Cebu Port Development – Turning Challenges into Opportunities

Cebu port is
outmoded, urgent need for upgrade
undersized, and expansion with the
uncompetitive right port configuration!
Is the Port of Cebu ready for
the growth of Cebu?
Cebu’s Future – Boom or Strangle!
A port is more than just containers!

Stakeholders dialogue
Provincial Government of Cebu
CPA – Cebu Port Authority
MCDCB – MegaCebu Board
Meeting – Cebu, September 2014
CCCI Transportation Committee
Port of Cebu Development & Rehabilitation
Location Selection & Designation

Cebu Port Development
Turning Challenges into Opportunities!
A port is more than just containers!
“Growth is the best stimulus for development and
innovation. That’s why I am convinced that a transition to
a more sustainable port and growth go hand in hand.”
– Hans Smits, Port of Rotterdam

• Port Infrastructure & Operations Complexity
• Ports & their Environmental Impact
• Port Site Selection & Master Planning
• Port Competitiveness Indicators
• Steering Smart Changes in our Urban Culture!
• Stakeholder Engagement & Awareness!
• Cebu Port Development – an outlook for dialogue
• A practical approach in site selection by PortExpertise
manufacturingDistribution
centres
Maritime transport
Port
Terminal
delivery
rail
Water
road
Transhipment

Other considerations on existing & future cargo type
designation, current infrastructure and installations:
• History & Purpose of current infrastructure
• Are the current facilities optimizing the supply chain, ensuring optimal
freight conditions?
• Future requirements in handling what type of cargo?
• Does current situation allow for optimal marine requirements
• Does current situation and plans allow for port activity forecasts
• Does current situation enable for port environmental requirements
• Do current plans consider the urban growth and the regional function
• Future import & export requirements – in line with growth …

Muelle Osmeña
Cebu, being one of the Philippine cities with the busiest harbors,
has a historical port and lighthouse that lies at the very heart of
Opon (now Lapu-lapu City). Local and international goods and
passengers docked here in the early 1900s.
The narrow Mactan channel that separates Mactan Island from
Cebu mainland used to be the focal point of local and inter-island
trading in the Visayan region and also in international shipping.
In 1917, the Opon port already exceeded the port of Iloilo in terms
of quantity of trade, and became the busiest primary port of call for
inter-island shipping.
Muelle, the Spanish word for wharf, has been renovated and
preserved, and still functions today as docking port for ferries
carrying passengers from Lapu-lapu City to downtown Cebu City
and vice-versa.
Compaña Maritima
A heritage spot in one of the Asia’s oldest cities that to many
would seem nothing more than an odd structure facing
Cordova town in Mactan Island, Compaña Maritima was a
famous fixture in its heyday.
The building was repaired and later became the offices
of Compaña Maritima (Spanish for “maritime company”), one
of the biggest shipping companies in the country during the
late 1930s. The company later went bankrupt in the late
1980s. Since then, the site has become abandoned.
The History of the Cebu Port

The Cebu Port System
Historically Cebu’s strength is build on international trade.
Cebu Port is the busiest port in the whole Philippines and one of
the busiest in Asia, from the Spanish colonial period until now.
• Cebu is a city of traders and shipping operators
• Cebu port is now outmoded, under-sized and uncompetitive
• Cebu urgently needs to be upgraded and expanded, before
we loose our capacity as a reckoned transhipment port
& ruled-out on ASEAN integration!
• Cities’ competitiveness relies on efficient urban transport system
• Economic expansion worsens issues on mobility,
environmental pollution and road safety
• Transport authorities play a critical innovative role towards
sustainable transport solutions

The Cebu Port System is composed of the Cebu Baseport and its
sub-ports which are strategically located in different points of Cebu.
The Cebu Baseport:
• Cebu International Port
• Baseport - Domestic Zone
5 sub-ports within the jurisdiction of Cebu Port Authority, namely:
Mandaue, Danao, Sta. Fe, Toledo and Argao.
Each of the sub-ports are smaller ports that are essential to flow
of domestic inter-island commerce.
The Cebu Port System

Cebu Port Authority – main port facilities
Shipping and port operations are central to what Cebu is today and will continue to be
key to Cebu’s future. The past growth of Cebu has mirrored the growth of the volume
of Cebu port operations.
In the distant past, Cebu was a destination and a trans-shipment point to other ports in
the Visayas and Mindanao, a natural by-product of Cebu being a city of traders and
shipping operators.
While port operations have grown, the growth rate has decelerated in large part due to
the current port being inadequate to handle shipping needs. There is a generally held
belief that the Cebu port is now outmoded, under-sized, and uncompetitive and
urgently needs to be upgraded and expanded.

