Chapter 1 Introduction Our unique geography as an archipelagic nation should necessitate us to concede the benefits and challenges that

come with being a nation surrounded and convey together by the water. The Philippines impends on seaports much more than countries with huge constant landmass. With 7,107 islands and a land area of more than 300,000 square kilometers, the Philippines lies at the heart of the globe. If you look at the world map, it is not just a regular location, but in essence, a tactical region that has accessibility to more than half of the worlds population. Since a high percentage of domestic and international interchange and traverse is by sea, the effectiveness of maritime transportation has become increasingly necessary to national competitiveness. It is a vast market for the countrys economic production if we unravel and uncover it and use this range to our advantage in the economy of distance and time. 1.1 Background of the Study Maritime conveyance is the capital support of world-wide trade, with its capacity to move abundant quantities of load over extended distances. The notion of marine transportation rests on two major elements: ports and shipping networks. Ports are locations where cargo and passengers can be transhipped to and from maritime modes. Shipping networks are regular itineraries that draw arcs on the Earths water surface as intercontinental maritime transference tries to maintain the immense circumference distance.

There is a long history of the necessity of the oceans for mercantile navigation , a procedure associated to the establishment of world-wide trade, especially with the founding and expansion of civilizations and empires. Maritime conveyance is a commercial activity demanding a comprehensive arrangement of modes and infrastructures and is designed by the

marine geography of the Earth, principally the configuration of oceans, coasts, seas, lakes, and rivers. Where possible, dredging and the construction of canals, channels, and locks have been attempted to lessen distances, to facilitate maritime transmission, and to reform access to port. This has diminished the discontinuity imposed by geography on world-wide trade.

Our coastline is almost double of that of the US, thus, making it beneficial not only for global protection, but also for maritime-business projection. The record of the Philippine Maritime History is, in a sense, the story of the country itself. Before the arrival of the Spanish in the 16th century, the islands were sparingly inhabited with well-established trading networks between the islands and wider regional networks in Southeast Asia. In the mid-1500s, an expedition arrived in the Philippines to explore of the legendary Spice Island. From the late 18th century social and economic structures in the Philippines were transformed. The Philippines, along with the rest of Southeast Asia, was drawn into the world trading system.

By the 19th century AngloAmerican merchant houses dominated the blossom exportation economy. The Philippines became a major maker of cash crops for international traffic with the volume of international trade multiplying fifteen times between 1825 and 1875. In the 1890s, an increasing nationalist movement in the Philippines resulted in a rebellion in 1896 against Spanish government. They destroyed a Spanish fleet in Manila Bay and, support by Filipino insurgents under their commander Aguinaldo, they rapidly conquered the islands.

1.2 Statement of the Problem

The quality of port infrastructure rank for the Philippines in the WEF Global Competitive Report is the lowest among the ASEAN. As an archipelago with a very abundant number of ports, the Philippines faces a challenge to undertake reforms and huge investments to modernize as many ports as possible. The volume of international container shipments in the Philippines is small compared to those in East Asias export economies. Improvement of maritime safety is an important issue given the high loss of life from negligence of ship owners and government agencies, terrorism, and weather. Philippine ports suffer from a structural regulatory problem. The DOTC has restricted power over Special Economic Zone (SEZ). Also, there is no consistent dispensation of RORO ports; some are under PPA, while others are under LGUs, and fees are not uniform. The high charge of domestic maritime transportation has long been disputed, while the vast possibility for tourism both domestic and international is highly influenced by the quality of seaports as well as airports. 1.3 Project Goals & Objectives

To provide an international port that will meet the demands of the global maritime industry and improved inter-modal connectivity that has extensive connectivity with land and water transport that will generate new economic and social benefits for the country.

To redevelop and bring change through technological advancements in the traditional functions of seaports such as the traffic, merchant and industrial functions To provide a connection between land and water transportation for the ease of accessibility of the users To provide facilities that will ensure the safety and security for seagoing vessels entering, operation in and leaving the seaport

1.4 Significance of the Project The project raises a multitude of solutions to the problem concerning inadequate volume of trade, whole system of fees, high cost of transport and public awareness. The Philippines is well-positioned to become a regional distribution center for goods destined for global trade. It has relative benefit for storage and distribution of goods to separate parts of the world. The project promotes the effectiveness of marine conveyance through domestic and international commerce and is critical to competitiveness. Transport costs in navigation are high and are one of the considerations for the countrys low competitiveness. Not only would it elevate our own economic advantage, it would also convey new opportunities for the citizens and non-citizens to liberate investments in our country. This would also lengthen the relationships the nation has with other countries that would be mutually beneficial.

