Manila truck ban bites bottom line of BOC, port operators

Operations of the Bureau of Customs (BOC) and two other ports in Manila have been affected by the expanded truck ban in the city, causing a large drop in revenue collections as the local government began implementing the order.

 

Initial reports from the Port of Manila (POM) and the Manila International Container Port (MICP) showed a drastic slowdown in the release of goods from the port of entry.

 

MICP was able  to release four container vans on Monday, February 24, from a daily average of 2,150;, while no container vans exited the POM on Tuesday, from an average of 1,200 container vans per day in February 1 to 21, 2014.

 

From  a daily average of almost P360-million, MICP was only able to generate P262.8 million, a 27 percent decline. Revenues of the POM dropped 47 percent to P134.4 million from a daily average of P253 million.

 

The POM and MICP are the two biggest ports in the Philippines in terms of cargo volume and customs revenues, accounting for about 48 percent of total collections of the entire Bureau of Customs.

 

“While there are conditions and factors that are beyond the control of the Bureau of Customs, we are ready to adjust to the needs of importers and other stakeholders,” said Customs Commissioner John Sevilla.

 

Sevilla added that they are coordinating with affected stakeholders, including the Port Users Confederation, as well as private operators Asian Terminals Inc. which run run the POM and the International Container Terminal Services Inc. which operate MICP.

 

On Monday, the Manila City government implemented an expanded ban on trucks and other vehicles with gross weight above 4,500 kilograms from 5 a.m. to 9 p.m., seven hours longer than the previous restriction, except on Saturdays and Sundays. The ban exempts trucks carrying perishables and petroleum products, as well as vehicles for government projects. – Siegfrid Alegado/VS, GMANews