Category: Transport and Logistics

The Department of Transportation (DOTr) issued Department Order (DO) 2020-009 to minimize demurrage charges.  

This DO prescribe a minimum free time period of eight (8) days for cargoes unloaded by international shipping lines in any port throughout the country. This is a development from the five (5) days previously granted by the international shipping lines before charging demurrage. 

Continue reading “DOTr issued department order to minimize demurrage charges”

The National Economic and Development Authority (NEDA) and the University of the Philippines Public Administration Research and Extension Services Foundation Inc., Regulatory Reform Support Program for National Development (UPPAF-RESPOND) Continue reading “NEDA-RESPOND launch SCAn initiatives  “

The issues and challenges faced by the transport and logistics sector were discussed last 15 April 2020, during the 3rd eForum of #ResilenceAndRecoveryPH with the topic “Local and Global Supply Chains: Quick Assessment and Ways Forward”.   Continue reading “Transport & Logistics Stakeholders air recommendations to facilitate flows of goods amidst COVID-19”

The National Economic and Development Authority’s (NEDA) plan gets a GO, pursuant to the Inter-Agency Task Force (IATF) Resolution No. 24 dated 15 April 2020 – acquiring the approval to develop a Supply Chain Analytics (SCAn) dashboard, and to conduct a Regulatory Impact Assessment (RIA).  Continue reading “NEDA’s Supply Chain Plan Gets a GO from IATF”

Exporters from Mindanao are encouraged to explore the Davao-Manado route for transporting their goods and products, specifically food products (both fresh and processed) for a more cost-effective and shorter route (from 5 weeks to 13 days). This was presented during a meeting hosted by Philippine Ambassador to Indonesia, Amb. Leechiong T. Wee, as both countries – the Philippines and Indonesia are also trying to explore ways to resume the Davao-GenSan-Bitung route with a Manila-based shipping company.

The new route is being used and touted as an express line for direct to market shipping route by the Reefer Express Line, Inc., a new player that plans to begin operating the new route within the first half of this year. But operations will commence depending on the negotiations between the shipping company and exporters from both countries.

The shipping company also revealed its plan to serve the new route with additional calls on other ports not only in Indonesia but also in Malaysia and Brunei en route to Singapore. However, the company said that they have yet to discuss the final details with other shippers from the Philippines, Indonesia and other players from Malaysia.

Moreover, the new route was considered a priority of the current administration and the Indonesian government, citing that Manado is the main gateway of Indonesia to the Philippines. Hence, the call for exporters to explore the new route and the services of Reefer Express Line, Inc. – GTM

During his Government Address on The Roads and Traffic Expo, Chairman Danilo Lim of Metro Manila Development Authority (MMDA) talked about the importance of transportation as one of the key sector in our fast growing economy.

Classified as a Mega City by the United Nation, Metro Manila with its 13 million populations and still growing is seen to worsen and affect the current transportation and road system. Based on the Department of Public Ways and Highways (DPWH), the road system in Metro Manila only increased 7% in the past 10 years, having only 1167km from 1087km back in 2008. In relation, the recent study conducted by the Asian Development Bank (ADB), Metro Manila ranked as the most congested city among the 278 developing cities in Asia. Placing first in the “Relative Congestion in ASEAN cities with populations greater than 5 Million” using the average of 1.24, Metro Manila get an average of 1.5.

To battle congestion and related transportation problems, the Philippine government in partnership with Japan International Cooperation Agency (JICA) came up with the Intelligent Transport System, a 5 year comprehensive traffic management plan that aims to complete the data driven analysis of the current traffic structure in Metro Manila with the goal to improve the mobility, connectivity, and safety of Filipinos.

JICA allocated 7% out of their USD 1 trillion outstanding loan for the Philippine alone. JICA and the Philippines currently have 27 ongoing projects totaling USD 15 Billion and 16 out of the 27 ongoing projects are related and allocated for transportation sector alone; with an estimate of amount of Php 375 Billion commitment.

With this assistance from JICA as well as the “Build Build Build” program by the current administration, MMDA Chairman Lim is positive they could “Battle” the Metro Manila congestion. – KJC

The President of Multimodal and Logistics Association Inc. (PMTLAI) Ms. Marilyn C. Alberto, reported during the 2^nd Logistics Services Philippines Conference and Exhibition (LSPH) that the issuance of the Joint Administrative Order (JAO) which focuses to address the problems on high shipping cost and port congestion will be the “long term solutions to the problems that affects the logistics services ability to enable business competitiveness.”

