Andrea E. San Juan | June 26, 2024
Eleven Philippine business groups (PBGs) have called on Senator Mark Villar, chairperson of the Senate Committee on Government Corporations and Public Enterprises, to file and hear a counterpart Senate bill to House Bills 1400 and 8055, which separate the commercial and regulatory functions of the Philippine Ports Authority.
In a letter dated June 25,2024, the groups said the proposed bill can be understood by the “simple logic” that an examiner cannot also be the examinee. They lamented that since the Philippine Ports Authority (PPA) was created in 1974, the combination of its regulatory and development functions has been a “source of conflict of interest” for the agency’s functions.
“While it has long been established as the policy of the State to avoid such conflicts of interest, PPA’s case, seemingly, did not catch the attention and scrutiny of previous congresses,” the letter of the business groups noted.
In September 2018, the JFC and Philippine business groups published a policy brief on Seaports and Shipping, where one recommendation was to pass a law to convert the PPA into the Philippine Ports Corp. (Philports) to handle development, management, and operation of public ports.
The business groups said the regulatory functions of PPA would be transferred to the Maritime Industry Authority (MARINA).
“For many years, news reports and studies have discussed inefficient management of Philippine ports, sometimes resulting in overcrowding of passengers at ports and on vessels, delayed trips, and worse, vessel-related accidents and fatal mishaps at sea,” the letter said.
They noted that complaints of patrons and users of ports about low service levels, inefficient port operations, and increasing port charges have been reported.
The groups highlighted the role of sea transport which they said has become “increasingly” important in the nation’s strategy to maintain high levels of economic growth.
In an archipelago with more than 7,000 islands, the business groups said sea travel is a “very viable and essential mode of transportation to connect our islands.”
They added: “Because it is too expensive to move most cargoes by plane, such freight depends on ships for transport.”
With this, it noted that “adequate, efficient, safe, and affordable sea transport can exponentially increase the country’s competitiveness and output in both local and foreign trading networks.”
The business groups who signed the letter are: American Chamber of Commerce of the Philippines Inc., Association of International Shipping Lines Inc., Canadian Chamber of Commerce of the Philippines Inc., Confederation of Wearable Exporters of the Philippines, European Chamber of Commerce of the Philippines, Foundation for Economic Freedom, Japanese Chamber of Commerce and Industry of the Philippines Inc., Korean Chamber of Commerce of the Philippines Inc., Philippine Chamber of Commerce and Industry, Philippine Inter-Island Shipping Association Inc. and Philippine Exporters Confederation Inc.
Source: https://businessmirror.com.ph/2024/06/26/biz-groups-ask-villar-split-ppas-functions/