Atlas Shippers Intl opens ‘balikbayan box’ distribution center in Subic

Atlas Shippers International, a Filipino-owned freight forwarding service provider, formally opened its distribution center in Subic with the launching of its maiden shipment.

Atlas used the port of Subic as an entry point for the first time, officially marking the US-based firm’s intent to establish its hub for Northern Luzon operations here.

The first cargo, a 40-foot cargo container that held 420 balikbayan boxes, took off from the Atlas branch in Covina , California.

Atlas president Joel Longares said they decided to locate in Subic to take advantage of tax incentives in this free port, as well as lower tariff rates compared with charges at the Port of Manila, complete support facilities and infrastructures, faster document processing, and strategic location made more accessible by the Subic-Clark-Tarlac Expressway (SCTEx).

Longares said the first container to arrive through the port of Subic will be a test run to determine the viability of this port as the sole discharging point for Luzon.

“We’ll have to determine if we could save money this way,” said Longares, explaining that boxes for delivery to Southern Luzon will be trucked from Subic to their hub in Las Piñas City.

Longares also predicted that other shipping lines and cargo handlers may follow suit.

“It’s only a matter of time before the others locate here,” he said. “Aggressive marketing is just what the Subic free port needs [to attract other shippers].”

He said the company’s cargo load, which comes from branches in Australia, Hong Kong, Italy and the United States, is expected to peak at about 30 containers per month.

With this projection, Atlas will hire about 50 employees for its Subic hub, where they will also install cargo-sorting equipment.

With Subic as its hub of operations, Longares said he expects the company to grow significantly and even expand to service outbound cargoes.

The company’s warehouse in Las Piñas will be maintained for their Southern Luzon operations, he said.

Trade and Industry regional director Blesila Lantayona said they are encouraging local exporters from the region to use Subic to ship their products.

She explained that all cargo containers of Atlas Shippers would be empty after the shipment of balikbayan boxes in Subic and it would be a great opportunity to use Philippine-made export products as “back loads” for cheaper freight charges.

“We are conceptualizing a business plan for Filipino exporters to have a tie-up with Atlas Shippers from them to use those empty cargo containers for outbound shipment of local products abroad,” Lantayona said.

Longares said he is expecting that more Filipino freight forwarding service companies to also use Subic Freeport as its distribution hub.

“The international freight forwarding industry is so big, that’s why I am encouraging them to come and also do business in Subic ,” Longares said.

Meanwhile, Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza noted that the business sector is now taking notice of the advantages of using the port of Subic , which boasts of two container terminals with a combined capacity of 600,000 ten-foot equivalent units.

“This is a small beginning toward greater things to come,” said Arreza, referring to the Atlas decision to use the port of Subic .

He said the SBMA’s efforts to promote Subic Bay as a maritime gateway for Luzon and a prime logistics hub for Southeast Asia is now really paying off.