AmCham calls for lower cargo handling rates

The American Chamber of Commerce of the Philippines Inc. (AmCham) is urging the government to implement a reduction of cargo handling rates, especially in interisland shipping.

In a letter to the Department of Trade and Industry (DTI), Amcham president Terry J. Emrick said high cargo handling rates have served as a disincentive to the expansion of foreign investors in the Philippines.

Amcham which represents US businesses in the Philippines, presented the following proposals to the Department of Trade and Industry (DTI).

• Re-constitution the Shipping and Ports Advisory Council created in 1989 with senior members representing the government and private sector.

• Strengthening the Philippine Ports Authority (PPA) as recommended by the Philippine Chamber of Commerce and Industry and increasing PPA’s private sector representation; and

• Promotion of roll-on, roll-off shipping services as a National Government policy.

Emrick warned that unless reforms are implemented, "foreign investors moving their operations to areas outside of the major ports and thus job creation opportunities in the rural areas will diminish. He warned that maintaining the status quo "is to exacerbate the trend of a high cost of living within the Philippines and an uncompetitive economy."

Earlier, Agriculture Secretary Leonardo Montemayor echoed President Arroyo’s call for a 20-percent rollback in cargo handling rates. Montemayor and Transportation Secretary Pantaleon Alvarez said they would convene the PPA board to determine the logistics cost reduction scheme based on the instructions of Mrs. Arroyo.

The logistics cost reduction scheme basically means reviewing the various modes of transporting goods especially socially-sensitive commodities as rice and corn with the end in view of improving procedures and costs.

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