EDC, NCC push for lower domestic shipping cost

MANILA, Philippines - The Export Development Council (EDC) has decided to relaunch its advocacy to bring down domestic shipping cost, including port charges.

This time around, it will not be doing it alone but will team up with the National Competitiveness Council (NCC) to do away with one of the root causes why Philippine products are getting less competitive here and abroad.

The decision was arrived at the recent meeting of the EDC Networking Committee on Transportation.

Philexport vice chairman and trustee Donald G. Dee, who attended the meeting, pointed out that they have been clamoring for reforms in domestic shipping cost for 30 years now. No action by government has been made.

Roberto Amores, Philippine Chamber of Commerce and Industry vice president for agriculture, said that hardest hit by the high domestic shipping cost and port charges are the processed food exporters who source their raw materials and inputs all over the country. Others like the furniture and home furnishing industries that also source their raw materials from different regions in the country likewise suffer from the problem.

Studies made by local think-tank groups and even by the World Bank submitted to EDC during the meeting had shown that shipping costs to and from the country are competitive with neighboring countries, but interisland shipping is more costly.

Two major reasons were traced behind bloated domestic shipping cost, the cabotage law enacted by Congress a long time ago to disallow foreign vessels from carrying interisland cargoes, plus exorbitant port charges that the Philippine Ports Authority has allowed. – PHILEXPORT News and Features