Study on Subic-Clark-Batangas logistics corridor to start soon

The government’s dream of making the Subic, Clark and Batangas into a logistics corridor with value-added services is getting closer to realization as a strategic study for its development is scheduled to commence shortly.

Meneleo J. Carlos Jr., National Competitiveness Council’s (NCC) private sector champion for seamless infrastructure network working group, said “the Center for Research and Communication is collaborating with the Subic-Clark Alliance Development Corp. (SCADC) on the terms of reference for the development of a logistics master plan.”

This effort is in line with President Arroyo’s vision of establishing a mega logistics hub, particularly in Subic-Clark corridor, to serve the Asia-Pacific region. 

In preparation for such development, Carlos cited the need to fast-track the bidding and award of the Batangas International Port and Subic Bay International Port (Terminal 2).

“There is also a need to fast-track the completion of critical infrastructure projects that connect North (Clark and Subic) and South Luzon (Batangas),” he noted.

Carlos, also the chairperson of the Export Development Council-networking committee on transport and logistics, identified these priority projects as the South Luzon Expressway rehabilitation and extension project (SLEX); the Subic-Clark-Tarlac-Expressway project (SCTEP); the North and South rail projects, North-South linkage project; the Southern Tagalog arterial road phase II (STAR 2); and the C5-North Luzon Expressway-SLEX link.

Of these projects, the Subic-Clark portion of the SCTEP is scheduled for completion first quarter of 2008, along with the upgrading of the Subic seaport.

The full implementation of NCC’s proposed Batangas-Clark-Subic logistics corridor has been cited by the International Finance Corp. (IFC) and the World Bank as among the short-medium term reforms in improving the country’s overall ranking in terms of easing doing business, particularly in cross-border trading.

This came despite the fact that the Philippines has posted strong performance in cross-border trading, an indicator that measures the procedural requirements for trading a standard shipment of goods by ocean transport.      

Aside from promoting the Subic-Clark-Batangas corridor as logistics hub, the NCC is also keen on further reducing the cost of exporting a 20-foot container to $326 from the present $341.

Carlos said the lower cost could be realized by allowing chassis-container (Cha-Ro) as part of the roll-on roll-off (RO-RO) service; fast-tracking the development of ports along the Central Nautical Highway; and extending by another year the 90-percent discount on wharfage for export-import cargoes.

Ports comprising the Central Nautical Highway include Aroroy, Cawayan, Daangbantayan, Mambajao and Benoni.

“Cha-Ro will allow export-import containers to be transshipped domestically through RO-Ro at a lower cost,” he noted.

The scanning fee for 10-footer container vans will be reduced by 90 percent from $25 to $5 until December 2007 due to the immediate response of the Executive Department to the clamor of the Philippine Chamber of Commerce and Industry and Philippine Exporters Confederation.   — Philexport News and Features