹs
overall performance. The number of international
cruise passengers increased by more than 184.76%,
from43,820in2017to124,779passengersin2018.The
cruise ship passengersʹ concentration is mainly in
Manila,Batangas,Palawan,Panay,andGuimaras.No
sign of port congestion existed in
any of the
Philippinesʹ primary gateway ports, specifically
Manila. The productivity is still consistent, as
indicated by an average of 23 moves an hour
combined.Theaverageis60%yardutilization,while
thethreeportsʹberthoccupancyrateis59%.[18]
By the close of May 2018, passenger volume
continued
to expand by 36.76 million vis‐a‐vis the
33.63 million dealt with in the same timeframe in
2017, an increase of 9.3%, owing to the rise in
dependence of the public on sea‐traveling by Ro‐Ro
vessels, fast crafts, and motorized bancas for inter‐
islandtravelprimarilyinthe
portsofBohol,Masbate,
Mindoro, Negros Oriental and Siquijor and Negros
Occidental‐Bacolod‐Banagoarea.Thelivelystreamin
passengertrafficisalsoduetothepublicʹssupportof
the governmentʹs domestic eco‐tourism programs,
whichpromoteinter‐islandleisuretravelthroughRo‐
Rovessels.[4]
Due to
therobust domestic consumptionand the
generallygoodbusinessclimate,thePhilippinecargo
modestly increased by 0.44% in 2018. Total
throughput increased to 98.89 million metric tons
(MMT) in 2018 from 98.89 MMT in 2017, with
domestic freight volume increased by nearly 4% to
42.36MMT.[4]
ThePhilippinesʹmaingateway
inManila (Manila
International Container Terminal in Manila South
HarborandtheManilaNorthPort)remainshealthyat
a combined berth occupancy rate of 59%. Likewise,
theQuaycraneproductivityis24movesanhourper
crane.[4]
3.3 SPEED
The rise in port infrastructure investments in recent
years has
yielded notable results in alleviating road
congestion.Inthe2017LloydʹsListofAsianPorts,the
Philippinesisincludedinthetop100containerports
at 32nd spot in 2017 and improved its standing in
2018 at 22nd spot due to the booming Philippine
economy that increased 6.8% in 2017
from 5.9 % in
2016. [4] This was attributed to establishment of the
Appointment Booking System in 2015, resulting in
highervolumeshandledbytheportsinthecountry,
particularlyMICTandManilaSouthHarbor.
Withthemostsignificantrevenueandthroughput
inthePhilippines,theportsoutperformedafew
top
international ports in container volume, including
London,Melbourne,Piraeus,Vancouver,andSeattle,
in the Lloydʹs List Top‐100 Ports Ranking 2017.
[8][20][22]
ThePhilippinesmustbuildmoreportsandexpand
andmodernizetheexistingonestoensurecontinuous
maritime passenger safety and shipment
promptness.[24]
3.4 SUSTAINABILITY
Green Shipping is
one of the most significant
innovations in the Philippine shipping sector. In
February 2018, the IMO sponsored a workshop to
equipthethirtymaritimeeducatorswithship‐energy
efficiency (fuel consumption and greenhouse gas
emissions), so they may incorporate them into the
curriculum. The training was done thru lectures,
videos,
and online interactive exercises. The
workshop was under the Global Maritime Energy
EfficiencyPartnershipprojectwiththeUnitedNations
Development Program and the Global Environment
Facility.[15][16]
On December 3, 2018, Batangas and Cagayan de
OroportsreceivedGreenPortAwardSystem(GPAS)
awards from APEC Port Services Network (APSN).
This recognition means that the Philippine Ports
Authority (PPA) has stepped up itsʹgreen portʹ
initiativesinallitsportsnationwide.[5][15][16]
TheGPASprogramissignificanttoallportsinthe
APEC region because it is a recognized green
evaluation system. The program improves
environmental awareness and increases
understanding
of green port development strategies.
It promotes the portʹs sustainability in the APEC
region; helps protect the port environment for the
benefit of the entire APEC community. It helps
achieve a balance between economic and
environmentaldevelopment.Theprogramssharebest
practices and encourage mutual assistance among
APEC ports. It
also contributes to harmonizing
regulations, improving the APEC regionʹs
interoperability of green port systems, and
establishing an APEC green port performance
benchmarkbasedonthisprogram.[15][16]
Batangas and Cagayan de Oro ports are
recognizedforimplementingthePortSafety,Health,
and Environmental Management System (PSHEMS).
