Importers agree to pull out overstaying containers in Manila port

Transportation Secretary Jaime Bautista said importers have agreed to pull out overstaying reefer containers at the Port of Manila as part of its decongestion program.

This was Bautista's response to the revelation made by Philippine Ports Authority general manager Jay Daniel Santiago in an interview with Daily Tribune's Straight Talk digital show.

"We immediately called them to ask if they can release these containers, and they obliged," Bautista said in an ambush interview on Wednesday.

Confirming Santiago's statement, Bautista said the reefer containers are believed to contain agricultural, livestock and poultry products, that cause an artificial shortage of commodities due to alleged hoarding.

Bautista said he doubts the observation that importers could be deliberately hoarding their products and only release them when the prices of commodities are high to reap more revenues.

"Maybe it's not true. The importer's reason is that there are not enough cold storage facilities which are why they are using the PoM which is way cheaper compared to other warehouses outside. We have also coordinated with the Bureau of Customs on this matter because sometimes, there are regulations by the BoC that hinders importers from releasing their products even if their taxes are already paid," he explained.

He added: "So, if taxes are already paid, then these containers should be allowed to be released."

Whole-of nation-approach
He said the issue of idle reefer containers piling at the PoM is not the burden of the DoTr alone, as these involve some government agencies including the Department of Finance and the Department of Trade and Industry.

"This is a whole-of-nation approach, and the private sector, for the part of importers. That's why we have already talked to them to resolve this matter. Sometimes, their reason to leave their products here is acceptable because there are not enough cold chain facilities," he said.

He added: "They will not allow their products to rot outside. But rest assured, we are working with them to avoid congestion in PPA-run ports."

Santiago, in an earlier interview, said that yard utilization in PoM is now at 100 to 110 percent, making them halt accepting reefer containers at the port from 26 December to 4 January.

The scarcity of cold chain facilities, he said, has been a problem in the country that's why there are moves to improve the industry.

Collaboration between the government and the private sector to further boost the country's cold chain industry is underway, as the Board of Investment last week announced the launch of the Cold Chain Database Project by February 2023.

The facility offers a data-driven basis for policy formulation and investment promotion, as it maps out existing cold chain service providers, estimates and forecasts supply and demand for cold chain service, and generates data on present and future cold chain service gaps focusing on agriculture and fishery products, which needs to pass through the cold chain.

Further, the project provides a guide about the specific locations where investment promotions should be focused while aspiring to meet the Philippine Cold Chain Industry Roadmap's target of increasing local cold chain capacity by 50,000 pallet positions per year in the near term.

Recently, InsightSCS Corp., the developer of the DeliverE platform, presented to an inter-agency working group the concluded cold chain database as the final output of a project named, "Development of a Cold Chain Integrated Supply Chain Solution for Evidence-based Policy Making and Investment Programming."