Port productivity up after lifting of Manila truck ban; higher storage fees take effect

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Manila International Container Terminal photo courtesy of International Container Terminal Services, Inc
Manila International Container Terminal photo courtesy of International Container Terminal Services, Inc
Manila International Container Terminal photo courtesy of International Container Terminal Services, Inc

Two weeks after the City of Manila lifted its truck ban on September 13, port efficiency and productivity have shown improvements, according to the Cabinet Cluster on Port Congestion (CCPC).

While yard utilization remains relatively high, productivity and efficiency are slowly returning to normal at both the Manila International Container Terminal (MICT) and Manila South Harbor (MSH), said CCPC, composed of heads of the Philippine Ports Authority (PPA), Department of Finance, Department of Trade and Industry, Department of Public Works and Highways, Department of Agriculture, National Economic and Development Authority, Philippine Economic Zone Authority, Metropolitan Manila Development Authority, and Land Transportation Franchising and Regulatory Board.

“We have already posted a 25%-30% increase in the movement of cargoes to and from the port since September 13,” said CCPC head Secretary Jose Rene Almendras.

The CCPC is targeting an 80% yard utilization level, meaning that only about 64,800 TEUs should be inside the ports to provide enough room for optimum terminal efficiency and productivity.

“The port operators are now working full blast in their bid to reach the target yard utilization level in time for the expected influx of boxes brought about by the run-up to Christmas,” Almendras said.

After being slowed down by two typhoons that hit Metro Manila for two consecutive weekends in September, MICT and MSH are now busy relocating Customs-cleared containers with gate pass to Subic, Batangas and Cabuyao in Laguna.

 

Higher storage fees

Part of port decongestion measures is the imposition of higher storage fees for overstaying Customs-cleared containers at Manila ports beginning October 2, a move aimed at discouraging cargo owners from using the terminals as warehouses.

“With the imposition of the higher storage fee starting October 2, we expect to see further reduction of the volume of containers currently inside the two Manila ports,” Almendras said.

PPA Memorandum Circular 12-2014, approved by President Benigno Aquino III in a memorandum dated September 15, prescribes that a twenty-foot-equivalent unit (TEU) container should be fined P5,000 per day beginning the 11th day of storage, as opposed to the previous fee of P481.30 per day from the sixth to 10th day of storage; and P529.43 from the 11th to the 15th day.

Initially, the plan was to impose the new rates after the five-day free storage period, but it was later decided that the higher storage fee would be charged from the 11th day, effectively providing 10 days of free storage for cargo owners. – Roumina Pablo