Sign up

The socio-economic impact of the operation of the port of Batangas on the development of the coastal municipalities of the Batangas Bay region.
Abstract:
The study was on the collateral effects of Batangas port development project on the development of the coastal municipalities of the Batangas Bay Area considering the population, industrial operations, socioeconomic aspects, livelihood, entrepreneurial and employment opportunities. Research design was descriptive with a questionnaire as data gathering instrument. Respondents of the study were four hundred (400) coastal residents, forty five (45) port personnel, twenty five (25) local government officials and thirty (30) port clientele. Statistical tools used were frequency distribution, percentage, weighted mean, analysis of variance (ANOVA) and Scheffe's test. Findings revealed port operations had very high impact to industrial operations, local government income, and health benefits to port employees. High impact was noted on enhancement of business climate, increased number of industries in the area and encouragement on participation of residents on small scale entrepreneurial activities. Also of high impact of port operation was the provision of competitive wage jobs to the residents. Conclusively, the Batangas Bay Region coastal municipalities exhibit increased population growth due to the influx of industrial, agricultural and other establishments which provided income to residents and the community. The Port of Batangas operation has moderate impact to population and high impact to employment opportunities, industries operating in the area and socio-economic status and lives of the residents. Generally, the four sectors of respondents were of concurrence that port operation was of high impact to the socio-economic life of residents.

Keywords: collateral effects, port operations, impact, industrial operations, socio-economic aspects, livelihood, entrepreneurial and employment opportunities

Subject:
Social classes (Analysis)
Entrepreneurship (Methods)
Author:
Ditan, Arnold N.
Pub Date:
01/01/2010
Publication:
Name: European Journal of Management Publisher: International Academy of Business and Economics Audience: Academic Format: Magazine/Journal Subject: Business, international Copyright: COPYRIGHT 2010 International Academy of Business and Economics ISSN: 1555-4015
Issue:
Date: Jan, 2010 Source Volume: 10 Source Issue: 1
Geographic:
Geographic Scope: Philippines Geographic Name: Batangas, Philippines Geographic Code: 9PHIL Philippines
Accession Number:
237448660
Full Text:
I. INTRODUCTION

Economic progress in Batangas Province continues to accelerate due to the remarkable influx of industrialization brought about by positive economic climate and strategic location which are stimulating factors of development. Batangas had an economic leap in 2000 with the boom of industrial locators which have found place in the province.

The CALABARZON (Cavite, Laguna, Batangas, Rizal and Quezon) project has been instrumental in bringing economic movement to Batangas with activities on the agricultural, livestock, fishery, manufacturing, commerce, mining, tourism and other services, infrastructure sectors as water, transportation, telecommunication, energy and utilities and social sectors as education, health services and livelihood development and others. It has targeted the major trading and shipping routes of Pacific Rim. The Batangas Bay's strategic location provides direct and easy way to push through with the planned inter-island and foreign trade via the operation of the Port of Batangas. Thus, port planning covered development, control and operation of the Batangas port. In 1992, the initial development and operation of the Port of Batangas became the backbone of the CALABARZON industrial area. The working plan of the Batangas Port was drawn based on its main role to promote the development of Mindoro island, in order to exploit the high development potential of the direct hinterland of the port and to support the social and economic activities of the growing Metro Manila area.

In this regard, the researcher conducted this study to assess the socio-economic impact of the operation of the Port of Batangas which started in 1995 on the development of the coastal municipalities of the Batangas Bay Area. The study specifically aims to achieve the following objectives : to identify the socioeconomic impact of the operation of the Port of Batangas to the development of the coastal municipalities of the Bay region in terms of population, industries, socio-economic aspects as income, education, health care facilities and employment opportunities; to compare the responses of the four sectors of respondents (coastal residents, port personnel, local government officials and port clientele) on the impact of the operation of the Port of Batangas.

2. LITERATURE REVIEW

The Batangas Bay Region is located in the southern part of the province. It covers the Batangas Bay itself and includes areas whose catchments drain into the Bay as shown in Figure 1. Coastal municipalities of the Batangas Bay include the towns of Mabini, Bauan, San Pascual and the City of Batangas.

