Analysis of Fishing Ports in the Philippines

Philippine Institute for Development Studies

Policy Notes July 1999

Analysis of Fishing Ports in the Philippines Danilo C. Israel and Ruchel Marie Grace R. Roque*

No. 99-07

underutilization of existing regional ports and the potential for new fishing ports currently being planned to contribute further to the process of marine resource depletion and environmental degradation.

Profile of fishing ports in the Philippines Fishing ports include all the post-har vest facilities within a certain port area which primarily ser ve the fishing industr y and function as the main collection and distribution center of fish. The National Statistical Coordination Board (NSCB) reports that as of 1997, there were a total of 447 fishing ports in the countr y (Table 1). Of this number, seven were regional ports and 440 were municipal ports. The seven regional ports include: Navotas Fishing Port Complex in Navotas, Metro Manila (NCR); ] Iloilo Fishing Port Complex in Bgy. Tanza, Iloilo City (Region VI); ] Zamboanga Fishing Por t Complex in Bgy. Sangali, Zamboanga City (Region IX); ] Camaligan Fishing Port Complex in Bgy. Dugcal, Camaligan, Camarines Sur (Region V); ] Lucena Fishing Port Complex in Bgy. Dalahican, Lucena City (Region IV); ]

F

ishing ports are critical to the full development of the Philippine fishing sector. They are necessar y for the proper unloading, selling, storing, processing and deliver y of fish to distant markets. Furthermore, as fish is highly perishable, enough port facilities are required so that post-har vest losses, currently estimated at about 20 to 40 percent of output, can be minimized.

In a countr y such as the Philippines which counts fishing as one of its most important economic sectors, it bears analyzing the condition and development of its fishing ports and post-har vest facilities. The need to take a closer look is more pressing in light of the reported ———————— *The authors are Research Fellow and Research Assistant, respectively, at the Institute.

PIDS Policy Notes are observations/analyses written by PIDS researchers on certain policy issues. The treatise is wholistic in approach and aims to provide useful inputs for decisionmaking.

Ms. Barbara F. Gualvez helped in repackaging this Notes based on the soon-to-be released PIDS Discussion Paper of the same title and by the same authors. The views expressed are those of the authors and do not necessarily reflect those of PIDS or any of the study's sponsors.

2 Sual Fishing Port Complex in Bgy. Poblacion, Sual, Pangasinan (Region I); and ] Davao Fishing Port Complex in Bgy. Daliao, Toril District, Davao City (Region XI).

July 1999

]

In 1998, the General Santos Fishing Port Complex in Bgy. Tambler, Gen. Santos City (Region XI) started operating, bringing to eight the current number of regional fishing ports.

The Navotas port was the first to be built in 1973. It was also the first fishing port to operate, in 1977. The construction of the Iloilo, Zamboanga, Camaligan, Lucena and Sual ports, meanwhile, started in 1982, with the Iloilo port completed three years later, followed by the other four in the ensuing years. By 1992, all were in operation.

The Davao port, on the other hand, was constructed in 1993 and started operating in 1995.

By area, the Navotas port is the largest, followed by the Iloilo, Zamboanga and General Santos ports. The smallest are the Camaligan, Sual and Davao ports.

Table 1. Distribution of Fishing Ports in the Philippines

by Region, 1997 Region

Total

Regional (all operational)

Total

Municipal Operational Non-operational

Philippines

447

7

440

405

35

NCR Region I Region II Region III Region IV Region V Region VI Region VII Region VIII Region IX Region X Region XI Region XII ARMM CARAGA

3 18 19 12 82 66 47 42 37 23 21 16 10 16 35

1 1 0 0 1 1 1 0 0 1 0 1 0 0 0

2 17 19 12 81 65 46 42 37 22 21 15 10 16 35

2 15 17 11 75 60 46 37 33 21 16 15 8 16 33

0 2 2 1 6 5 0 5 4 1 5 0 2 0 2

Source: National Statistical Coordination Board (various years).

Table 2. Projected Port Usage and Actual Port Unloadings in Regional Ports 1990

Fishing Port Complex Iloilo Port Zamboanga Port Camaligan Port Lucena Port Sual Port Davao Port

1995 Actual/ Actual/ Projected Projected Projected Actual Ratio Projected Actual Ratio 86,300 18,690 5,759 6,596 11,150 n.o.

33,158 n.o.

7,892 n.o. n.o. n.o.

