Philippine Presentation

By Engr. Enrico C. FerreChief TDO, Water Transport Planning Division

Department of Transportation and Communications

Republic of the Philippines

Regional Seminar on Development of Efficient and Effective Logistics System

Hangzhou, China 07 - 08 May 2013

Department of Transportation and Communications

DOTC Mandate

To develop, promote, implement and maintain an integrated and strategic transportation systems that will ensure safe, reliable, responsive and viable services to accelerate economic development and better serve the needs of the people.

Department of Transportation and Communications

Transport System Characteristics

• Basically intermodal in character, involving inter‐island as well as intra‐island movement normally combining air, sea and road transport modes

• Intermodal transport systems and their connections to the hinterland play a crucial role in the socio‐economic development of the widely dispersed regions of the country

Batanes Link

Northern Luzon and Corridor

East Luzon Link

East Corridor (Pan-Philippine

Highway)

Palawan Visayas Link

West Corridor (Strong Republic

Nautical Highway)

West Mindanao LinkNorthern Mindanao

Land Corridor

Department of Transportation and Communications

National Modal Share

Passenger Traffic, 2006

Road, 98.14%

Rail, 0.15%

Air, 0.49%

Water, 1.22%

Cargo Traffic, 2006

Road, 57.99%

Rail, 0.00%

Water, 41.95%

Air, 0.06%

Predominant mode of transport - by road carrying approximately 1.71 billion passengers and 25.9 million tons of freight in 2006.

Department of Transportation and Communications

National Transport Infrastructure Profile

§ + 200k kms of roads

§ 160 Commercial Seaports

§ 500 kms of Railways

§ 47 kms of Urban Railway

§ 85 Airports

§ 301,523 Public Transport Vehicles

Outline of National Logistics Policy Framework

Ø The Philippine Development Plan (PDP) 2011-2016 recognizes the need to address the country’s infrastructure backlog

Ø Cites the priority creation of an integrated and multi-modal national transport and logistics system

RORO POLICY

Ø Executive Order No. 170 issued on 22 January 2003 (Promoting Private Sector

Participation and Investment in the Development and Operation of the Road Roll-On-Roll-Off Terminal System(RRTS)

Ø Executive Order No. 170-A issued on 09 June 2003 (Expanding the Scope of the RRTS )

Ø Executive Order No. 170-B issued on 19 September 2005 (Encouraging Further

Expansion of the Country’s RRTS and Reduction of Transport Cost Through Increase in the Number of RORO-Capable Ports and Conversion of More Private Non-Commercial Port Operations to Private Commercial Port Operations)

SALIENT FEATURES OF THERORO POLICY

Ø removal of cargo handling chargesØ removal of wharfage duesØ reduced & simplified documentary

requirementsØ fixed regulatory supervision feesØ fee based on a “lane meter” for all rolling

cargoesØ encouragement of existing private port

operatorsØ to convert their operations to RRTS

ENTITIES RESPONSIBLE FOR DEVELOPMENT OF RORO- CAPABLE

PORTS

Ø Philippine Ports Authority (PPA)Ø Cebu Port Authority (CPA)Ø Regional Port Management AuthorityØ Other independent port authorities

*Maritime Industry Authority (MARINA)- regulates the shipping services operating along the RORO routes

DOTC as Lead Agency

MANILAMANILAMANILA

PASACAOPASACAOPASACAO

SAN PACUALSAN PACUALSAN PACUAL

CLAVERIACLAVERIACLAVERIA

AROROYAROROYAROROY

CAWAYANCAWAYANCAWAYAN

DAAN BANTAYANDAAN BANTAYANDAAN BANTAYAN

BOGOBOGOBOGO

CEBUCEBUCEBU

JAGNA

JAGNJAGNAA

CAGAYAN DE OROCAGAYAN DE OROCAGAYAN DE ORO

BALINGOANBALINGOANBALINGOAN

MAMBAJAOMAMBAJAOMAMBAJAO

BENONIBENONIBENONI

TUBIGONTUBIGONTUBIGON

BATANGASBATANGASBATANGAS

CALAPANCALAPANCALAPAN

ROXASROXASROXAS

CATICLANCATICLANCATICLAN

ILOILOILOILOILOILOBACOLODBACOLODBACOLOD

DUMAGUETEDUMAGUETEDUMAGUETE

DAPITANDAPITANDAPITAN

BULANBULANBULAN

PILARPILARPILAR

MASBATEMASBATEMASBATE

MARIPIPIMARIPIPIMARIPIPI

NAVALNAVALNAVAL

SAN RICARDO

SAN SAN RICARDORICARDO

LIPATALIPATALIPATA

DINGALANDINGALANDINGALAN

LUCENA

LUCENLUCENAA

CAWITCAWITCAWIT

REALREALREAL

SIBUNAGSIBUNAGSIBUNAG UBAYUBAYUBAY

LIMASAWALIMASAWALIMASAWA

Major RORO routes

Legend:Western roro routes

central roro routeseastern roro routes

road linkagesro-ro linkages

DAVAODAVAODAVAO

GUINSILIBANGUINSILIBANGUINSILIBAN

SIQUIJOR

SIQUIJOSIQUIJO

RR

MAASINMAASINMAASIN

INITIATIVES FOR THE IMPROVEMENT OF RRTS

Ø PPA A.O. 02-2012, as amended – Guidelines on the Operation of Weighbridge Facilities and Services at PPA Ports