09/08/2018 10
CPA Sta Rosa, Olango – Passenger & cargo terminal

CEBU – World-Class Gateway
Shipping & port operations
central to what Cebu is today and
will continue to be key to Cebu’s future!
CEBU as a competitive integrated domestic and
international trade and transhipment hub
requires the right port configuration!
Keystone of integrated Cebu’s urban planning!

Cebu Port – keystone of integrated urban planning
holistic view needed to achieve
goals set out by Mega Cebu 2050 vision
Competitiveness – Mobility – Liveability – Governance
addressing harmony between land and sea
• economic development
• infrastructure & accessibility
• environmental protection
• improving quality of life
• public space management
• citizens’ information

Steering Smart Changes in our Urban Culture!
• Cities’ competitiveness relies on an efficient urban
transport system.
• Economic expansion worsens issues brought by growth
in mobility and car dependence, creating congestion,
environmental pollution and affecting road safety.
• Transport authorities play a critical innovative role towards
sustainable transport solutions. It is no longer possible
to approach sustainable mobility exclusively from a sectorial
perspective; a holistic view on transport is needed,
taking into account a range of determinant and interrelated
factors:
• accessibility
• the environment
• quality of life
• public space management
• citizens’ information
Source: EMTA – European Metropolitan Transport Authorities

The Industrial Character of a Port

For- & Hinterland of a Port
Terminals, Cargo, Distribution, Packaging, Trucking, Repair & Parts, ...

09/08/2018 16
Port Activities in the Proximity of Residential Area

Port Site Selection is Key to Its Future

Port Site Selection Factors:
Social,
Economic &
Environmental

Ports and their environmental impacts

Environmental Management Performance

Water Treatment during
Port Development
& Operations

Country ranking on international trade
Source: IBM Global Location Trends - 2008

Commercial Viability of Ports & Terminals
Ideal Master Planning
Master planning impedes the commercial sustainability of ports. Delayed
clearances, serious environmental impacts, poor vessel turnaround and
higher CAPEX all lead to failures.
Optimal Transport Integration
Lack of hinterland and forward transport connection result in imbalances
between in-bound and out-bound volumes handled, impacting revenues
and future capacity generation planning.
Efficient Operational Models
With ever increasing vessel sizes and growing demand for specialised
cargo handling infrastructure, ports and terminals need to develop an
ideal matrix of cargo + vessels + infrastructure, leading to higher
operational efficiency.
2014 - Ports & Marine Structures Asia

Steering Smart Changes in our Urban Culture!
• Cities’ competitiveness relies heavily on an efficient urban transport
system.
• Economic expansion worsens issues brought by growth in mobility and
car dependence, creating congestion, environmental pollution and affecting
road safety.
• Transport authorities play a critical innovative role towards sustainable
transport solutions. It is no longer possible to approach sustainable
mobility exclusively from a sectorial perspective; a holistic view on
transport is needed, taking into account a range of determinant and
interrelated factors:
• accessibility: 50% of all daily trips into cities are made by car, mass transit lines
are saturated due to urban sprawl;
• the environment: transport generates 30% of CO2 and micro particles emissions,
of which 90% come from cars and lorries, creating real issues in terms of public
health, noise and road safety;
• quality of life: a modal shift from private cars to public transport and eco-friendly
modes is needed given that in some cities around 60% of car trips cover distances
of less than 3 km;
• public space management: need to share space between different transport
modes, (walking, cycling, public transport, private car, urban freight) and other
types of use (shops, playgrounds, green zones, urban facilities);
• citizens’ information: on mobility services, (regular and real time) travel
conditions.
Source: EMTA – European Metropolitan Transport Authorities

Stakeholder Engagement & Awareness
Port Site Selection & Designation
Port Development, Expansion, Rehabilitation & Operations,
Industrial Infrastructure,
Impact on Habitat, Communities and Ecosystems
• Open and frequent engagement with broader community on a
continual basis to develop and implement the plan,
• Listen and adapt to provisions and suggestions made by all
stakeholders
• Education and other resources to improve management
• Transparency + making information timely available
• Monitoring and continuous improvement
• Comply with national and international standards
• Learn and apply best practices from similar port development
projects and/or adapt recognized solutions to local situations
source: GHD Australia, Environmental Best Practice Port Development – an Analysis of international approaches

Port Competitiveness Indicators
1. Port TEU throughput
2. The number of ships visiting a port
3. The net crane rate - port TEU throughput
4. TEU throughput per berth metre
5. Yard utilisation measured as TEU throughput per gross hectare.
6. Vessel turnaround times at container port terminals
7. The duration of procedures of exporting a container
8. The duration of procedures of importing a container
Source: WB and DIT – Bureau of Infrastructure, Transport and Regional Economics, Australia
Examples of KPIs for Ports and Terminals (differ by type of port operations):
• In operations on vessel handling time, crane productivity (measures how shipping lines'
contracts are met), dwell times, etc
• Cost per cargo handled, mainly labour, maintenance, energy (measures internal
efficiency performance)
• Equipment technical/maintenance, Mean time between failure (MTBF),
reliability/availability of equipment, kilometre/moves per equipment (measures technical
state and maintenance needs)
• Health, Safety and Security, like lost time injuries, ISPS breaches
other resources: www.lloydsmaritimeacademy.com/kpisforports
www.informaglobalevents.com/event/kpis-for-ports-terminals-distance-learning

