Good news hiding in the bad

If you can believe what DTI Secretary Greg Domingo said in a recent Senate hearing on port congestion, there is good news hiding in that bad news. Sec Domingo said: The long-term solution is we really need to build a new port because our economy will continue to grow at a fast pace.

Sec. Greg shifted the focus of discussion away from the truck ban and the problem caused by all those empty containers in Manila’s port to the need for a new port. He is saying that we have a problem but it is a good problem caused by a growing economy.

.I am wary of cabinet members trying to spin some good out of a bad situation. Three years ago, Tourism Secretary Mon Jimenez said that the congestion problem at NAIA only means more people are coming as evidenced by all those flights.

Sec. Mon became richly successful in the local advertising industry because of his creative ability to highlight the best selling point of a product or service. I thought he was being himself when he plucked that supposed good news about NAIA’s pathetic situation.

I will grant Sec Mon some credit that perhaps he is partly right. But for those of us who really know what is going on, we know that the NAIA congestion is largely because of bureaucrats who were sleeping on their jobs.

There is that modern air navigation system which we should have installed some years ago. There were suspicions of corruption when the contract was signed by the Arroyo administration. But Sec Ping de Jesus already cleared it for implementation after reviewing it. The supplier was told to mobilize.

Then Sec Mar Roxas came around and said he would study it again and it took him close to two years to do that. That system would have helped NAIA manage more take offs and landings at closer intervals.  

Also, someone somewhere in the bureaucracy failed to plan for airport expansion. In Bangkok, they started work on a new expanded airport even while the old one is still functioning rather well.

So Sec Domingo is partly correct to point out that our growing economy is causing our port congestion problem. It is also good of him to sound the alarm bell early on our need to start thinking of building another port.

I e-mailed Sec Domingo for clarifications and no, he said, using Batangas and Subic will not be enough to meet future demand. We simply need a new port. Here is Sec Domingo’s response:

“Hi Boo! The capacities of Batangas and Subic ports are quite small relative to the needs of the metropolis. Batangas has a capacity around 400k TEUs, Subic 600k, while the combined capacity of Manila ports (for international shipments) is 3 to 3.5 million TEUs per year.

“So even at full capacity, Batangas and Subic ports will only be able to accommodate about a 30 percent expansion of the requirements. This is only about five years worth of growth of six percent per year.

“Batangas port from one ship per week (pre truck ban) has now seven to eight ships per week and I was told that they are almost or already full.

“Keep in mind as well that the most expensive mode of transporting large quantities of product is by air, then by truck, with water transport as the cheapest and rail, in between truck and water transport. So ports ideally should be near the destination of the goods - specially if the goods are to be shipped by truck which is what we have at the metropolis.

“So ideally, Batangas should serve the requirements south of Manila, Subic those north of Manila, and Manila ports those in Manila.

“Given that we expect strong economic growth for at least the next decade, I think there is no choice but to expand port capacity in Metro Manila whether by expansion of existing ones or creation of new ones. I prefer the latter because we could distribute the trucks better if we choose a new port at another location around the bay.”

Indeed, what is happening now at the Port of Manila speaks volumes about the nature of our economy. I recall someone involved in port operations saying that the container problem happened because for every four containers moving out with imports, only one goes back with export cargo. Three containers return empty and stacked up at the port.

That shows how import dependent we are. Granted that some of those imports are raw materials for exports, most of the imports are for local consumption – from garlic to chicken parts and consumer electronic goods. If this lopsided pattern of trade continues, and it will be as the Asean Free Trade Area opens, we will have worse problems than just congested ports.

I guess Sec Greg must disabuse his mind that he is doing such a fantastic job promoting investments in manufacturing industries here and point to the congested port as proof.

True, there is a faster influx of foreign manufacturers in recent months. But as in the case of our token car industry, there is restlessness due to government ambivalence on investment incentives. This sounds like a job for Sec. Greg.

ATM scams

I brought up to BSP Gov Say Tetangco the complaint of one of my readers about his sad experience with an ATM machine of a leading bank. I am concerned because that is also my principal bank and I use their ATM machines too.

As expected, Gov Say was quick to respond. I suggested that banks be required to send a text alert to the account holder if a sizeable amount is withdrawn from his account. Most victims of ATM scams complain they were surprised when they belatedly found out all the withdrawals made.

I said in my e-mail to Gov Say that sending text messages to account holders is already being done abroad. Our banks shouldn’t mind the extra cost of a text message if it serves the purpose of giving their depositors peace of mind.

Gov Say agrees: “You’re right Boo... A number of banks text their clients if there is a sizeable charge made against their credit card or if the charge is made in a foreign country. Some banks advise their credit card clients to inform their bank if they’re going abroad. We will look into possibility of requiring banks to alert their clients if there’s a big withdrawal that’s made using their ATM card.”

I then forwarded the e-mail of our reader, Atty V. Santos to Gov Say who forwarded it to Dep Gov Nesting Espenilla who is in charge of regulating the banks. Like Gov Say, Dep Gov Nesting also quickly responded to me:

“Gov Say relayed to me the ATM troubles of Atty Santos. We’re sorry to hear this. Let BSP help him.

“Could you kindly inform him of his option to file a complaint against (his bank) with our Financial Consumer Affairs Group (FCAG). He can send his complaint through me and I’ll have FCAG investigate it. It’s important that we have his full cooperation as the matter involves deposits which are normally protected from inquiry by deposit secrecy laws.

“Let me also take this opportunity to thank you for your active interest on the matter of ATM skimming scams. This is a serious concern and we are working with the industry and law enforcement authorities to contain this crime which is apparently being perpetrated by international criminal syndicates.

“A key response is system migration to EMV chip cards. This has been set in motion since August last year when BSP mandated it but full migration won’t happen until 2017 since most ATM machines and systems will have to be changed.

“Meanwhile, public awareness and vigilance is a big help in controlling the problem. Regards,

“Nesting”

I am confident Atty Santos is now in good hands. Nesting Espenilla is one of the many dedicated and capable officials of the BSP. He is low key but effective. And he knows his business.

Dep Gov. Nesting is a UP Economics magna cum laude graduate. He was the batch mate of P-Noy at Ateneo where Nesting was salutatorian in grade school and third honor in high school. Whoever is President after 2016 should appoint him BSP Governor when Gov Say’s second term ends. For now, let us see how he can help Atty Santos.

Fee lippines

A reader complained that I no longer have jokes at the end of the column. So, he sent me this one:

Foreign investor to media interviewer: It’s hard to do business in the Philippines. Every move requires a fee. Barangay permit fee. Mayor’s fee. Court filing fee. Garbage fee. Parking fee. Environmental fee. You sometimes have to also pay a fee just to pee. And everyone is a know it all Fee losofo. Maybe you should call your nation Fee lippines. Call yourselves Fee lipinos and change the President’s name to Fee Noy.

Boo Chanco’s e-mail address is [email protected]. Follow him on Twitter @boochanco