Ø PPA A.O. 04-2012 – Guidelines in the Provision of RORO Services at PPA Ports

Ø PPA A.O. 05-2012 – Guidelines in the Selection of Passenger Terminal Building (PTB) Operator of Existing PPA-owned PTBs

Ø Study on the Proposed Central Spine RORO Project (DOTC as proponent)

MANILA - NORTH

MANILA - SOUTH

MICT

BATANGAS

ILOILO

OZAMIZ

CAGAYAN DE ORO

DAVAO (SASA)

GENERAL SANTOSZAMBOANGA

Institutional Framework of National Logistics

Ø The institutional framework for logistics has always been reviewed in the context of other sectors such as transport and agriculture, and not as a logistics sector or system by itself.

Ø Thus policies and regulations relating to or affecting logistics are fragmented, i.e., considered only as part of the other sectors;

Ø Logistics component have minimal data available;

Ø Large number of agencies and rules & regulations have impact on the efficient movement of freight and logistics operations

Ø DOTC and DTI are important players for domestic logistics activities but w/ potential overlaps w/ other agencies;

Ø Still weak & limited coordination among regulatory agencies & integration of policies across the logistics infrastructure sector (DPWH, DA, DOF(BOC), DTI, LGUs, GOCCs)

Electronic Information Systems for a more efficient and effective logistics services (1)

Ø The Philippine National Single Window

• Was delivered in December 2009I, the system is now available to the public and operational in 30 government agencies that issue permits, licenses and clearances

• Gives information on the progress of application at the agency• Increases the transparency and predictability of

government processes

• Gives direct link to Customs for faster goods clearance

NATIONAL SINGLE WINDOW ARCHITECTURE

Electronic Information Systems for a more efficient and effective logistics services (2)

As to the Philippine Ports Authority:

• Currently has computerized system for processing of applications for lease of - or permits for available PPA areas

• Areas are advertised on PPA’s website

• Has developed a Real Estate Management System to facilitate the processing of application for leases or permits to operate

Electronic Information Systems for a more efficient and effective logistics services (3)

IT and information systems are being utilized by individual terminal operators to improve their quality of servicesy, such as:

• Inland Clearance Depot (ICD), operated by Asian Terminals Incorporated which is located in Calamba, Laguna

IT Systems: ICD System,’ Automated Billing System, Vehicle Tracking System

• At Batangas International Container Port, IT Systems are:Container Tracking System, Vessel Billing SystemBatangas Supply Base - Warehouse Management System (BSB-WMS) and CBU Inventory System

Electronic Information Systems for a more efficient and effective logistics services (4)

South Harbor Container Terminal Division

All container terminal activity is driven by Navis SPARCS (Synchronous Planning Real Time Control System), a graphical planning that guides proper segregation and

stacking of containers, vessel berthing, loading and unloading, and equipment control.

• Other IT systems: Terminal Control System (TCS), Web Track, Electronic Data Interchange (EDI) System, Auto Gate System, e-Payment

At the Subic Bay International Terminal Corporation (SBITC), IT and communications systems used are:

• Navis SPARCS N4 Terminal Operations System with graphical user interface-based modules on ship and yard builders, vessel and yard allocation and planning, vessel visit management, and gate system.

• EDI messaging and Billing that is integrated with the Automated Customs Operations System (ACOS) Manifest.

• ICAM Maintenance Software and Hardware for maintenance monitoring and inventory control

Electronic Information Systems for a more efficient and effective logistics services (5)

Further Policy and Facilitation Plans for the Improvement of Efficiency in Logistics (1)

To formulate a National Master Plan/strategy for development of the logistics industry

(a) Institutional Policy Reforms

• Improving implementation of logistics-related policies through the current institutional structure

- elicit more discussions w/ industry associations on issues relating to logistics to promote more sharing of ideas and experiences about

logistics system in the country

• Developing a National Logistics Development Strategy that will be the blueprint of logistics management in the country

– To provide the roadmap for the government & other stakeholders in pursuing a framework on logistics system

– To develop a more long-term and stronger institution and policy reform

(b) Provision of priority Logistics Infrastructure

- continue to assist construction & operation various logistics transportation infrastructure. e.g., procurement of RORO vessels, expanded RORO port development, construction of toll roads through PPP, LGU roads; Pursue development of (5) candidate dry ports

Further Policy and Facilitation Plans for the Improvement of Efficiency in Logistics (2)

To address the limited intraregional trade partly because of the structure & characteristics of logistics costs & the institutional barriers w/ similar countries of ASEAN:

Ø The Philippines is looking forward to the implementation of transport facilitation agreements that will pave the way for the seamless movement of people, goods and services in the ASEAN region. It has signed and ratifies the three framework agreements namely: the ASEAN Framework Agreement on the Facilitation of Goods in Transit (AFAFGIT), the ASEAN Framework Agreement on Multimodal Transport (AFAMT); and the ASEAN Framework Agreement on the Facilitation of Inter State Transport(AFAFIST).