[5][6]Theyare
alsocertifiedtoISO9001:2008,andthe
two ports have migrated to the Integrated
Management System (IMS) that covers three
international standards. These are the Quality
Management System (ISO 9001:2015), the
EnvironmentalManagementSystem(ISO14001:2015),
164
and the Occupational Safety and Health (OHSAS
18001:2007 that solidifies further the policies on
quality,safety,health,andenvironmental,safetyand
healthconditionsandthecommitmenttoportquality
operations and services for the protection of all
concerned.[17]
TheBatangasport,with150hectares,servesasthe
strategic
trading center for all industries in the
CALABARZON ecozone, especially for goods from
Batangas shipped to ports near Manila. Traffic for
generalcargoandcontainersisconstantlyincreasing.
The development project at the Batangas Port is
completed. Phase I caters to domestic and non‐
containerized foreign vessels, and Phase 2 is
dedicatedtointernationalcontainervessels.[15]
Ontheotherhand,CagayanDeOroport,withits
advantageous location on the Northern Coast of
MindanaowithinMacajalarBay,isdubbedtheglobal
gatewaytoMindanao.Beingadjacenttourbancities,
provinces,andotherregionsofthecountry,theportis
where
passengers and goods enter and exit. It also
links conveyances to countries such as Australia,
China,Vietnam,andtheUnitedStates.[15]
3.5 SMARTNESS
Newtechnologiesandinnovations,such as Artificial
Intelligence, and the Internet of Things, will
streamlinetheflowofinformationandgoods.Devices
will be interconnected and communicate
with each
other. In advanced countries, their shipping
companies have automated their businesses and
processes in their off‐ and onshore operations.
Sophisticated shipping companies have the money
and human resources to operate modern
communication facilities, infrastructures, and
technologies.Someshippingcompanieshaveadopted
blockchain technology, reducing the need for third‐
party certificationand verification oftransactions. In
Philippine Shipping, the documentation could be
more varied. On short‐haul trips,seafarershaveless
time to handle the paperwork. The satellite
connectionsinshipscaneaseadministrativework,as
officersandcrewmemberscancommunicatefarfrom
shore.[11]
In the Philippines, while
a more advanced and
quickerinternetconnectionmay not be possible,the
maritime sectors and relevant agencies can
proactively automate their processes by adopting
appropriate software and hardware systems.
Certification, verification procedures, and other
simple transactions through online systems may be
implemented,whichwillrequiretheirsupportforthe
required
training and education programs for their
personnel.
The Terminal Appointment Booking System
(TABS), introduced in 2015, bolstered the volume‐
handlingcapacityatthePortofManilaʹsinternational
terminals. The Manila International Container
Terminal (MICT) and the Port of Manila South
Harbour improved their turnaround time and
efficiency,increasingtotalcontainer
trafficby21.1%.