0.22 1.15 -

87,800* 5,767* 12,010* 33,535* 8,620* 15,250*

24,944 19,972 2,528 11,163 431 1,716

0.28 3.46 0.21 0.33 0.05 0.11

Of the 405 operating municipal ports in 1997, the regions with the most number were Regions IV, V and VI while those with the least were the NCR and Regions Notes: *Average of 1990 and 2000 projections n.o. means not yet operating XII, III and XI (Table 1). The provinces with Sources: Department of Public Works and Highways – Project Management Office the most number of operating municipal and Philippine Fisheries Development Authority files fishing por ts were Surigao del Nor te, Quezon and Negros Occidental while those lowing were found to be the problems in fishing port dewith the least were Batanes, Zambales, Aurora, Camiguin velopment: and Davao del Sur.

Problems related to fishing ports development Using data and information provided by various government agencies, including the Philippine Fisheries Development Authority (PFDA) and key informants, the fol-

Policy Notes

Underutilization of regional fishing ports Comparing projected and actual usage and computing their ratio, it was found that five regional ports were underutilized while only one was overutilized. As seen in Table 2, the level of underutilization—reflected

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by ratios of less than one—was highest in the Sual, Davao and Camaligan ports, followed by the Iloilo and Lucena ports. On the other hand, the Zamboanga port was overutilized by more than three times, as reflected in the ratio of more than 3.

An often cited reason for the underutilization of regional ports is limited post-har vest facilities which discourage higher fish landings. A sur vey of facilities, however, indicates that all the por ts in general are well equipped, albeit the fact that the levels differ. Hence, limited post-har vest facilities could not have been the main cause of underutilization of the regional fishing por ts.

No. 99-07

clining catch due to overfishing is already well-documented (e.g., Israel and Banzon 1998, Schatz 1991, Silvestre and Pauly 1986). In addition to overfishing, declining catch is made worse by the inability of local commercial fishermen to exploit the countr y’s Exclusive Economic Zone (EEZ) and far-flung fishing areas due to a limited fishing fleet in particular and the troubled state of the local commercial fishing industr y in general (Thomas 1998).

Data on commercial and aquaculture production— the subsectors mainly served by regional ports—suggest that indeed, declining catch is the main reason for the underutilization of many ports (Table 3). Except for Region IX, most of the regions with regional ports had relatively low volumes and/or growth rates of commercial fishing, aquaculture, and total outputs. Region IX had Declining fish catch due to overfishing and poor the largest average annual production which explains the state of commercial fisheries A more probable cause of underutilization is low overutilization of Zamboanga port. On the other hand, Region I had a low average annual catch and even a negalandings due to declining fish catch. In the literature, detive annual growth rate for commercial fisheries which explain the ver y high level of Table 3. Average Annual Volume (mt) and Growth underutilization of the Sual port.

Rate (%) of Commercial Fisheries and Aquaculture Production in Regions with Regional Fishing Ports, 1989-1998

Region Region I Commercial Aquaculture Region IV Commercial Aquaculture Region V Commercial Aquaculture Region VI Commercial Aquaculture Region IX Commercial Aquaculture Region XI Commercial Aquaculture Note:

Fishing Port Sual Fishing Port Complex Lucena Fishing Port Complex Camaligan Fishing Port Complex Iloilo Fishing Port Complex Zamboanga Fishing Port Complex Davao and Gen. Santos Fishing Port Complexes

1998 figures are preliminary -- means no figures are available Source: Bureau of Agricultural Statistics

Volume

Growth Rate

16,669 2,861 23,013 189,817 85,659 173,596 104,982 23,790 20,156 336,141 129,015 82,526 364,128 142,164 88,601 68,669 57,559 18,517

9.83 (2.29) -5.03 9.18 -(0.86) (3.18) -1.47 0.41 -5.86 10.26 -9.62 11.60 --

Inadequate number of municipal fishing ports and facilities Another serious problem in fishing port development is the inadequate number of municipal fishing por ts in the countr y. In 1997, the national ratio of municipal ports to coastal municipalities was only 50 percent (Table 4). This problem is compounded by the fact that since new municipalities are created overtime, the ratio will go down if the number of municipal ports remains the same.

A brief sur vey of municipal fishing ports also showed that a majority do not have the needed post-har vest facilities for the proper unloading, selling, storing and processing of fish. This contributes to huge post-har vest losses in the municipal fisheries subsector.

