Senators seek probe on port congestion

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Manila International Container Terminal. Photo courtesy of ICTSI.
Manila International Container Terminal. Photo courtesy of ICTSI.
Manila International Container Terminal. Photo courtesy of ICTSI.

The problem of port congestion at the Philippines’ two main international gateways has now reached the Senate’s attention.

Senators Benigno Paolo Aquino IV and Francis Joseph Escudero have filed separate Senate resolutions seeking a probe on the worsening congestion at Manila ports following the Manila truck ban policy implemented in late February.

Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship, filed Senate Resolution No. 809 which seeks to immediately address port congestion that has resulted in cargo delivery delays and higher prices of agricultural products.

“We will prolong the agony of the public if we will not help government agencies find ways to address gridlock in the ports that (have) led to untimely delays in shipment of goods,” said Aquino in a press statement.

He noted some fresh produce manufacturers are now unable to fully ship their goods due to fears of spoilage due to long queue at the ports. “Because of this, the country’s exports have become highly uncompetitive,” he said.

Aquino took note of the Bureau of Export Trade Promotion’s claim that the 5.8% to 7.2% export growth projection may now no longer be feasible because of port congestion.

“The decrease in trade volume affected the law on supply and demand, which resulted in abrupt price increases,” the senator said, adding that “inefficient operations of the port had an adverse effect on free enterprise and competitiveness of Philippine goods.”

Aquino earlier suggested to port authorities to look into the Ports of Batangas and Subic Bay as alternative cargo drop-off points.

The senator said Vietnam encountered the same congestion problem but this was solved after cargo was diverted to new alternate ports Ben Nghe and Phu Huu and Cat Lai port was upgraded. (Cat Lai port as of this writing is congested as well.)

“With the upcoming ASEAN integration in 2015, there is a need to have immediate and long-term solutions to the problems on port congestion since the flow of goods had been restricted by the issuance of policy orders of different government agencies,” Aquino stated.

Meanwhile, Escudero chairman of the Senate Finance Committee, also filed Senate Resolution Number 808 urging three committees — Trade, Commerce and Entrepreneurship, Economic Affairs, and the Ways and Means — to look into congestion to “prevent a potential crisis that will only defeat the country’s economic gains.”

In a statement, Escudero said: “The city of Manila decreed a daytime truck ban to decongest the monstrous traffic jams in the city. Following the truck ban, empty container vans owned by shipping lines occupied 50 percent of the container yards, which caused the congestion.

“Many local and international vessels are unable to dock and unload their cargoes in the MICP (Manila International Container Port) and the Port of Manila, prompting major shipping lines to boycott the city ports due to lack of berthing spaces.”

He said it was “time for the Senate to step in to abate this looming crisis. It is already causing us economic backlash at costs we cannot afford. Look at the spoilage of perishable goods, the unavailability of raw materials, business losses in the import and export industries, and idled factories. These are more than enough to clog the wheels of our economic engine.”

Escudero said the country, as an import-dependent nation, cannot afford a long supply and consumer goods shortage. He added that Philippine exports are becoming uncompetitive because exporters can no longer meet overseas deliveries.

The senator said Cebu-based exporters are also complaining about port congestion at the Cebu International Port (CIP), which is costing some traders around $15,000 for every shipment delay.

An official of the Cebu Port Authority earlier told PortCalls there are plans to transfer the international container terminal to a new location due to congestion.

“We would like the Senate to take the appropriate action to find an institutionalized solution to prevent this continuing economic crisis,” Escudero said. — Roumina Pablo

1 COMMENT

  1. Hope our government will fix this issues coz this a chain reactions..and the all individual will suffer (Businessmen / Investor , Employees and Stakeholders. DEFINITELY THIS HAS AN IMPACT IN OUR ECONOMY..

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