Free movement of goods is vital for transport reforms
According to an official of the Philippine Chamber of Commerce and Industry (PCCI), the free movement of goods within the country must be taken into account when fixing the transport system of the country.
“As far as the transport system is concerned, it is very difficult, very uneven. Our barangay, our towns, [have] no efficient means of transporting goods and services,” Perry A. Ferrer, president of the 48th Philippine Business Conference and Expo (PBC&E) recently told reporters on the sidelines of the PBC&E event when asked to discuss of the PCCI resolution on transport.
Among the PCCI’s resolutions at the 48th PBC&E is transportation, urging the national government to provide “world-class” integrated transportation systems and to “separate” regulatory and commercial functions from the Philippine Ports Authority ( PPA) and “other persons in a similar situation” transport agencies.
Ferrer said, “Once you have that, the fluid [traffic of goods]we will eliminate [what we call the] ‘middle man’ and let the professionals, the logistics companies, the supply chain companies, really move the goods in an efficient but very cost effective way.
The PCCI official, who is the director of innovation and digital economy and science and technology, said the middleman is “one of the main factors” behind the price hike. “When you look at poultry, the price of chicken goes up because of the middle layer, right?” said Ferrer, partly in Filipino.
At the PBC&E Plenary Session hosted by the PCCI, Air21 logistics solutions company Chairman Alberto D. Lina had urged the government to review the truck ban and digital coding system that increase the cost of doing business. and food prices.
The Air21 chairman cited the experience of his own logistics company, which has to park its trucks on certain days due to the number coding system.
Another problem for companies is the banning of trucks, as this leads to “double booking”.
“For example, because there is a ban on six-wheeled trucks and until certain times, companies are obliged to reserve four-wheeled trucks as well. [to transport their goods]“, said Lina.
Higher logistics costs, he said, would negatively impact the country’s efforts to achieve food security. He noted that the high cost of transporting goods has driven up the prices of basic foodstuffs.
In May, the president of the Supply Chain Management Association of the Philippines (SCMAP), Pierre Carlo Curay, pointed out that truck bans, single lane and digital coding systems are some of the factors that increase logistics costs.
Curay also noted that the cost of Philippine logistics is the highest among Asean neighbors, with traffic being one of the hurdles in supply chain management. He also pointed out earlier that “the more integrated the supply chain, the more efficient it becomes.”