Policy Notes

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Table 4. Operating Fishing Ports to Number of Coastal Municipalities Ratio by Region, 1997 Region

Coastal Municipalities

Philippines NCR Region I Region II Region III Region IV Region V Region VI Region VII Region VIII Region IX Region X Region XI Region XII ARMM CARAGA Source:

815 3 52 18 35 110 83 82 102 110 52 41 38 14 30 45

No. of Operating Operating Ports: Fishing Ports Coastal Municipalities 405 2 15 17 11 75 60 46 37 33 21 16 15 8 16 33

National Statistical Coordination Board (various years) and Bureau of Agricultural Statistics files

Recommendations On underutilization Clearly, improving the utilization of already existing ports is one of the major challenges to be addressed in fishing port development. Along this line, the following are recommended for the national government and the PFDA to undertake: Consider the use of underutilized port facilities to process other agricultural products such as vegetables, livestock and poultr y in order to raise the economic viability of regional ports. ]

] Ease the overutilization and enhance the capacity of the Zamboanga port by building additional posthar vest facilities. Another option is to transfer movable post-har vest facilities from underutilized por ts to Zamboanga if doing so will not negatively affect operations.

On building new regional fishing ports In general, it is argued that new regional ports may be built by the national government as long as they are

Policy Notes

based on technical, financial, economic and environmental feasibility conditions and not on political reasons. The following are recommended: Gather reliable data on commercial, aquaculture and total production expected in a region and use these as bases to accurately forecast usage and the estimated size of new ports. ]

0.50 0.67 0.29 0.94 0.31 0.68 0.72 0.56 0.36 0.30 0.40 0.39 0.39 0.57 0.53 0.73

Give weight to the new regional por t’s potential for inter-regional usage which can raise usage rate. ]

Determine if it will be feasible to convert or expand a municipal port into a regional port than build an entirely new port.

Building smaller ports instead of bigger ones may also be more practical in order to reduce errors in estimates of port usage and to allow flexibility in construction. ]

Study ways to improve the capability of the entire commercial fishing fleet and seriously consider the giving of incentives and credit assistance to commercial companies as provided in the Agriculture and Fisheries Modernization Act (AFMA) and the Philippine Fisheries Code. ]

] Strictly emphasize the Environmental Impact Statement System in building regional ports.

Address the problem of over fishing by allowing the construction of new regional ports only in those areas where the problem is not acute and where commercial fishing in EEZ waters and other far-flung areas can be promoted. ]

On improving existing municipal fishing ports Another major concern in fishing port development is to upgrade existing municipal fishing ports so that they can contribute better to the economic development of

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"...The development of fishing ports in the country should lead to lower postharvest losses in fisheries and better utilization of marine fisheries resources."

communities. In par ticular, the following are recommended to the national government in assisting LGUs in municipal port development: ] Check the recurring problem of post-har vest losses by investing more in post-har vest facilities such as ice plants. The AFMA and Fisheries Code have adequate provisions on post-har vest facilities which the government should exert more effort to implement. ] Emphasize the role of municipal governments in improving the environmental management of municipal ports. Wastewater treatment plants and solid waste disposal sites should be put up in order to help prevent pollution and the outbreak of diseases in the ports.

On building new municipal ports The study likewise suggests that the national government should assist poorer LGUs in the construction of new ports. The following are recommended to implement a more effective assistance program: Prioritize the building of new ports in municipalities that have no ports yet. Construct new ports in regions with lower port-to-coastal municipality ratios to reduce the disparity among regions.

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] Strictly apply the Environmental Impact Statement System in the development of new municipal ports.

Conclusion In spite of numerous problems, fishing ports remain an indispensable contributor to rural and national progress. As such, their development should be aggressively pursued and given more attention by the national government. In doing so, however, caution should be applied since an arbitrar y and indiscriminate form of port development can be costly to the entire nation. With careful planning and implementation, the development of fishing ports in the countr y should lead to lower post-harvest losses in fisheries and better utilization of marine fisheries resources. 4

References Israel, D.C. and C.P. Banzon. "Overfishing in the Philippine marine fisheries sector." Research Report Series. Economy and Environment Program for Southeast Asia, 1998.

Schatz, R. "Economic Rent Study of the Philippine Fisheries Sector."

Final report, 1991.

Silvestre, G., R. Regalado and D. Pauly. "Status of Philippine Demersal Stocks-inferences from Underutilized Catch Rate Data." In D. Pauly et al. (eds.) Resources, Management and Socioeconomic of Philippine Marine Fisheries. Tech. Rep. (Dep. Mar. Fish.) 10, 1986.