The total container traffic in the Philippines rose by
20.5% over the same period, from 5.86m TEUs to
7.06mTEUs.[20][21]
The Philippine Ports Authority in the Port of
Manila South Harbour reported that in 2017, it had
handled587,000TEUs.Incontrast,theMICTand
the
DomesticTerminalofNorthHarbourManilahandled
1.69mTEUsand922,000TEUs,respectively.In2017,
thecargoclearanceprocessatthePortofManilawas
boostedwhenapaperlesssystemwas established.It
led to the removal of 15 transaction windows and,
more importantly, minimized corruption due to
limited in
‐person interaction between the importers
and customs officials, preventing the under‐
evaluation of shipments. In 2017, the Port of Manila
launchedthenewsystemandeventuallybytheentire
portsinthecountry.Theportʹsnewdevelopmentsin
ClarkandSubicBayincreasedthehandlingcapacity
andpromotedthe
countryʹscruiselineindustry.[20]
[21]
In 2015, PPA recordedthatfrom 223.67m tonnes,
cargo throughput rose 11.6% in 2016 to 249.57m
tonnes,a12.6%increaseinforeigncargoesto151.6m
tonnes over the same period. Domestic cargo
shipmentsrosefrom89.05mtonnesto97.96mtonnes,
a 10% increase. The
containerized cargo traffic
reached 6.57m TEUs, compared to 5.86m TEUs in
2015,increasing12%.Theforeigncontainertrafficrose
to3.97mTEUs,a14.1%increase,duringimporttraffic
at2.6mTEUs,a9.3%increase.Inthefirsthalfof2016,
PPA reported that the top container cargo handler
was
MICT,whichhadprocessed1.24mTEUs.Second,
thePortofManilaSouthHarbourwasonthelist,with
584,598 TEUs. On the other hand, Manila North
Harbour handled 696,495 domestic TEUs. In July
2016, the PPA reported that the combined yard
utilization at Manilaʹs international ports inside the
terminals was
roughly 32,600 TEUs (40%). The new
terminal appointment booking system and an
electronic platform for booking the pickup and
delivery of containers at Manilaʹs two international
ports contributed to the yardʹs efficiency. According
to PPA, before the systemʹs installation, the average
dailygatepickupatManilaʹs
portswasbetween4500
and 5000 TEUs; now, it is between 7000 and 7500
TEUsdaily.[20][21]
The future is technology. Technology has
fundamentally altered how logistics are structured.
Thelogisticsindustryisevolving.Consequently,there
is a growing demand to digitalize the information
streams. Digitalization will optimize current
infrastructure,
lowering the demand for additional
infrastructure investment and opening the door to
eliminating unneeded (empty) transportation. Data
analytics and exchange are being used increasingly,
giving ports a new competitive edge. Self‐steering
shipswillbethenorm.Soon,usingsensorswilltake
theplaceoftowing.Similartohowusing
dronesfor
inspection would increase productivity, it may be
learnedthroughonlinetrainingtoenhanceefficiency
accessiblethroughe‐learningandsimulations.[7]
Likewise, additive manufacturing 3D printing
removestheneedforShipping. Somemanufacturers
alreadyuse 3‐D Printing to produce goods closer to
theircustomersand eliminatetheneed
forshipping.
[7] The manufacturers envisioned a zero inventory
goal.Itwilltransformhowships aresuppliedinthe
future – cargo streams will most likely differ: more
shipmentofrawmaterialsrather thanendproducts.
165
Astradepatternsalter,newopportunitieswillemerge
to service new manufacturing requirements to ship
materials out for recycling and refurbishment. The
Philippinesneedsmoreefficientandtransparentport
operations systems by employing modern
technologies.
3.6 SAFETYandSECURITY
Safetyis yetanother crucial element thatsupports a
portʹ
s viability. PPA is purchasing vessel traffic
management solutions (VTMS) gear that will cover
fiveotherlocationsbesidestheportsinBatangasand
Manila. The long‐term goal is to address offshore
safety and establish suitable VTMS infrastructure in
the most important ports. It is best to use VTMS to
plan
cargo handling operations, environmental
protection, and berthing management to promote
safety.ThePhilippinePortsAuthorityʹsmedium‐term
plansincludethemodernizationanddevelopmentof
the five strategic and commercially essential ports:
Davao‐Sasa, Iloilo, Cagayan de Oro, General Santos,
and Zamboanga thru a public‐private partnership
arrangement. However, different
modalities are also
being evaluated. Davao‐Sasa is eyed as the priority
target for redevelopment, although on a more
conservative and cost‐efficient level than initially
planned.[20][21]
Maritime security and safety remain a critical
concerninthePhilippines,consideringthatShipping
isthecheapestmodeoftransportationforcargo
ships
and interisland passenger shipping lines. Marinaʹs
statisticsshowthatabout20majormaritimeaccidents
involving passenger‐carrying ships were recorded
between 2009 and 2014. Notably, 19 of these vessels
were second‐hand imported ships, with only one
locallybuilt.
MARINA created a financing program to
encourage shipbuilding at
local shipyards in the
Philippinesincollaborationwithfinancialinstitutions.
The program aimed to provide subsidies to help
shippingcompaniesreplenishtheirfleetwithmodern
vessels and help the local shipbuilders grow. The
Marina memorandum circularʹs full implementation
of replacing local wooden hull bancas with steel,
fiberglass, or composite types
will significantly
improvedomestictravelsafety.