Ø The Philippines expresses its readiness to sign Protocol 7 (ASEAN Customs Transit System) of the AFAFGFIT. The said protocol aims to the harmonization/Standardization of customs and freight systems, such as customs clearance system, processing of papers, containerization, etc., in the ASEAN region.

22

• Establishment of National Transit Transport Coordinating Committee (NTTCC) (3)

Facilitation Objective§ To provide a consultative forum, on a national-level, for the

concerted simplification or harmonization of formalities, procedures and documentation used in international transport and trade of goods;

Regulatory Objective

§ To propose, for Government approval, responsive transit transport and trade-related policies, rules, regulations and practices;

Institutional Strengthening/Capacity Building Objective

§ To increase public awareness and acceptance of the practices, methods and benefits of transit transport operations in both public and private sectors.

Sub-Regional RORO ProspectSub-Regional RORO Prospect

end of presentation

Thank you.

ecferr@yahoo.com

HOME PAGE

National Logistics Policy FrameworkOther strategic policy initiatives relevant to logistics systems

Sector-specific policies that need to be acted upon by the government:

1. Establishment of a seamless, intermodal transport logistics network connecting production hubs, distribution centers and markets;

2. Establishment of a single transport document for CIQ and security purposes that can be used for all transport modes;

3. Establishment of a single access point & one-stop-shop for administrative processes & procedures in all modes to substantially reduce the cost of regulatory requirement;

4. Introduction of national standards for intermodal loading units to facilitate transshipment between modes;

5. Development efficient interfaces between trunk deliveries over longer distances and distribution to the final destination over shorter distances w/ full consideration of aspects of land use planning, environmental considerations & traffic management.

Plans to support/improve logistics performance

The DOTC has engage the services of a Consultant to study the following:

Ø Master Plan on the Central Spine RORO by 2020

Ø Medium Term Plan on the Central Spine RORO by 2016

To come up with a RORO development master plan that will complete the intermodal transport network system of the Philippines.

The resulting RORO Master Plan will serve as the structure of the country’s seamless intermodal logistics network system which is expected to improve the LOS, safety and reliability of the country’s transport systems and services.

An efficient seamless intermodal logistics network system will contribute in lowering transport costs and contribute in enhancing economic activities at the regional and local levels.

A call for an integrated national transportation system, combining roll-on roll off ferry port networks with envisaged development for national roads.

Plans to support/improve logistics performance

Through this synergized mode of transportation planning, a seamless, safe, expeditious, effective and economical movement of passengers, vehicles and goods is facilitated, access of Filipinos to social services and development opportunities are equalized regardless of their contiguity, and country-wide economic benefits are maximized.

The identification of road/ferry route options will link the entire Philippines and the existing RORO system to the proposed or future Central Spine RORO.

The eventual completeness of the inter-modality of the country’s transport network system that is vital for the country’s economic growth and competitiveness to global, regional and sub-regional trade and economic cooperation (APEC, ASEAN, BIMP-EAGA, etc.)

Achievement and Challenges of the current Initiatives

In an effort to improve port facilities & services that meet international standards, the PPA has developed and pursued a program to modernize the Manila North Harbor, which is the largest and leading domestic port in the Philippines and is recognized as a key hub for domestic commerce in the country.

Manila North Harbour Port, Inc. has installed high-end servers combined with virtualization concept for server consolidation and high-availability feature hosted the core operational systems and various office solutions. This is partnered with storage solution that maintains data integrity & availability. Cisco IP-PBX and Catalyst switches

Multi-mesh wireless backhaul radios on key areas at 70 Mbps. High bandwidth allows faster transfer of information from satellite offices to admin office, undisrupted voice calls, increase in viewing frame per second of CCTV devices and availability of interconnecting to other wireless device without compromising the performance.

DOTC MANDATEKEY CONSIDERATIONS / CHALLENGES

• Continued dialogue with all partners - the PPA, shipping lines, shippers, consignees, trucking associations, pilots, tug operators and all other stakeholders to address concerns/suggestions and to minimize disruption to service levels and port operations during modernization.

• Seminars including training and awareness for MNHPI employees and as well as shipping lines and port users to achieve optimum benefits and productivity levels from the introduction of the new systems and processes

• Relocation of informal settlers and other occupants.

• Improving productivity with the introduction of systems and procedures to reduce vessel berth time and dwell time of cargoes and containers in Manila and outports.

• Recognizing the various customs of the trade - berth windows/time alongside, storage areas, dwell times, closing times to name a few

• Provisions of entry & exit gates and processes to avoid traffic queuing from the main port access road particularly the impact of truck bans

• Achieving ISPS accreditation with the introduction of security and safety standards as well as working with PPA for the relocation of informal settlers and illegal occupants.