December 16, 2013 Joint Foreign Chambers Statement on the utilization of Batangas Container Terminal The Joint Foreign

Chambers, through the American Chamber and European Chamber, furnished the House of Representatives Committee on Ways and Means, the attached relevant language from the Arangkada Philippines 2010: A Business Perspective of the Joint Foreign Chambers of the Philippines and the recent Assessment on Infrastructure: Seaports and Logistics in connection with the public hearing on House Resolution 38 with regard to the gross underutilization of the Batangas Container Terminal. One of 471 Arangkada recommendations is to: Adopt a firm policy to gradually shift international container shipment volume from Manila (South Harbor and MICT) to Batangas and Subic. In the assessment of this recommendation made in January 2013, a private sector expert stated that this recommendation is not ongoing and explained: Private sector representatives strongly advocate shifting container traffic from the Manila port to the outer ports of Subic and Batangas. However, the national government through the Philippine Ports Authority (PPA) and DOTC has not acted upon this request see more detail in the Logistics Assessment. Some progress is being made with feeder operators serving Batangas as well as Subic and other shipping lines are considering calls as soon as volumes increase. Shifts to Batangas and Subic will follow if the industrial zones of Clark and southern areas of Manila are master planned to attract investment in industry and manufacturing. There is a misconception that business always follows infrastructure. Instead, transport follows business as seen by the massive Chinese hub ports like Shenzen. At present, there is still resistance from customers to pay added trucking costs to Batangas and Subic. JFC logistic firms are in contact with the major port operators seeking win-win solutions to reduce cost and increase efficiency in the Manila port, addressing congestion, truck-bans and route prohibitions. They are also looking at the lack of support infrastructure in form of easy access to the ports (including Batangas). The intent is to draw up short-term, mid-term, and long-term solutions. While undertaking these discussions, the JFC advocacy remains that the use of port assets in Batangas and Subic should be promoted and the impact of expanding the Manila port carefully evaluated.

The Arangkada Philippines Project (TAPP)

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