DOTr logistics plan eyes PH infra upgrade, ASEAN linkages

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Undersecretary for Planning Rommel Gavieta
Undersecretary for Planning Rommel Gavieta
Philippine Transportation Undersecretary for Planning Rommel Gavieta at the recent Supply Chain Management Association of the Philippines annual conference

The Department of Transportation (DOTr) has identified several infrastructure projects and policy plans leading to the creation of a seamless multimodal transport system nationwide that can be integrated with the transport infrastructure of the Association of Southeast Asian Nation (ASEAN) neighbors.

The transport department is currently creating a national transportation plan envisioned to move people and goods faster and more efficiently and then connect these logistics networks seamlessly to those of ASEAN and Asian neighbors, according to DOTr Undersecretary for Planning Rommel Gavieta.

Gavieta, in a presentation at the Supply Chain Management Association of the Philippines 2016 Supply Chain Conference on September 15, said DOTr and the Department of Trade and Industry (DTI) are currently working with ASEAN peers on this integration process, noting that the others’ infrastructure networks have already reached an advanced stage of integration.

DOTr has identified these transportation connectivity projects nationwide that can be connected to other ASEAN neighbors’ systems.

Road and rail networks

In terms of toll road plans, Gavieta said DOTr intends to extend the North Luzon Expressway up to San Fernando, La Union, and to stretch the South Luzon Expressway to Quezon province, and then bring it further to Matnog in Sorsogon.

He said the target is to develop these initiatives in the next six months.

The transport department is also moving to interconnect toll road systems so users only need use one ticket when traversing different toll roads.

Rail systems, not just in Metro Manila, are likewise eyed.

Gavieta said they are discussing with the Japan International Cooperation Agency (JICA) about funding a rail line linking Metro Manila to Malolos, Bulacan, and then further extending it to Clark, Pampanga, using the Philippine National Railways (PNR) line.

For the south, a rail line connecting Metro Manila to Legazpi, Albay is planned for completion within the term of the current administration. DOTr eyes starting the extension from Legazpi to Matnog before the next administration takes over.

A Mindanao line that will connect two roll-on/roll-off (RoRo) port points, the east to west connection from Surigo Island to Cagayan de Oro, is also in the pipeline. The Cagayan de Oro RoRo point will then be connected to the Davao RoRo point with the north and south alignment.

Gavieta said the intention is to interlink these railway systems to those of ASEAN neighbors.

Nautical highways, RoRo routes

DOTr is looking to merge the country’s nautical highways, consolidating the central and west spines while retaining the east spine, which Gavieta said is already “fairly developed.” The central spine is to extend from Bicol to Cagayan de Oro, and the west spine is to be formed from Matnog to Surigao Island, while the east route is to go from Batangas to Mindanao.

The transport department is likewise talking to the United States Agency for International Development to develop the Port of San Fernando in Cebu and add it to the RoRo routes in order to connect the island of Cebu to Mindanao.

The RoRo network in Mindanao will be linked to the Brunei Darussalam-Indonesia-Malaysia-Philippines-East ASEAN Growth Area (BIMP-EAGA) RoRo Network, while the RoRo network in Luzon will be connected to Shenzhen, China.

Airside developments

For the airside, Gavieta said DOTr hopes to bid out soon the operation and maintenance of five airports, which include Davao, Laguindingan, Panglao (Bohol), and Iloilo airports.

He said the department aims to make these air hubs more efficient and more competitive in processing people and processing goods.

Gavieta acknowledged that it is a challenge to realize an ASEAN single airport system, but noted that the region is “still the most interconnected aviation market in the world.”

In order to implement all these infrastructure plans, Gavieta said DOTr is looking at developing the public-private partnership (PPP) system “as a major way of delivering those projects at the shortest possible time.”

To do this, he said the transport department is seeking to remove bottlenecks, such as reducing the period of evaluation proposals. Usually, evaluating project proposals, whether solicited or unsolicited, takes 18 months, something DOTr aims to shorten by half to nine months.

Right-of-way law

In terms of right-of-way (ROW), which is one of the usual problems besetting infrastructure projects, Gavieta said DOTr is already crafting the implementing rules and regulations of the new ROW Law.

The new regulations are expected to facilitate the procurement of a private way. It calls for basing the acquisition of private property on market value instead of zonal valuation. Using zonal valuation is often considered as the reason for the many temporary restraining orders filed against infrastructure projects.

But Gavieta acknowledged that using the market value as basis presents a problem, as it can sometimes hike project costs by 300%. Such is the case of the Cebu bus rapid transit project, whose original price of P1 billion jumped to P3 billion due to ROW issues.

Using market value is “easier as far as negotiating but it will be a little more difficult for us to get the budget from Congress because we need to justify the fair market value,” Gavieta said.

Green logistics network

Another policy action plan is to develop climate change-resilient and green transport and logistics infrastructure.

For one, DOTr is mulling a rail system that is powered by electricity. The PNR’s old narrow gauge system will be shifted to a standard gauge system that will use electricity to power its operations.

DOTr will also be pursuing convergence programs with other government agencies, such as the one with the Department of Public Works and Highways for tourism road development. Gavieta noted that DOTr is now “cooperating with other agencies in government in order to maximize the benefit of the plans that we are making.”

Also in the pipeline is amending the Public Service Act (Section 11, Article XII of the Philippine Constitution) to enable the creation of a National Transportation Policy that will allow the long-term implementation of projects and plans.

Gavieta said Transport Secretary Arthur Tugade’s dream is to develop a legislated 30-year national transportation plan that “cannot be changed just because there is change in presidency.” Tugade had explained that a national plan “needs to be consistent, needs to be the same.” Normally, PPP projects have a 25- to 30-year lifespan.

DOTr also seeks to promote the development of logistics corridors such as Subic-Clark-Batangas, South-Central Mindanao, and Cebu-Iloilo-Negors Occidental corridors.

Conflicts in agency functions

Furthermore, the department is trying to address the regulatory and conflicting functions of the Philippine Ports Authority (PPA) and Civil Aviation Authority of the Philippines (CAAP).

“These agencies are doing two things. They’re both exercising regulatory functions as far as ports and airports are concerned, and at the same time they’re also upgrading airports and ports, which was the problem of the MWSS (Metropolitan Waterworks and Sewerage System) in the past,” Gavieta explained.

He added that MWSS is now only a regulator, with the operations of water utilities having been privatized.

Gavieta said PPA’s and CAAP’s regulatory functions will most likely be retained, but the operations and maintenance of ports and airports will be privatized.

Aside from crafting its own transportation plan, DOTr has joined DTI in developing the country’s first National Logistics Master Plan with the aim to enhance the Philippines’ competitiveness through an efficient and robust logistics sector. – Text and photo by Roumina Pablo