PCCI bats for volume caps on containers in Mla ports

MANILA, Philippines - The country’s largest business group, the Philippine Chamber of Commerce and Industry (PCCI), is pushing for the imposition of mandatory caps on volume of containers handled by Manila ports to ease congestion and encourage business activity in other areas.

In a statement yesterday, PCCI president Alfredo Yao said the group is backing the recommendations of its member chambers in Northern Luzon to put a ceiling on the volume of containers that can be handled by Manila ports and shift the others to the Subic Bay Freeport.

“Subic, a world-class international gateway, uses only six percent of its capacity because cargoes do not go there,” he said.

“It is time for the Philippine Ports Authority to look seriously at recommendations for a mandatory cap. The ports in Manila, now at about 120 percent, have long overstretched its capacity,” he added.

In a meeting held last month, representatives and delegates of PCCI member chambers in Northern Luzon such as Metro Angeles Chamber of Commerce and Industries, Clark Investors and Locators Association and the Export Processing Zone Chamber of Exporters and Manufacturers discussed with Yao their recommendations.

Yao said freight movements have an impact on the economic development of regions.

More investments and business expansions are likely to be seen in Northern Luzon when some of the containers going to Manila’s ports are shifted to the Subic Bay Freeport.

The shift of containers to Subic will also remove uncertainties on the reliability of port users as part of the production and distribution links of global supply chains.

Heavy congestion in Manila’s ports have resulted in higher costs and delays.

Yao noted that in the first quarter, trucking costs have shot up to about P50,000 per trip from P18,000 per trip.

Thus, the chambers are confident that the mandatory cap makes growth of future earnings of port users sustainable, he said.

The PCCI intends to discuss the proposal to impose a mandatory cap on Manila’s ports with the National Government.