Manila as a distributing center

Title

Creator

Menzi, Hans M.

Language

English

Source

The American Chamber of Commerce Journal Volume XXIV (Issue No. 8) August 1948

Year

1948

Rights

In Copyright - Educational Use Permitted

Fulltext

had been an important producer, devastation equalled that in the Baguio area. In the Paracale district, San Mauricio and United Paracale mines proved to be more or less intact, but many obstacles thwarted work resumption. The smelting plant was a complete wreck. One of the Coco Grove dredges had sunk, a total loss. The other, badly damaged, may yet be reconditioned. Inability to obtain supplies and equipment, high labor costs, financing problems, and other difficulties, have up to the present retarded rehabilitation. However, com plete plans are being made and operations will be resumed as soon as conditions warrant. Crews have been at work in the Paracale district since shortly after liberation. As soon as war-damage claims are acted upon, minipg activ ities will go forward with energy. The sawmill of the Marsman Development Company at Daet, repaired and functioning, now turns out a million board feet a month. In the near future, logs and lumber from this mill will be on their way into the export market. To retain services of skilled mining personnel, Mr. Marsman revived his construction and contracting organ ization. With war surplus equipment, work began on gov ernment and private contracts. Marscon, Inc., as the company is known, has completed the contract for widen ing the dam for the National Power Company at Caliraya. It will shortly complete the highway project for the Bureau of Public Works and the U.S. Public Roads Administra tion at Bifian, Laguna, and has in progress several irriga tion works in Nueva Ecija. Recently, it was awarded the earth-moving and grading job for the new Manila Polo Club. One of its construction contracts well under way is a building to house the Lincoln Agency of the Manila Trading and Supply Company, Port Area. Marscon engineers are also assisting in extensive harbor facility improvements at Hongkong for the Kowloon Wharf and Dock Company and the Taikoo Dock Company. They have also given supervision to extensive operations at Okinawa, the original contract for which went to Mars man Company of California, the American corporation, Marscon, Inc., is equipped for all kinds of heavy earth moving and road-paving undertakings as well as building construction. Special attention has been given in the last several years to the activities of the Marsman Trading Corpora tion, which has now been merged with the parent company. Organized in the years of mining expansion to care for the mines’ requirements, it grew to extensive proportions with branches in leading Philippine cities. In 1941 it acquired the inventories and certain representations of the Pacific Commercial Company’s food-products and drug depart ments. Since the war, merchandising efforts have been intensified with expanding business in groceries, drugs, building materials, paints, office equipment, and machin ery. Buying offices are maintained in New York, San Francisco, and Los Angeles, and branch offices in Cebu, Iloilo, and Davao serve these important trade areas. Prominent in the retail field, the American Hardware and Plumbing company, corner of T. Pinpin and M. del Banco Nacional, is another Marsman-owned establish ment. Here also is the sales and display room of the office equipment division. One factor which has contributed to the company’s prestige has been its policy on pre-war commitments. Arrangements were early made to pay off these obligations as proof of a determination to rebuild on a sound basis. Stat ing his case frankly to financial backers, Mr. Marsman proposed a plan of payment out of current profits. He volunteered monthly remittances which in a few years have substantially reduced the original total. In a statement recently to the company’s board of directors, Mr. Marsman said: “You will realize that the center of the company’s activities lies in the Philippines. As world conditions become normal, trade and in dustry will regain impetus, and our Company looks forward with con fidence in the role that it expects to play commercially and industrially. Favorable results already attained point to a prosperous future.” Manila as a Distribution Center By Hans M. Menzi President, Menzi S’ Company CAN Manila be made the main source of supply and distribution for American products for the Far East and neighboring countries? The answer is yes, pro vided that— a. Export controls are relaxed or lifted, and b. Manila be made in part a free zone. The Manila Bay, comprising an area of 770 square miles, is one of the finest ocean bays in the Orient and provides a fine anchorage haven. The Manila South Harbor comprises an area of ap proximately two square miles and is partly enclosed by a breakwater. Continuous dredging is required to provide for deep water anchorage and a channel to the piers. Prior to the last war, there were four piers, namely, Piers 1, 3, 5, and 7. Pier 1, with a length of 550 feet and a width of 60 feet, was and is today owned and operated by the United States Government and used chiefly for the berthing of United States Army and Navy vessels. Piers 3, 5, and 7 were and are owned and operated by the Phil’Address delivered at the .First Regional Trade Conference, Manila, July 8. ippine Government and have the following dimensions: Pier 3............. Length Width 680 feet 120 feet Pier 5................................. ............................... Length Width 730 feet 160 feet Pier 7............. Length 1,400 feet Width 240 feet All these three piers were piped for fresh water and bunke * fuel oil, and were equipped with complete and modern mechanical cargo-handling equipment. During the liberation all piers and the harbor as a whole suffered heavy damage. Estimated damage on docks and wharves alone (national and not provincial, municipal, or chartered city) is P9,392,350 against a value of P15,710,625. These figures represent .pre-war values. The amount of P36,000,000 of United States fehabilitation funds has been allocated for the repair and recon struction of ports and harbors. This amount, being in sufficient to provide for all national ports, the Philippine Port Commission has decided to rehabilitate only