Direct influence
• Market interactivity and policies influence ports
• Ports influence the market and policies
• Verify market outlooks with existing and potential clients
• Handling capacities – maritime, berth, storage, logistics &
distribution
External influences (non market)
• Compliance: ISPS enforcement, AEO, ESPO
• Food / feed safety authorities
• Dangerous goods
• Environmental
• Community issues (noise, traffic, dust, ...)
• Customs
• Unions
Neutrality is not appreciated by your clients,
you are there to defend their (and finally your) interests
Knowing your clients & their markets

Operating in a Multi-Stakeholder
Environment!
Alignment among stakeholders:
• To build successful systems with multiple stakeholders,
all relevant parties must have a good understanding
of the benefits to them
• Each solution can be constructed as a win-win model,
but this requires careful planning
Multilevel governance model:
• Each solution has a number of
stakeholders, all of whom have
a voice to be heard
• Key decisions will need to be
made effectively, most likely
through an executive governing
board
e.g.: MCDCB – Mega Cebu
Step-by-step approach:
• All solutions are complex and,
when being implemented,
involve a degree of risk
• They should be implemented
incrementally, to fix any potential early and short-term issues and to test the solutions, with a
simple local programme as the first step and including only key features

Stakeholder Engagement & Awareness
Port Site Selection & Designation
Port Development, Expansion, Rehabilitation & Operations,
Industrial Infrastructure
• Open and frequent engagement with broader community on a
continual basis to develop and implement the plan,
• Listen & adapt to provisions and suggestions by all stakeholders
• Education and other resources to improve management
• Transparency + making information timely available
• Monitoring and continuous improvement
• Comply with national and international standards
• Learn and apply best practices from similar port development
projects and/or adapt recognized solutions to local situations
source: GHD Australia, Environmental Best Practice Port Development – an Analysis of international approaches

Location selection factors
Regulatory
framework
Workforce
Infrastructure
Real
estate
Natural
disaster
Knowledge &
innovation
Taxation
(TESCM,...)
Incentives
Operational
costs
Living
environment
Business
Environment
Attractiveness
COLLABORATE - you cannot win the struggle alone
Political climate
Source: IBM Global
Imagine the future, to be the future!

A typical selection process
1. Define Business case High Level
Create Long-list
2. Additional selection criteria
Identify Shortlist
4. Site Search & Negotiations
Select Preferred Sites and Start Negotiations
5. Implementation
3. Evaluate Short-listed Locations
Select Preferred Location(s)
Macro
Countries
Regions
Sites
Micro
Macro
Stability/risk
Market
Workforce/Skills
Infrastructure
Costs
Sites
Incentives
Quality of Life
Micro
Be visible at all levels
Source: IBM Global

• Strategic drivers for location choice
• Access to new market, Optimize cost efficiency
• Access to Resources, Consolidation of operations, etc
• Strategy has impact on location requirements and their
relative importance
• The most critical requirements determine the initial
long-list of locations
Examples: Market/client proximity, Cost levels, Stability,
Safety, …
• Site availability in most cases is not a critical factor for
selection, but becomes very important towards the final
decision making
Location selection factors

Issues when selecting locations
• Dedicated contact person, finding information
• Land: ownership, zoning, ready-to-build
• Infrastructure; utilities, port, ICT
• Restricted activities (zoning of likewise/linked activities)
• Paperwork; permits, licences, certificates
(company, construction, emissions, disposal, environment, safety,
workforce, activities, ...)
• Time needed to start with commercial activities
• Coast vs. inland: hinterland connections
Integrated approach – “package approach”

Issues on development & concession contracts
• Price
• Development cost per meter of quay length
• Not flexible enough (start up period, recession, ...)
• Index calculation
• Minimum fee (based on tonnages per meter of quay length)
• No transparent pricing compared to other companies with same
activities (price per meter of quay length)
• Bank guarantee
• Other
• Soil certifications
• Responsibility for stability issues (site was not build-ready)
• Quay infrastructure (lightning, fences, railways, ...)
• Enforced use of various transport modes (mix)
Integrated approach – “package approach”

