Europe-PH News

During the first Asia Logistics Summit at the Fairmont Hotel in Makati City, Lope Doromal, Jr., chief technology officer of IBM Philippines, Inc., raised the possible use of cloud system for the rapid implementation of such a database.

Christian P. Gonzalez, vice-president and Asia region head of International Container Terminal Services, Inc. (ICTSI), said players must “consider” the use of data infrastructure in logistics.

“The problem is people do not have the right information that will enable them to maximize the use of assets,” Mr. Gonzalez said.

“End users, such as truck drivers, must be allowed to access data constantly and get information directly. This could cut red tape, which is driven by lack of information -- no one knows when are trucks arriving or leaving.”

The data needed include the schedule of trucks and ships leaving and entering the port, as well as real-time information on the location of cargoes.

Mr. Doromal noted, however, that willingness to share information is “the challenge that blocks” projects like these.

“It is difficult to get the government to share information to the public, while the private sector has a mind-set that information is a corporate asset, and therefore we should not share this with our competitors,” Mr. Doromal said.

He pointed out, however, that companies can “derive bigger value” by sharing these information to their peers and communities, instead of keeping them to themselves.

Michael K. Raeuber, global chief executive officer of Royal Cargo Combined Logistics, Inc., said the government should initiate the creation of the database, and have “the political will to make the necessary changes.”

“The challenge is in the complexity of an interlocking service provider, with everybody having their own requirements,” said Mr. Raeuber, who is also the president of the European Chamber of Commerce of the Philippines.

Edward Eun-Gap Chang, president and chief executive officer of Asia Pacific Express Corp., said the government and the private sector should be held responsible for the port congestion because both “did not have a long-term economic plan 20 or 30 years ago.”

“If this port congestion continues next year, investors will leave the country. We need to solve this if we want more foreign direct investment,” said Mr. Chang, who is also president of the Korean Chamber of Commerce Philippines.

He also pointed out that logistic costs in the Philippines are “one of the highest among Asean countries.”

“Without government support, without government subsidy for infrastructure, whatever the private sector does is for naught,” ICTSI’s Mr. Gonzalez said.

He added that without coordination, these investments would also be wasted.

“We need coordination and information out there, we need to eliminate ignorance. This is the long term solution to port congestion,” he said.

In an Oct. 2 Malacañang briefing, Cabinet Secretary Jose Rene D. Almendras said yard utilization at Manila South Harbor, operated by Asian Terminals, Inc., was at 85% as of Oct.1, down from 93.28% when the truck ban was lifted in September; while it was at 95.5% from 102% for the ICTSI’s Manila International Container Terminal. 

Source: Business World