Mounting ports fee and charges detrimental to business - PCCI

In a public hearing on logistics costs called by the Senate Committee on Public Services, industry stakeholders led by the Philippine Chamber of Commerce and Industry (PCCI) called attention on the impact of mounting ports fees and charges on traders, manufacturers and consumers and its overall effect on business and the economy.

The hearing took up Senate Resolution 484 calling an inquiry on the various administrative orders (AO) of the Philippine Ports Authority (PPA) that have led to excessive increase in ports fees and domestic logistics. The Resolution's author, Sen. Risa Hontiveros specifically cited the AOs pertaining to the grant of port terminal management contracts to bidders with the highest concession price (No. 12-2018); the implementation of a "Central Ticketing System" (No. 12-2019); the increase in the garbage collection fees (No. 01-2020, as amended); and, the creation of a mechanism for registration and monitoring of containers entering and exiting ports (No. 04-2021).

Except for one organization, the industry associations and organizations representing manufacturers, exporters, port users, shippers, customs brokers and truckers were one against the AOs stating that these result to drastic increases in logistics costs.

George T. Barcelon, president of the PCCI stressed that high logistics cost in the country is detrimental to business and consumers. It raises the cost of production and makes Philippine products less competitive both in the domestic and international markets.

Mr. Sergio Ortiz-Luis of Philexport explained that the added cost will be passed on to the consumers.

Aside from the hearing, the stakeholders released an open letter to President Ferdinand Marcos Jr. seeking the immediate revocation of PPA AO No. 04-2021, the "Policy on the Registration and Monitoring of Containers,"which implements the Trusted Operator Program-Container Registry and Monitoring System (TOP-CRMS). TOP-CRMS is the proposed electronic system of PPA to register and monitor the movement of foreign containers entering and leaving PPA ports.

The same group further submitted a joint letter to Secretary Ernesto V. Perez of the Anti-Red Tape Authority (ARTA) to reconsider the Good Practice" rating given to the PPA's Regulatory Impact Statement (PPA-RIS). A matrix made by the group showed inconsistencies in the PPA's report on the Proposed Implementing Operational Guidelines (I0G) and realities on the ground.

--- Bea Angela De Luna