Yard utilization at the International Container Terminal Services, Inc (ICTSI) flagship Manila International Container Terminal (MICT) continues to be close to historically low levels as efforts to fast-track the movement of overstaying import containers out of the port of Manila have resulted in a utilization rate dropping below 58%, despite a series of holiday periods and low trucking activity.

This follows the 70% utilization rate recorded in April, down from 90% in January after private sector partners and the government signed a manifesto last March calling for the efficient utilization of container terminals. The MICT achieved this drop in utilization rates despite recording its all-time highest throughput over a four-month period.

“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,” explains Christian Gonzalez, ICTSI global corporate head.

“We commend the government for leading the initiative against overstaying containers, and call on stakeholders to embrace these gains by not reverting to the old ways which has been common in previous years when utilization rates drop,” he adds.

The Port of Manila dealt with high utilization rates at the end of last year due to the longstanding problem of overstaying imports coupled with a lack of external empty container capacity, which was further compounded by weather-related vessel delays, holiday peak season, and the import-export imbalance.

In March, Subic Bay International Container Terminal (SBITC) opened a new container depot as part of the collective effort to improve the circulation of empty containers.

Last year, ICTSI commenced its US$80 million capacity improvement project at the Manila International Container in anticipation of increasing demand and productivity requirements over the long term. For the initial phase, ICTSI is building Berths 7 and 8 to accommodate larger ships, which will bring additional volume to the port. A back up area will also be constructed for future Berths 9 and 10, which will provide the terminal with the flexibility to deal with weather-related issues and changes in regulatory environment.

These infrastructure improvements will be complemented by additional port equipment, which include the recently delivered pair of neo-Panamax quay cranes, two super post-Panamax quay cranes, 16 hybrid RTGs. Eight additional hybrid RTGs and a super post-Panamax quay crane are scheduled for delivery by 3Q 2019, and a super Post-Panamax quay crane was delivered this week.