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The Bureau of Customs is looking at temporary container yards and more frequent sweeper vessels to ease port and container yard congestion
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Longer-term options include new legislation and new infrastructure to make goods flow less Manila-centric
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The measures are part of ongoing talks led by Cabinet Secretary Benhur Abalos
Short-term solutions such as temporary container yards and more frequent sweeper vessels, while long-term solutions such as legislation, are being looked at by the government to address issues on port and container yard congestion, according to the Bureau of Customs (BOC).
These short and long-term solutions are part of ongoing discussions led by Cabinet Secretary Benhur Abalos, according to BOC deputy chief of staff Atty. Chris Noel Bendijo in a presentation during BOC’s 7th Customs Industry Consultative and Advisory Council (CICAC) general assembly and 13th Central CICAC meeting on November 6.
Bendijo noted that BOC has joined various meetings called for by Abalos since October regarding industry issues. Stakeholders have been raising concerns on congestion at Manila ports and the continued difficulty in the return of empty containers.
Short term solutions raised during the discussions include strengthening of inland terminals, and lifting of truck bans, the truck anti-overloading policy, and pass-through fees imposed by local government agencies on truckers.
“The purpose here is even if we expedite our processes inside the terminals, if the trucks are unable to move freely in the Metropolis or even outside, it will still create that congestion issue because the movement is regulated,” Bendijo stated.
He noted that discussions are looking at at least a “fixed duration within which we expedite the gating out of laden containers, allow our truckers free movement to their point of destination until they return, so that…the movement of goods can be faster” and make “wiggle room” in ports and container yards.
Temporary container yards
Another short-term solution is to find potential properties for temporary use as container yards.
At present, Bendijo said there are several offers from private entities that they still have to explore. These include a 100-hectare property in Bulacan, another 100-hectare property in Cavite, and another offer that will, however, necessitate additional clearing due to garbage issues.
Shipping lines have also requested for the lifting of customs duties and taxes on overstaying containers.
“So, if indeed there will be… a holiday rather on duties and taxes for overstaying containers, the shipping lines have a commitment of sending sweeper vessels, entering into co-loading agreements and domestic inter-island transfer to lessen the utilization of our terminals, to lessen the utilization of our container yards as well,” Bendijo said.
“The intention here is for all of those overstaying containers to be re-exported so that our container yards can have a low utilization,” Bendijo noted.
At present, utilization of 24 BOC-accredited container yards is at 85%, he added.
AISL’s call for moratorium
Association of International Shipping Lines, Inc. president Patrick Ronas, in a Viber message to PortCalls, said they have been requesting for the moratorium or waiver since early this year.
Ronas said since June, shipping lines have sent 12 sweeper vessels, each able to carry 1,500 to 2,000 twenty-foot equivalent units.
“If we get the moratorium, this will open up for shipping lines to send sweepers and share space on the ship. Depending on the line and on the size of the vessels, they can come weekly, bi-monhtly, or monthly. This of course does not take into consideration the usual vessel calls of lines that come to Manila regularly. They also have the capacity to load empties. As far as we are concerned, we want to match the number of loading based on what we discharge,” Ronas explained.
He added that if terminals, with the help of BOC, removes laden overstaying containers, especially those from six to 30 days that occupy more than 40% of space at the terminals, “we should be able to move the empties that are in the off dock depots to the ports to load on regular vessels and sweepers.”
Long-term solutions
For long term solutions, new infrastructure that will result in a less “Manila-centric” flow of goods is being discussed. Bendijo noted for example ongoing projects such as the new airport in Bulacan and International Container Terminal Services, Inc.’s new South Luzon Container Terminal in Bauan, Batangas.
READ: Exporters back Manila port fixes, push for long-term reforms
“Obviously, the idea is to create more activity outside Metro Manila to reduce the utilization, to reduce traffic, and perhaps in that instance, the possibility of expanding our infrastructure, our road networks, etc.,” Bendijo said.
