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Manila Bay reclamation projects seen to hike shipping costs

Metro Manila (CNN Philippines, October 24) — The port and shipping industries will take a hit from the reclamation projects in Manila Bay, officials warned Tuesday.

As the Senate committee on environment, natural resources, and climate change resumed its probe into the large-scale reclamation projects, the Asian Terminal Inc. (ATI) said four out of 15 projects would affect its operations at the Manila South Harbor.

These are the Pasay Harbor City, Manila Horizon, Manila Solar City, and Manila Water Front City – all public-private partnerships developed by the Pasay Harbor City Corporation, JBros Construction Corp., Manila Goldcoast Development Corp., and Waterfront Manila Premier Development Inc., respectively.

“When we saw the layout of the geographical map, it actually covered the entrance channel to our facility, the inner breakwater where the port would actually be going into, and our inner anchorage,” ATI Senior Vice President Sean Perez said.

“We have a concession which is going to be impacted because we will not be able to service the vessels,” he added.

Perez said ATI officials had voiced these concerns as early as 2018, but it did not stop authorities from greenlighting the projects.

The Association of International Shipping Lines (AISL), composed of 35 companies calling the Manila South Harbor, said the new sea lane being proposed to give way to the reclamation projects entails more cost.

“Each vessel that will pass through that new channel might cost an additional of $3,000 to $4,000,\” said AISL President Patrick Ronas.

“Logistics cost has always been blamed on the shipping industry and we would like to mitigate that,” he added.

Senators said this is ironic, considering that in other countries, reclamation is used to develop ports.

“We reclaim to destroy the ports,” said Senator Cynthia Villar, chairperson of the committee on environment.

Senate Minority Leader Koko Pimentel agreed.

“Iyan ‘yung impression ko (That’s my impression). We reclaim but not for the purpose for improving the port. Kasi ang purpose yata nito, ang ending nito is ano ito? Condo? (What is its purpose? Condo?)”

Philippine Reclamation Authority’s Joseph John Literal, assistant general manager for reclamation and regulation, said it’s a mixed-use development: “There’s condo, institutional, commercial.”

Literal said there are also reclamation projects to expand ports, including the recently concluded eight-hectare expansion at Manila South Harbor.

However, Villar said port expansions should be a priority, with Pimentel calling the industry one of the backbones of the economy.

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