[FIGURE 1 OMITTED]

Some of these coastal barangays in Batangas City, Bauan, San Pascual and Mabini are hosts to the plants and factories of big national and multinational companies. Most of these companies are oil and fuel refineries and have their own private piers. The Port of Batangas is endowed with favorable natural conditions together with a geographical merit which plays a central role in the transportation of goods produced in Batangas and nearby islands. It is located approximately 100 kilometers south of Manila surrounded by land and protected by Mindoro, Maricaban and Verde Island on the South side.(PPA, 1989)

In view of concomitant progress taking place in the realm of exportation, other big organizations have chosen to avail of the facilities of the Port of Batangas. Thus, Fortune Cement Corporation, which exports cement; a new sugar central in addition to one already existing; coconut oil and copra exporters have opened up facilities using the services of the Port of Batangas. Other big business dealing in services have likewise located themselves here. Industries such as Keppel Shipyard, Inc., Atlantic Gulf & Pacific Inc., and the Philippine National Oil Company Marine Corporation are also located here. With the establishment of Philippine Energy Supply Base, foreign and domestic corporations engaged in oil exploration have availed of the facilities under the management of the Philippine National Oil Company at Mabini, Batangas.

The Port of Batangas is owned and operated by the Philippine Ports Authority, a government corporation created under Presidential Decree No. 857 as amended. One of its projects is the Batangas Port Development Project located at Batangas City, Province of Batangas. The port caters to the needs of the CALABARZON and neighboring island provinces especially the island of Region IV and international vessels to complement the Port of Manila the capacity of which is nearing saturation. Based on statistics, more than 30% of the cargos passing through the Port of Manila come from CALABARZON. This traffic when diverted to Batangas would surely help reduce traffic congestion in the metropolis. The Batangas Port Development Project is a multibillion-peso project and is divided into four (4) phases with a total aggregate area of more than 500 hectares and a back-up area of about 250 hectares. The Batangas Port Expansion Project will be the link between the province and its hinter island provinces to facilitate trade transaction and to meet economic needs of the area. At the same time, the project will add dynamism to business and industrial activities along Batangas Bay Area and other commercial and industrial zones in the province.

Studies were reviewed which were similar in focus to this study. Lubis (2000) made a study on the impact of local and foreign investment in Batangas to enrolment in business courses and to the employability of the business graduates of the Lyceum of Batangas. His study likewise determined the trends of local and foreign investments in the province. A research study on the Batangas Port Development Project and its effects on the lives of the Batanguenos by Mendoza (2003) covered 126 residents from three nearby Barangays of Cuta, Sta. Clara and Wawa. It aimed to consider the economic and socio-political contribution of the port projects as perceived by the residents and the efforts done by the Batangas City local government to increase the investors in Batangas. The study revealed that the Batangas Port Development Project would increase port capacity in providing efficient cargo handling system and would cater service to the province's growing export oriented industries and factories. The businesses/industries integrated with the Batangas Port Development Project were conducted by Macaraig (2004). These entities rendered ancillary services which include among others, ship chandling services, watering, bunkering, transport and hauling, operating office space, tug assistance, customs brokerage and vessel repair and mooring and canteen services. Other ancillary services were janitorial, tank cleaning and etc. Porio (2000, Online) stated that the use of Batangas Port instead of the Manila port in exporting some of the products from the Southern Tagalog region improved efficiency in distribution as the traffic congestion in the Manila capital region continues to deteriorate. The Global Environmental Facility/ United Nations Development Program/ International Maritime Organization (GEF/UNDP/IMO) study presented a more quantitative measure or assessment of the impact of the Batangas Port Development Project on the development of the Southern Tagalog Region. The study asserted that because of vigorous agricultural, commercial and industrial activities following port development, gross regional product was expected to rise with the operation of the modern port.

3. METHOD

Research design was descriptive with a questionnaire as data gathering instrument. Respondents of the study were four hundred (400) coastal residents, forty five (45) port personnel, twenty five (25) local government officials and thirty (30) port clientele. Statistical tools used were frequency distribution, percentage, weighted mean, analysis of variance (ANOVA) and Scheffe's test.

4. RESULTS AND DISCUSSION

1. Socio-Economic Impact of the Operation of the Port of Batangas

Population. Of main moderate impact of the operation of the port to the population in coastal municipalities were decrease in number of residents, highest mean of 3.55 ,relocation of residents, mean of 3.49 and increase of number of transients, mean of 3.23. Change of local policies, rules and regulations caused of low impact to the population with lowest mean of 1.93.

Industries. Of highest impact was re-investments in the local business by OFWs with highest mean of 3.73. Enhancement of business climate, mean of 3.69 and increased number of industries and companies operating in the region with 3.54 mean were of high impact while the area being the center of trade in the region with mean of 3.31 had moderate impact to development of coastal municipalities in the Bay area.

Socio-economic aspect. With the highest mean value of 3.88 the establishment of the Port of Batangas had high impact on the upliftment of the living conditions of the residents while the rapid industrialization in the community with lowest mean of 3.42 had a moderate impact to the socio-economic lives of the residents.

