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Most Outstanding Chamber in the Visayas 1993, 1994, 2007, 2011 & 2012

Most Outstanding Chamber in the Philippines 1995 to 1997; 2005 to 2007; 2011 & 2012
Most Outstanding Chamber in the Philippines Hall of Fame 1997 & 2007
CACCIs Best Local Chamber in the Asia-Pacific 2008
ASAE Award Developing Nation Category 2010

CCCI Center, Cor. Commerce and Industry Sts., North Reclamation Area, Cebu City
ASA
Tel. (+6332) 232-1421 to 24; Fax (+6332) 232-1422/ 412-9461; URL: www.cebuchamber.org

DRAFT
THE CCCI PRESIDENTS PRESENTATION ON THE REGIONS WISH
LIST FOR TRANSPORTATION AND LOGISTICS INDUSTRY
EVENT
ORGANIZERS
DATE
VENUE
AIDE MEMOIRE

Visayas Shipping Conference


the PortCalls and the Philippine International Seafreight
Forwarders Association
April 28, 2016 (Thirsday)
Waterfront Cebu City Hotel and Casino, Lahug, Cebu City
The CCCI Presidents MESSAGE will focus on Central
Visayas Wish List for the Transportation and Logistics
Industry

MESSAGE:
Secretary Emannuel Esguerra, Guests, Ladies and Gentlemen,
Good Afternoon!
On behalf of the Cebu Chamber of Commerce and Industry, Inc.
(CCCI), please allow me first to extend my heartfelt congratulations
to Portcalls and PISFA for organizing the VISAYAS SHIPPING
CONFERENCE.
Thank you so much for inviting the Chamber to ventilate its WISH
LIST for the Transportation and Logistics Industry in todays event,
I believe that the transportation and logistics industry have also
been very active in fulfilling their roadmaps or development goals
not only for Cebu but of the entire region as well.
A strong economic growth that heightened economic activities and
movement of people underlines the need to call the government for
better ports and road infrastructures. We also need a good network
of roads and ports that links production areas to consumer markets
because distance drives up transport and distribution costs.
Cebu plays a vital role in the movement of goods and people as
80% of domestic shipping lines in the country is based in Cebu. Its
Cebu International Port is the second busiest international seaport

Most Outstanding Chamber in the Visayas 1993, 1994, 2007, 2011 & 2012
Most Outstanding Chamber in the Philippines 1995 to 1997; 2005 to 2007; 2011 & 2012
Most Outstanding Chamber in the Philippines Hall of Fame 1997 & 2007
CACCIs Best Local Chamber in the Asia-Pacific 2008
ASAE Award Developing Nation Category 2010

CCCI Center, Cor. Commerce and Industry Sts., North Reclamation Area, Cebu City
ASA
Tel. (+6332) 232-1421 to 24; Fax (+6332) 232-1422/ 412-9461; URL: www.cebuchamber.org

outside of Manila.
It is for this reason that Cebu has to
continuously improve its shipping industry to sustain its economic
growth. As a matter of fact, we support efforts of government and
private sector in developing or constructing a new international
containerized port to ease or mitigate port congestion, increase
Cebus capacity to accommodate Cebus growing cargo traffic,
propel industrial development with improved cargo-handling
capacity, bring progress and stimulate maritime trade and
commerce in the region.
On the high SHIPPING COST, it cannot be argued that an efficient
water-based transport system has dramatic impact on the local
economies. Cebu relies heavily on domestic shipping for the interisland transport of goods and services. It is the cheapest carrier in
terms of ton-mile haulage and has grown in significance to the
economy. Freight is one of the most important structural supports
of the economy, providing the backbone of trade. However, sad to
say that with our country being swiftly pushed forward in the arena
of global trade, our domestic shipping do not seem to catch up with
the nations trade and economic development goals.
There are already efforts made by domestic shipping operators to
address various issues on high shipping rates, poor passenger
services, a dismal safety record and insufficient cargo handling
facilities. However, much has to be done to bring down the costs
of shipping goods and people. It maybe because of the high cost
of operating local shipping services; unstable prices of petroleum
products, interest rates, insurance premiums, and local taxes.
The high cost of sea freight is currently fueling a growing clamor
by our local businessmen, to allow foreign ships to enter and do
business in primary sea routes. This move, they argue, would bring
down cargo rates significantly.
With trade to China and other parts of the region opening up, the
advantage of lower freight costs also becomes very attractive to
Cebuano exporters. In fact, they are now asking that the cabotage
law which prohibits foreign vessels from moving cargoes and

Most Outstanding Chamber in the Visayas 1993, 1994, 2007, 2011 & 2012
Most Outstanding Chamber in the Philippines 1995 to 1997; 2005 to 2007; 2011 & 2012
Most Outstanding Chamber in the Philippines Hall of Fame 1997 & 2007
CACCIs Best Local Chamber in the Asia-Pacific 2008
ASAE Award Developing Nation Category 2010

