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Valenzuela City plans to ban container yards from January 1, 2027, and all existing yards must close by December 31, 2026
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The Haulers and Truckers Association in the Watersouth Inc says the ban would worsen the empty container crisis and raise costs for consumers
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Mayor Weslie Gatchalian says the ban will ease traffic and address environmental concerns but adds consultations are ongoing before the proposed ordinance is passed
The Valenzuela City government plans to prohibit the establishment and operation of container yards in the city starting next year to ease traffic and address safety and environmental concerns, a move that could further squeeze the capacity for empty container returns near the Port of Manila.
According to a copy of the proposed ordinance provided to PortCalls, Valenzuela will no longer allow the establishment, operation and maintenance of container yards within the city effective January 1, 2027. All existing container yard operations must be completely phased out and discontinued by December 31, 2026.
Existing operators must use the transition period only to wind down their operations in an orderly way, including removing and relocating containers, equipment and other related materials. The phase-out will apply despite any existing business permit, registration, lease, contract, locational clearance, zoning classification or other authorization previously issued for the premises or operations.
The following will not exempt an operation from the ordinance:
- Registering the business as a warehouse logistics facility, trucking business, freight forwarding business, storage facility, parking facility, distribution center, trading establishment or any other business
- Registering or operating under a different business name or entity
- Subdividing or partitioning the premises among different persons or entities
- Describing the containers as temporarily stored, parked, held or staged
- Any other arrangement, regardless of its form or name, that has the actual purpose or effect of continuing a container yard operation
Violators will face administrative penalties.
City cites safety, traffic and road damage
In the proposed ordinance, the city government said it “has a legitimate interest in preventing land uses and activities that, by their nature and actual operation, create continuing risks, inconvenience, traffic impacts, noise, environmental disturbances, and other adverse effects inconsistent with the City’s objectives for safe, orderly, and livable communities.”
The city said continued container yard operations “has the potential to cause or aggravate traffic congestion, obstruction of roads and access ways, excessive noise and vibration, dust, and other environmental disturbances, deterioration of roads and other public infrastructure, and risks to pedestrians, motorists, nearby properties, and surrounding communities.”
It added that the repeated passage and maneuvering of heavy container trucks and trailers along local roads put heavy stress on road surfaces and other public infrastructure. This speeds up deterioration and raises maintenance and rehabilitation costs at public expense. The city also said the size, weight, and manner of stacking and handling of containers may create safety concerns, particularly in areas not designed or planned for container storage and handling.
In a social media post on October 9, Mayor Weslie Gatchalian said the city is conducting the necessary consultations before finally passing the proposed ordinance. He said he also met with representatives of companies that own the containers to explain the city’s concerns about the safety of residents near container yards, as well as the traffic and noise from container-delivery trucks. He noted that containers are stacked as high as eight boxes, which should not be ignored when they are near homes and communities.
Truckers: Ban would worsen empty container crisis
The Haulers and Truckers Association in the Watersouth Inc. (HATAW) opposes the proposed policy. In a statement sent to PortCalls, HATAW president Atty. Don Mañebo said:
“Container yards are essential to our country’s logistics infrastructure. Their closure will worsen the existing empty container crisis, increase transportation costs, disrupt supply chains, and ultimately burden Filipino consumers.”
HATAW recognizes the city government’s responsibility to address traffic, safety and environmental concerns, but said “outright prohibition is excessive, counterproductive and will have detrimental effects on the national economy.”
“We urge the Valenzuela City Government to reconsider the ordinance and consult affected stakeholders to develop reasonable regulations instead,” Mañebo said. HATAW will also submit a position paper to the city government.
PortCalls also asked the Alliance of Container Yard Operators of the Philippines for comment but had not received a response as of press time.
Why it matters for empty container returns
If the plan pushes through, it may worsen the logistics industry’s problem with empty container returns by reducing yard capacity, especially near Manila port. The Philippines imports more than it exports, so it handles many empty containers, particularly at the Port of Manila, which handles a large share of the country’s foreign trade. Many container yards operate in nearby Metro Manila cities, including Valenzuela, Malabon, Navotas and Caloocan.
Difficulty returning foreign empty containers to yards has been a long-standing issue, particularly in Metro Manila, with many discussions and attempts to resolve it over the years.
Some port and trucking groups recently staged a “trucking holiday” to call for dialogue, concrete solutions and coordinated action from government agencies, international shipping lines, port operators and local government units on unresolved industry issues, including empty container returns.
The Bureau of Customs’ proposed joint administrative order (JAO) also aims to address empty container returns, among other issues. It is now awaiting signature from the concerned government officials.
What it means for logistics stakeholders
- Truckers and haulers: Fewer yards near Manila means longer trips to return empties, more waiting time and higher costs.
- Container yard operators: Operators in Valenzuela have until December 31, 2026 to close or relocate, with no loophole through reclassification or restructuring.
- Shipping lines and container owners: They may need to find other yard space for empties, adding pressure on the remaining depots in Metro Manila and nearby areas.
- Importers, exporters and brokers: Reduced yard capacity can slow empty returns and add costs, which may eventually show up in logistics charges.
The ordinance is still a proposal, and the mayor says consultations are ongoing, so the dates and terms may change.
