Decongesting the port

2014 has been quite a challenging year for the country. That’s not to say that previous years have not been challenging as well, it’s just the problems we finally faced in 2014 feel like they have come to a head and reached a point that something has to be done to truly solve these once and for all or we risk keeping the Philippines from ever truly progressing past where we are today.

Everyone has said it over and over — the country has the potential for amazing growth. We have rich natural resources, we have a strong workforce, we are a strong English-speaking nation, and most foreign investors love it here. Why then are we constantly stuck in the same place? Why can’t we evolve and progress into a stronger country, a stronger economy, and a stronger nation in Asean and around the world?

We all know the answer — now more than ever. The problems keeping us from getting to where we want to be are all problems that we ourselves can fix. We can address the corruption, the infrastructure, and the red tape if we really want to. We just need to make a commitment to getting on the same page and doing what is best for the many instead of just the few. We need to elect officials who will think about advancing the country instead of themselves and their own personal agendas. It’s a big step but important that we can all address the problems that are keeping the nation from growing.

One such problem is the never-ending drama that is the port congestion. I read so much about this and it just gets so frustrating to see that only band-aid solutions are being implemented without addressing the real issues causing the problem. People might think that the problem at the port will not directly affect them, but they would be wrong. It affects all of us, and the longer it goes on without a solution, the worse it will become.

In fact, this problem has already been featured in international news sites and journals. The Wall Street Journal has highlighted that as the Philippines’ trade with the rest of the world increases, the strain on the port grows even more. On an average day there are long lines of trucks waiting to add their freight to towering stacks of containers while crowds of ships wait to unload cargo. And the wait does not end there, once trucks get their cargo they also face problems exiting the port and getting to their final destinations.

On an economic level, this congestion in the main port into the Philippines has caused major international companies to shift large volumes of their freight outside of the Philippines because of delivery delays costing companies and the country hundreds of thousands of pesos. Not to mention, the congestion was also attributed to thousands of layoffs of private-sector workers in economic zones located in Manila’s neighboring provinces. In fact, the BIR even says that the 11% drop in tax revenue last August was, in part, due to congestion at the Port of Manila.

There is no denying that this problem affects us on a national economic level, but it also affects everyone in his or her daily life as well. We’ve also noticed that restocking of some goods is taking much longer than usual. Because of this prices of goods that are scarce have gone up significantly. No one wants to pay exorbitant amounts for items that are normally readily available, but they find themselves with no choice because they need them. Additionally, several companies that make food and beverage products are seeing a rise in the prices of their goods as they can’t get the necessary raw materials in the country in time. Due to this they look for other options like flying in items or getting them from suppliers that might charge more causing them to have to raise their prices.

Additionally, the problems at the port have also caused a significant rise in the crime in the area too. I admit that crime can be rampant in the port area, what with smuggling and stealing, but with the addition of the congestion crisis and criminals feeling emboldened — trucks are getting robbed with abandon and having their shipments stolen in broad daylight. In fact, I know a friend who just recently saw a truck being robbed by a group of men in the middle of the afternoon as he was stuck in traffic. He took a photo of the incident but was remiss to do more as there were over five men holding up the vehicle and he was alone.

The government really needs to find a way to solve this problem in a lasting and efficient way. Of course fixing infrastructure will really help so fast tracking certain projects might be a good idea. The Skyway project set to link the port to areas in the north and south could make a big difference but is not set to be completed until 2016. Of course lifting the Manila truck ban will also contribute to helping ease the congestion. Hopefully as more time passes the flow of goods in and out will normalize and become steady. Plus President Aquino is trying to offer incentives to freight willing to dock in Subic and Batangas. While this is a good step, these ports are also quickly filling up and once the shipment is on land the trucks face the same traffic problems in getting the goods to their final destinations.

It’s going to be a challenge, but at least steps are being taken. At the recently concluded Ports Summit, which was attended by government officials and private sector representatives, talk of appointing a “port czar” were explored so that there would be a point person in charge that everyone can refer to for problems including smuggling and traffic jams. At the very least, someone would be specifically assigned to handle port problems.

At the end of the day, we have to recognize that there are many factors that contributed to the port congestion problem. This did not just happen overnight. And the solution is similar. It’s not going to get solved overnight as well. But the sooner we start moving, the sooner we can see results.