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Manila Bulletin devider Business devider Trade & Industry devider Razon bats for dev't of regional ports

Razon bats for dev't of regional ports

Published Mar 10, 2023 09:40 am
Global port operator Enrique Razon has acknowledged the need to identify assets of the Philippine Ports Authority (PPA) for development into regional hubs capable of handling international cargo to reduce cost as the logistics industry has become too concentrated in Manila, while the provincial ports remained underutilized. Razon, a member of Private Sector Advisory Council (PSAC) Infrastructure Sector, was joined by subject matter expert and International Container Terminal Services, Inc. (ICTSI)  Executive Vice President Christian Gonzalez on Thursday, March 9, in their presentation on the logistics sector to President Ferdinand R. Marcos Jr. for his second meeting with the advisory council for infrastructure. Also in attendance at the meeting from the government for the logistics sector was PPA General Manager Jay Santiago. In their presentation, PSAC showed that the logistics industry is too geographically concentrated, with the ports outside of Manila underutilized. The current port set-up often leads to double or even triple handling of cargo, resulting in higher handling costs and time delays. In a statement, PSAC said they recommended that key PPA assets be identified and developed into regional hubs capable of handling international cargo. Razon suggested that the Iloilo port could be developed into another international port.  Razon-owned ICTSI operates the Manila International Container Terminal (MICT), its flagship project. By developing regional hubs, PSAC said this would ultimately lead to reduced costs and time to market for imports, as well as provide the local agricultural industry with direct global access. PSAC Lead Convenor and Aboitiz Group President and Chief Executive Officer (CEO) Sabin Aboitiz leads the Infrastructure Sector. Other PSAC Infrastructure Sector members include Globe Capital Partners Chairperson Joanne de Asis, Metro Pacific Investment Company (MPIC) President Manny Pangilinan, Atok-Big Wedge Co. President Eric Recto, San Miguel Corporation CEO Ramon Ang, and International Container Terminal Services Inc. (ICTSI), Solaire,and Prime Infrastructure President Enrique Razon. On the water sector, MPIC President Manny Pangilinan conducted a presentation, citing the various challenges plaguing clean water accessibility, from the over-dependence on depleting groundwater to the highly fragmented governance structure. Last September, the Infrastructure Sector noted that a bill mandating the creation of the Department of Water Resources (DWR) was included in the President’s priority legislative agenda. In the latest meeting, PSAC recommended its certification as urgent, while additionally suggesting the adoption of an Integrated Water Resources Management Program with the creation of a National Water Resources Management Office. The President responded that the government will be creating an interim water body. In attendance at the meeting from the government in relation to the water sector were Department of the Environment and Natural Resources (DENR) Secretary Antonia Loyzaga and Department of Public Works and Highways (DPWH) Secretary Manuel Bonoan. The DPWH has a Bulk Water Master Development Plan. The PSAC Infrastructure Sector additionally recommended increasing funding support for water projects and sewage treatment, while also incentivizing the private sector to invest. PSAC also recommended the adoption of a water tariff based on affordability instead of a straight-line cost per cubic meter. For the energy sector, Aboitiz presented the projected power supply shortage in the Luzon Grid, and the increase in prices in the Wholesale Electricity Spot Market (WESM), among other energy issues the average Filipino faces. Government representatives for the energy sector include Energy (DOE) Secretary Raphael Lotilla, and Energy Regulatory Commission (ERC) Chairperson and CEO Atty. Monalisa Dimalanta. PSAC recommended strengthening local government units (LGUs) to facilitate and implement energy projects. Currently, the DOE has provided support to the National Grid Corporation of the Philippines (NGCP) in securing clearances from LGUs and other government agencies for three major projects: the Mindanao-Visayas Interconnection Project (MVIP), the Hermosa-San Jose Transmission Project, and the Cebu-Negros-Panay (CNP) Interconnection, all scheduled for completion this year . For the medium- and long-term, PSAC also recommended rationalizing secondary price caps in order to open up new investments, factoring in prevailing market conditions, as well as connecting the Small Power Utility Groups (SPUGs) to the grid.
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