The fact thathackerscan remotely influence port
operations is one of the main problems with port
security.Theriskofhumanerrorwouldbedecreased
by using various control systems and increasing
automation at the port. Automation also improves
system reliability, which reduces
the number of
delays.Technologydoes,however,haveadarkside,
and as automation advances, cybersecurity, and
cyber‐resiliencearebecomingincreasinglyimportant.
Be ready to handle current and emerging cyber
threats from terrorists, criminals, and adversary
nation‐states that could cause significant disruptions
to the nationʹs vital maritime transportation
infrastructure.DrugdealersarequickertodisableIT
security.Thispreparationentailscreatingarisk‐aware
culture,notonlytechnologically.
3.7 SCARCITY&SUPPLY
Further globalization, demographic growth, and
development of the world economy are expected to
trigger scarcity of natural resources and growth in
globalfreighttransport.[14]The
increasingscarcityof
raw resources implicates geo‐economics
(corresponding trade routes and investments in
infrastructure[7]Asaresultoftheurbanizationtrend,
portsmustbebetterconnectedtothebiggercities;one
exampleisthehigh‐speedrailconnectivityproposed
betweenthePortofManilaandthePortofBatangas
orSubic.[14]
The planʹs key recommendations include
developing an integrated, long‐term national supply
chainandlogisticsstrategy,detailingnecessarymulti‐
modal infrastructure schemes, and a robust nautical
highwayandroll‐on/roll‐offterminalsystemlinking
the country. The plan also recommends creating an
administrative agency for
supply chain and logistics
to ensure policy implementation, compliance, and
reforms to streamline and standardize logistics
policies under various government agencies. Road
development was highlighted as the most critical
priority, especially access roads to sea and airports,
freightcenters,railnetworks,andaircargofacilities.
The plan reports that an anticipated
surge in cargo
volumes due to demographic and economic growth
will exacerbate road congestion around ports. The
roadmap should positively impact multi‐modal
connectivity and logistics as they align with the
transportationagendaandfocusonimprovedproject
deliveryunderPresidentDuterte.[14][20][21][22]
In August 2016, the Department of Public
Works
and Highways (DPWH) was tasked with designing
the final configuration for upgrades at the countryʹs
Batangas and Subic ports by the National Economic
and Development Authority (NEDA). This plan
indicates that port developments in the country
remainacrucialprerogativebecausetheywillbenefit
fromnewrailwayconnections.[20][21][22]
Within the continuous ASEAN integration
framework,tradevolumewill riseasthe population
growsandtradebarrierscontinuetocollapse.Traffic
intoBatangasorSubicwilldependonvolumegrowth
and trends in commerce. While Batangas was
primarily intended to be a port for processing
containers,ithassinceemerged
astheprincipalentry
point for the importation of fully assembled
automobiles. Given the existing commercial
conditions, moving cargo out of Manila may not be
prudentforBatangasorSubic.Nevertheless,giventhe
expected growth trajectory, these two facilities and
other ports outside Manila will continue to utilize
more.[20][21][22]
Ports
must be flexible to adapt to changing
demands on the type of commerce and utilization.
Once volume increases, shipping lines might be
willing to divert Manilaʹs goods to secondary ports.
Other domestic ports will then maximize their
facilitiesʹ potential and contribute to reducing
handling costs. There would then be
a need to
integrateandalignallthevariousportdevelopments
throughout the archipelago to decentralize. Then
there will be a need to identify ports with similar
166
trade profiles thatcan act as sister ports and ensure
thatcargohandlingstandardsarealigned.[20][21][22]
Ports like the Batangas and Subic ports are very
viable. Like Manilaʹs international ports, they can
meettheshippingneedsofotherregionsanddeliver
comprehensive port services. More importantly. The
high‐qualityroadinfrastructuremakesitaccessibleto
shippers, directly linking them to the ports and
factorieswithoutrestrictivetruckbans.][20][21][22]
ATI operates the Batangas Container Terminal.
Both the terminal mentioned above and the Port of
Subic, which ICTSI runs, have yearly capacities of
over300,000 TEUs each,whichis
morethanenough
tomeetthedemandsoftheirrespectivemarkets.The
exampleofBatangasdemonstrateshowvolumeshave
increased over the last three years as more shippers
and consignees have used the portʹs potential.
