SUMMARY
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MANILA, Philippines – The Department of Justice (DOJ) partnered with the Philippine Ports Authority (PPA) on Monday, July 1 to encourage the country’s competitiveness in the port industry for local and foreign sectors.
Justice Secretary Leila de Lima said the agreement would “level the playing field” in the port industry and “intends to address the governance issues to deliver economic justice.”
“As an archipelagic country, more than 80% of our country’s trade pass through our system of ports, which clearly shows water transport is a main driver for growth recognized in the Cabinet Economic Cluster,” De Lima said.
The Memorandum of Agreement (MOA) signed by the PPA and the DOJ seeks to “simplify business operations in ports, encourage competition and improve the competiveness of the country’s trade and industries that depend on seaborne export/import.”
In a press release, the DOJ said the congestion and bottlenecks in transport have been a perennial complaint of port stakeholders affecting the competitiveness in the sector.
It added that one of the key outputs in the agreement is a joint study on the regulatory framework, port efficiency, and competition issues focused on increasing the efficiency of the logistics and supply chain.
Out of the box
DOJ Head of Office for Competition (OFC) and Assistant Secretary Geronimo Sy said the agreement is “out of the box” since “this is not something usual or regular in terms of an executive department working with another one to solve bottleneck issues.”
“It’s not your usual MOA where you have a natural extension but if u look at the mandate closely we need to work together,” Sy said.
Sy added that the DOJ would also look at cartel issues affecting the competitiveness in the port cargo sector and if there are corruption issues reported which are also part of their mandate.
“We would like to look at that. We will not proceed without the full support of the sector regulator, in this case, the PPA, and hopefully we can improve the overall process,” Sy said.
Sy disclosed that the timeframe of the review would last for 90 days for the assessment study.
“We’re about one-third to it, we haven’t waited idly and we will continue to get the facts on the ground to make sure it wont be just a consultant type project study or output but it will be a government study that will have results,” Sy added.
Meanwhile, PPA General Manager Juan C. Sta. Ana said the agreement also marks the seriousness of the country’s port industry to make it easier for locals and foreigners to conduct business in the Philippines.
Sta. Ana said, “gathering all stakeholders for integrated and incisive solutions to the perennial problem of port cargo congestion is a necessary component.”
“In terms of talking about productivity efficiency of port operation, shipping turn around, the various service providers in the port, we are looking into that and making sure at all of these jives with the national government in making this country very competitive,” Sta. Ana added. – Rappler.com
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