PPA awards P877.6M container monitoring contract to joint venture

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  • PPA awards P877.6M container monitoring contract to joint venture
  • The joint venture of NextIX, Inc. and Shiptek Solutions Corp. won the contract for the Philippine Ports Authority’s container registry and monitoring system for inbound foreign containers
  • The project covers supply, delivery of full technology stack, financing, technical implementation services, and managed services to successfully implement the project

The joint venture (JV) of NextIX, Inc. and Shiptek Solutions Corp. has won the contract for the Philippine Ports Authority’s (PPA) container registry and monitoring system for inbound foreign containers.

The award for the P877.6-million contract for the Trusted Operator Program-Container Registry and Monitoring System (TOP-CRMS) and Empty Container Storage Shared Service Facility (ECSSSF) is contained in an April 27 notice of award.

The JV was the lone bidder for the project. Bids were opened on March 22.

NextIX is a Philippine innovation company specializing in universally available information and communication technology solutions. The company, together with another JV partner, recently also won the contract for PPA’s electronic terminal management system project featuring unified electronic ticketing capabilities.

READ: PPA signs contract for P500M e-terminal management system

Shiptek is a Filipino software development company that runs end-to-end digital logistics platform, XLOG.

The project covers the supply, delivery of full technology stack, financing, technical implementation services, and managed services to successfully implement the TOP-CRMS of PPA.

In its bidding documents, PPA said it intends to procure a TOP-CRMS “that will introduce rational, cohesive, and integrated solutions which will solve persistent systematic problems affecting the overall performance and efficiencies of the PPA in areas related to its frontline and regulatory services, third-party managed services, and enforcement services, and inter-agency services.”

The TOP-CRMS consists of inter-related program components, namely, the TOP; the container identification and control program; the container tracking program; and the container availability and insurance program.

The TOP will provide required conventional and mobility systems and technology infrastructure to capture, store, and process subscription and transactional activities and integrated services made available to trusted operators.

The container identification and control program will enable PPA to digitally capture all inbound shipping containers in advance before its entry to any port in the country.

The container tracking program will enable PPA to digitally tag all inbound shipping containers with a tracking device to provide full visibility of the utilization, movement, and location of every foreign-owned container.

Local importers will have access to container insurance services via the container availability and insurance program. The program will also provide PPA the ability to monitor financial transactions required by shipping lines for all inbound shipping containers to safeguard government’s revenue interests.

The TOP-CRMS will be rolled out covering two pilot ports that house 98% of all container traffic: Manila South Harbor and Manila International Container Terminal.

Completion of services for the technical implementation phase should not exceed 12 months from receipt by the successful bidder of the Notice to Proceed, while the managed services will be one year from the date of go-live or operationalization commissioning of the technical implementation phase.

PPA in June 2021 conducted a virtual public hearing for its then proposal to record and monitor in real time the movement of all import containers.

In October 2021, PPA issued Administrative Order (AO) No. 04-2021, which prescribes the policy on the registration and monitoring of containers entering and leaving PPA ports, including the scheduling, loading, unloading, release, and movement of all containers.

READ: PPA to require registration of foreign boxes, container insurance

Under the policy, PPA will prescribe and adopt a system for the registration and monitoring of containers. The system will have features that include a facility to record all containers passing in and out of port terminals.

All containers are required to register in the system to be adopted by PPA and to secure a container insurance policy. The insurance policy will be used instead of the container deposit and container maintenance fees being required by international shipping lines “to protect local importers from additional transaction costs.”

AO 04-2021 covers all containers originating from foreign ports for unloading at government or private ports under the administrative jurisdiction of PPA.

A May 11 public consultation on operating guidelines of TOP-CRMS has been set by PPA.

Stakeholders earlier voiced concerns that the proposed system might just duplicate monitoring systems already in place for containers, particularly those set for discharge from terminals. – Roumina Pablo