Marina pushes for hub-and-spoke system THE Maritime Industry Authority (Marina) is pushing for the development of the port hub-and-spoke system to lower logistics cost in the country, said Marina administrator Vicente Suazo, Jr. in an interview with PortCalls. Under the hub-and-spoke system, only a few ports will be designated as hubs with the rest functioning as spokes, feeding cargo into the hubs. The present system focuses on the development of ports in almost every municipality to boost regional trade. The system, said Suazo, needs enormous investments which the country can ill afford at this time. It also encourages traders to ship products as they please pushing logistics cost higher, eventually resulting in higher market prices. Suazo identified four major ports that could serve as hubs: Manila, Cebu, Cagayan de Oro and Davao. The four handle 60%-70% of the total local and foreign trade of the country. The hub-and-spoke system will also entice shippers to consolidate their cargoes and ship in bulk, cutting logistics cost. In addition, it will allow vessel operators to command trips and go to hubs with the most volume of cargoes to utilize the entire capacity of vessels. To date, only about 50% of the cargo capacity of vessels are utilized, a situation that also contributes to high logistics cost. "Developing our ports into hubs and spokes is the best set-up for the Philippines now since other ports are no longer viable for businesses due to high costs," Suazo said.

You May Also Like

ICTSI inaugurates MICT’s Yard 7

International Container Terminal Services, Inc. (ICTSI) inaugurated on November 26 Yard 7 of the Manila International Container Terminal (MICT) at the same time commissioned…

Marina bats for shipping industry’s full deregulation

THE Maritime Industry Authority (Marina) is pushing for full deregulation of the country’s shipping industry in keeping with Republic Act 9295 or the Domestic…

MOL sees red, but NYK and ‘K’ Line swing into black

Mitsui O.S.K. Lines (MOL) revised downward its earlier forecast of its net loss for full-year 2012 ending March 31, 2013. The Japanese carrier ascribed…

New rules on dangerous goods carriage released

THE Maritime Industry Authority (Marina) recently released new guidelines on the carriage of dangerous cargoes in the domestic trade, putting more responsibility on the…