The project promotes the significance of marine conveyance for our agriculture. Key domestic and international ports need bulk and break-bulk facilities. If the government priority for agriculture and food security is serious, there is need for more bulk ports. If mining is to take off, there must be bulk terminals. The countrys requirements for coal, LNG and the like also call for bulk port handling facilities. Transport system issues highlight the relationship between infrastructure and supply line.

1.5 Project Scope & Limitation

The Scope of the project is to promote the importance of the Port and Maritime Transportation through redeveloping the Seaport focusing on improvement of the economy of Cebu. The project only wishes to focus on developing certain key issues through specific solution based into two major parts; Cebu International Port and Cebu Baseport Domestic Zone. 1.5.1 Cebu International Port and Cargo

All needed infrastructure including container terminals, cranes, truck marshalling areas, and weighing scales, which are not present at many ports and to include facilities to accommodate bulk and break bulk cargoes. 1.5.2 Cebu Baseport Domestic Zone pure containerized lift-on/lift-off (LOLO) shipping for long-haul routes between main ports large Roll-on/Roll-Off (RORO) ferries with passengers on long-haul routes bulk (dry and wet), break bulk, and small container shipping

1.5.3 Limitations Major ports should have modern passenger terminals with connected land transportation terminals such as bus. Jeepney, and cab terminals but the project does not wish to dwell much further on this part. There is a given structure for this area to show the connection of land and water transport but not as detailed compared to others.

1.6 Definition of Terms

1. Break Bulk cargo - is a term that can be describe as goods that must be loaded individually, and not in intermodal containers nor in bulk as with oil or grain. Break bulk cargo is transported in bags, boxes, crates, drums, or barrels. Unit loads of items secured to a pallet or skid are also used. 2. Marshalling areas it is a location in the vicinity of a reception terminal orpre-positioned equipment storage site where arriving unit personnel, equipment, materiel, and accompanying supplies are reassembled, returned to the control of the unit commander, and prepared for onward movement. 3. Berth term used in ports and harbors for a designated location where a vessel may be moored, usually for the purposes of loading and unloading. Berths are designated by the management of a facility. 4. Anchorage place for the privilege of anchoring to secure or stabilize the ship 5. Cargo-Handling - the activity of moving goods on and off ships, planes, trucks, etc. 6. Pilotage - is the use of fixed visual reference on the ground or sea by means of sight or radar to guide oneself to a destination, sometimes with the help of a map or nautical chart. People use pilotage for activities such as guiding vessels and aircraft, hiking and scuba diving. 7. Bunkering - The act or process of supplying a ship with fuel. 8. Porterage - the work of carrying supplies, goods, etc, done by porters 9. Roll-On/Rolf-Off (RORO) ships are vessels designed to carry wheeled cargo, such as automobiles, trucks, semi-trailer trucks, trailers, and railroad cars, that are driven on and off the ship on their own wheels. 10. Lift-on/Lift-off (LOLO) Contrast to RORO, it is a containerized cargo ship which is loaded and offloaded by a port's cranes and derricks. 11. World Economic Forum (WEF) is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas 12. Association of Southeast Asian Nations (ASEAN) - was formed in 1967 by Indonesia, Malaysia, the Philippines, Singapore, and Thailand to promote political and economic cooperation and regional stability

13. Department of Transportation and Communications (DOTC) responsible for the maintenance and expansion of viable, efficient, and dependable transportation and communications systems as effective instruments for national recovery and economic progress 14. Special economic zone (SEZ) is a geographical region that is designed to export goods and provide employment. SEZs are exempt from federal laws regarding taxes, quotas, FDI-bans, labour laws and other restrictive laws in order to make the goods manufactured in the SEZ at a globally competitive price 15. Local Government Units (LGU) - shall provide for a more responsive and accountable local government structure instituted through a system of decentralization with effective mechanisms among the different local government units their powers, responsibilities, and resources 16. Bureau of Customs (BOC) the agency of the Treasury Department that enforces import tariffs 17. Phil. Export Zone Authority (PEZA) Promotes the establishment of economic zones in the Philippines for foreign investments. Includes registration procedures, forms, zone facts and online reports. 18. Oriental Port and Allied Services Corporation (OPASCOR) privatize non-performing government owned and controlled corporations. The first cargo handler to be fully owned and operated by its workers. 19. Cebu Port Authority (CPA) was created through the enactment of Republic Act No. 7621 signed on June 26, 1992 to specifically administer all ports located in Cebu Province 20. Philippine Ports Authority (PPA) Government entity specially charged with the financing, management and operations of public ports throughout the archipelago.