LTFRB suspends crackdown on colorum trucks

By: Amy R. Remo - 10 years ago

LTFRB chairman Winston Ginez during his visit at PDI office.KIMBERLY DELA CRUZ/INQUIRER PHOTO

MANILA, Philippines—The Land Transportation Franchising and Regulatory Board (LTFRB) has temporarily suspended a joint administrative order meant to crack down on colorum trucks, until the operations at the Port of Manila have normalized.

Speaking to reporters via phone interview, LTFRB chair Winston Ginez said the implementation of Joint Administrative Order (JAO) No. 2014-01 was deferred starting Thursday (Aug. 21), to ensure the smooth flow of trucks in and out of the country’s busiest port. This meant port-related trucks, whether loaded or not, will not be apprehended on the basis of the JAO until the resumption of normal operations at the Port of Manila.

The imposition of this moratorium, which reportedly had the full support of Transportation and Communications Secretary Joseph Emilio Abaya according to Ginez, was deemed to be among the critical measures that could help resolve the truck congestion and the container pile up.

Local companies have been reeling from a double whammy of double-digit losses in revenues and equally crippling surges in import and export related expenses since February this year. Such congestion was said to have stemmed primarily from Manila’s expanded truck ban policy, which has banned eight wheelers and vehicles with a gross weight of above 4,500 kilos from plying the city’s streets between 5 a.m. and 9 p.m.

Government data have shown about 30,000 trucks plying Metro Manila, and of this number, 11,150 are reportedly port-related trucks.

Jesus Lim Arranza, chairman of the Federation of Philippine Industries, meanwhile, lauded the move by LTFRB to impose a moratorium on the JAO, which was designed to ensure public road discipline and safety as it would impose penalties ranging from higher fines to revocation of the registration of the apprehended vehicle and all other authorized units included in the franchise.

Arranza, however, said in an interview with reporters Thursday that the problems at the port would be resolved faster if the city government of Manila would temporarily put on hold the implementation of its expanded truck ban policy. This will be especially critical in the coming “-ber” months, which will see an influx of shipments.

“We hope (Manila) can temporarily suspend (this policy) so the solutions to the congestion can be fast-tracked. By September, people will start importing more and that will only aggravate and complicate the situation,” Arranza explained. “All the obstacles must be suspended so we can address the problems faster. Time is of the essence.”

Arranza likewise lauded the developments at the Manila port, which saw improvements in its operations over the last two and a half months.

As of Thursday, only 8,000 overstaying containers were still at the port from the 20,000 recorded two and a half months ago, while the volume of containers from abroad (Singapore, Hong Kong and Kaoshung) have already declined to 20,000 containers from 37,000, government data showed.

This meant that the overflow of 57,000 containers was already down to 28,000 containers, a development that would bode well for the peak season set to arrive in a few weeks’ time.

The Philippine Ports Authority said this overflow of containers was above and beyond the normal capacity at the Manila Port. At full capacity, the port should handle some 81,000 containers, but the normal efficient yard utilization should be around 80 percent, or about 64,000 containers.

A special chartered vessel, which was also arranged by the PPA, arrived Wednesday and had begun taking out of Manila some 3,000 containers that have been on hold due to various reasons, to be brought to Subic. The vessel, chartered at about P14 million for 15 days, has a capacity of about 1,200 containers per trip, which means that the containers can all be transferred within three days. The PPA however has yet to secure approvals from the Bureau of Customs to transfer even those (of the 3,000 containers) that have agricultural goods such as rice and garlic.

Business groups have since stressed the need for the quick resolution of the congestion at the port, as this was making a significant dent on the country’s growth, as well as in the exports, imports and inflation rates. Its resolution would also enable the government to sustain the economic momentum that the country has so far been enjoying.

Trade Secretary Gregory L. Domingo earlier said he expected the country to grow at a slower pace, or a tad lower than 6.5 percent.