Category Archives: Transport and Logistics

The Networking Committee on Transport and Logistics (NC-TL) aims to identify, discuss issues and monitor government policy implementation and reforms involving transportation and logistics as necessary elements of a successful concerted national exports development program and recommend courses of actions to the Export Development Council.

ARTA launches program NEHEMIA for the logistics sector

The Anti-Red Tape Authority (ARTA) launched Program NEHEMIA for the Logistics Sector, making it the third sector launched among the five identified sectors under the program.

ARTA’s Program for National Effort for the Harmonization of Efficient Measures of Inter-Related Agencies (NEHEMIA) is a sectoral-based streamlining effort aimed to reduce time, costs, requirements, and procedures in the government sector. One of the five identified sectors is the logistics sector, along with the common towers and interconnectivity sector, the housing sector, the food pharmaceutical sector, and the energy sector.

One initiative under this program is the replacement of multiple stickers on trucks/cargoes with a unified logistics pass in the form of QR code that will be issued by LTFRB. ARTA’s Deputy Director General and EDC-NCTL’s Co-Chair Atty. Ernesto Perez elaborated, “The cargo that will be issued of this pass will be recognized by the ports, and also by other government agencies and LGUs, allowing it unimpeded from its point of origin to its point of destination”.  Moreover, he added that they “will make sure that there will be no duplication of requirements.”, and there will be a substantial reduction in the steps of the procedure to 73%, and the number of days processing from 271 days to 35 days (87% reduction) for land transport only.

This system is also said to be integrated with the Central Business Portal and BOC’s E-TRACC System.

DOTr Secretary Arthur Tugade expresses the Department’s full support and commitment to the project, reiterating that its objectives are aligned with their goals to remove red tape and reduce processing time.

Other than Sec. Tugade, DTI Secretary Lopez, DILG Undersecretary Densing, and Cabinet Secretary Nograles also graced the event and expressed support through their speeches. As CabSec Nograles stated, “The development of issuance of a unified logistics pass will allow free and faster movement of goods from point to point. On the other end, we hope to achieve the target of a 52% decrease in steps, requirements, cost, and time for government services in the logistics sector and eliminate the silo system and the lack of interconnection among agencies. This is aligned under the Philippine Development Plan, ensuring people-centered, clean, and efficient governance, specifically on achieving interoperability of government processes of becoming one connected government.”

“The train of red-tape is indeed on the move; inside it are the hopes and aspirations of the Filipino people for a more streamlined, and e-governance centered government.”, said ARTA Director-General Jeremiah Belgica.

This initiative “will not just lessen the cost of transport, this will also give more employment opportunities to help our MSMEs. It is also seen to lessen the price of commodities, benefiting not only the country but the people whom we owe our loyalty and service as public servants.”, added Deputy Director General Perez. KJDA

Online System for all port processes and payment made mandatory thru Joint Memorandum Circular

The online filing, processing, and payment of port charges and other related fees is now made mandatory through a Joint Memorandum Circular (JMC). With the JMC, it is now mandatory for all port users to file their applications online for permits and clearances for the release of cargoes from PPA, BOC, and other port operators including International Container Terminals Services, Inc. (ICTSI), Asian Terminals, Inc. (ATI), and Harbour Centre Port Terminal, Inc. (HCPTI); and payment of corresponding fees shall be done through the accredited banks and payment channels.

Upon online payment, digital copies of the official receipts (OR) will be transmitted through different electronic platforms. These ORs shall suffice and be recognized as proof of liquidation, billing, and payment.

Another key feature of this JMC is the mandatory electronic processing of gate passes that can be printed by the client at their own locations. This gate pass shall allow the cargoes to pass through except in cases when there is derogatory information that has to be validated by the BOC – Piers and Inspection Division (PID) Personnel.

Moreover, this JMC puts the protocols into writing in case of a system failure; to prevent the possibility of having port congestion, and impediments on the movement of cargoes that leads to loss of resources and revenues.

