Business groups are calling for the lifting of the Metropolitan Manila Development Authority’s (MMDA) truck ban, among other drastic measures to maximize trucks’ productivity and further alleviate congestion at Manila ports during the peak shipping season.
“It’s critical in the next eight weeks because we are expecting a large volume of cargo, so the government should act as quickly as possible,” Michael Raueber, president of the European Chamber of Commerce of the Philippines (ECCP), said during a briefing on October 15.
In a text message to PortCalls, ECCP vice president Henry Schumacher added, “The backlog is big inside and outside the Philippines and the peak season towards Xmas (Christmas) is about to hit the port.”
“We strongly believe that MMDA should also lift its truck ban, or at least remove the hour MMDA added before which reduced truck efficiency by almost 50%,” Schumacher added.
The group is also proposing that the Land Transportation Franchising and Regulatory Board (LTFRB) “spare trucks for hire from the usual franchise requirements.”
Besides the ECCP, other trade associations urging strong government measures against port congestion include the Canadian Chamber of Commerce of the Philippines, American Chamber of Commerce of the Philippines, Japanese Chamber of Commerce and Industry of the Philippines, and Semiconductor and Electronics Industries in the Philippines, Inc.
Without taking further steps to ease restrictions on the productivity of trucks, “we may go back to the scenario a couple of weeks ago where we really had a severe delay of the delivery of goods,” Raeuber said.
He was referring to the new government rule that increased the fines on unlicensed trucks to P200,000, which, when implemented in June, led to a reduction in truck movements. LTFRB later issued a moratorium on the order, and provided a provisional authority to allow trucks to operate pending their application for a franchise.
LTFRB, on October 14, extended the application for certificate of public convenience and provisional authority to operate of trucks for hire with port-related services until January 15, 2015.
Schumacher said that while the extension of application was a welcome development, the group remains of the opinion “that trucks for hire are not public utilities and should not be franchised.”
“We have submitted our position paper to government and suggested to Secretary Almendras to obtain DOJ (Department of Justice) opinion on this,” Schumacher added, referring to Cabinet Secretary Jose Rene Almendras, who chairs the Cabinet Cluster on Port Congestion.
The group also proposed year-round gate passes for trucks going in and coming out of Manila ports, with Schumacher insisting that “gate passes should not expire after BOC (Bureau of Customs) clearance.”
“The present daily renewal is delaying the process of withdrawing containers by days and adding costs for importers,” he added.
Other government actions proposed by the private sector:
- Restrict local government units’ authority over roads that cut across cities in Metro Manila.
- Open 24/7 express lanes for delivery trucks headed to the ports.
- Reactivate the Shippers’ Council to review and possibly reduce demurrage and detention charges for containers.
- Restrain shuffling containers from the ports of Manila to the ports of Subic and Batangas.
- Expedite upgrade of equipment in the secondary ports of Batangas and Subic.
- Create a direct link from the proposed North Luzon Expressway-South Luzon Expressway connector road to Manila’s ports.
Raueber, noting that the port congestion could hurt the country’s image and investment climate, said, “We have to show that we can manage a crisis. If we are giving the world an impression that we can manage it, the impact will not be so much.”
Port operators, weeks after the Manila truck ban was lifted on September 13, have reported significant improvement in truck movements.
Meanwhile, Schumacher said their proposals have been submitted to Almendras and will be presented to Senator Paolo Benigno Aquino IV during the Senate hearing on port congestion on October 16. – Roumina Pablo
Image courtesy of Idea Go at FreeDigitalPhotos.net
