PPA eyes expansion of Visayas-Mindanao ports to decongest Manila, slash logistics costs听
THE PHILIPPINE Ports Authority (PPA) is looking to expand at least three international seaports in central and southern parts of the country to decongest the main gateway in Manila, an official told the Senate public services panel on Wednesday.听听
鈥We need to improve [their] facilities in order for them to receive these large ships,鈥 PPA Commercial Services Department Manager Mark Jon S. Palomar said.听
He was referring to the international ports in Iloilo City in Western Visayas, and Davao City鈥s Sasa and General Santos City, both in Mindanao.听听
Mr. Palomar said diverting more international cargo to and from these ports will lessen transshipment expenses, which contribute to the high logistical costs in the Philippines.听听听
Mr. Palomar also said that destination charges, or charges imposed by international shipping lines to customers upon arrival of imported cargos to the Philippines, also increase logistics costs.听听听
鈥These charges are totally unregulated, and our port users have to pay for these charges [with] no recourse regarding the validity and amount of the charging.鈥澨
He said that currently, international shipping lines collect container deposits ranging from P10,000-P30,000 for dry containers and up to P180,000 for refrigerated containers to ensure that these are returned to them without loss or damage.听听听
鈥But this is not withstanding the fact that at the port of origin, the shipper has already paid for a container insurance,鈥 he said.听听听
He added that empty containers often take at least six months before they are returned to their designated yards, thus the delay of getting back deposits.听听
TOP-CRMS
The PPA official also brought up the Operator Program-Container Registry and Monitoring System (TOP-CRMS), wherein the PPA will accredit and designate yards for empty containers.听听
Truckers returning empty containers will pay P900 per lodgement. Before the release of the containers, they will pay another P3,408 in handling fees.听听听
鈥It is similar to a parking lot wherein you can see where there are vacant slots wherein the port users would be guaranteed [that] whenever they are to return an empty container, there will always be a slot ready to accept them.鈥澨听
鈥If you have a container deposit, rather than you collect it upfront, and our port users have difficulty with regards to the return of these empty containers and considering that this amount is to answer for loss or damage, let鈥s have an insurance, so if ever you have a claim, you just claim it on the insurance.鈥澨
He said that the staging facility for empty containers would be 50 kilometers away from the Port of Manila, which covers the Manila North Harbor, Manila South Harbor, and the Manila International Container Terminal.听听
鈥When it鈥s ready to be shipped out, they will coordinate with the PPA and it is only then that it will be brought to the terminals and loaded to the vessel so empty containers need not to wait at ports until ships arrive,鈥 Mr. Palomar said.听听听
The Philippine Chamber of Commerce and Industry (PCCI) said the TOP-CRMS will be another added cost and could make the country even less attractive to foreign investors.听听听
PCCI President George T. Barcelon told the committee that the Philippines already has one of the highest logistics costs among southeast Asian countries.听听听
鈥We鈥re like 26% or so (higher)鈥 some are lower in single digits, but on the average, maybe 12 or 13%鈥 that added cost (from TOP-CRMS) makes us less competitive,鈥 he said.听听听听
Sergio R. Ortiz-Luis, president of the Philippine Exporters Confederation, Inc., said the additional costs will ultimately be passed on to the shipper.听听听
鈥The truckers鈥 they will have their problems [and] they will pass it on to us, that will incur extra costs,鈥 he said.听
Implementation of the TOP-CRMS has been deferred and Transportation Secretary Jaime J. Bautista earlier said his department will be reviewing the program. 鈥 Beatriz Marie D. Cruz
