DTI eyes normal port operations by Aug 15

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Freight ContainersThe Department of Trade and Industry identified measures being done to help de-clog ports “that would result [in the] normal operations [of Manila ports] by August 15.”

In a July 28 letter to the Chamber of Customs Brokers, Inc. — which had asked about updates on what is being done by government to ease congestion — Trade Undersecretary Victorio Mario Dimagiba said the measures include transfer of 3,000 containers abandoned for at least six months from Manila ports to the port of Subic “at the expense of the port operators”; and placing overstaying containers for more than 15 days under “BOC [Bureau of Customs] red lane status which means that containerized cargoes will be subject to 100% inspection and stripping the containers of cargoes.”

A check at the BOC, however, revealed that the bureau was not aware of any moves placing containers overstaying for more than 15 days under the red lane. A PortCalls source said that for now, it would be difficult to tell outright which boxes are overstaying and for how long they have been that way.

Other measures to relieve congestion identified by Dimagiba are the deployment by five shipping lines of sweepers at the Manila International Container Terminal and the Manila South Harbor to clear empty containers “in the next two weeks”; use of Philippine Economic Zone Authority sites as staging areas for empty containers; and urging importers to work on Sundays and Monday mornings to move their containers.

 

Higher port charges considered

Once operations at the ports normalize, Dimagiba said government will study the possibility of increasing port fees (at P5,000 per day) for containers idle for more than five days.

The Philippine Ports Authority (PPA) will also issue a policy to “open trucking to more operators”, he said. PortCalls sources, however, wondered about this measure, considering it is the Land Transportation Franchising and Regulatory Board that issues franchises for trucks.

Dimagiba also mentioned the setting up of more off-dock facilities. The authority to set up such facilities lies with the BOC.

 

Maximum use of weekend operations

Meanwhile, operating on weekends is also one of the measures being pushed by BOC and the PPA to help relieve port congestion.

Atty. Agaton Teodoro Uvero, Customs Deputy Commissioner of the Assessment and Operations Coordinating Group, said the bureau is asking the business community to work on the weekends of August and September to release their cargoes.

The Federation of Filipino Chinese Chamber of Commerce and Industry, in a meeting between the government and port stakeholders on July 30, agreed to urge its members to operate on Saturdays and Sundays, Uvero said.

The Philippine Chamber of Commerce and Industry also earlier advised its members to take advantage of BOC’s weekend operations.

Uvero pointed out that if an additional 5,000 containers are pulled out on weekends on top of weekday withdrawals, “we’re talking about 40,000 in eight weeks.” That should help address overcapacity at Manila ports, he noted.

Since June 28, BOC has been operating on weekends to solve overcrowding at ports following the Manila truck ban implementation in February. But very few importers have taken advantage of the weekend window.

BOC data previously obtained by PortCalls showed that only 10 entries were filed from July 5 to July 6 at the Port of Manila and 15 entries at MICP. These represent only 2.4% and 1.25% of the daily average of 420 entries for the Port of Manila and the 1,200 daily average of MICP.

No entries were filed when weekend operations were first launched on June 28-29.

The number of entries inched up slightly during the next two weekends. On the weekend of July 12-13, MICP recorded 51 transactions on July 12, of which 36 were transshipment entries. No entries were filed at POM.

On the weekend of July 19-20, there were 14 entries filed at Port of Manila and 36 at MICP.

In total, there were only 24 entries for the Port of Manila and 102 entries for MICP during the first month of weekend operations.

Uvero admitted there are problems with cargo pull-outs on Sundays, noting that by then, container yards are closed and, in the first place, presently filled with empties.

There have been several meetings between government agencies and port stakeholders on port congestion, with the latest on Aug 1 called by the PPA. – Roumina Pablo