Olongapo SubicBay BatangGapo Newscenter

Sunday, March 19, 2006

Boom in grain imports spurs building of new bulk handling ports in Subic

By DOLLY AGLAY, Manila Bulletin

Eduardo Alino only opened his grain bulk handling facility at Subic freeport, a former US base northwest of Manila, in January but he’s already planning to double its capacity to meet the country’s growing appetite.

The Philippines is one of Asia’s biggest importers of rice, its main food staple, and other grains and feedstuffs due to its rapidly rising population and poor local farming infrastructure.

The expansion of Alino’s Subic grain terminal follows rival Nation Granary Inc.’s plans to open a similar facility costing 3.2-billion peso ($ 62.7 million) in Sariaya, in the northern Philippines, in May or June.

"There is business locally," Alino, who has been in the cargo handling business for 20 years, told Reuters. "There is enough volume. You don’t need to go into transshipment to other countries."

The Philippines bought 1.8 million tonnes of rice last year, and imports annually nearly 3 million tons of both milling and feed wheat, 1.5 million tons of soymeal, 400,000 tons of soybeans and sometimes corn.

Officials said they expected imports of wheat, soybeans and soymeal, which are not grown locally, to rise in the next few years as the population’s average annual growth rate of 2.0-2.3 percent, one of the fastest in Asia, shows no sign of slowing.

"Consumption of grains will continue as the population grows and the economy improves," Ric Pinca, vice president at the Philippine Association of Feedmillers Inc., said.

Alino said his company plans to spend another R400 million to double the capacity of the grain terminal inside the Subic freeport to 200,000 tons for wheat, soybeans and soymeal next year.

The additional investment would bring to 1 billion pesos the total amount invested in the Subic grain terminal, which was previously used as a docking port for US Navy aircraft.

Alino said the expansion would also include additional equipment to service Panamax vessels — with a capacity of 50,000 to 60,000 tons — without cranes

Subic Grain Terminal can handle Panamax vessels with cranes and handymax vessels, or those with a capacity of 40,000-45,000 tons capacity.

Philippine grain importers mostly use handymax in their imports of milling wheat from the United States and Canada. The country also buys wheat for feeds from China, Argentina, Brazil and sometimes from Ukraine.

Local firms also buy soymeal, mostly from Argentina, using handymax vessels.

Earlier this week, Nation Granary said it aims to support the government’s food security programme and ultimately become the transhipment hub of grains in Asia.

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