Europe-PH News

Industry Groups are apprehensive over an order instructing importers and brokers to withdraw their overstaying Customs-cleared containers in Manila ports by Sept. 8.

Starting Sept. 8, containers left unclaimed will be immediately transferred to Subic and Batangas ports or any other location identified by the Cabinet Cluster on Port Congestion, the Philippine Ports Authority (PPA) said on Saturday.

All costs associated with the transfer of the containers will be shouldered solely by the cargo owner, the state-led agency said.

“The measure is unrealistic,” Henry J. Schumacher, executive director of the European Chamber of Commerce of the Philippines (ECCP), said in a text message. “The issue is access to the ports and availability of trucks. It is unlikely that the congestion can really be solved before the end of the year if not all stakeholders work closely together.”

He added: “One of the issues to be addressed is the franchise for trucks-for-hire. This needs to be abolished now.”

Sought for comment, John D. Forbes, senior adviser of the American Chamber of the Philippines (AmCham), said via text message on Saturday: “Manila roads are too small for cars and big trucks. The ports of Batangas and Subic should be expanded. Until then, we will suffer congestion as exports and imports increase with high GDP (gross domestic product) growth.”

For his part, PPA General Manager Juan C. Sta. Ana explained that the order is not meant “to punish our importers but only to clear as much space as possible in preparation for the influx of cargoes due to the peak season and reduce pressure on inflation.”

The order “will serve as notice to all importers and brokers to withdraw their Customs-cleared cargoes from the ports, otherwise, we will immediately transfer these cargoes to any of the said destinations at their own expense,” Mr. Sta. Ana added.

Customs-cleared containers are boxes whose proper duties and taxes have already been paid to the Bureau of Customs. However, their cargo-handling fees have yet to be settled.

According to PPA, yard utilization at the Manila International Container Terminal and Manila South Harbor has jumped back to an average of 90% last Friday from 87% last Monday, which is still beyond the ideal 80%, mainly due to the long weekend.

Winston M. Ginez, chairman of the Land Transportation Franchising and Regulatory Board (LTFRB), said via phone interview on Saturday that for port users, about 2,000 trucks-for-hire have not applied for a provisional authority yet.

LTFRB last Aug. 16 announced that trucks-for-hire without franchise will be seized and fined P200,000.

Last week, Mr. Sta. Ana told BusinessWorld that his agency is urging the city government of Manila to approve the additional eight trade lanes in preparation for the peak shipping season this week.

PPA expects import shipments in Manila ports to run up to 7,000 twenty-foot-equivalent-units (TEUs) this week from a daily average of 5,000 TEUs.

The trade lanes at present are Roxas Boulevard-Cavite and R-10 in Tondo-North Luzon Expressway.

Asked for updates, Mr. Sta. Ana replied via text on Saturday: “Routes will be finalized this week.”

A report by Citi Research, the research arm of Citigroup Global Markets, Inc., early August showed that “annual economic losses [from port congestion] could range between P61.2 billion and P320 billion or as much as 2.9% of gross domestic product.”

For its part, Malacañang said that the situation is “starting to normalize” as the government continues to find permanent solution to address congestion problems in the country’s major ports.

“We continue to address that port congestion concern particularly on the aspect of finding a permanent solution to decongest the ports of Manila. Right now, we’re looking at providing more routes for trucks carrying goods from the Port of Manila,” said Communications Secretary Herminio B. Coloma, Jr. in a radio interview aired over state-run Radyo ng Bayan Sunday.

Logistical bottlenecks caused by the congested ports have disrupted the flow of goods in and out of the country. This has pushed industry leaders and business groups to call for immediate action from the government and a timeline for resolving port congestion, considering the current backlog and the coming holiday season when cargo volumes are expected to increase.

The government has earlier implemented measures to ease the congestion at the ports, such as opening its customs and port offices during weekends; extending foreign shipping lines’ operating hours to accommodate other concerns of the cargo owners; prioritizing of the release of shipments with food items and other perishables; leasing a 15-hectare lot at the Philippine International Convention Center to serve as a temporary holding area for empty containers; and 90% discount on direct callers of the Batangas Port.

Source: Business World, 01 September 2014