Relief and remedies beyond Metro Manila

Easing the pain does not address real problems.

At one time or another we’ve all made the mistake of taking a pain reliever or using remedial measures to mask pain or what turns out to be a serious problem. Yes it helps for a short while but eventually the same problem recurs worse than ever.

Listening to what private sector representatives and government officials are planning to do in order to solve the congestion at the Port of Manila, I sense that they are opting for pain relievers but refuse to recognize that the Port of Manila has outlived its usefulness and that we need to rationalize our system and facilities to handle the demands of a growing economy as well as an expanding area of economic growth and operations. The solution should be long term and not just to unclog the port in time for Christmas. 

The Port of Manila can no longer handle the volume both in shipment as well as traffic. Operators may argue that better management can solve the current problem but what about 20 years from now? The Port of Manila simply is not big enough for the future of shipping in the Philippines especially for Greater Metro Manila. The future of our economy should never be held captive by the lazy familiarity of shippers, brokers and truckers who want to stay within their comfort zone namely doing at the Port of Manila.

In a radio interview one of those involved in the problem solving made a lot of effort to emphasize that businessmen and operators will always insists on their convenience and cheapest cost. What they will never recognize is that their convenience is always an inconvenience to the public in terms of congestion, traffic and garbage not to mention squatter colonies that develop from temporary housing of stevedores etc. Dealing with or managing the resulting mess always becomes a big expense for local governments and the public.

The cabinet cluster in charge of the port congestion must look and act beyond the interests of today’s port operators, brokers, shippers and truckers. By spreading out the business activity, the government will spread out economic activity and benefits beyond Metro Manila such as creating new growth areas, generating employment and infrastructure development in other coastal towns north and south of Metro Manila. Decongesting the port must not simply be about unclogging but about relocation, distribution and developing additional new sites.  

*   *   *

If there were any imaginable good that has come out of the port congestion it would be the discovery that some technical smugglers have effectively been shut down by the congestion. I learned that a local chemical corporation that manufactures resins are ecstatic that local users of the product now buy everything from their company because the “gray market” supply has dried up.

For me the real surprise was finding out that certain food items like siomai or dumplings are being imported all the way from China instead of being made in the Philippines, which would generate a few hundred jobs. Now that the dumplings can’t get through fast enough people will simply have to pay more and buy fresh local produce with less preservatives. In the mean time, a number of poultry and piggery operators are actually happy that those who rely on imported pork and poultry are now having nightmares sourcing their chicken and pork requirements.

We have always been told by the wise that the difficulties we encounter are actually signs and warnings meant to save us from disaster, injury or economic hardship. We have also been taught to learn from the mistakes of others so we won’t have to pay the penalties as well. But I wonder if businessmen who rely on cheap imported products from other countries have enough wisdom to see the warning signs?

American banks once thought they were “wise” by lending out so much money to farmers and homeowners simply because of the assumption that the loans are covered by collateral with value. So they kept lending out to just about everyone until the banks realized the true meaning of “over collateralized” and being so “solid” it led to operational constipation. Their greed and their being “wise” revealed they were not so wise and the US government at risk to itself had to bail out the banks because they were too big to let them fail.

While all of that was on-going a bunch of “wise” American businessmen determined that they could make more profits by simply buying cheap finished goods from China instead of manufacturing the products in the United States. They did not care if the products were not “Proudly made in the USA” all they cared was Made in China! The consumers loved it until the day they slowly began to realize that factories in the US were slowing down and eventually closing down. With the jobs drying up America began to lose consumers and that’s when they realized that the “Made in USA” was what gave them jobs so they could afford to buy the more expensive-better made products.

The problems that businessmen and consumers have been experiencing because of the port congestion warns us that continued reliance on imported materials will ultimately costs more when things go out of order. Our preference for cheap comes at a price in terms of jobs, economic growth, and development of more stable local industries and suppliers. Yes you may be wise going for the cheap and easy but for how long? People will pay the price, but without jobs not even the cheapest siomai from China is worth it!

*   *   *

E-mail:[email protected]