Thomas, F. "Advocacy Paper on Increasing Competitiveness in the Philippine Commercial Fisheries Industry." Paper presented at the Shangri-La EDSA Plaza Hotel, Mandaluyong City, 1998.

]

] Determine the level of municipal and total fisheries production and prioritize areas where there are higher levels of production.

Give priority to localities where there are greater potential for inter-municipality usage. ]

For further information, please contact The Research Information Staff Philippine Institute for Development Studies NEDA sa Makati Building, 106 Amorsolo Street Legaspi Village, Makati City Telephone Nos: 8924059 and 8935705; Fax Nos: 8939589 and 8161091 E-mail: disrael@pidsnet.pids.gov.ph, jliguton@pidsnet.pids.gov.ph The Policy Notes series is available online at http://www.pids.gov.ph

Policy Notes

6

July 1999

List of Policy Notes for 1999 99-01

Inter-LGU Cooperation: The Key to the Issues of a Devolved Health Care System Orville Solon

99-04

Rethinking Government's Role in Urban Infrastructure Gilberto M. Llanto

99-02

Closing the Urban Fiscal Gap: Some Considerations Rosario G. Manasan

99-05

99-03

Loan Guarantee Programs for Small-Scale Borrowers: Are They Working?

Gilberto M. Llanto and Aniceto C. Orbeta, Jr.

Sustainable Development and the Philippine Fisheries Code: A Critique Danilo C. Israel and Ruchel Marie Grace R. Roque

99-06

Credit Programs for the Poor: A Tale of Two Cities Mario B. Lamberte, Magdalena S. Casuga and Doreen Carla E. Erfe

List of Discussion Papers for 1999* 99-01

99-02

Toward the Sustainable Development of the Fisheries Sector: An Analysis of the Philippine Fisheries Code and Agriculture and Fisheries Modernization Act Danilo C. Israel and Ruchel Marie Grace R. Roque Determination of Basic Household Water Requirements (Under revision) Arlene B. Inocencio, Jose E. Padilla and Esmyra P. Javier

99-03

Governance and Urban Development: Case Study of Metro Manila Rosario G. Manasan and Ruben G. Mercado

99-04

Indicators of Good Governance: Developing an Index of Governance Quality at the LGU Level Rosario G. Manasan et al.

99-05

Scenarios for Economic Recovery: The Philippines Mario B. Lamberte and Josef T. Yap

99-06

Total Factor Productivity: Estimates for the Philippine Economy Caesar B. Cororaton and Ma. Teresa D. Caparas

99-07

Recent TFP Policy Agenda for the Philippines Caesar B. Cororaton and Socorro Zingapan

99-08

The Philippine Tariff Structure: An Analysis of Changes, Effects and Impacts Caesar B. Cororaton

99-09

Impacts of the Southeast Asian Financial Crisis on the Philippine Manufacturing Sector (Revised) Mario B. Lamberte et al.

99-10

Currency Crisis: Where Do We Go from Here?

Mario B. Lamberte

99-11

Policy Adjustments to Exploit Opportunities in WTO, APEC and AFTA: Tradable Goods Sector Myrna S. Austria

99-12

Trade, Competitiveness and Finance in the Philippine Manufacturing Sector, 1980-1995 Josef T. Yap

99-13

Regional Economic Growth and Convergence in the Philippines: 1975-1997 Rosario G. Manasan and Ruben G. Mercado

99-14

Social Impact of the Regional Financial Crisis in the Philippines Celia M. Reyes, Rosario G. Manasan, Aniceto C. Orbeta, Jr. and Generoso G. de Guzman

99-15

Study on Public and Private Expenditures on Research and Development: An Integrative Report Caesar B. Cororaton

99-16

R&D Gaps in the Philippines Caesar B. Cororaton

99-17

Research and Development in the Philippine Fisheries Sector Danilo C. Israel

99-18

Agricultural Technology Acquisition, Development and Dissemination in the Private Sector Saturnina C. Halos

99-19

Private Sector Activities on Research and Development Tristan H. Macapanpan

———————— * The Discussion Papers constitute studies that are preliminary and subject to further revisions. They are unedited and unreviewed and not for quotation without permission from the author(s) and the Institute. These are available online at http://www.pids.gov.ph.

Policy Notes