| The controversial truck ban by the City of Manila is said to be hampering the operations of exporters in the Philippine Economic Zone Authority (PEZA) zones and could lead to layoffs. "They [PEZA locators] are very much affected [by the truck ban]. I have been receiving e-mails saying they will stop their operations," the agency's head, Lilia de Lima, told reporters on the sidelines of a business forum in Makati City, reported BusinessWorld. De Lima was referring to a Manila ordinance implemented on Monday that prevents eight-wheelers and vehicles carrying a load of 4,500 kilograms and above from using city roads from 5:00-9:00 am and 3:00-9:00 pm. The initial plan called for a longer, 16-hour ban, but a 10:00 am - 3:00 pm window was opened after trade groups complained. The ban exempts trucks carrying perishables and petroleum products as well as vehicles used for government projects. The ordinance was implemented to force logistics companies and their clients to use ports in Batangas and Subic more and, eventually, decongest traffic in Manila. "That's ideal," said De Lima, adding that the agency has been pushing for the idea since 2011. She said fees in the Batangas port have even been halved to attract companies, but the lack of shipping lines there has prevented them from doing so. "Many of them [PEZA locators] want to ship from there [Batangas port]. However, only one or two shipping lines are operating there," said De Lima. "So, I'm going to ask the companies to ask their shipping lines to use that port because, in the end, all of them will suffer," she said. De Lima cited a Japanese construction firm that uses 400 40-foot container vans to transport housing materials through the ports in Manila every day. "Only 1/4 of that volume could be [moved] after the truck ban," she said. She also said that 800 PEZA locators in the Cavite-Laguna-Batangas- Rizal (Calabarzon) region export US$77 million worth of goods through the Manila port every day. "If this [truck ban] goes on for another two or three days, it would be very bad. If you're a company that produces 200 trucks of goods, where will you stock your produce?" De Lima said. "The best thing to do is to lessen production. If you reduce production, you will also have to reduce people." The PEZA chief noted that 200,000 workers are currently employed in the Calabarzon economic zones. PEZA administers over 300 such zones throughout the country. Exports from these areas accounted for 65 percent of Philippine exports last year. Industry groups had mixed reactions on the first day of the ban, with European Chamber of Commerce of the Philippines president Michael Raeuber and Port Users Confederation president Rodolfo de Ocampo both claiming it could lead to logistical gridlock and cause congestion. On the other hand, Philippine Exporters Confederation (Philexport) and the Philippine Chamber of Commerce and Industry were more supportive of the ban, with Philexport president Sergio Ortiz-Luis saying that it could help ease traffic in the city. Meanwhile, port operator International Container Terminal Services Inc (ICTSI) belied reports of congestion at the Port of Manila and said that a lack of infrastructure has resulted in road congestion going to the ports. Earlier this month, Batangas Second District Rep. Raneo Abu pushed for using the Port of Batangas and claimed that Manila ports are already congested and cannot handle any additional capacity. However, Christian Gonzalez, ICTSI head of the Asian region, opposed the lawmaker's claim, saying that the roads leading to the port areas - not the ports themselves - are the congested channels. "What is lacking, and what has been lacking for the last few decades, is road infrastructure. Congestion on land is largely a result of lack of road infrastructure to match the growth of the economy. The low utilisation of out ports is likewise driven by poor road infrastructure. No shipping line or customer of a shipping line will want to use Batangas or Subic if it cannot get the majority of imports destined into the capital through the roads," Gonzales said in a statement. He also noted that the whole Port of Manila handles about 3.8 million TEUs while Batangas "has a theoretical maximum capacity of no more than 300,000 TEUs today". Gonzales also suggested that the recent truck ban would have a ripple effect on trade. "Trade represents growth. Growth represents jobs and prosperity. Closing the roads to trade slows down growth, jobs and prosperity. It's that simple," he said. Expected to decongest traffic to and from Manila ports are projects such as the US$593 million Metro Manila Skyway Stage 3, linking Makati and Quezon Cities, and an $402 million connector road from Caloocan City to Manila. Motorists must wait a few years before using these roads, however, as construction starts only this year. |
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