Preventing port paralysis panic

Last year, our Manila ports were severely congested. This caused panic, especially among the farmers and fisherfolk. They were losing their livelihood due to the cancellation of several export market contracts, as well as their not getting their imported inputs on time. Their losses were an important part of the P2.5 billion losses a day estimated by the joint House Committees on Transportation and Metro Manila Development.

This panic is not there today. At the May 27 meeting called by Philippine Ports Authority General Manager Juan Sta. Ana, attended by Cabinet Secretary Rene Almendras and Trade Secretary Gregorio Domingo, we gathered the information listed below.

Port Congestion Statistics
ITEM 2014                            CONGESTION     MAY 2015
Port Utilization                     114%                         61%
Ships Waiting to Dock         35                             0
Excess Containers Left
(per day)                                 1,500                        0
Truck time at Port (hours)  7 0.                           7
Cargo time at Port (days)    21                              9

Though we are back to normal, we must not be complacent. This low port activity period will transform into high activity starting August. If we do not take action now, we will once again feel the panic from port paralysis.

On May 27, the single most important change explained to prevent port congestion was the “Truck Appointment System.” Without this system, the trucks will continue bringing cargo in and out of the ports in an erratic, unplanned and most inefficient manner.

For example, a port operator reported the following typical truck movement: 1,800 trucks a day from Tuesday to Friday; 700 on Saturday; 200 on Sunday, and 350 on Monday, or a total of 8,450 trucks a week.

With the truck appointment system, this movement will be leveled for each day. If this happens, 12,700 trucks can be accommodated for a week. This is a 47-percent increase over the current system. The good news is that this can even be improved. With a systematic appointment system, the daily 1,800 trucks can even be increased.

This system was presented by Christian Gonzalez of International Container Terminal Services Inc. (ICTSI) and Sean Perez of Asian Terminal Inc. (ATI). We interviewed the leaders of the three major trucking organizations (e.g. CTAP, ACTOO, INHTA). They fully support this system because it would decrease their costs and enable them to charge much lower than last year’s high port congestion charges.

However, two important stakeholders must also support this system for it to succeed.

The Local Government Units (LGUs) of Metro Manila must modify their current truck bans to enable the free-flow of trucks using the truck appointment system.

This may be a reasonable move because the trucks will be systematically deployed into the Metro Manila streets. The truck concentration that causes traffic bottlenecks will no longer be there. This result is achieved in other countries where the truck appointment system is implemented.

However, private sector importers and exporters must also cooperate. They should be willing to undertake activities such as opening their warehouses and conducting the necessary cargo-related operations on weekends. They can also plan better by arranging activities related to financial operations and Bureau of Customs requirements during the workweek.

The coordination of port operators, truckers, LGUs and private sector importers and exporters is therefore necessary for the system to succeed.

To prevent potential port paralysis panic that may start in August, this coordination and the consequent agreements among the four relevant stakeholders must be started now.

Last May 27, Almendras showed this kind of action. He is already making arrangements with Microsoft to have a possible container tracking system. Using simple text messages, a stakeholder can find out when a container gets out of the port, enters a warehouse, enters a container yard, and is shipped again.

Forward planning should be done now, rather than when port congestion rears its ugly head in August. Acting only when the problem exist will produce another round of panic, cause billions in peso losses as what happened last year, and project an image of incompetence to the outside world. This will impact the new investments we need to create more jobs for our people.

The farmers and fisherfolk cannot afford port congestion to happen again. At the May 27 meeting, the Alyansa Agrikultura representative was designated to also represent the concerns of the Federation of Philippine Industries (FPI) and the Philippine Chamber of Commerce and Industries (PCCI). Following this newly formed relationship with industry, the farmers and fisherfolk must now expand its activities to include interacting with the Metro Manila local government units.

This way, a truck assignment system will fit into a new LGU traffic management scheme. The result will be the efficient movement of agriculture products that is critical in preserving and increasing their livelihoods.

(The author is chair of Agriwatch, former Secretary for Presidential Flagship Programs and Projects, and former Undersecretary for Agriculture, Trade and Industry. For inquiries and suggestions, email [email protected] or telefax (02) 8522112.)