Cebu cargo volume drops 10% in 2016

CEBU, Philippines - Cargo volume at the Cebu port saw a 10 percent drop in 2016, although container traffic continued to build up growing by 6.74 percent, official data showed.

Latest data obtained by The FREEMAN from Cebu Port Authority (CPA) showed that cargo volume at Cebu port reached 38.052 million metric tons (MMT) last year, down by 10 percent from 42.473 MMT recorded in 2015.

Container traffic, however, grew 6.74 percent percent to 888,973 twenty-foot equivalent units (TEUs)  832,782 TEUs.

Domestic cargoes accounted for more than half of the total cargo volume at 29.819 MMT.

On the other hand, foreign cargoes reached 8.232 MMT.

On the other hand, ship calls also saw a 14.66 percent growth last year to 128,898 vessels from 112,410 vessels in 2015.

Likewise, passenger traffic last year also reached 20.198 million passengers, up 11 percent from 18.207 million in 2015.

NEW PORT

Meanwhile, the newly approved P9.2-billion Cebu International Container Port is expected to be implemented in the third quarter this year.

The port project is also projected to be completed by the second quarter of 2020.

National Economic Development Authority had said the government will seek for a South Korean development assistance for the Cebu port project which involves the construction of a new sea port in Barangay Tayud, Consolacion, northern Cebu given that the existing Cebu International Port (CIP) in Cebu City is already congested at a utilization rate of 97 percent.

The existing CIP is proposed to be used for general and break-bulk cargo.  The project is expected to reduce vessel waiting time and increase container yard capacity from the current 7,373 TEUs to 14,400 twenty-foot equivalent units or TEUs.

The port will be constructed offshore on a reclaimed 25 hectare island.

NEDA Regional Head Efren Carreon had said: "This is a long overdue project that Cebu deserves to have because of the continuous economic expansion in Central Visayas."

A feasibility study on the new Cebu port, which was done by Korean experts, recommended funding from Korea's Economic Development Cooperation Fund, given that the project has a poor financial viability.

The Tayud port will also need an access road to connect the port to and from the Cebu North Coastal Road.

This project is envisioned to become a modern international container port that will help sustain Cebu's growing economy. The Cebu Port Authority and Department of Transportation are the lead agencies in the project.

The new container port is geared towards meeting the demands of the dynamic and growing economy of Cebu and of the region. It is expected to provide a long-term solution to the congestion at the existing CIP due to increasing volume and the shallow water depth of its container berths. (FREEMAN)