the Ports 284 of Manila, Davao, Cebu, Iloilo, Tabaco, Legaspi, J. Panganiban, Zamboanga, Cagayan, Jolo, Iligan, and Pulupandan. Presently work is in progress in Manila, and one of the biggest projects is the reconstruction of Pier 5, now Pier 9. This pier when finished is to be the principal pier in the Manila area. The project will cost approximately P8,200,000. Bids have already been called and contract awarded. With the completion of Pier 9, the other piers will be gradually fully rehabilitated. After liberation the United States Government built temporary piers between Piers 1, 3, 5, and 7 so that today we have a total of seven piers, or numbers 1, 3, 5, 7, 9, 11, tand 13; 5, 9, and 13 being formerly Piers 3, 5, and 7. The additional piers were built to meet the necessary discharge facilities required for army, navy, government, and civilian cargo. It will be remembered that in 1946 and during the early part of 1947, ships were often delayed in Manila for many days because of the heavy arrivals and the slow dispatch of civilian merchandise from the piers, which was caused in turn by lack of warehouse space. The situation gradually improved in the tempo of construction of ware houses, the availability of lighterage facilities, and the gradual release of Army and Navy controlled piers for civilian use. While the post-war constructed piers remain open, Piers 3, 5, and 7 have coverage, although not to pier-cargo capacity, as in pre-war days. The situation is gradually being improved. The maximum handling tonnage capacity of the Port of Manila today is 5,000 tons per day, in comparison to 3,000 tons per day in pre-war days. t The statistics covering the number and tonnage of vessels engaged in foreign trade entering Philippine ports are as follows: Number Tonnage of Vessels of Vessels 500 1,936,322 730 2,755,519 25 120,348 218 908,234 1,037 4,298,133 315 1,285,376 1939 .............................................. 1940 ............................................ 1945 ............................................ 1946 .............................................. 1947 ....................................... 1948 Jan.-Feb...................... The statistics furthermore reveal that American ships led all other nationalities in number and tonnage of vessels engaged in foreign trade entering the Port of Manila. Pre war, the British led, followed by Japan, the United States, Norway, Netherlands, and Germany, in the order named. A few years before the war the Manila North Harbor was developed, and this also suffered heavy damage and is presently being primarily used by inter-island vessels. Statistics covering the number and registered net ton nage of vessels engaged in domestic shipping at the Port of Manila show the following figures: Entered Cleared Number Net Tonnage Number Net Tonnage 1945 ............. 94 28,459 126 28,979 1946 ............. 976 237,848 986 247,837 1947 ............. 4,019 — 4,163 — Bonded warehouse facilities are partially provided for with 15 bonded warehouses, partly government-owned and partly owned by private parties. Customs regulations require that all merchandise remaining on the piers 3 days after a vessel has completed discharge, be transferred to a bonded warehouse. Charges were P0.10 per ton pre-war and are Pl per ton today. Facilities for receiving, handling, storing, and reship ping cargo in transit to foreign ports were, prior to the war, excellent. Transit-cargo was stored upon the piers, free of storage charges for 30 days, and placed on on-carry ing vessels at reasonable rates. There are very limited facilities for transit-cargo today and the free storage time limit has been reduced to 15 days. The values of foreign merchandise re-exported from Manila in 1945, 1946, and 1947 were as follows: 1945 ......................................................... P 872,985 1946 ......................................................... 22,317,662 1947 ......................................................... 37,986,748 A good portion of these amounts represents the re-export of surplus war material and supplies. Lighterage, whether open, covered, or tankage, is available for all types of cargo. Lighterage capacity be fore the war was 20,000 tons and is now 16,000 tons. Light erage rates are today P6 per ton weight or measurement, or a minimum of P200 per day in comparison to P3 per ton before the war. Lighterage facilities are privately owned. Stevedoring is done by two private firms which render excellent service and bill at fixed rates. For example, just to name a few: Cement........................’................ Pl . 62 per ton Copra in bulk........................... 1.90 per ton Copra in bags....................... 2 .00 per ton Hemp in bales............................. .23 per bale Sugar in sacks............................. 1.14 per ton Regular sailing schedules are maintained by lines operating from Manila to practically all Oriental ports. Among the many problems that faced our infantRepublic, the most serious was and continues to be the economic reconstruction and rehabilitation. The imme diate- restoration of trade relations and trade economy was an absolute necessity. Under the able and wise statesmanship of the late President Manuel Acuna Roxas, the Philippine Trade Act of 1946 was signed and the so-called parity or equal rights amendment to the Constitution was referred to the electorate for decision in a national plebiscite, and a tremendous majority of the people voted in support of this amendment. The Trade Act, among other things, pegs our peso to the United States dollar which auto matically gives currency stability. With our once fully rehabilitated harbor and port facilities, warehouse facilities, shipping facilities, the estab lished security, our stable currency, our sound and stable government, and a friendly people, Americans and others could find no better a centralized distributing point than Manila. “TT is worth noting that the propaganda of 'imperialistic grabbing’ spread against us is always couched in the future tense. It is what we allegedly are going to do for which we are smeared, not what we have done. From neither the first nor the second world war did we take anything from some other people for our own enrichments.”—Bernard M. Baruch. 285

pages

284-285

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