Port Site Selection & Master Planning

Turning Challenges into Opportunities!
Cross-industry cooperation and dialogue with policy-makers and incorporating
strong stakeholder & community engagement are needed to define legal frameworks,
reach international standards and set up public-private partnerships
WEF 2014 – Connected World: 4 Game-Changers that Will Revolutionize Travel and Transport by 2025!
Supply chains which pass through Cebu need to be efficient so that the lowest ecological
footprint per tonne/kilometre can be realized.
Re-designation of current infrastructure across Metro Cebu to fit residential city
expansion and making Metro Cebu a better place to live.
Clear division between industrial and habitat + leisure + offices areas, relates to
traffic mix and congestion as well environmental impact and liveable cities across Metro Cebu.
Sector Clustering for Metro Cebu, Cebu Island and the Visayas
Cebu has the potential to become
• a major player in the ASEAN integration,
• a Port-of-Call in the APAC Trade Lanes,
• preferred Hub-&-Spoke for cost-efficient regional intermodal transhipment,
• expand the Tourism Sector with International Cruise Ships and linking up with
the Island Hopping and
• attract industrial and commercial investments to Metro Cebu
but what is holding it back from succeeding …

• Cebu is growing – Cebu Port is congested
• Not in line with national and international standards
• Requires refocus and investment today
• Hub & Spoke multi-modal center
• Logistics performance & port competitiveness is crucial
• Integrated logistics services into the supply chain
• Ports are vital trade facilitators
• Ports provide logistics focus for the flow of cargo
• Integration with Philippines National Strategic Port Plan,
ASEAN, UNESCAP and APEC
Not advisable to build a wrong port just because we have
ONLY ONE study that does not meet
business, environmental & social requirements.
We must have the right port configuration!
+10 years overdue!
it is time to recapture Cebu’s former glory!
Need for Port Development and Rehabilitation!

Operating in a Multi-Stakeholder Environment!
Commercial Viability of Ports & Terminals depends on
• Ideal Master Planning
• Optimal Transport Integration
• Efficient Operational Models
Alignment among stakeholders
Multilevel governance model
Step-by-step approach
Major challenges
for Cebu – Mega Cebu (MCDCB)
Need for integrated planning and
wide consultation
• Mobility
• Competitiveness
towards a more liveable Cebu

Purpose of the committee
• Enabling dialogue among key stakeholders
• Adapting world-best-practice selection criteria
• Build a Long-list of potential sites and their designation
• Consolidate and evaluate pros and cons for each
• Define the key criteria for the future of the Port of Cebu
• Identify the Short-list & structured selection criteria (weighing)
• Conclude & mitigate preferred location(s)
For Cities & Industries alike to thrive and co-exist, stakeholder dialogue
is essential in the process of engaging lasting solutions!
– Joris Claeys, PortExpertise
CCCI Transportation Committee
Port of Cebu Development & Rehabilitation
Location Selection & Designation

Decision Process on Locations
Site Selection & Designation as a wholistic approach
CCCI Committee focuses on the main
drivers of the site selection process,
within the port development cycle
• Location selection factors
• Infrastructure requirements
• Environmental impact considerations
• Socio-economic & competitiveness factors
3 steps:
1. Imagine what could be!
Define the kind of port Cebu needs for
the 2035 – 2050 and beyond planning horizon
2. Design what should be!
Define minimal key criteria
3. Deliver what will be creating the future
the actual selection of the port location that meets the physical selection criteria plus
related financial economic, social, and environmental and competitiveness/growth
considerations

Decision Process On Locations
Site Selection & Designation
• Socio-economic and competitiveness factors
3 steps:
1.Imagine what could be!
Define the physical selection criteria that minimally fits the desired type of port facility
considerations

Imagine what could be!
Key criteria for the future requirements and development of the Port of Cebu
facilities and infrastructure + its role for Cebu, the Visayas and as a major
Port of Call for the APAC trade-lanes (July 2014)
Observations
• OUTDATED current port infrastructure, connectivity and hinterland (+15 years)
• not coping with current natural and future growth,
• no cost-effective logistics, loosing its regional, national and ASEAN competitiveness
• not attracting marine and land/manufacturing investors and
• not being able to be Port of call for ocean carriers and international cruise ships
• Need for coherent infrastructure across the Cebu facilities (CPA & private), enabling
cost-effective regional intermodal connectivity (in/out, transhipment)
• Current plans on the New Container Terminal and the rehabilitation of the Base Port
will over time stricken Cebu’s competitiveness and incapacitate Cebu’s
reputation and future growth as a major regional metropolis of trade and
manufacturing, tourism destination and hub for international cruise lines, as well as
loosing its position as a main contender in the Philippines National Port Strategy
and ASEAN integration, loosing out on major national and international investments
• CEBU stakeholders one voice: CPA, business communities and the larger
community stakeholders – through MCDCB/Mega-Cebu – express the need and
preparedness to activate a CEBU Port Development Master Plan, based on the
findings of the Site Selection & Designation Outcome by the CCCI – Transportation
Committee

