MANILA, Philippines - The Philippine Ports Authority (PPA) sees the yard utilization rate at the ports of Manila improving to 80 percent next month once close to 17,000 to 22,000 empty containers or empties clogging the ports are removed.
Juan Sta. Ana, general manager of PPA, said members of the Association of International Shipping Lines (AISL) including MOL, Pacific International Lines, and Evergreen are sending three sweepers next month to ease congestion at the Manila International Container Terminal (MICT) and the South Harbor.
Sweepers are dedicated vessels sent by international carriers to load and move out empty containers at the ports of Manila to a specific destination at the expense of the shipping lines.
Sta. Ana said the first of the three sweepers are expected to call at Manila on Aug. 3 or 4 while the second and third sweepers are scheduled to call on Aug. 15.
The AISL sent its first sweeper last week clearing approximately a fifth of the estimated 17,000 to 22,000 empties occupying spaces at the Manila ports.
“Once the carriers effectively clear out their empties at the Manila ports, yard utilization is expected to drastically go down to 80 percent considered as the optimum level on port efficiency and operations,” he added.
He pointed out that yard utilization at the ports of Manila peaked at 110 percent in May after the city government of Manila implemented an expanded truck ban last February.
“This will be a very big boost in our mitigating measures in further decongesting the Manila ports. It is considered as a very huge step towards realizing our timeline to free-up as much space as possible inside the ports prior to the expected surge in volume due to the run-up to Christmas,” Sta. Ana said.
Listed International Container Terminal Services Inc. (ICTSI) has offered its New Container Terminal 2 in Subic Bay as temporary container depot for the empties of the carriers free of charge.
It also offered its 21-hectare facility in Cabuyao, Laguna as another facility for empty containers.
On the other hand, the Philippine Economic Zone Authority (PEZA) offered a 5.2-hectare facility in its Cavite zone to serve as holding facility for laden containers for its member-locators.
PEZA is now finalizing the removal of another 4,000 laden containers out of the Manila ports.
“This, along with the other mitigating measures already in place and are expected to be implemented will definitely bring Manila back to optimum and efficient level of operations,” Sta. Ana said
According to the PPA official, the recovery period from the congestion is pegged from three to four months particularly with still 12 cargo vessels still awaiting service from any of the two Manila port operators.