Transport infra, power cost top PCCI wish list

By Richmond Mercurio (The Philippine Star) | Updated September 20, 2016 - 12:00am

MANILA, Philippines - Addressing the country’s transportation infrastructure along with a reliable and competitively-priced power supply topped the Philippine Chamber of Commerce and Industry’s wish list to the Duterte administration following recent meetings with top Cabinet officials.

In a meeting with Department of Transportation officials led by Secretary Art Tugade, the country’s largest business organization said firms, especially those in the manufacturing and exports industries, are losing out their edge and competitiveness due to the country’s high logistics cost.

PCCI said logistics costs which currently account for 24 percent to 53 percent of wholesale prices, are higher by as much as 33 percent compared to other countries in Asia.

The whole system of fees, roads, truck bans, port congestions, and traffic were cited as the factors contributing to the high cost of transport and logistics in the Philippines.

As such, the PCCI stressed the urgency to address the “severely problematic” transport infrastructure which it said have consistently posed serious threats to the competitiveness of the tourism and logistic sectors.

The group said it supports the grant of emergency powers to President Duterte who, in turn, is urged to use such powers to accelerate the implementation of vital infrastructure projects.

PCCI has likewise called for the lowering of trucking and shipping rates, decongesting of the Ninoy Aquino International Airport, transferring of cargo volume to Batangas and Subic ports, and upgrading and expansion of the roll-on, roll-off vessel system to ease the country’s transportation and logistics woes.

The PCCI also called for the government to provide adequate and reliable power supply at competitive cost as these will enable the country to achieve inclusive growth and sustain an average gross domestic product growth of seven percent from 2016 to 2022.

In a meeting with Energy Secretary Alfonso Cusi, the business group said it underscored the importance of addressing both issues on power supply reliability and pricing to accelerate the expansion of enterprises and industries, bring in more foreign direct investments, and ensure competitiveness of Philippine manufactured products in global markets.