Minimum Key Criteria – Port of Cebu
1. Cargo and ship modus & capacity for Cebu Port of Call
 Accommodating containerized, bulk, break-bulk and passengers, but clear segregation
between passenger terminal from all industrial port activities, both port facilities,
marine environment and hinterland
 Accommodating all industries and commodities/cargos – both current and projected.
Segregation of specific industries / sectors, potentially to other port facilities,
part of the Port of Cebu infrastructure, such as chemicals and petroleum sector.
 The port hinterland may also have to include dedicated hinterland and berth capacity
for dedicated industries, including the food and feed industries (or e.g.: consumables
and non-consumables) nearby the international terminal operations
 Facilitating and attracting added-value manufacturing and processing for local,
regional and international markets, including uplifting local manufacturing for export
 Expandable port area for future domestic, international and added-value manufacturing
growth – not all port designated area needs to be fully developed, but needs clear
urban designation and restrictions of any other use. Development phase can be
spread over 20 to 40 years, which may include particular activities and/or sectors to be
re-designated to other locations, in line with the total port infrastructure. The Port of
Cebu Master Plan should envision developments in line and flexible to adapt ad migrate
to the evolution of its realization and growth commitments, based on integral visions for:
• 1st phase: up to 2025
• 2025 – 2050
• Beyond 2050

 Enabling distribution centra for local, regional, national & ASEAN markets and integration
 Enabling for Port-of-Call for post-panama liner vessels in the international/APAC trade-
lanes and integrated or nearby facilities for domestic/regional cargo and container vessels
and integrated multi-modal / Transhipment facilities, including distribution centra and
logistics services
• minimal birth requirements: 1 km for international, 1 km for domestic cargoes
• 3,000 TCU vessels require 12 to 14m draft, 250m berth space
• 50,000 Mt bulk cargo ships require 14m draft
 Optimal sizing of a combined international and domestic cargo designated area of minimal
400 Ha (with 4km berth, 16 m draft and 15 km direct hinterland for logistics,
distribution and manufacturing facilities); domestic ships berth can have lesser draft.
For optimal use of assigned Port Authority facilities/area and direct hinterland, the following
rule of designation is adapted :
• 10% for infrastructure (dedicated port roads)
• 20% port, customs and other facilities as integral part of the total port concept
• 70% for cargo handling logistics and manufacturing direct hinterland
 Whereby the following minimal needs are to be provided for Marine Port activities
(stevedoring):
• 1st phase – 2025: 75 Ha
• 2025 – 2050: 100 to 200 Ha
• Beyond 2050: 400 ha

 As a transhipment port for the region and international industrial activities, Cebu Port
and its direct hinterland have to have the optimal capacities, effectiveness and
handling facilities to attract pass-through and added-value manufacturing for domestic,
regional and international goods, such as but not limited to repackaging for the
international and regional markets
 The current stevedoring facilities and efficiencies will require updating of equipment and
handling capacity to be able to compete with other ports, offer cost effective operations for
both carriers and shippers and attract new cargo for regional and international trade-
lanes (currently 3MT/ day while standard expectation in international ports is
500Mt/hour and 2000 TEU containers/day = 1 day/vessel)
 With the expansion the necessary port and terminal operators should be expanded to
enable international and domestic operators to compete in an economic cost effective and
viable environment under the authority of the CPA as land/berth owner for the
marine connected facilities. The hinterland can be part of CPA and leased out or sold to
private investors
 Land-sea connectivity: provisions needed for Container Yards and handling in the
North and South of Metro Cebu, with an in-depth study on current and future industries
and sector development, road or other link infrastructure to the main port facilities and
other logistics optimal services to link the South and the North as well as other Visayan
ports up to the Cebu main international/domestic port facility(ies)

2. Location and environmental impact
 Impact to environment during and after the port construction/rehabilitation and
operations
 Land use compatibility and land reclamation in the context of its surroundings +
effects of pre- and ongoing dredging works
 Incorporate and adapt to current and future international and national standards for
environment, waste water treatment and marine waste management
 The port environment needs to be blocked off with green-zones/ring and has its own
water treatment and marine waste management facilities for both international and
domestic ships as well as for development, expansion and operations
 Further obtaining studies on environment, road infrastructure and land-use compatibility
studies or research need to be reconciled and considered
Site notes
 Obtain insight on potential investors and development plans (effective or proposed) for
port facilities and operations (services and private construction) in Metro Cebu and on Cebu
island, as well as on the islands in the vicinity of Cebu and the larger connectivity with
ports in the Visayas and Luzon
 Need for evaluating marine studies on waves and other risk related patterns on both the
East and the West side of the Cebu Island
 Impact & effect analysis of Port Master Plan in relation to the Tourism Sector

