Ports told to go digital to improve cargo handling efficiency

Philippine port operators have to invest in digital technology to ensure that goods shipped to and from the country move efficiently and, more importantly, prevent a repeat of the cargo congestion crisis four years ago that cost the local economy billions of pesos worth of losses.

Thus said Australian port solutions provider 1-Stop Connections Pty. Ltd., which is pushing for more Philippine ports to employ the Terminal Appointment Booking System (TABS) used by the Manila International Container Terminal and Asian Terminals Inc.

This system, which allows real-time sharing of cargo and container data, was used by MICT and ATI shortly after the 2014 Metro Manila port congestion crisis that was found to have cost the Philippine economy P2.5 billion in daily losses for the duration of the port and transportation bottlenecks.

“Prior to TABS, the trucks would arrive randomly at the port, hence the long queues we’ve had for many many years,” said Ian Baking, who is ATI’s assistant vice president for business development. “What TABS did was regulate that over a 24-hour period. That has proved successful since we implemented it.”

After using TABS, MICT and ATI reached 60,000 truck transactions per month from what was previously 40,000. Efficiency increased by 25 percent during peak hours, unclogging ports and the roads leading to them. In fact, the truck ban imposed for traffic reduction in the city was lifted due to the effectivity of the system.

1-Stop pointed out that demand for goods and resources was surging worldwide. Along with the globalization of manufacturing and delivery supply chains and the enlargement of vessel sizes, this presents substantial opportunities for the growth of the shipping sector.

In the Philippines, recent statistics reflect a 5.1-percent increase in the trade of goods. In addition to this, the Philippine Ports Authority reported that container traffic soared by up to 53 percent nearing the final quarter of 2017, due in part to the government’s push to stimulate competition in the shipping industry.

“Since dynamic commerce requires highly efficient ports, focusing on elevating port connectivity in the country deserves merit,” 1-Stop said in a statement. “The economic impact of this includes supply increase, foreign exchange boost, and commodities’ price reduction.”

“The national government and the port authority want to operate ports 24/7 to the highest level of capacity utilization achievable,” International Container Terminal Services Inc. senior vice president Christian Gonzalez said. “With a system like TABS which allows us to modify behavior, plan the arrivals and departures of trucks better, we’re now seeing an alignment between what the local government and road departments want and port authorities and national government want.”

As such, there is great potential for the rest of the Philippines’ major ports, given the increase in productivity, 1-Stop said.