MARITIME WATCHKEEPER

“PPA reiterates wide mandate on seaports in the country” says the Manila Bulletin item dated 27 August 2006.

Surely it is also responsible for the mess and the inefficient port operations obtaining in the country,  where almost 40% of sea transport costs may be traced to the provision of land-based services, charges and handling of cargo.

Notwithstanding the issuance of EO 170 encouraging the private sector to invest in the Road-RORO System (RRTS) over three years ago, the public has not tasted the avowed lower costs expected from considering RRTS port links as part of the national road network system.

The PPA’s failure to implement the intent of EO 170 has prompted the outspoken LFTRB  Regional Director, Rogelio “Jingjing” Osmena to observe that “RORO is a misnomer.  There is roll-on but no roll-off for the vehicles taking the RRTS.”

When asked to explain his criticism of the PPA’s implementation of EO 170, he elaborated that the last time he brought his vehicle to Cagayan de Oro, from Cebu, he made sure that everything was prepaid in Cebu, before his trip.

However, when he arrived in Cagayan de Oro at 4 am, he was stopped by a PPA guard from bringing out his vehicle.  The stupid reason given was that vehicles could only be cleared to leave the terminal when PPA offices are open at 8 am! We just cannot print here the additional expletives of Mr. Osmena.

Anyone that wants to verify this story can easily get it straight from him at the Regional Office of the LFTRB in Cebu City.

From the Cocktales grapevine of Vic Agustin, we have this item:

“KEY economic officials are seeking to reverse a controversial Philippine Ports Authority decision to allow only one operator to handle cargo in Manila’s North Harbor.

According to the grapevine, Secretaries Romulo Neri of economic planning and Peter Favila of trade and industry, with the support of key business leaders, are determined to open up the cargo handling to at least three operators so as to promote competition.

Neri and Favila have even tapped an advocacy team to help push their proposal to the key publics through the media.”

The issue of a monopoly at the North Harbor was part of the original items of impeachment against President Estrada. Since then, and up to now, the PPA has been pursuing the matter of implementing the monopoly surreptitiously, apparently egged on by the same original proponents.

With donated funds for a full-blown feasibility study that has taken all four years to finalize, all it took was a measely P152,000 from PPA to have all previous policies promoting competition reversed by the Consultants which prepared the study. (What else is new?)

Are Neri and Favila such avid publicity seekers? Why go through such an expensive media exercise when both of them had their chances at stopping this inanity right there at the PPA Board, where they are both ex-officio members? Do they send representatives to the Board that do not share their principals’ sentiments?

These two ninnies have had all the time they needed to stop the PPA Board from foisting a monopoly at the North Harbor. After the PPA Board has done its worst and submitted their well-informed proposal to the NEDA, with backing from the PCCI private sector representative (who happens to be also the mother of a high ranking Malacanang functionary) Neri and Favila make public their opposition to the PPA proposal.

Why only now? Why not when this was being cooked up for four years at the PPA Board? Is it because killing the idea at that level would not have gained for them some pogi points? Of course, the likes of Vic Agustin would not have noticed their heroic opposition to a port monopoly had they done their jobs as ex-officio members of the PPA Board.

Another way of looking at the matter and understanding the behavior of these two Secretaries is to consider that the backers and proponents of a North Harbor monopoly are well-entrenched and well connected with the present administration. Serving their terms at the pleasure of the President, they have to pick the kind of battles they have to make. Although they have had knowledge about the plot at the North Harbor for years, they had to wait for such a proposal to be brought to a forum where it is clearly their turf and decide to do the battle royale there. Probably, that is the reason why there is that media advocacy noticed by Agustin. The two ninnies would want the public to sympathize with them when they fail to stop the North Harbor monopoly.

“WHAT can a businessman do if government agencies decide to take over his business illegally? He can seek relief from the courts. But what if the government agencies refuse to obey orders of the court? He is helpless, and the only thing left for him to do is to go to the hills and plot how to get even later on.”

This is the observation of Neal Cruz of the Philippine Daily Inquirer in his column, “As I See It” dated August 11, 2006. 

The use of brute force by the Philippine Ports Authority (PPA) at Poro Point reminds us of a similar incident in 2000, when PPA, using SWAT Teams and some of PPA dredgers were used to take over the operation of the entire North Harbor operations in Manila.

At that time, PPA was the lead agency in implementing Executive Order 59 which granted to a private consortium blanket authority to operate all government ports in the country.  The takeover was illegal, but no one as yet has been haled in court to answer for the baseless action.

Since 2000, the PPA has been in some kind of state called “regulatory capture“, where the agency is under the baton of those it is supposed to regulate.  As such, the agency becomes a tool for promoting the interests of those that have captured it.

Neal Cruz, in his commentary, can only see one direction for the oppressed operators, and that is running to the hills.  Want to try how it feels to be on the receiving end? Read the cases that were filed in the aftermath of the forced takeover of the North Harbor operations.  Six years after the incident, nothing has been resolved on the issues raised in the following cases:

1. United Dock Handlers, Inc.
2. Pier 8 Arrastre & Stevedoring Services, Inc.

“The House Committee on Railways and RoRo System is currently fast tracking the approval of a proposed measure institutionalizing the Roll On/Roll-Off (RoRo) terminal system (RRTS) in the country in response to the call of President Gloria Macapagal Arroyo for the provision of a more efficient and economical means of transporting goods.”  – thus, reports news.balita.ph in an item datelined August 5, 2006.

It is about time that a law be set in place so that the implementation of RRTS would set right the principles that would allow sea transport cost between the numerous islands become more attuned to the natural advantages of water-borne transport rather than be used as a choke point for gouging exhorbitant service fees by unscrupulous elements in our society.

RORO terminals are nowhere near the grand projects of the PPA, they can easily be done by the LGUs together with local private investors.  The immediate impact of RRTS is local, hence it should not depend on a centralized agency such as the PPA, which is always far away from where the action is and which has been easily manipulated since its conception.

Read more about the news item here and here.  Also, click on this link to see how EO 170, three years after it was signed, still has to deliver the promise of reduced sea transport cost.

No, not the type normally found at the PPA.

We wish to inform all subscribers who have encountered difficulty in loging into this site that we have discovered a recent bug which is causing this difficulty.

It is not very serious, but can really be annoying to those who wish to login and maybe leave a comment. 

We have found a temporary work around to this problem.  Please continue to read it at the new section Site bugs  that we have opened.

And speaking of bugs, we have here this lovable singing bug for you. Enjoy his tune!