For complaints, issues or problems, Clients may contact through the following platforms:

The virtual signing ceremony of the JMC happened on 5 August 2020 via zoom led by the Anti-Red Tape Authority (ARTA), with the Bureau of Customs (BOC), Department of Trade and Industry (DTI), and Philippine Ports Authority (PPA). –KJDA

SCMAP advocates to abort NORTHPORT’s New Berthing Procedure due to doubling costs

The Supply Chain Management Association of the Philippines (SCMAP) advocates to abort NORTHPORT’s new berthing procedure as it doubles the costs of doing business making the prices of goods more expensive for the consumers.

Accordingly, this new berthing procedure compels all container vessels to berth at the Terminal 1 of the NORTHPORT, and imposes the use of their quay cranes regardless if the ship has its own crane. The cranage fee summates up to Php 1,587 (VAT inclusive) for 10 and 20 footer containers, hence adding 88% more to the current cargo handling rate of Php 1,800. This added cost and procedure is contrary to the ease of doing business.

The group appealed that the fees imposed must be justified for the modernization effort. However, the cost must be affordable and should not result in the added process and cost. SCMAP Executive Director Ms. Corazon Curay revealed the group’s sentiment on this advocacy during the EDC Networking Committee on Transport and Logistics meeting last 28 July 2020. KJDA

DOTr issued department order to minimize demurrage charges

DOTr issued department order to minimize demurrage charges

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.

It was reported that during the unfolding of the COVID19 pandemic in the country, and the start of community quarantine, the surcharges of international shipping lines heightened, and many stakeholders suffered more from the sky-rocketing shipping costs. This directive will then help in reducing the risks of incurring high demurrage charges that are borne by the importers. –KJDA 

DOTr requires domestic shipping lines to provide cargo space allocation for agricultural and food products 

The Department of Transportation (DOTr), under their DO 2020-007, requires domestic shipping lines to provide cargo space allocation not less than 12% of their vessel’s cargo capacity per voyage for agricultural and food products. This also enjoins all domestic shipping lines to extend a discount of not less than 40% from their published shipping rates for all cargoes on agricultural and food products covered by the DO.

This will prioritize shipment of agricultural and food products to aid in ensuring the “viability of food production and delivery in line with the government’s mandate to provide food security for the people.”

This DO is also pursuant to the Inter-Agency Task Force (IATF) Resolution No. 46, series of 2020. –KJDA

NEDA-RESPOND launch SCAn initiatives  

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) has officially turned over the Supply Chain Analytics (SCAn) Dashboard and launched the Incident Reporter Mobile Application last 21 May 2020 at the National Incident Command Center in Camp Aguinaldo.

The SCAn dashboard is created for the purpose of providing up-to-date, real-time information to the Inter-Agency Task Force (IATF) on existing supply chain and logistics bottlenecks/issues, and potential solutions to give them a better view from the ground, and aid them in making relevant and timely actions and decisions. It consists of five components: incident reports, trip videos for major selected routes, survey results from different stakeholders re: supply chain bottlenecks, links to other government dashboards, and a supply chain bulletin for news stories related to supply chain.

On the other hand, the Incident Reporter Mobile Application is created as a platform where different types of users will be able to report different types of incidents. The reports from this downloadable app will be submitted to the SCAn dashboard for appropriate actions of concerned authorities.

In these trying times, digital tools like this initiative provide a silver lining to the COVID 19 pandemic. Hence, everybody is encouraged to make use of the mobile app, and submit reports to help the authorities in identifying and addressing the prevailing bottlenecks in the supply chain, and further to sustain and keep the economy going. – KJDA  

Transport & Logistics Stakeholders air recommendations to facilitate flows of goods amidst COVID-19

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”.