The JAO was spearheaded by the Department of Trade and Industry (DTI), Department of Transportation (DOTr), who already signed the JAO, as well as Department of Finance (DOF), together with the Bureau of Customs (BOC), and Philippine Port Authority (PPA).  DTI Secretary Ramon Lopez remarked during his keynote speech that the JAO will be transformed into an Executive Order (EO).

Since the pronouncement of the JAO, PPA issued a detailed regulation thru PPA Administrative Order (AO) 002-19, addressing the transfer of overstaying import shipments in Manila South Harbor and Manila International Container Terminal to maintain the utilization rate.

Likewise, BOC also issued a Customs Memorandum Order (CMO) 13-2019 that provides the interim guidelines on the return of the empty containers at the Port of Manila and Manila International Container Port to avoid port congestion; also stating that the international shipping lines must ensure sufficient containers space for their empties.

The 2^nd LSPH organized by the DTI was held last 15 July 2019 at the Philippine International Convention Center. – KJC   

In a recent pronouncement, DTI Secretary Ramon Lopez stated that the Departments of Trade and Industry, Transportation and Finance will issue the Joint Administrative Order (JAO) that will regulate local charges imposed by international shipping lines.

The draft JAO was already signed by the Trade Secretary and still need to be co-signed by the Secretaries of Finance and Transportation.

While the JAO is still to be signed, the Bureau of Customs (BOC) and Philippine Ports Authority (PPA) has already issued orders resulting to normalizing utilization rate of container depots in Manila ports back to 70%.

Specifically, the BOC issued Customs Memorandum Order 13-2019 in February which “disallowed brokers, importers, truckers and other port stakeholders to return empty containers within the premises of Manila International Container Port (MICP) and Port of Manila (POM) beginning February, until further notice”.

On the other hand, the PPA issued a directive stating “all importers, consignees, owners, and shippers of containers already cleared by BOC are notified to withdraw said containers within fifteen (15) days and shall be compelled to transfer these containers to a designated port or inland container depot at their cost”.

Hence, this facilitated the transfer of overstaying containers to Batangas and Subic Ports with the cooperation of the port operators.

International Shipping Lines, for their part, are being required to promptly evacuate empty containers from the Manila ports within the prescribed period given by BOC, either by regular ship calls or sweeper vessels.

Secretary Lopez also assured the government is addressing the infrastructure needs of the country with its aggressive infrastructure program. MJAA

The Department of Tourism recognizes the importance of developing domestic airports in improving competitiveness and enhancing sustainable growth both in tourism and trade. It is also highlighted that the airports are not just gateways but more of economic growth drivers. This objective is included in the National Tourism Development Plan (NTDP).

During the 4^th Annual Philippine Airport Modernization and Expansion Summit, DOT Undersecretary Arturo Boncato, Jr. shared that the tourism sector generated more than 5 million employment and 12.2% contribution to GDP in 2017. Initial data shows that there are about $ 8 billion income generated from tourist arrivals in 2018.

The development of secondary gateways and provincial airports is one of the advocacies of the Export Development Council. By doing so, congestion in the capital, especially in the immediate and medium term, will be reduced, which in turn will mean lower travel cost for passengers.

To date, there are only 19 night-rated airports in the country. According to the Civil Aviation Authority of the Philippines (CAAP), the additional airports with Airfield Lighting System (ALS) are the following: Bohol/ Panglao Principal Airport, Subic Bay International Airport, Tuguegarao Principal Airport, and Naga Principal Airport.

The airports to be provided with ALS this year (2019) and currently being processed are the following: Cotabato Principal Airport, Cauayan Principal Airport, Dipolog Principal Airport and Pagadian Principal Airport.

The other recommendations for the domestic airport development are: (1) Modernizing the infrastructure and facilities of the domestic airports to accommodate direct flights to the major gateway of the Philippines, (2) Funding prioritization for the upgrading of domestic airports to provided night-landing and all-weather facilities for a more efficient operation and to emphasize safety improvements to meet International Civil Aviation Organization  Standards And Recommended Practices (ICAO SARPS), (3) Development of airports through Public-Private Partnership, and (4) Development of a coherent long-term investment plan for the airports.

CAAP assured of its continuous work to make more airports in the country night-rated. Equipping airports with night-rated capabilities will enable these facilities to serve more passengers. MJAA