Truckers buck PPA container tracking proposal

Majority of truckers in the Philippines are opposing the Philippine Port Authority’s (PPA) planned container monitoring and tracking scheme according to one trade group, refuting earlier claims from another business association which is backing the move.

The Alliance of Concerned Truck Owners and Organizations (ACTOO), which touts itself as the largest and most representative group of truckers in the country, said their group represents the true voice of the trucking community in the Philippines.

The trade organization is opposing the PPA’s Trusted Operator Program-Container Registry and Monitoring System (TOP-CRMS), citing it will only add complexities to an already challenging industry, leading to inefficiencies and increased costs for truck owners and operators.

“We urge the PPA to immediately scrap this burdensome and unnecessary system. It is time to focus on improving efficiency at the ports, not on adding to the cost of doing business,” ACTOO chair Ricky Papa said in a statement.

Papa’s statement follows the Confederation of Truckers Association of the Philippines (CTAP) plea to the Department of Transportation (DOTr) late last month to push through with the TOP-CRMS, citing it was needed to eliminate “abusive” charges by international shipping lines.

The ACTOO noted that CTAP is the only truckers’ group in favor of the proposal, adding that is misinformed and has been misled by proponents of the program.

Contentious issue

The TOP-CRMS has been a very contentious issue for the private sector, with at least seventeen business organizations and industry stakeholder groups opposing the measure.

The opposition, which includes groups such as the Philippine Chamber of Commerce and Industry, the Philippine Exporters Confederation, the Association of International Shipping Lines, Inc., said it will lead to an additional annual import cost estimate of at least P35 billion.

This added cost is largely attributed to the replacement of the refundable P20,000-container deposit insurance fee in the current system with a P980 container monitoring and insurance fee per container.

On the contrary, the PPA position is that the scheme will result in savings for stakeholders, citing that most deposits are not reclaimed, with the rest only partially returned, meaning that the P980 fee should be preferable over the current P20,000 fee.

These savings do not include incidental costs such as overtime pay for drivers, as well as the bribes paid to enforcers and yard checkers, according to PPA general manager Jay Santiago. INQ