PPA eyes establishment of dry ports to ease seaport congestion

The Philippine Ports Authority (PPA) is eyeing the establishment of dry ports to ease congestion at seaports and as a commitment by the country to speed up trade exchange at its borders.

PPA Assistant General Manager Hector Miole told a recent meeting with local exporters that the establishment of dry ports is one of the long-term plans of PPA to address port congestion and avoid the same situation in the future.

The dry ports are envisioned to have complete port facilities and services, including customs processing, said Miole.

A dry port is an inland inter-modal terminal directly connected by road or rail to a seaport and operating as a center for transshipping sea cargo to inland destinations.

It may also have facilities for storing and consolidating goods, as well as provide services such as maintenance for road or rail cargo carriers and customs clearance. The location of these facilities at a dry port relieves competition for storage and customs space at the seaport itself.

Miole explained that the Philippines, as a member of the Association of Southeast Asian Nations (ASEAN), has a commitment to put up these intergovernmental dry ports as part of initiatives to facilitate the flow of goods within the ASEAN bloc and the AsiaPacific region.

He added that a mechanism now exists for developing dry ports in the country that will enable government agencies to work together to ensure these ports work as planned.

The PPA has identified Manila, Laguna, and Bulacan as among the possible locations for dry ports. Miole noted that some ASEAN countries like Thailand, Indonesia, and Malaysia have begun operating dry ports.

Miole said that the port congestion issue has been resolved and operations at the Port of Manila have normalized. A high of 105% utilization rate at the height of the truck ban in May 2014, usage rate has settled to around 79% to 84% following intense public-private cooperation in implementing various decongestion programs.

PHILEXPORT president Ortiz-Luis Jr. said that most exporters still report encountering port congestion. "In the pre-congestion days, trucks could manage two or three trips daily, something the congestion has made impossible and led truckers to jack up their fees. If congestion no longer prevails, trucking rates should likewise return to normalcy," said Ortiz-Luis.