Japanese firms remain concerned about high trucking costs

MANILA, Philippines - While the government has declared the port congestion resolved, Japanese businesses remain concerned about the high trucking costs and a possible recurrence of the problem amid the expanding Philippine economy.

Nobuo Fujii, Japanese Chamber of Commerce and Industry of the Philippines Inc. (JCCIPI) vice president and executive director, said Japanese firms with operations in the country continue to be concerned over the high trucking costs.

“Some truckers’ fees are still high. We expect rollback... Please rollback to the level the same (as) before the truck ban,” he said.

According to the Department of Trade and Industry (DTI), truckers raised hauling rates to around P20,000 to P30,000 during the height of the congestion at Manila’s ports from P8,000 to P9,000, previously.

Following the truck ban imposed by the City Government of Manila in February last year, Manila’s ports saw a pileup of containers affecting both exports and imports.

JCCIPI secretary general Masazumi Nishizawa said Japanese companies, particularly those engaged in manufacturing, suffered losses from the port congestion.

No estimates were given on the losses but he noted that high-level officials from the headquarters of Japanese companies even visited the country to take a closer look at the situation at the ports last year.

This, as logistics is an important consideration in expanding business operations.

“They want to see the condition (at the ports). If the condition becomes bad, next time they expand, they might go to Indonesia and Vietnam,” Nishizawa said.

Fujii said Japanese officials from companies’ headquarters are asking, “in the future, what kind of situation will happen?..Headquarters ask please explain what kind of situation now and in the future, getting worse or better?”

In an effort to make Japanese investors understand the current situation of the ports and future directions, the JCCIPI with the Japan International Cooperation Agency (JICA) conducted the Philippine Port Logistics Seminar last March 5.

The seminar was attended by officials from the Philippine Ports Authority, Subic Bay Metropolitan Authority, DTI, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) of Japan and 150-member companies of the JCCIPI.

Fujii said a summary of the discussions during the seminar would be released by JICA to inform stakeholders of the situation and measures to mitigate the congestion at the ports.