Bill allowing foreign ships to serve local routes moves in House

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Posted on May 06, 2015 10:56:00 PM
By Melissa Luz T. Lopez, Reporter

A MEASURE that could cut freight cost for those who trade across national borders by allowing limited foreign competition for local shipping firms has gained ground in the House of Representatives, taking it a step closer to enactment.

Voting viva voce in plenary session late Tuesday, lawmakers approved on second reading House Bill No. 5610 which, when signed into law, will allow foreign ships to call at any local port to transport goods for import or export without having to transfer such cargo to local counterparts. Under the present law, only local ships are allowed to load and carry cargo from one domestic port to another. Once signed into law, foreign vessels will be allowed to load or unload cargo at any local port, provided these are for export or import.

The bill could be approved on third and final reading next week, said Davao del Norte Rep. Anthony G. Del Rosario (1st district), vice-chairman of the House committee on Trade and Industry and one of the bill’s main sponsors.

Legislative rules provide that a bicameral conference committee can be dispensed with, since there is no need to harmonize provisions as this is the same version approved by the Senate on third reading last Feb. 23. “Considering that both versions are identical, as is practiced, no bicam needed,” ways and means committee chairman and Rep. Romero Federico S. Quimbo of Marikina (2nd district) said in a text message.

Both chambers can then ratify the measure and submit it to Malacañang for signing into law.

The bill in its pure form — without restriction on type of cargo — is among the priority reforms sought by business groups and Malacañang itself, since it is expected to spur competition that will eventually cut freight cost, hence, make it cheaper to do business in the country.

Sought for comment, Philippine Interisland Shipping Association, Inc. corporate secretary and legal counsel Pedro G. Aguilar said the measure in its current form was “acceptable” to members of the group. “It’s a good compromise, but some of our members have reservations regarding its implementation,” Mr. Aguilar said in a telephone interview, citing fears some foreign ships may transport domestic goods alongside export or import containers once allowed to call on any local port. “If the government fails to guard against that, domestic shippers will lose a lot.”

For the Philippine Exporters Confederation, Inc. (Philexport), the measure will have to do for now. “This is an in-between, but it is better than nothing,” Philexport president Sergio R. Ortiz-Luis, Jr. said by phone. “Shipping in the Philippines is really expensive, so we have to continue looking for ways to cut cost of freight here.”

Mr. Ortiz-Luis said domestic shipping firms should use the leeway the proposed law still provides in order to build competitiveness. “I think they should learn to upgrade. Why do they have to rely on a law to be competitive?” he said.

But Mr. Aguilar said the government should do its part by lifting taxes on fuel and spending to upgrade ports in the provinces if it wants to trim freight costs.