The truck ban controversy remains unresolved, but is quiet for now, with the granting of a reprieve.
The controversy arose because of the action taken by the mayor of Manila, announcing the daytime truck ban.
Apparently the mayor acted without advice from anyone familiar with the purposes of transportation. The thinking of the mayor must have been that the purpose of transportation is only the movement of people. He appears to not have been informed about cargo logistics, that cargo movement is a driver of the economy.
The main reason is that mayors are politicians. And their focus is on people. After all, cargoes do not vote.
“Supply chain advocates” had been warning on the effects of the truck ban on the economy. Apart from SCMAP, these include the European Chamber of Commerce of the Phils., PEZA, Federation of Phil. Industries, German-Philippine Chamber of Commerce and Industry, SEIPI, Philexport, etc. Effects cited are the crippling of businesses, a cut in the growth of exports and production, job losses, potential company closures. Even the research arm of Citicorp Global Markets, Inc. has joined the chorus, warning about opportunity losses.
Initial Effect
One actual side effect of the truck ban is the announcement by CTAP of a 50% increase in guide rates from MICT to select points in Metro Manila and Northern and Southern Luzon (PortCalls, March 17, 2014). This action was not unexpected. Truckers and several groups, including SCMAP, had mentioned this. The increase is due to the slower turnaround.
One story that followed is the claim of Estrada that the residents of Manila do not benefit at all from the location of the main Philippine port in Manila. He is angling for some kind of “cut” for the city of Manila from port earnings.
If Manila gets a cut from the port earnings, the immediate effect would be an increase in port costs, and a drop in our competitiveness. Readers may be aware that DMAP / SCMAP has been complaining about the conflict of interest of PPA. PPA gets a cut in the cargo handling rates that it sets (10% for domestic), 20%? for international) since DMAP was formed, and me in this column for 13 years now.
Another recent story is the City Council of Manila resolution asking the Pamantasan ng Lunsod ng Maynila to confer an honorary doctorate degree on Manila Vice Mayor Isko Moreno. The matter has caused a row among city councilors. It is not clear what is the basis of the resolution. We trust that it has nothing to do with the truck ban.
Logistics Competitiveness
On a more serious note, another recent item is the latest World Bank global ranking of countries with the most efficient logistics network. Countries are scored on their Logistics Performance Index ranging from 1 (lowest) to 5 (highest0. The Philippines scored 3.0 , ranking 57th among 160 countries. In 2012 we scored 3.02 (rank 52nd ) and in 2010 3.14 (rank 44th). Thus there is a downtrend.
In comparison here are the scores of some countries:
1st Germany 4.12
2nd Netherlands 4.05
3rd Belgium 4.04
4th UK 4.01
5th Singapore 4.00
25th Malaysia
35th Thailand
48th Vietnam
53rd Indonesia
57th Philippines 3.00
83rd Cambodia
131st Laos
145th Myanmar
There is no doubt the Manila daytime truck ban will cause our LPI and ranking to slip further. Naturally the mayor and vice mayor of Manila do not care.
Calling Sponsors, Advertisers and Contributors!
In line with upcoming SCMAP activities for 2014, SCMAP is now offering sponsorship packages and opportunities for advertising and article contribution.
Sponsorships are available for the following:
- Logistics Immersion Course, May 16-18
- Annual Supply Chain Conference, Sep 18-19
Supply Chain Mornings, Apr 24, Jun 19, Aug 14, Oct 16, Nov 20
Advertisements and articles. Opportunities are also available to advertise your company products and services. Alternatively you may submit an article about your company or its products and services. These opportunities are available in the coming issues of Supply Chain Philippines magazine.
Those interested should call or email
671-8670, Carla
636-3128, Angie
secretariat@scmap.org
Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email secretariat@scmap.org. For more information please go to SCMAP website www.scmap.org
