MARITIME WATCHKEEPER

Lately, Secretary Romulo Neri of the National Economic Development Authority (NEDA) has been very vocal in criticizing the state of “regulatory capture” of government regulatory agencies; the latest target of Mr. Neri is the Philippine Ports Authority (PPA).  This is not a recent discovery of the Secretary about big business and the regulatory agencies conniving to implement policies inimical to public interest.

He has been stalking this virus for at least five years (to our knowledge) and are afraid that the academician’s theories are better left within the confines of the classroom.  But his decision to come out publicly to challenge an agency such as the PPA, to mend its ways and do what is right for the country and our economy, signals that at last, the “Stalker” has decided to pounce on his prey.  (more…)

In an article published in the Sunday Times last 17 December 2006, it was reported that the major shipping companies were “being bombed out of the water by the airfares war.”  This corner made some comments on the article’s observations and conclusions to the effect that “regulatory capture” foisted on the maritime agencies is the most probable cause of the demise of the shipping companies in that they already affected by the efficiency in the operation of the airline companies which have been encouraged by the existence of real competition in the industry.

Further to our observations, we wish to offer the following facts gathered by a cursory browsing on the web pages of the transport companies.  The data gathered may not be exhaustive to make a final conclusion.  It is presented in order for the DOTC to make more detailed investigations into why the cost of sea transport is so high.  This tune was already sung by the consuming public early on in your term as DOTC Secretary and which prompted the President to issue specific orders to the maritime agencies to arrest if not reverse the increasing cost of sea transport.  You were even amply briefed on the situation when you were trying to get your bearings as a brand-new department Secretary. (more…)