DA pushes for rollback in cargo handling rates

The Department of Agriculture (DA) has called for a 20-percent rollback in cargo handling rates.

Agriculture Secretary Leonardo Montemayor asked Transportation Secretary Pantaleon Alvarez to convene the board of the Philippine Ports Authority (PPA) to determine the logistics cost reduction scheme as instructed by President Arroyo.

The logistics cost reduction scheme basically means reviewing the various modes of transporting goods especially socially-sensitive commodities like rice and corn.

Producers said their goods are priced relatively cheap ex-farm gate but end up "expensive" at the market place due to higher transport cost including port operations.

Government said that prices of agricultural products have been rising and the issue of port, stevedoring and arrastre cost have always come to the fore as among the reasons for high prices.

Government policy direction on sea transport cost reduction has been in support for a stronger economic activity at reasonable maintenance cost. Sea transport plays a major role in the costs of moving human traffic and commodities with arrastre accounting for 12 percent of the total transport cost of commodities.

Meanwhile, the Philippine Chamber of Arraste and Stevedoring Operators (PCASO) chided government for making cargohandling as the scapegoat for high prices of prime commodities.

"Why blame PPA, port operators and cargohandlers when port users could reduce their costs simply by doing things within their control? Perhaps what we only have to do is sit down and consult with each other?" PCASO said.