Members of the CCCI Committee
• Consolidated RAFI - MCDCB assessment
(2013 - on JICA proposal)
• Bing Martinez
• Roy Lotzof
• Robin Ong
• Yumi Espina – Urban Planning, USC / MCDCB
• Joris Claeys – PORTexpertise
• CPA – Tomas Riveral
• CPA – Benjie Akol
• CPA – Carlos Co
• CCCI - Transportation – Bonifacio 'Boni' Sia
• CCCI - Transportation – Felix Taguiam
• CCCI – Tess Chan
• NEDA – Efren Carreon
• Customs Brokers – Jerry Martinez
• MCDCB - Engineering – Pedro Adonis Compendio
• MCDCB - Transportation – Jun Sanchez
Now engaging with other stakeholders: shipping/carriers organizations,
business associations, environmental experts, communities and cities
Cebu Port Development – an outlook for dialogue

Minimum Key Criteria
Cebu Port to provide services to meet the following types
of cargoes and passenger passage
Integrated and cost-competitive port platform
ensures economic success for Cebu and the attainment of
• North/South domestic cargo port, including bulk, break-
bulk, hazardous, and trans-shipment cargoes
• North (Manila)/South (VisMin) international feeder port
• Regional Asia/Pacific transhipment hub (e.g.: Singapore)
• Preferred Port of Call for APEC and ASEAN Trade-lanes
Redevelopment of existing Cebu Baseport allows for
• Expansion of existing and new business clusters
• Domestic passenger passage
• Port-of-Call for international cruise liners, linked to
traditional Visayas island hopping, addressing the potentials
of Cebu’s tourism sector
Attain goals set out in MegaCebu plan 2050

3 steps:
2.Design what should be!
Define the physical selection criteria that minimally fits the desired
type of port facility
considerations

DETAIL 1
• Impact study on infrastructure (port & distribution) and environment is required
• Role of Cebu Port(s): Hub & Spoke Multi-modal, Island-Hopping, RORO and
potential as a major (inter)national hub for cruises
• Cost definition perspective of the Port Development & Operations as an overall
impact of either solution, not just for the new container terminal
• Reflection of people transportation under-estimated, based on reflected growth
• Full impact report required on Metro Cebu with implications for livelihood, mobility
infrastructure and traffic congestions across Cebu City, Mandaue City and
Mactan Island, secondary on the sector clustering of Cebu island and the Visayas
• Port expansion requirements beyond and including the new container terminal
• Eco-system impact study for all proposals, including ocean and sea routes
• Livelihood and cost of living impact from port developments
• Dredging works and costs need to be revisited for the total port development
• Study on added value of reclaimed area for industrial activities and city habitat
and how that will affect the major metropolitan areas of Metro Cebu
• Future traffic congestion report highly recommended for entire Metro Cebu area
• Road infrastructure works and cost need to be comparable across studies
• Cargo growth rate may not be sufficient to deal with the needs of Metro Cebu, nor
with the hub and spoke function of Cebu for both goods, people and cruising
activities in the region
• Infrastructure requirements for balanced community and economic
environment
• Resolve traffic congestions and mixture across Cebu/Mandaue/Lapu-Lapu

DETAIL 2
• Total infrastructure works review across Metro Cebu for all modes – integration
and interrelation between transportation modes
• Combined usage of the existing Cebu Baseport – after rehabilitation and
designated areas for the different usage – passenger terminal and cargo terminals
+ mixed traffic operations at Baseport
• Container Terminal requires near-by full operational hinterland service
providers, which may require double to triple the planned land capacity of the
container terminal alone
• Future port and berth capacity expansion considerations
• Master traffic and transportation plan required for Metro Cebu
• Dredging works and breakwater wave protection infrastructure needs to be
completed for all port sites, considering its designated use
• Future eco & industrial zones considered in each of the port development
options
• Cebu as a multi-modal operations port(s) and the impacts across terminals
and for- & hinterland requirements
• Cebu port development in function of national, regional and APAC strategy
• Re-assignment of industrial and habitat estate requires consideration in the
Master Transportation and Infrastructure Plan
• Minimizing habitat areas to be moved and concluding a master urban plan for
Metro Cebu and the province as a whole for its sector clustering

Design what should be the future!
 Current Baseport operations to be upgraded but limited
to passenger operations ONLY both domestic & cruise ships
 Cargo operations to be integrated in a new - but SINGLE –
location with the following attributes:
 Mid-term (till 2030) requirements for port activity
• Minimum berth length:
• 4.0 kilometres berth
• Domestic and international cargo – include sea-transhipment.
• Minimum draft: 16 meters for 3,000-5,000 TEU feeder and transhipment
vessels – lower shipping rates
• Minimum land area: 400 hectares needed for:
• ship-side marshalling area
• container yards (for domestic, international and trans-shipment TEUs)
• bulk handling silos and outdoor cargoes
• Warehousing
• administrative offices (Customs, CPA, water-treatment, and green space)
• interior roads
• with hinterland for logistics services & added-value manufacturing
• Connectivity: Sufficient infrastructure (roads, bridges, utility connections) to
move cargo efficiently, while minimizing cargo traffic through Cebu City
and Mandaue City.

