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Wednesday, August 13, 2014

Senate probes Manila Port Congestion: we need more teamwork, right priorities, and intelligence - Ordonez

It is more fun criticizing

Rizal Philippines   |  August 13, 2014



From Solar News

The Senate Committee on Ways and Means,  and Economic Affairs headed by Sen Bam Aquinotoday conducted an inquiry into the Port Congestion congestion.  The congestion in the Port has been alleged to be caused by the following:  the truck ban in Manila imposed by Pres/Mayor Erap, LTFRB crackdown on colorum trucks.

Those who attended this afternoon's hearing were DTI Secretary Gregory Domingo,  Philippine Chamber of Industry Chair Jess Arranza, Former DTI Usec Ernie Ordonez, Manila Vice Mayor Isko Moreno, LTFRB chair Winston Ginez, ICTSI REgional Head Gonzalez customs and PPA representatives.




The congestion arose from container vans being left on the street because of the inability of truckers to haul the container (because of the ongoing truck ban, the MMDA and LFTRB going after colorum trucks).  The congestion has resulted in some concrete increases:

1.  cost of trucking from P8t to P20t+
2.  demurrage fees
3.  storage fees

Some shippers abroad has containers not being loaded and congestion has gone to the shippers yard.

The costs are just passed on to the end buyers, hence jacking prices of goods, especially agricultural products

Some solutions recommendations:

1.  ICTSI regional head for Asia pointed out that the port infrastructure in MM costs over P120 billion and one of the best in world.  The infrastructure and the logistics and systems though have to be improved.

   Maybe the trucks could operate at night, when there is no ban, and even Monday morning when there is no activity.  Why is there no activity on Monday morning?  Can custom process shipment on the "off times" to help decongest

    1.  VM Isko Moreno suggested this and even encourages night time operations

    2.  Someone pointed out why there is no activity on Monday morning because banks opens at 9 am.  Fees
have to be paid and movement only takes place on Monday afternoon

2.  Someone suggested the Port of Batangas use instead. this will serve much of Calabarzon and not Metro Manila where the bulk of users of imports still are.  (PPA and BOC Manila would not surely want to lose business to Batangas will they.)

Not all ships pass by Batangas. Only those coming from Eastern seaboard will find it convenient to pass to Batangas

3.  Former DTI Usec Ernie Ordonez suggests 3 things:  

    1,  The Office office of the Pres must form a team to address this issue;  except for today's hearing no one has talked about this

   2.  Establish the right priorities.  As of now solve  the congestion problem then arrest the colorum vehicles;

   3,  Establish strategic intelligence (which suggests that agencies work on their own without regard to the more pressing problems)

4.  Other infrastructures:

     1.  Train lines

     2.  Ramp to the MVP interconnect between  NLEX and SLEX.

In the hearing we saw many experienced and intelligent officials, some very concerned private and public officials; others were doing their duty, have limited perspective, and newbies.  And some grandstanding ones.  (Dapat si Mayor Erap magreconsider sa truck ban muna, kasi pamapahirap ito sa masang mahal niya: truck drivers port workers and millions of consumers who suffer from spiralling prices

We thank Sen Bam Aquino for calling for this inquiry and taking the first concrete steps to bang the heads of this people to cooperate and work together for the common good.