CCCI Center, Cor. Commerce and Industry Sts., North Reclamation Area, Cebu City
ASA
Tel. (+6332) 232-1421 to 24; Fax (+6332) 232-1422/ 412-9461; URL: www.cebuchamber.org

people between islands be lifted. We know that our local shipping


lines can compete well with foreign vessels, so we need to appeal
to the government that they be given incentives to modernize and
be granted tax exemptions and better incentives enjoyed by the
foreign companies, as well as more incentive packages to acquire
new and modern vessels.
Another concern is the high cost of port handling services like
arrastre, stevedoring and other services. To address this problem,
we need to again appeal to Port Authority to lower their fees which
is 20% for the international vessels and 10% for the domestic
carriers.
On international shipping costs, there is a need to look into high
destination charges imposed by these international shipping lines.
These charges have material impact in the costs of bringing in the
goods. Port congestion surcharge is part of it although there are
other shipping lines no longer imposing it.
Another concern is the delay of returning container deposit by
international shipping lines. Some importers were saying that
there are shipping lines that return container deposit within 3
months to even up to a year. Consequently, these monies
collected as deposits remained idle at the coffers of the shipping
lines until these were returned. The government should interfere
and compel shipping lines to return container deposit immediately
once containers are returned back to its designated container yard
in order for business to plow money back to business operations.
Another wish list is to improve efficiency in filing cargo manifest by
shipping lines with BOC. There are only 2 accredited service
providers by BOC and often encounters technical problems in
connectivity. We feel that the current providers should invest on
better technology to enhance or improve its facility. We believe
that this can be addressed by accrediting additional service
providers capable of boosting its internet connectivity.

Most Outstanding Chamber in the Visayas 1993, 1994, 2007, 2011 & 2012
Most Outstanding Chamber in the Philippines 1995 to 1997; 2005 to 2007; 2011 & 2012
Most Outstanding Chamber in the Philippines Hall of Fame 1997 & 2007
CACCIs Best Local Chamber in the Asia-Pacific 2008
ASAE Award Developing Nation Category 2010

CCCI Center, Cor. Commerce and Industry Sts., North Reclamation Area, Cebu City
ASA
Tel. (+6332) 232-1421 to 24; Fax (+6332) 232-1422/ 412-9461; URL: www.cebuchamber.org

Another concern that needs immediate attention is the complexity


of the current global economic environment.
The ASEAN
Economic Integration is already around the corner and it posed a
serious challenge for us to be more competitive and collaborative
in responding to the needs and requirements of our stakeholders.
We need to be at par with our neighboring economies. The
question for both the government and private sectors is Are we
really ready in terms of competitiveness and development?
Currently, according to the World Bank, the Philippines is ranked
57th out of 160 countries in the Logistics Performance Index which
measures the weighted average across six key logistics
dimensions (customs, infrastructure, international shipment,
logistics quality, tracking and timeliness) obtained through
structured online survey of logistics professionals
(source: http://lpi.worldbank.org/international/scorecard/column)
We need a more efficient transport and logistics system to better
serve the international market, raise the countrys competitiveness,
and enable local industries to take full advantage of a healthy
economy.
Yes, there are many challenges ahead, but in challenges lie
opportunities. There is much that we can actually change in our
own backyard. We should drive for a more global competitive Cebu,
particularly in terms of infrastructures, to inspire and energize our
transportation and logistics industries to also do bigger, better and
bolder moves.
The Cebu Chamber of Commerce and Industry (CCCI), as the
engine of Cebus business growth towards global competitiveness,
continues to strive in strengthening the capabilities of its members
in particular and the business community as a whole through
advocacy, linkages and synergy for the global competitiveness of
Cebu and its people, and the CCCI has always included the
Transport and Logistics Industry as one of its major thrusts for
business development. Even as I speak today, efforts were already

Most Outstanding Chamber in the Visayas 1993, 1994, 2007, 2011 & 2012
Most Outstanding Chamber in the Philippines 1995 to 1997; 2005 to 2007; 2011 & 2012
Most Outstanding Chamber in the Philippines Hall of Fame 1997 & 2007
CACCIs Best Local Chamber in the Asia-Pacific 2008
ASAE Award Developing Nation Category 2010

CCCI Center, Cor. Commerce and Industry Sts., North Reclamation Area, Cebu City
ASA
Tel. (+6332) 232-1421 to 24; Fax (+6332) 232-1422/ 412-9461; URL: www.cebuchamber.org

being done and outcomes were being reaped to achieve our


objectives.
For instance, along with the many port stakeholders like PISFA and
Philexport, we were quite successful in addressing, although
temporarily, the problem on port congestion, as well as in our
interventions in the port for an efficient, safe, economical and
coordinated system of movement of goods.
We are happy that we still have proactive people from the
government like Commissioner Bert Lina of BOC, Collector Atty
Koko Holganza, also of the BOC, and of course GM Tan who are all
sincere in helping us, heeding to our requests and addressing our
concerns.
During the March 10, 2016 Stakeholders' Dialogue held at the CPA
Social Hall, Customs Commissioner Lina, agreed to the business
communitys proposal and announced that the Bureau of Customs
in Cebu will be opened 24 hours daily (24/7) starting March 14, 2016
to speed up the release of shipments. A MOA will soon be signed.
Therefore, I implore for everyones continuous commitment and to
always think out of the box to ensure the success and
effectiveness of your roadmap. It is of utter significance that we
achieve a solid partnership and cooperation in coming up with
more plans and programs to realize our dream for a more global
competitive Cebu and its people. Together, we can bring Cebus
business to the next level.
And for us in the Cebu Chamber, our commitment is to give the
transportation and logistics industry the support you require to
succeed.
Thank you very much and congratulations!

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