• Baseport Rehabilitation and Redesignation
• New Container Terminal in Consolacion
• New Port in Naga/Minglanilla, Cordova and/or Toledo
Overview of the Proposed Sites and Options

Consolacion study raises serious red flags!
• Does not meet draft and minimum berth length
• Lack of minimum land area and connectivity.
• review and ranking of the original port locations should
be undertaken against the site selection criteria in order to
rationalize the selection process.
Decision criteria used are questionable!
Implementing the Consolacion
proposition contradicts
Mega Cebu’s vision 2050
Competitiveness
Mobility
Liveability

3 steps:
Define the physical selection criteria that minimally fits the desired type of port facility
3.Deliver what will be creating the future
the actual selection of the port location that meets the physical
selection criteria plus related financial economic, social, and
environmental and competitiveness/growth considerations

Next steps to be completed by the Committee
 Milestone: +/- 2 months to present proposal to stakeholders
Site Selection & Designation Process
– Weighing, Ranking & Impact Analysis
Key impact areas of consideration with their weighing
• Economical impact evaluation (includes overall growth for Cebu)
• Social impact evaluation (engage MCDCB in the urban planning)
• Environmental impact evaluation (expert engagement)
• Competitiveness & growth potential (intermodal and SCM integration)

Possible Metro Cebu Strategic Links and
designated urban, commercial, tourist,
industrial clusters
as per Philippine
National Master
Planning

Marina Development in the Visayas

The central position of the Visayas

• Metro Cebu’s urban and commercial area is saturated
• Cebu is missing a waterfront (see proposals Cebu Arts District)
• Cebu: Visayas hub port of call for major cruise-lines
• East-side of island has serious silting issues
• South and North of Cebu: industrial activity
local processed commodities
• Cebu to retain small container port for Cebu’s
consumption needs and export of furniture
and fashion/jewellery
• Build a world-class port on the north-west
side (Toledo-Asturias with natural 20/30m
draft to become the import/export & transit
port of the Visayas and return to its historical
Queen-city of the South as largest Philippine
transit port and important port of call on the AUS-China trade-lane
• Transfer & expand heavy and petroleum-based industries to the east
• Goods-designated rail-tunnels between the new port and Cebu
• New airport in the middle of the island to release city traffic
• Redesign Mactan as the true touristic cluster and hub for the
Visayas (island-hopping , yachting and cruise-lines)
There is a valid alternative!

Deliver what will create the future!
Marketing during the process
• Channel mix
• Plan your events
• Customised interactive presentations
Communication Channel Mix
Communicate regularly through various channels
Interactive
workshops
Online-Communication
Information fairs Information points
Printed Communication
(e.g. Topics,
meet ur
neighbour, ...)
(e.g. intranet,
chatrooms,
portal, email)
Audio-visual
Communication
Meetings
(e.g. video
conference
calls, video
footage, TV
spots, RSS)
(e.g. Account
with his clients, ,
Rail+Port,
Port+Barge,
university)
Feedback-
instruments
(e.g. focus interviews,
benchmarks, E-
evaluation form)
(e.g.
seminars,
road shows,
congress)
(e.g. site, E
newsletter
on site
present.)
Waterfall
approach (e.g. Port
Guidelines,
who to
contact in
case ...)
Public events
(e.g. Sail, New
Year/quarterly
drink, concerts,
site visits locals)
Corporate
communication
(e.g. CEO mail,
CEO-online,-
breakfast, )
Mobilisation Events
(e.g. town
meetings,
students)
(e.g. newsletter,
brochures, flyers)

will get worse than this
… or it can shine like this ...
The Future of the Port of Cebu

CEBU – Port-of-Call on ASEAN & APAC trade lanes

CEBU – Major destination for expansion of &
investment in new industries & commercial activities

CEBU – SCM integration with domestic
& regional intermodal Hub-&-Spoke

DoT expects more international cruise lines to bring in more
than 20,000 tourists to the country this year.
Cruise arrivals in the Philippines over the past two years grew by 48%, amounting
to 20,000 last year.
Three of the world's leading cruise companies are eyeing to help
develop the Philippines as a major destination.
… and this

Deliver what will be creating the future!
“Growth is the best stimulus for development and innovation!
That’s why a transition to a more sustainable port and growth
go hand in hand.” – Hans Smits, Port of Rotterdam