Batangas Container Terminal carried more than
130,000TEUsin2015,upfromjust10,000
TEUswhen
it opened. It exceeded 170,000 TEUs in 2016.
[20][21][22]
Insupport of thePortofManila, wherein80% of
thecargoisshifted,theSubicandBatangasportswere
builttofacilitatetheremaining20%oftradetoserve
southern and northern Luzon areas. Most of the
international shipping
lines and traders navigate
Manila because Manila is consumer‐based, wherein
most of the economic activities are happening with
thebulkofthepopulation.
A significant way of achieving it was by putting
cargo in the logistics center rather than leaving the
portasacontainer.Asmorelocatorsdrive
upvolume,
Subic,withitsshortersailingdistancefromNorthern
Asia, can serve Metro Manila by strengthening its
visibility and position as an economic zone and
destination for investment rather than merely a
seaport, directly impacting utilization with its lower
freightratesanditsdeeperbaythatallowshandling
of large
ships. Clark is also capable as a logistics
center. Cargoes may travel from Subic to Clark to
distribute cargoes that can travel by land, sea, and
plane.Anintermodallogisticsdistributioncenterout
of Clark would best accelerate the Subic Bay
utilization.[20][21][22]
There should be proper links between Subic
and
Clark, with Clark serving as a multi‐modal logistics
distribution center. Investments in these types of
infrastructuredevelopmentsareneeded.
FurtherIntegrationoftheSupplyChainasachain
isonlyasstrongasitsweakestlink.Themostcritical
asset of a port is the connection to the hinterland.
Unlike being a landlord, the port authority now
activelyparticipatesinthesupplychain.Theworldʹs
shipping businesses, logistics service providers, and
terminal operators are growing increasingly
international, and a small number of enterprises are
acquiringmarketdominance, whichsuggestsgreater
negotiatingleverage. It is becoming moretypicalfor
port officials to take positions in foreign ports. The
roleofportauthoritiesalsogetsmorerobust.Theport
authority is leading in developing a shared
investment plan for the necessary infrastructure
upgrades, ideally with influential corporate
participants in the supply chain. Businesses can
optimize and increase the flexibility of their
supply
chainswithbetterinformationaboutinventorystatus
and transport flows. The future port authority is
supporting.[7]
Energy Supply‐Energy transition and bio‐based
economy.Willtheportcontinuetoplayavitalrolein
the energy supply? Renewable energy is being used
more frequently. Solar energy is becoming
increasingly efficient. Growing hybrid and fully
electric vehicle sales reduce the demand for
transportation fuels. More biofuels will be available,
and bio‐based chemical goods will advance quickly.
Middle distillates and gas will become increasingly
crucial for powering inland and maritime shipping.
Opportunitiesandnewcargoflows,suchasLNGand
biomass,are brought aboutby the shifting fuel mix,
while risks are implied by a fall in the usage of
mineraloilproductsastransportationfuelsandlocal
energyproductionfortheport.[7]
4 CONCLUDINGREMARKS
The Philippines is well‐positioned to transform its
transportation sector into a significant
economic
growth driver in the coming years, supported by
risingmerchantshipping,airpassengervolumes,and
commuter traffic, thanks to its advantageous
geographic position flanking significant global trade
routes between North America, ASEAN, and
Australia. There is a great deal of room for
development. However, the increasing urbanization
and decades of
underinvestment in essential
infrastructurehavemadecongestionworseacrossall
sectors of the economy, particularly in the Metro
Manila region and Luzon, the largest and most
populousislandinthecountry.
Despite these challenges, the future of the
transportationindustrylooksverypromisingsince a
number of significant projects are
in the works that
will help reduce congestion. Supported by rising
maritime trade and increased local and foreign port
investment, the sector is well‐positioned as a key
driver of economic growth over the coming years.
Importantly,thecurrenteffortsoftheadministration
toupgradeinfrastructureandstrengtheninternational
gateways enable
the country to benefit from its
geographicposition.Bymodernizingtheroadsanda
comprehensive public transportation infrastructure,
new port expansions enhance multi‐modal
connectivityinthemaritimetrade.
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