Home » 3PL/4PL, Breaking News, Ports/Terminals » Logistics part of NEDA’s PH national transport policy

The National Economic and Development Authority (NEDA) has released the draft implementing rules and regulations (IRR) of the Philippine National Transport Policy (NTP), which includes plans for the logistics industry.

The NTP aims to synchronize decisions on investment of all transport-related agencies, and better coordinate efforts between national and local levels.

The NEDA Board in September last year issued a Board resolution adopting the NTP, which envisions a “safe, secure, reliable, efficient, integrated, intermodal, affordable, cost-effective, environmentally sustainable, and people-oriented national transport system that ensures improved quality of life of the people.”

Last October 1, NEDA held a public consultation on the draft IRR to gather stakeholders’ comments.

The proposed IRR will apply to “all elements of the transportation system and all its subsectors, including passengers, operators, service providers, investors, and transport-related agencies and instrumentalities of government, as well as those involved in the movement of people and goods and in the provision of transport infrastructure, facilities, and services.”

The IRR shall be observed and used to guide transport development, management, and operations, particularly in certain areas.

This includes effecting good governance in the transport sector, and ensuring seamless connectivity among various transport modes and other transport infrastructure such as parking buildings and terminals in support of an intermodal logistics network system.

The IRR shall also promote green, low-carbon and people-oriented transport systems that prioritize public health and well-being. It shall likewise facilitate and support the development of new economic growth centers outside key cities to realize inclusive growth, mainly through access improvement and support for tourism, agro-industry, trade and logistics, and other economic activities. It shall also promote transport infrastructure investments.

Based on provisions of the proposed IRR, and consistent with existing mandates and governing laws, transport-related agencies and local government units (LGUs) shall annually assess and prepare their strategic short-, medium-, and long-term plans, programs, and projects.

Transport master plan

Also, a Philippine Transportation System Master Plan (PTSMP) shall be formulated, adopted, and periodically assessed and updated “to guide the rational development of intermodal/multimodal transport network in the country through coordinated planning and operation of projects and programs as an integrated network of intermodal subsystems.”

The proposed draft also includes the establishment and maintenance of an open database system for access by all government agencies, data repositories, research institutions, and members of the academe, particularly those who collect and manage transport-related data.

Fees (i.e. fares and freight transport cost) in the transport sector, under the draft IRR, shall, as far as practicable, be determined under the principle of compensation expressed in such term as “users pay.”

Fares and fees/charges for transportation services shall be cost-based and shall recover, at the minimum, the operational and maintenance costs, net of eligible subsidies.

Meanwhile, fees shall be levied on all vessels and aircraft that call on Philippine maritime ports and airports, as well as those passing through the flight information region of Philippine airspace to allow government to recover costs for providing, operating, and maintaining navigational aids.

The fees shall be reviewed and adjusted periodically by the appropriate regulatory bodies such as Civil Aviation Authority of the Philippines and Maritime Industry Authority as mandated by their charters, with the aim of generating sufficient revenues “in order to sustain adequate level of service in terms of efficiency, safety and security in compliance with applicable international standards.”

“All traffic rules, regulations, ordinances and issuances in each respective metropolitan area shall be harmonized into a comprehensive regulatory framework for land-based traffic,” the draft IRR states.

Section 29 of the draft IRR focuses on the development of ports outside Metro Manila. Under this section, modernization and capacity expansion of ports outside metro Manila shall be promoted to help decongest roads in the metro.

“Shipment of cargo shall gradually be shifted to ports outside Metro Manila (e.g. Batangas, Subic Ports, etc.) to optimize the investment in these ports and port access, especially toll roads and railways. Locators and shippers shall be enticed to use these ports through the provision of adequate ancillary services,” the draft IRR declares.

Recognizing that carriage of goods is the life-blood of urban economy, “any proposal to restrict the movements of trucks in urban areas to ease traffic and reduce traffic accidents must take into account economic impacts,” further states the draft.

The Department of Transportation (DOTr) and Department of Interior and Local Government shall assist LGUs in reviewing such proposals and in formulating corresponding strategic action/implementation plans.

Smooth logistics

Moreover, the DOTr shall, in coordination with the appropriate government agencies and the private sector, establish and demand a seamless, responsive, intermodal transport logistics network to ensure efficient logistics and supply chains as well as promote an unimpeded flow of people and goods, disaster response equipment, relief goods, and basic commodities in times of emergencies.

Pursuant to the relevant provisions of the Local Government Code, passengers and goods carried into, out of, or passing through the intermodal transport logistics network shall not be burdened by transport procedures and costs. DILG, in coordination with DOTr and Department of Public Works and Highways (DPWH), shall pursue measures to eliminate any arbitrary charges/toll-like fees levied by LGUs on goods and people passing through their jurisdictions.

The draft IRR also states that convergence programs—which are collaboration projects between two or more government agencies—for the tourism sector shall also consider airport and seaport/roll-on-roll-off (RORO) terminal development, parking facilities to encourage park and fly/sail/ride modalities, common-user bus terminals as interface for light rail and road transport services, and farm tourism-related transport projects.

DPWH and Department of Trade and Industry (DTI) shall jointly identify and implement industry-developing infrastructure projects in priority economic and manufacturing zones. DTI shall also identify the priority industries to be provided with road access infrastructure.

The proposed IRR also states that in developing the system, its use in transporting disaster response equipment, relief goods, and basic commodities during times of emergencies resulting from natural calamities and other disasters shall also be considered.

For cargo shipments, DOTr shall work with DTI, Department of Finance (DOF), Bureau of Customs (BOC), and other appropriate government agencies to establish the systems and procedures to ensure transparent and expeditious processing of cargo shipments.

These include a Single Transport Document for customs, immigration, quarantine, safety, environmental protection, and security purposes that can be used in all transport modes, thereby facilitating multimodal freight transport and enhancing the framework offered by multimodal waybills or manifests.

Another is the Single Access Point (One-Stop Shop) that shall be established for administrative processes and procedures in all modes to simplify and decentralize exchanges of freight-related information and substantially reduce the cost of regulatory requirements, especially when using information and communication technologies.

To facilitate transhipment between modes and reflect technological developments, the draft IRR states that national standards for intermodal loading units shall be introduced. Transaction costs in handling operations between modes shall be reduced by standardizing certain handling characteristics of intermodal loading units.

Enabling interfaces in truck deliveries

As transport logistics involves distribution in urban areas, efficient interfaces between truck deliveries over longer distances and distribution to the final destination over short distances shall be developed, fully considering land use and transport network plans, environmental impacts, and schematic traffic engineering/management system plans.

Where warranted by the logistics chain characteristics, consolidation/distribution centers, such as truck terminals and rail-served inland container depots (ICDs), shall be established outside of urban and metropolitan areas, with provision for the necessary transport access and mode interchange cargo-handling facilities, in order to facilitate the interface between long-distance deliveries and short-distance distribution in urban areas.

The draft IRR also proposes that all transport-related agencies shall initiate action to reorganize transportation agencies under them or attached to them to separate regulatory and operating functions, and eliminate overlapping, conflicting, or redundant functions. – Roumina Pablo

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