During the forum, the transport and logistics sector with importers, supply chain associations, port users and exporters, have expressed their disdain over the increasing shipping cost including demurrage fees –locally and globally. The burden of paying higher fees and demurrage was passed on to their shoulders at the most inconvenient of times when there are airfreight cancellations, more return shipments, port congestion/container build-up at ports, blank sailings at short notice, and so on- all without their fault, but as an impact of the dreaded COVID-19 disease.

The group sought the help of government and private sectors for solutions to address and ease their current burden. They urged government, the Philippine Ports Authority (PPA) in particular, to refrain from passing the burden of paying higher fees and charges to port users. More importantly, they asked government to consider long-term and short-term solutions in order to improve the flow of goods in the country and make the cost of transport and logistics more competitive, domestically and globally. Following are the recommendations:

Short-term solutions:
1. Implement the Super Green Lane (SGL) for PEZA shipments and transactions;
2. Suspend demurrage charges for shipments stuck at the port and apply this retroactively to all shipments affected;
3. Extend the free storage period from 5 days to 10 days;
4. Lift the truck ban/ number coding;
5. Promulgate guidelines and ensure that all shipping lines have sufficient Container Yard (CY) space for empty containers as well as expedite the accreditation and activation of Inland Container Depots (ICDs) as needed.

Long-term solutions:
1. Creation of a single Customs Revenue District for ports serving the Greater Manila Area or mandate a single port of discharge to vessels
2. improve online processing of permits/customs clearance/payments
3. Full implementation of the National Single Window;
4. Improve internet speed and connectivity
5.Establishment of a Supply Chain and Logistics Council composed of public and private sector.

In response to the groups plea for help, a statement urging the Inter-Agency Task Force (IATF) to address Ports Issues under COVID-19 and Endorsing the Joint Administrative Order (JAO) on  establishing guidelines in the application of local charges imposed by international shipping lines, freight forwarders or logistics companies, customs brokers, cargo truck operators, terminal operators and container yard operators to comply with existing laws and instructing the Bureau of Customs (BOC) and Philippine Ports Authority (PPA) to improve productivity in the handling of cargoes, was issued.-GTM

NEDA’s Supply Chain Plan Gets a GO from IATF

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).

The main objective of the SCAn dashboard is to provide up-to-date, real-time information to the IATF on existing supply chain and logistics issues, and potential solutions to aid them in making relevant and timely actions and decisions. Information in the SCAn dashboard will be generated from different subnational stakeholders through a Networks Hub.

The Networks Hub is consisted of, but not limited to Philippine Chamber of Commerce and Industry (PCCI), Supply Chain Management Association of the Philippines (SCMAP), Philippine Exporters Confederation Inc. (PHILEXPORT), and Export Development Council’s Networking Committee on Transport and logistics (EDC-NCTL), including other government/regulatory agencies such as the Department of Trade and Industry (DTI), Department of Agriculture (DA), and Anti-Red Tape Authority (ARTA).

The RIA on the other hand, will be implemented alongside with ARTA. They will tackle COVID 19 related issuances that have implications to the flow of supply chain to ensure those that can be a burden or threat to the efficient flow of goods will be taken out.

In light of the COVID 19 pandemic that our country is facing, it is crucial to ensure the unhampered, unimpeded flow of goods to secure our supply chain, and to keep the economy going. This collaborative undertaking will be beneficial to preserving the unimpaired flow of goods, and up to the largest extent, mitigate the challenges brought by the COVID 19 to the supply chain.

This initiative is made possible in partnership with the University of the Philippines Public Administration Research and Extension Services Foundation Inc. – Regulatory Support Program for National Development (UPPAF-RESPOND), under the headship of Dr. Enrico Basilio, RESPOND Chief of Party, and EDC-NCTL Chair. – KJDA

DTI, DOTR, DOF to issue JAO regulating the international shipping charges

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

Develop domestic airports for sustainable tourism and trade 

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).

AnchorDuring the 4th 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