Gov’t, port users set to tackle congestion issues

MANILA, Philippines - Port users and stakeholders are set to convene this month to discuss  growing concerns on port congestion that has derailed the country’s economic growth.

(Ret.) Col. Rodolfo de Ocampo, president of the Port Users Confederation (PUC), said in a statement that more issues need to be resolved amid growing concerns over the impact of port congestion on consumer prices and business operations.

The PUC has organized the one-day Port Summit on Nov. 17 to gather key government and business entities to discuss the different issues surrounding port operations and cargo transport efficiency.

“A meaningful and continuing dialogue between stakeholders and the government is imperative to ensure that action points succeed without undue impact on trade,” De Ocampo said.

He pointed out that the congestion at the Port of Manila has greatly hampered the flow of trade in and out of the country, with port users grappling with the congestion and its adverse effect on competitiveness.

“Cargo delays escalate costs for firms, especially storage fees, higher trucking rates, and perishable goods going bad – all of which will eventually be passed on to consumers,” he added.

Furthermore, he explained that exporters as also being affected by the port congestion amid the delays in imported raw materials for seasonal items, including garments, could lead to rejection due to late arrival.

“Broad public and private sector collaboration is still needed in sustaining gains from measures currently being undertaken by these sectors,” he said.

The summit organized by PUC in cooperation with the Center for Strategy, Enterprise & Intelligence (CenSEI), would include workshops discussing and recommending actions points for particular port concerns: cargo handling, customs procedures, traffic management, anti-smuggling and security, shipping lines regulation, and port development.

Transportation Secretary Joseph Emilio Abaya, Customs Commissioner John Sevilla, Philippine Ports Authority (PPA) general manager Juan Sta. Ana and Metro Manila Development Authority (MMDA) chairman Francis Tolentino are expected to attend the summit.

National Competitiveness Council (NCC) private sector co-chairman Guillermo Luz, International Container Terminal Services Inc. (ICTSI) chairman and CEO Enrique K.Razon and Asian Terminals Inc. (ATI) executive vice president Andrew Hoad are also expected to speak at the conference with over 300 attendees.

Members of local and international business chambers including the Philippine Chamber of Commerce and Industry (PCCI), Makati Business Club, European Chamber of Commerce of the Philippines (ECCP), American Chamber of Commerce of the Philippines, Japanese Chamber of Commerce and Industry of the Philippines, and British Chamber of Commerce Philippines are expected to join the conference.

Port utilization rate hit a high of 110 percent in July as a result of the truck ban imposed by the City Government of Manila last February. The level was reduced to about 90 percent but it is expected to increase again due to the Christmas season.

The country’s domestic output, as measured by gross domestic product (GDP), expanded six percent in the first half of the year from 7.8 percent in the same period last year.

The actual growth in the first half was also way below the full-year GDP growth target of between 6.5 percent and 7.5 percent this year. The full impact of the port congestion would felt in the second half of the year.