The digitalization of the operations of the Philippine Port Authority’s (PPA) poses some problems that include its clients paying more for the entire process, a shipping executive said.
Patrick Ronas, president of the Association of International Shipping Lines (AISL), said there are some inconsistencies in the PPA's digitalization process, particularly in the Implementing Operational Guidelines (IOG) of the agency's Administrative Order 04-2021.
“The PPA has been claiming of the need to digitize the way containers move to and from the terminal but entities involved in the movement and the handling of containers are already digitized and such systems have been in place for a number of years,” said Ronas.
He said even industry stakeholders has pointed the problems in the PPA move that include a clash on the intent of the Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery.
Ronas stressed that some aspects of the digitalization only added another layer in the processes of handling cargo.
The PPA's digitalization process was one of those discussed during the port industry stakeholders meeting on Jan. 4.
Representatives from the AISL, domestic shipping’s Philippine Liner Shipping Association (PLSA), international freight forwarders’ Philippine Multimodal Transport and Logistics Associations Inc. (PMTLAI), the Philippine Exporters Confederation Inc. (Philexport), Supply Chain Management Association of the Philippines (SCMAP), and Association of Truck Owners and Operators (ACTOO) were present during the meeting.
In the ensuing question-and-answer portion of the meeting, AISL Director Joey Ilagan said he questioned the IOG provisions that centered on how the charges for consignees were arrived at by the PPA.
“Unfortunately, none in the panel was able to respond to the questions,” he said.
Ronas also pointed out that while the PPA intends to monitor the movement of the shipping lines’ empty containers, this was not actually within the purview of its mandate.
“This is the job and duty of the Bureau of Customs (BOC) under Republic Act 10863, or the Customs Modernization and Tariff Act. There are systems in place at the BOC. Shipping lines clear empty containers with the BOC prior to exportation,” he explained.
Ronas also noted that under the PPA IOG, foreign shipping lines will now be required to send empty containers to PPA-managed staging areas prior to entry to the ports.
“The establishment of such staging area is not within the jurisdiction of the PPA as off-dock depots are considered BOC facilities,” he said.
And ultimately, he said costs for the new rules will be shouldered by consumers and consignees.
“The IOG is obviously flawed in this aspect because it is trying to overburden the consumer in the guise of streamlining PPA operations through a form of digitalization which is actually already in-place,” Ronas said.