Income. With the highest mean value of 4.53 the port operation had a very high impact as social services such as medical, dental, family planning were given a part of the municipality fund while with lowest mean of 4.01 the port operation had a moderate impact as the municipality provided micro financing capital to residents to start a small scale business.

Education. Port operation with highest mean of 4.51 had a very high impact as local government provided training in livelihood for occupational work to displaced residents while port operation had least impact on that it led to the increase of schools of all levels.

Health care facilities. Port operation with highest mean of 4.54 had a very high impact on that industries provided free hospitalizations to workers in accredited hospitals while port operation with lowest mean of 3.23 had moderate impact when the local government's adequacy on medicine for immunization, maternity and emergency cases.

Employment opportunities. The establishment of the port with highest mean of 3.73 had a high impact to the varied employment opportunities for the residents while the provision of competitive wage jobs with the lowest mean of 3.39 had lowest impact to the residents.

2. Comparison of Responses on the Impact of Port Operations

The computed F-value of 0.181453 signified that there were no significant differences in the assessments of the four sectors of respondents on the impact of the port operation in terms of population, industries, socio-economic aspects and employment opportunities. The null hypothesis was accepted. There were also no significant differences in the assessments of the four sectors of respondents on the impact of port operation as evidenced in F-value of 0.56562. The null hypothesis was accepted.

4.1 CONCLUSIONS

Based from the findings, the following conclusions are drawn:

1. The Port of Batangas operation has moderate impact to population and high impact to employment opportunities, industries operating in the area and socio-economic status and lives of the residents.

2. Generally, the four sectors of respondents are of concurrence that port operation is of high impact to the socio-economic life of residents.

4.2 RECOMMENDATIONS

In view of the findings and conclusions drawn from this study, the following recommendations are made:

For Local Government Officials

* That the area on job generation and job employment for residents be addressed so as to make the port be truly responsive not only to the government but more so to the residents who need livelihood and economic sustenance from the port.

* That the local government officials provide doable measures which will help empower coastal residents through short term entrepreneurial courses and job generation and placements.

For Port Personnel

* That the port systems and procedures be standardized, simplified and strictly implemented to eliminate "red tape".

* That the port personnel strictly implement safety measures in the port area including peace and order, discipline and environmental concerns, among others.

For Shipping and Business Personnel

* That the companies comply with environmental health and safety requirements on waste disposal, leaks and spills, among others.

* That they operate using the quality assurance standards and ethical norms of conduct required.

For Residents of the Bay Area

* That the residents assist in the provision and maintenance of port safety and healthy environment.

* That the residents work in partnership with the government and port authority so as to make the port a viable place for earning a living and an institution every Batangueno may be proud of.

For future researchers

That they conduct parallel studies focused on related issues which are also factors that affect port operation and other variables.

REFERENCES:

Internet: Porio, E., Demolition and Resettlement of Sta. Clara Residents: Policy, Politics and Personalities in the Batangas Port Development Project, July 2002; Japan Bank for International Cooperation., www.jbic.gov.ph

Unpublished

Materials: GEF/UNDP/IMO Regional Programmed for the Prevention and Management of Marine Pollution in the East Asian Seas. "Feasibility of Establishing an Optimal Environmental Management Fund for the Prevention of Marine Pollution in Batangas Bay". Unpublished Research Report, 2000

Lubis, Dante G. "The Impact of Local and Foreign Investments in Batangas to Enrolment in Business Courses and to the Employability of the Business Graduates of the Lyceum of Batangas", Unpublished Research Paper, Lyceum Research Center, Lyceum of Batangas, 2000.

Macaraig, Teodulfo S. "A Survey of Businesses / Industries Integrated with the Batangas Port Development Project", Unpublished Research Paper, Lyceum Research Center, Lyceum of Batangas, 2004.

Mendoza, Filomena M. "The Batangas Port Development Project and Its Effects on the Lives of the Batanguenos", Unpublished Research Paper, Lyceum Research Center, Lyceum of Batangas, 2003.

Others: Philippine Ports Authority (PPA) Manual, 1989 Presidential Decree No. 857

Arnold N. Ditan, Lyceum of the Philippines University-Batangas, Philippines

AUTHOR PROFILE:

Dr. Arnold N. Ditan earned his PhD at Lyceum of the Philippines University, Intramuros, Manila, Philippines in 2007. Currently he is a professor of the College of Business Administration at Lyceum of the Philippines University (LPU), Capitol Site, Batangas City, Philippines and the adviser of the Customs Updates, A Newsletter of the Customs Administration of the same university. He was awarded the Outstanding Recognized Student Organization Adviser in the 2010 LPU Award of Excellence.
Gale Copyright:
Copyright 2010 Gale, Cengage Learning. All rights reserved.