Home » 3PL/4PL, Maritime » Not yet, TNT says of MTO accreditation

TNT Express Philippines will not seek multimodal transport operator (MTO) accreditation in the Philippines, saying it sees no immediate need for such.

In an interview, TNT country manager Cetin Yalcin said the Philippines’ plan to establish an MTO accreditation scheme this year in keeping with its commitment to the Association of Southeast Asian Nations (ASEAN) will not affect TNT’s operations.

Yalcin said these things take time anyway before they are fully implemented.

“We have no plans this year to seek MTO accreditation from the Philippines compared to other countries where it is a priority,” Yalcin explained. “However, we are not negating plans for our Philippine MTO accreditation but… (just) not at the moment.”

For now, he said it is enough that the company is growing faster than the market.

This year, TNT Express Philippines is looking at a 17% volume growth anchored on the strong recovery of the country’s semiconductor and electronics industries as well as other industrial sectors.

In the first two months of the year, the company already posted a 200% growth in is Economy Express service primarily due to the more than 50% increase in shipments of electronic products in January 2010 and the 80% constant increase in its clinical trials and pharmaceutical services.

TNT also registered a 50% increase in its Freight service volume and a 100% jump in its Courier service for the same period.

MTO accreditation program

The Department of Transportation and Communication (DOTC) is in charge of putting together the country’s MTO accreditation program.

The DOTC said transport service providers that do not seek MTO accreditation stand in danger of losing their market share with regional competitors already jumping on the bandwagon.

The concept of international multimodal transport covers the door-to-door movement of goods under the responsibility of a single transport operator.

MTO-accredited service providers offer shippers minimal time loss at transshipment points; faster movement of goods; reduced documentation and formalities; reduced costs; consigner/consignee deals with single agency; better financial protection for parties to the contract; balanced interest between users and suppliers of international transport services; and defined parameters in settling civil claims among contracting parties within the ASEAN.

Under initial discussions with the private sector, the DOTC said the following will be required for MTO accreditation: the company must be an Securities and Exchange Corp-registered corporation domiciled in the Philippines with business purposes that include transportation of goods by means of multimodal transport; ability to operate at least two different modes of transportation; and a paid-up capital of not less than 80,000 Special Drawing Rights or approximately P5.6 million (as of this writing).

MTOs registered in a foreign country recognized by the Philippines and wanting to operate in the country through a local branch office or the appointment of a local agent are also eligible for MTO accreditation.

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