Yard utilization at the International Container Terminal Services, Inc. (ICTSI) flagship Manila International Container Terminal (MICT) remains near historically low levels as efforts to fast-track the movement of overstaying import containers out of the port of Manila have led to the utilization rate falling under 58%.
This comes after the 70% utilization rate that was recorded during April, which is a reduction of 20% from 90% in January. This drop came after the private sector partners and the government signed a manifesto in March urging for the efficient use of container terminals. The MICT managed to achieve this fall in utilization rates in spite of recording its all-time highest throughput over a four-month period.
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The Port of Manila has addressed high utilization rates at the end of 2018, because of the longstanding problem of overstaying imports along with the absence of external empty container capacity. This was further compounded by weather-related vessel delays, holiday peak season, and the import-export imbalance.
In addition, during March, Subic Bay International Container Terminal (SBITC) launched a new container depot as part of the collective effort to improve the circulation of empty containers.
What is more, in 2018, ICTSI started its USD80 million capacity improvement project at the Manila International Container, expecting increased demand and productivity requirements over the long term. At first, ICTSI is constructing Berths 7 and 8 to welcome larger ships, which will add volume to the port. In addition, a back up area will also be built for future Berths 9 and 10, which will provide the terminal with the flexibility to address weather-related issues and changes in regulations.
Additional port equipment is also expected, which includes the recently delivered pair of neo-Panamax quay cranes, two super post-Panamax quay cranes, and 16 hybrid RTGs. Moreover, eight more hybrid RTGs and a super post-Panamax quay crane are planned to be delivered by the third quarter of 2019, while a super Post-Panamax quay crane was delivered this week.
The significant efforts in which both the private sector and the Bureau of Customs to release longer-staying imports at the terminal has resulted in lower overall container dwell times allowing us to efficiently utilize the ample capacity to accelerate volume growth
explained Christian Gonzalez, ICTSI Global Corporate Head.