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Subic port revenues are expected to grow by 3% this year and container volumes by 5%
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2% increase in non-containerized cargoes and ship calls is also seen
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Subic Bay Metropolitan Authority Seaport Department identifies four long-term plans to address future growth
Subic Bay Metropolitan Authority (SBMA) forecasts increases in port revenues and cargo volume in 2022 as it embarks on programs to expand operations in anticipation of future growth.
This year, SBMA expects a 3% hike in port revenues to P1.41 billion from P1.372 billion year-on-year, SBMA Seaport Department manager Jerome Martinez said at the SBMA 2022 Ports Forecast webinar on March 29.
For containerized cargoes, SBMA eyes a 5% improvement to 265,938 twenty-foot equivalent units (TEU) from 253,274 TEUs in 2021.
READ: SBMA bullish over Subic seaborne trade with new shipping services
Non-containerized cargoes, on the other hand, are expected to grow to 6.471 million metric tons from 6.345 million MT in 2021, a 2% improvement.
Projections were based on historical data, global and domestic economic activities, institutional knowledge of Subic Bay, and optimism brought about by the downgraded COVID-19 alert level and resumption of global trade and commerce, according to Martinez.
To sustain gains, Martinez said the Seaport Department has developed four long-term plans, the first of which promotes efficient and transparent business processes that will help make Subic port globally competitive. Part of this goal is a five-year program (2020-2025) to automate all major systems and processes.
The second plan involves upgrading port infrastructure and enabling people to manage new infrastructure, equipment and IT facilities. Projects include:
- a P270-million procurement program to upgrade the vessel traffic management system. This will lead to more efficient vessel and cargo movements and greater safety of vessels and cargoes;
- maintenance of SBMA’s three vessels to ensure water assets are in good running condition;
- road rehabilitation at the NSD (Naval Supply Depot) compound, whose third and last phase is scheduled for completion in May;
- port expansion projects in anticipation of future growth in ship calls and cargo volume:
- redevelopment of Alava Wharf to address the need for additional berthing space, specifically for cruise ships and bulk and breakbulk vessels. A $173-million (P8.65 billion) fund has been earmarked for this purpose;
- expansion of the New Marine Terminal for additional berthing space for bulk and breakbulk vessels. This project will be allocated $136 million (P6.8 billion);
- $113-million (P5.69 billion) expansion of Boton Wharf to address the need for more berths for bulk and breakbulk vessels; and
- construction of a multi-purpose/transhipment terminal at the Redondo Peninsula to provide additional berthing facilities for adjacent locators and accommodate more ships and cargoes. Project allocation is $162 million (P8.1 billion).
The third major plan is to push the Seaport Department’s revenue to P3 billion by 2030 by increasing ship calls and cargo volumes. Martinez said this will be attained by embarking on an aggressive port marketing campaign and through stronger collaboration with port stakeholders.
He said SBMA will develop an effective fiscal policy on port dues and identify additional revenue sources. The Seaport Department contributes the highest share in SBMA’s overall revenues.
The last plan is to make Subic port sustainable by balancing port development with protecting the environment and the port community. With the goal of making Subic a safe and secure port, Martinez said SBMA will develop programs for an environment-friendly port, maintain compliance with the International Ship and Port Facility Security Code, and invest in infrastructure and technology upgrades.
One project under this plan is the provision of shore-side electrical power to vessels at berth so they don’t have to rely on their engines or generators for electricity supply, thus reducing carbon emissions and improving the air quality within Subic port. The project complies with the International Maritime Organization’s (IMO) International Convention on the Prevention of Pollution from Ships.
SBMA will also rehabilitate the lighting system at the Marine Terminal and Boton Wharf by replacing halogen lamps with LED lamps to provide sufficient illumination during vessel operations with minimal electrical power consumption.
A port reception facility for treatment of vessel-generated waste will also be set up to maintain an environment-safe port compliant with IMO Conventions. – Roumina Pablo
