Myths are being spread and many of those who are relied on to make sound decisions are listening to the false claims and are, thus, holding up key reforms that promise to streamline port operations.
Making port processes efficient will lessen what Philippine Ports Authority general manager Jay Santiago refers to as friction costs and, ultimately, the costs of logistics will be reduced.
Several avoidable expenses can be minimized through full digitalization as provided for in the stalled Trusted Operator Program-Container Registry and Monitoring System or TOP-CRMS.
Charges imposed on traders in the logistics chain have no regularity or uniformity and, at times, these costs are arbitrary.
The expenses are, in the end, shouldered by consumers through higher prices of commodities.
Digitalization will lead to fixed and predictable costs while reducing corruption as human intervention is eliminated.
Santiago underlines the fact that with the system the PPA wants to introduce, operations will become more efficient, which will redound to the benefit of Filipinos through lower costs, and thus will help a lot in bringing down the inflation rate.
Among the holdups to the full digitalization of port operations is a case filed in court questioning the auction for the TOP-CRMS.
The court did not find any irregularity but the complainant, however, opted to elevate the case to the Supreme Court.
Even the Commission on Audit has not issued an adverse opinion on the auction for the new system.
“This project has the most public hearing and consultations since I assumed the top post at the PPA,” according to Santiago.
“Easily no less than seven hearings were held on the proposed system,” he added.
While a thorough study is being undertaken on the proposal, there should be a timeline for its completion since the need for automation is urgent as the economy starts to pick up the pace.
Most of the issues raised can be addressed through consultations since these were already taken up during the drafting of the implementing operating guidelines for the TOP-CRMS.
Santiago explained that in the current system where shippers determine the destination of empty containers, the presence of cargo trucks on major roads has greatly contributed to the traffic problem in Metro Manila.
Since many of the cargo trucks have a hard time looking for a storage area to leave the empty boxes, Santiago said the haulers end up paying nearly P1,000 to traffic enforcers which is more than what the use of the port system will cost them.
A Japan International Cooperation Agency study indicated that the economy loses P2.4 billion a day from road gridlock.
A faster turnaround negates the need for the storage of boxes.
This is where most of the hidden and unnecessary charges go since the defective system at the ports allows shipping lines to dictate on haulers.
Container deposits cost truckers from P10,000 to P30,000 and up to 180,000 for a refrigerated box.
The complaints of higher costs with the introduction of automated port operations are thus illogical since reducing these costs is the key reason for the game-changing digital shift.