Speed of cargo truck turnover is a key determinant of the cost of consumer goods as faster movement at the ports reduces a trader’s expenses.
Ports will benefit from improved technology as a result of the P877.6-million container registry project that will secure the country from cargoes of groups involved in terror plots. | PHOTOGRAPH BY BOB DUNGO JR. FOR THE DAILY TRIBUNE @tribunephl_bob
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An ambitious P877.6-million container registry project covering the country's ports will aid in ensuring national security by preventing the movement of cargoes involved in terrorism and the smuggling of drugs, the program's proponent said.
Shiptek Solutions president and chief executive officer Eugenio Ynion Jr. said the Trusted Operator Program-Container Registry and Monitoring System and Empty Container Storage Shared Service Facility container monitoring initiative aims mainly to eliminate the cost of container deposits while enhancing border protection and the government's efforts against smuggling and terrorism.
"Delays in the release of shipments will result in additional charges and surcharges that importers will pass on to consumers," added Ynion, who has over 30 years in the logistics business.
The speed of cargo truck turnover is a key determinant of the cost of consumer goods as faster movement at the ports reduces a trader's expenses.
The TOP-CRMS requires installing a tracking device on the containers, that will prevent container diversion, a favorite scheme of smugglers in diverting cargoes from the destined customs bonded warehouses to a different warehouse.
Since containers are monitored in real-time, law enforcers can conduct a 100 percent inspection if they suspect a container does not contain what was declared in the manifest.
Anti-smuggling features
A study by The Center for Research and Communication Foundation, Inc., a think tank based in the Philippines and affiliated with the University of Asia and the Pacific, found that P904.6 billion worth of products were smuggled into the Philippines from 2011 to 2015.
It found that smuggling was rampant in industries of petroleum, steel, resins, wood, cigarettes, sugar, palm oil, and automotive batteries.
While an independent study by the Federation of Philippine Industries estimated the government lost more than P1.33 trillion in revenues from smuggling between 2002 and 2011.
It added that lost revenues from 2002 to 2008 reached P889.5 billion, with further losses of P119.65 billion in 2009 and P326.76 billion in 2010 and 2011.
"The administration of President Ferdinand 'Bongbong' Marcos Jr. should seriously look into these smuggling activities and find ways to stop the illicit trade," Ynion said.
Shield vs smuggling
"Platforms offered by XLOG and the TOP-CRMS program of the PPA are efficient defenses against smuggling activities."
The TOP-CRMS, although not intended as an anti-smuggling system, can eliminate cargo diversion, a favorite scheme by smugglers to divert their shipment to another warehouse, and other smuggling schemes.
The solution offered by the technology provides transparency and accountability for cargo movement. And with real-time container tracking, law enforcement agencies can quickly identify where the shipment is delivered and when, thus, eliminating fake or "for hire consignees."
The TOP-CRMS will monitor all foreign-owned shipping containers — both laden and empty.
The technology will also make it easy for investigators to identify and prosecute suspected smugglers.
Smugglers, particularly drug syndicates, oppose advanced programs like container monitoring as these are tracked in real-time since they are prevented from engaging in illegal activities.
"If the government and legislators are bent on stopping smuggling operations in the country, programs like the container monitoring of the PPA should be given full backing and support as it can provide them the ammunition to end and win the war against smuggling operations," he added.
