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
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.
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
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
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
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.
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
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,
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