Europe-PH News

Manila suspends daytime truck ban

May 12, 2014

Jose Rodel Clapano

Europe-PH News

The daytime truck ban in Manila has been suspended effective today until May 20 as part of preparations for the country's hosting of the World Economic Forum (WEF).

Manila Mayor Joseph Estrada ordered the suspension through Executive Order 49 upon the request of Public Works Secretary Rogelio Singson and Cabinet Secretary Jose Rene Almendras, who want to clear the huge backlog of containers at the Port of Manila.

"We are suspending the expanded truck ban for eight days to give way to the World Economic Forum, which will be held from May 21 to 23," Estrada said after signing EO 49.

Under the ban, eight­wheeler trucks with a gross weight of more than 4,500 kilograms are not allowed in Manila's streets from 5 to 10 a.m. and 5 to 9 p.m.

The daytime truck ban; implemented early this year, aims to ease monstrous traffic jams in Manila.

Estrada said students, teachers and workers with offices in Manila have benefited greatly from the daytime truck ban, especially in terms of time and money saved.

Moreover, the absence of huge trucks during certain hours has made Manila streets safer according to officials.

Metropolitan Manila Development Authority (MMDA) said there are currently around 36,000 to 39,000 shipping containers lying idle at the Port of Manila because of the truck ban.

But the MMDA said the suspension of the truck ban hours would not be applicable to EDSA. The truck ban hours will also remain on C­5 Road, Katipunan and Commonwealth Avenue and all other routes not specified in the resolution.

According to the MMDA, the Cavitex route will be strictly for Cavite bound trucks. Trucks are riot allowed to park along Bonifacio Drive up to the Del Pan Bridge and other key roads identified by the City of Manila.

 

A threat to commerce

Opposition to the truck ban by business groups continues with Management Association of the Philippines (MAP) president Gregorio Navarro citing its adverse effects on the free and fast flow of goods.

"Our ASEAN (Association of Southeast Asian Nations) neighbors were releasing and clearing goods much faster than the Philippines even before the truck ban and we have to do something soon," he said in a text message.

"We are at a disadvantage if we do not resolve this immediately" he said.

International Container Terminal Services Inc.'s regional head Christian Gonzalez said cargo boxes had to stay in the port facility for an average of 10 days as against the six days when the ban was not yet in effect.

Confederation of Truckers Association of the Philippines director Alberto Suansing said in a text message there was an average of 6,000 truck trips per 24 hours before the ban was implemented, but now, one truck trip could take 43 hours to seven days.

He said the truck ban has resulted in additional trucking cost because of longer periods of engagement and additional port storage charges.

"And since discharging of cargoes from the ship would be delayed because of the problem of space in the port, shipping lines will likely impose port congestion charge," he said.

Business groups such as the Joint Foreign Chambers and Semiconductor and Electronics Industries in the Philippines had earlier expressed concern over the truck ban.

"While we are supporting all efforts to better utilize the available capacities of the ports of Batangas and Subic, we know that there are no options but to use the ports of Manila more effectively," the groups said.

In a research note released in March, Citi's estimates showed that the implementation of the truck ban could translate to P61.2 billion to P320 billion worth of losses to the economy per year.

Such amount exceeds the potential benefits of P30 billion in real terms derived from reduced traffic in Manila City.

European Chamber of Commerce of the Philippines vice president for external affairs Henry Schumacher said the suspension of the ban was a welcome development and "a first small step in the right direction." Navarro said that while the MAP supports the moratorium, it will help only in the short term.

Philippine Exporters Confederation Inc. president Sergio Ortiz­Luis Jr. said in a text message that in the long term, greater utilization of the Batangas port as well as lower trucking costs would be necessary to decongest traffic.

While firms have been encouraged to utilize ports outside of Manila, most still opt to use those in Manila as more shipping lines are operating in the city.

Truckers group Aduana Business Club also said its members were pleased with the suspension of the daytime truck ban.

"This is a small relief. What we are looking at here is that if things would go smoothly, if everybody would cooperate, everybody would extend their own responsibilities such as the truckers, the port operators, the shipping lines, maybe we would see good results and the business groups would be relieved," Aduana Business Club president Mary Zapata said.

 

Source: The Philippine Star, 13 May 2014

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