Off-terminal and off-dock container storage facility operators in country are pinning their hope in the Senate to protect them as they sought relief from the Philippine Ports Authority’s (PPA) proposed Trusted Operator Program-Container Registry Monitoring System (TOP-CRMS) and Empty Container Storage Shared Service Facility (ECSSSF).
Roger Lalu, President of the Alliance of Container Yard Operators (ACYOP), said they are thankful to Senators Grace Poe and Risa Hontiveros for recommending against the implementation of the ECSSSF, an added feature of the TOP-CRMS.
“We sincerely thank Senators Poe and Hontiveros for their recommendation. We are hopeful that Poe’s committee will address our concerns,” said the operator group.
Last April 12, the Senate Public Services Committee, chaired by Poe, heard the overwhelming opposition of stakeholders against the TOP-CRMS and ECSSSF.
Poe’s committee is expected to release its report when Congress resumes its session on July 24.
“This recommendation of the committee aligns with the concerns raised by industry operators, who firmly believe that the PPA TOP-CRMS/ECSSSF project would have detrimental effects on small players within the container storage industry,” Lalu said.
The group issued the statement after PPA Assistant General Manager Elmer Cadano said the agency seeks to proceed with the implementation of the shelved container registry, monitoring and storage facility program by the end of the year.
The operators fear the proposed program “poses a significant threat to the industry and the nation’s interests as a whole.”
“The container yard operators firmly believe that the PPA’s proposal would have severe negative consequences for both the industry and the nation as a whole. TOP-CRMS and ECSSSF would be detrimental to small players in the off-dock container storage industry,” they said.
The industry operators include Sea Container Depot Corp., TBS Container Depot, Inland Container Depot, Brightpoint Logistics Corp., E-Safe Container Depot, Golden Box Container, Movers and Managers Container Depot, and TMS Container Depot.
The operators argue that the PPA lacks the legal authority to accredit off-dock and off-terminal facilities, as this responsibility falls under the Bureau of Customs (BOC). They emphasized that the Customs and Tariff Modernization Act, specifically Sections 803 and 804 of RA 10863, grants the BOC jurisdiction over off-dock container depots or yards.
This is further supported by Customs Administrative Order No. 09-2019 and Customs Memorandum Order No. 18-2022, they added.
The industry operators have deep concerns about the potential “devastating” impact of the TOP-CRMS and ECSSSF on small industry players.
They fear that the proposed staging areas under the new policy could render their facilities obsolete and unprofitable, potentially leading to permanent closures and hundreds of job losses.
“This comes at a critical time when the country is still recovering from the economic repercussions of the pandemic,” they said.
The operators also expressed apprehension that the TOP-CRMS will mean additional costs to exporters, hindering their competitiveness.
They also fear that the PPA’s involvement in negotiations with shipping lines could undermine their ability to engage directly with these stakeholders, turning the PPA into an unnecessary “middleman.”
The operators argue that the proposed system, which mandates all off-dock depots to register under one system, could create a monopoly.
This would force multiple service providers to be at the mercy of the winning or favored bidder, eroding their rights to freely negotiate terms and conditions with their valued customers, they added.
Such a situation would be in violation of the Philippine Competition Act and contradict the constitutional provisions that prohibit monopolies and exclusivity in the operation of public utilities, the group said.