Next steps – building a renewed thriving Cebu
• Governor support to delay implementation of the current proposed
Port plan
• CCCI-led Port Committee proceeds with Site Selection &
Designation based on Economic, Social and Environmental
considerations
• Initial funding support by the Cebu Province and national
institutions, matched by the private sector – leading into long
term international funding for the Cebu Master Plan
• Co-creation effort in alliance with CPA having a primary role in
Port development, the Philippines National Port Authorities, NEDA
and other involved national and regional institutions
With a Master Plan for the Port of Cebu, based on a
transparent Site Selection & Designation Plan developed
with broad stakeholder engagement
We will have the right port configuration for CEBU

Next steps – towards building a renewed &
thriving Cebu port
• Re-evaluate locations and plans based on minimum
physical requirements and select the most suitable
location - Site Selection & Designation based on Economic,
Social and Environmental considerations
• Proceed with Master Plan and infrastructure
connectivity for the Port of Cebu and synchronization
with MCDCB Urban Planning and zoning/designation
With a transparent Site Selection & Designation Plan
developed with broad stakeholder engagement, We will
have the right port configuration for CEBU
21

CEBU – a world-class gateway
Shipping and port operations are central to what Cebu is today
and will continue to be key to Cebu’s future
The past growth of Cebu has mirrored the growth
of the volume of Cebu port operations
transition to a more sustainable port and
growth go hand in hand!

Experience by PortExpertise
• Feasibility studies
• Business planning and KPI setting
• Workforce Structuring and Operational Organization & Reviews
• Business Effectiveness, Continuous Improvement and Process Reengineering.
• Technology for ports
• Design, Engineering, technology and expansion infrastructure for Ports, Terminals,
airports and other public and civil transportation needs
• Waste Management Programs and Energy Optimization Project
• Total Intelligent Transportation Solution (TiTS)
• Industrial, Maritime, Port & Terminal Infrastructure consultation, R&D, Project Mgmt
• Terminal/port design and optimization
• Operational organization, reviews and process reengineering
• Optimization and lining up on maritime and port environmental requirements,
including waste management, energy use, …
PortExpertise provides the right expertise for your infrastructure and
supply chain projects and collaborates with your project team in making
successful results with best practices from across the globe.
Design - Procure - Optimize - Monitor
Extended ENTERPRISE Econological SUSTAINABLE ValueChain SOLUTIONS
Improving Port Investment Appeal

maritime, port & industrial infrastructure logistics + c-SCM
Providing knowledge convergence in Logistics and Collaborative SCM services & solutions for your Total Value
Chain
We are an independent global collaborative partnership of maritime port, logistics and supply chain
management professionals with a strong reputation in managing industrial, maritime, port & terminal
logistics, providing their expertise to local and regional initiatives in commercial and industrial sectors as well
as the public/civil/defence sector.
Providing knowledge convergence in logistics & SCM services, covering Design, Procure, Optimization &
Monitoring
• Feasibility studies, Business Planning and KPI setting
• Design, Engineering, technology and expansion infrastructure for Ports, Terminals, airports and other
public and civil transportation needs
• Workforce Structuring and Operational Organization & Reviews
• Business Effectiveness, Continuous Improvement and Process Reengineering.
• Waste Management Programs and Energy Optimization Project
• Total Intelligent Transportation Solution (TiTS)
• Industrial, Maritime, Port & Terminal Infrastructure consultation, R&D, Project Management
PORT[expertise] provides the right expertise for your infrastructure and supply chain projects and
collaborates with your project team in making successful results with best practices from across the globe.
Design - Procure - Optimize - Monitor
Total ValueChain Solutions for the Extended Enterprise
J.Claeys@PORTexpertise.com
+63 9284064649

IT expert - Jan Verwaest
• Bachelor Electronics, APICS certified
• Master in IT Architecture, Antwerp
Financial & Trade Economist – J. Claeys
• BA Finance Economics, Antwerp
• Maritime, Port & Infrastructure logistics & collaborative SCM
A. Eliseev – Mechanical Engineer, oil & gas
terminals
• Murmansk, State Technical University
• Specialty, oil & gas markets
Financial & Trade Economist – O. Samroo
• M.Sc. Economy, Aarhus, DK
• Specialty: International trade re.fish (quota, processing,
terminals)
Some of our colleagues-partners

European Headquarters
Duboisstraat 50
2060 Antwerp, Belgium, Europe
+32 (3) 808.4345
info@portexpertise.com
www.PORTexpertise.com
A team you can build upon!
Cebu, Philippines, ASEAN
+63 9284064649
Joris.Claeys@CAPix-horizon.com
J.Claeys@portexpertise.com
Skype: knowledgEnabler
Twitter: @knowledgEnabler
thanks for building your trust with us

Cebu Port Development – Turning Challenges into Opportunities

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