Major shipping and logistic groups support the decision of the Senate to investigate, in aid of legislation, the Philippine Ports Authority (PPA) for its issuances that the groups claimed could lead to increase in logistics cost and price of food and basic commodities.
The hearing will be conducted by the Senate Committee on Public Services, chaired by Senator Grace Poe, on April 12.
“We are elated by the news that the Senate Committee on Public Services, chaired by Senator Poe, will look into the increased shipping and logistic costs brought about by a series of issuances by the PPA,” the groups said in a joint statement.
According to the groups, the Senate investigation is a very good opportunity for the Senate to weigh in on those “problematic policy orders by the PPA particularly Administrative Order 04-2021 that created the Trusted Operator Program-Container Registry and Monitoring System (TOP-CRMS).”
They warned that if the PPA policies are not revoked, the soaring shipping and transport costs can further fuel inflation.
The groups include the Association of International Shipping Lines (AISL), Philippine Liner Shipping Association (PLSA), Alliance of Concerned Truck Owners and Organizations (ACTOO), Alliance of Container Yard Operators of the Philippines (ACYOP), and Customs Brokers Federation of the Philippines (CBFP).
Specifically, the committee will hear Senate Resolution No. 484, filed by Senator Risa Hontiveros, on the various administrative orders (A.O.) issued by the PPA such as A.O. 12-2018 pertaining to the grant of port terminal management contracts to bidders with the highest concession price, A.O. 12-2019 which implements a central ticketing system, A.O. 01-2020 which increases the garbage collection fees, and A.O. 04-2021 which provides for the creation of a mechanism for registration and monitoring of containers entering and exiting ports.
TOP-CRMS, in particular, will “hurt the supply chain in the process and cause a spike in food prices in the country. The Philippine Chamber of Commerce and Industry can attest to that,” said Patrick Ronas, AISL President.”
“Clearly, these policy orders are at odds with the international standards and do not conform to the objectives of the Ease of Doing Business Law,” the statement added.
The groups reiterated their earlier warning that the additional costs to be incurred by shipping and logistic providers due to the assailed policies will be passed on to the consumers, making it even more difficult for ordinary Filipinos to get by.
“We hope that the hearing will result in the revocation of these administrative orders,” the groups said.
The groups together with other business organizations had earlier called on President Ferdinand Marcos, Jr. and the Congress to immediately scrap the PPA from implementing the container registry and monitoring system.
These groups include the Philippine Chamber of Commerce and Industry (PCCI), Federation of Filipino-Chinese Chamber of Commerce and Industry, Inc., Philippine Exporters Confederation, Supply Chain Management Association of the Philippines, Philippine Association of Meat Processors, Inc., Philippine Multimodal Transport and Logistics Association, Inc., Association of Off-Dock CFS Operators of the Philippines, Inc., Custom Brokers Federation of the Philippines, Pasig Port Users United, Philippine Ship Agents Association, Port Users Confederation of the Philippines, Inc., Practicing Customs Brokers Association of the Philippines, and the United Port Users Confederation of the Philippines, Inc.