[180610.EN.SEA] Shipping Firms Slow To Quit Manila Docks Ahead Of Re-construction

SHIPPING lines docking at the Manila North Harbor (NH) say they are
willing, but reluctant to vacate the port to allow re-construction of a
modern cargo handling terminal, reports the Manila Business Mirror.

But the Philippine Liner Shipping Association (PLSA) said the companies
will only vacate if their eviction follows strict rules laid down by the Philippine Ports Authority (PPA).

"The PLSA is only a locator at NH and they [shipping lines] have no choice
but to follow PPA rules and PPA-approved MNHPI [Manila North Harbor Port Inc.] rules," said a PLSA spokesman.

PLSA only has seven members of the 44-member association, but represents
70 per cent of the domestic container movement and 95 per cent of passenger volume through the port.

The MNHPI's construction plans involve removing the World War I style
finger piers to make the port into a modern container handling facility.

MNHPI general manager Henry Rophen Virola said his company could not start construction of a terminal because container vans owned by the shipping
companies occupy half the port area.

"We have paid the PPA a fixed fee of PHP42 million (US$910,076) which
means that the entire port should be in our control," he said.

Mr Virola said that, as a result, the construction of the terminal building would be delayed as the firm still has not yet taken full control of the area.

Mr Virola said construction of Terminal 1, which will replace the old Terminal 6, will take about three years with an allocated budget of around PHP2 billion.

MNHPI chief executive Michael Romero said the company will spend PHP6
billion to PHP7 billion to convert the existing facilities over five years.

Pier 2 and 4 will become Terminal Three to handle general cargo; Pier 6, 8, 10, and 12 will become Terminal Two for containers; while Pier 14, Terminal 16, and Marine Slip Way will become Terminal One, also for containers.

North Harbor services about two million domestic passengers a year and has
an annual capacity of 1.5 million TEU annually.

Source : HKSG, 18.06.10.