Connect with us

Hi, what are you looking for?

News

PPA sees monitoring system reducing logistics costs

REUTERS

THE Philippine Ports Authority (PPA) said its upcoming Trusted Operator Program-Container Registry and Monitoring System, or TOP-CRMS, will help reduce logistics costs by eliminating the container deposits charged by shipping lines to truckers, brokers, and forwarders.

The monitoring system, which has attracted a backlash, will also cut costs incurred by truckers on the road by helping them anticipate unavailable yard slots when they returning empty containers, PPA General Manager Jay Daniel R. Santiago said at a briefing on Wednesday.

TOP-CRMS, a P900-million PPA digitalization project, is expected to be implemented within the first half of the year, according to Mr. Santiago.

“There are still certain regulatory and legal compliances that we need to undertake,” he said.

In July, Transportation Secretary Jaime J. Bautista urged the PPA to work towards reducing the cost of shipping and travel.

According to Mr. Santiago, port charges account for only 2-5% of total logistics costs.

All other charges such as freight charges of shipping lines, trucking charges, container handling charges of private container yards, and warehousing costs are “not regulated,” he said.

“We can only do so much in terms of minimizing or regulating the regulated charges. But we are not immune to the need to lower logistics costs, which is why we are working to reduce the incremental costs in the logistics chain.”

Using TOP-CRMS, the PPA is proposing to “eliminate the container deposit and replace it with container deposit insurance,” Mr. Santiago noted.

He said that container deposits charged by shipping lines range from P10,000 to P30,000 for dry containers and up to P180,000 for refrigerated containers. Container deposits are required by shipping lines to ensure that their containers are returned undamaged.

With TOP-CRMS, Mr. Santiago said, such amounts will be reduced to a P980 container monitoring fee, inclusive of container deposit insurance for missing or damaged containers.

The monitoring system also hopes to address the problems encountered by truckers when returning empty containers.

Shipping lines give truckers between three and five days to return empty containers, and charge them for exceeding five days, according to Mr. Santiago.

Truckers are also charged P1,000 to schedule the return of the empty containers, he added.

Truckers are sometimes advised by shipping lines to return their containers to a specific container yard only to be informed that there is no more space, Mr. Santiago added.

“So the trucker will either wait, or risk fines for parking or staying on the road even during the truck ban,” he said.

Such costs are ultimately passed on to the consumer, according to the PPA chief.

With TOP-CRMS, the PPA will accredit or designate yards for empty containers.

“Initially, the PPA has designated one yard in Bulacan, which is a minimum of 10 hectares expandable to 18. We have also identified yards in Laguna. We are willing to accredit or designate yards within the port area… provided that they commit to a certain number of slots that they will make available for the system, and they have to be integrated into our system including their CCTVs to monitor the condition of each container for damage or dispute assessment and resolution purposes,” Mr. Santiago said.

Under the proposal, truckers returning empty containers will pay P900 per lodgement. Before the release of the containers, they will pay another P3,408 in handling fees.

“Any PPA-accredited empty container yard cannot refuse acceptance because all of the available slots will be seen on a dashboard. They will have no reason to reject acceptance,” Mr. Santiago said. — Arjay L. Balinbin

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Editor’s Pick

<?xml encoding=”utf-8″ ??> Aspect is the well-known property maintenance company in London that is recognised for its signature yellow and blue vans, which are...

Editor’s Pick

<?xml encoding=”utf-8″ ??> The Wakelet Microsoft 365 Children’s Parliament backed by The Express, is proud to announce that James Caan CBE, the former Chairman...

News

THE TOWERING BUILDINGS of Makati’s central business district are seen in the background in this May 13, 2020 file photo. — PHILIPPINE STAR/ MIGUEL...

News

A Philippines peso note is seen in this illustration on June 2, 2017. — REUTERS THE PHILIPPINES could benefit from the proposed Maharlika Investment...

News

PASSENGERS queue before the check-in counters at the Ninoy Aquino International Airport (NAIA) Terminal 3 after flights were canceled due to technical issues on...

News

By Arjay L. Balinbin, Senior Reporter METRO PACIFIC Investment Corp. (MPIC) expects to generate P500 million in revenue from its dairy business by 2025,...

You May Also Like

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.