Another long-term solution proposed is a joint administrative order or perhaps the institutionalization of regulations addressing port congestion. He acknowledges that this suggestion might be contentious, he said the idea is that regardless of the change in administration, there will be “institutional powers” to address issues, whether through a JAO or other policy.
BOC has led the drafting of a JAO aiming to provide guidelines on port and container management, as well as transparency and regulation of shipping and logistics charges. The JAO has been signed by the Finance secretary, but is still awaiting approval from other signatories.
Relatedly, legislation “would be needed really to institutionalize” such solutions, Bendijo said.
Several bills have been filed in previous Congresses that seek to strengthen the oversight functions of government agencies over the imposition of shipping charges by international shipping lines but so far only one was able to hurdle a third and final reading at the Lower House. Bills filed in the current Congress are still at the Committee level.
Aside from the short and longer term solutions, Bendijo also collated the industry’s wishlists during the meetings with Abalos.
Logistics service providers’ wish lists were categorized by operations, infrastructure, and policy and governance.
For operations, requests include the following:
- Implementing an extended work hour for cargo inspection and release
- Streamlining of accreditation processes
- Extension of provisional authority for trucks-for-hire from six months to one year
- Designation of alternative return depots
- Digital pre-advise portal
- Shorter interval schedule of sweeper vessels collecting empty containers
On the infrastructure side, logistics service providers are asking for:
- Temporary centralized container yards
- Vertical clearance rectification of roads
- Regional port utilization and better link infrastructure to inland terminals
On policy and governance:
- Harmonize 24/7 truck ban or limited duration lifting
- Moratorium on checkpoints
- Rationalization of restrictive local ordinances
- Review of truck anti-overloading regulations
- Clearer guidelines on truck impoundment and minor accidents, including confiscation of truck driver’s license
Shipping lines, meanwhile, have asked for unrestricted terminal movements aside from the temporary lifting of the imposition of customs duties and taxes on overstaying containers.
Moreover, Bendijo noted several immediate solutions that have been implemented by BOC and its partners.
Last June, BOC issued a memorandum that ordered the immediate adoption of three measures – the transfer of overstaying laden containers, expedited assessment and processing of shipments, and deployment of sweeper vessels – to address high yard utilization and improve cargo movement in Manila international terminals.
Last October 30, BOC also issued Office of the Commissioner (OCOM) Memo No. 118-2026, extending operations at designated examination areas (DEA) at Manila and other ports experiencing congestion operations from the regular schedule of 8 a.m.-5 p.m. to until 12:00 midnight, effectively immediately.
It aims to facilitate the timely examination and clearance of shipments in anticipation of increased cargo volumes during the Christmas season.
In response to this, Bendijo said the Bureau of Animal Industry had issued a memorandum order on November 4 directing the Veterinary Quarantine Stations at MICP and Port of Manila to operate on a 24/7 basis.
In line with this, Bendijo asked customs brokers if they can also extend their work hours “to complement these extended work hours on the part of the government side.”
Moreover, Bendijo said BOC-Port of Manila and BOC-MICP have called on various owners of containers at Manila port to withdraw their containers, totaling 3,598 as of October 26. Of this total, 1,683 have been released from Manila ports as of November 4, with commitments from importers to clear the remaining 1,915 in a week or two.
The service provider of BOC’s Electronic Tracking of Containerized Cargo (E-TRACC) System has ordered additional 500 units of electronic customs seals (ECS) that are already ready for deployment in the next few days. To coincide with the extended DEA hours, the service provider also committed two additional personnel to do the arming of ECS.
E-TRACC is BOC’s system to track the inland movement of containerized cargoes during transit and transfer to other customs territories and facilities. All containers covered by the E-TRACC System should be affixed with an ECS–a GPS monitoring device–before being cleared to depart from the starting point or point of discharge for the voyage to the end point or point of destination.—Roumina Pablo
