Container-van crisis nears tipping point

UNLESS President Aquino intervenes, a crisis involving empty container vans could reach its tipping point very soon, and this could hurt the Philippine economy. This fear was raised after the Manila International Container Terminal (MICT) issued a circular stating that it would no longer accept “empty containers for export, due to yard utilization reaching 100 percent.” That circular took effect at the close of business hours on July 8.

That crisis—which showed that the MICT and South Harbor yards are now 98-percent and 90-percent full, respectively—was caused, in part, by a confluence of factors, according to Roberto Bayocot, president of the Confederation of Truckers Association. These include the longer processing time for import papers, courtesy of Customs Commissioner John P. Sevilla; the truck ban imposed by Mayor Joseph “Erap” Estrada of Manila, and the anti-colorum-vehicle drive of the Land Transportation Franchising and Regulatory Board (LTFRB).

The longer processing time for import papers not only resulted in undue delays in even the release of the import papers of the country’s top companies, but also in yards becoming congested with offloaded containers. It reached a point where importers have to face the prospect of paying an additional $450 in congestion and terminal fees. Coupled with Estrada’s truck ban and the LTFRB’s campaign, the congestion worsened to such a degree that even the yards of private companies are experiencing the pressure.

The costs of this congestion to the country’s economy are huge. For importers to return the empty containers, they are being told to try the Subic yard. But that means paying an extra P30,000, more than triple the transport costs—ranging from P7,000 to P8,000—asked by the MICT and South Harbor. No sane importer would want to spend an additional P30,000 per empty container, since it could chop off any income that the importer would earn.

Many companies, at the mercy of Sevilla’s daang matuwid (straight path) posturing and Estrada’s truck ban, are now partly halting their operations because of this crisis. Meanwhile, the LTFRB issued a ruling for a temporary pass for 120 days while the franchise of the trucks-for-hire is being processed. But there’s a problem: some of the local government units, and even the traffic cops of the Metropolitan Manila Development Authority, are clueless about the LTFRB-issued reprieve. This resulted in a hike in freight costs, from P8,000 to P18,000 per truck.

Businessmen believe that only President Aquino’s intervention could avert an economic collapse that could result from the crisis. In fact, there is a possibility that, because of this crisis, shippers may just pass up the Philippines as a port of call. This could make the economy suffer.

St. Luke’s gets RD platinum award

FOR the sixth straight year, St. Luke’s Medical Center was recognized as a Reader’s Digest Platinum Trusted Brand in the Hospital Category. The recognition came after the general-interest magazine’s 16th Trusted Brand survey was conducted among Filipino and Asian consumers to find out the most trusted brands in its five key Asian markets: the Philippines, Singapore, Hong Kong, Malaysia and Taiwan.

Global marketing-research company Ipsos conducted the survey, which covered 42 categories and involved 5,000 respondents. Trusted brands were rated according to six attributes: trustworthiness and credibility, quality, value, understanding of consumer needs, innovation and social responsibility.

The recognition received by St. Luke’s testifies to its passion to deliver top-of-the-line health care to Filipinos, and even to foreigners seeking medical attention for their ailments.

Sue Carney, editor in chief of Reader’s Digest Asia Pacific, said that “consumers across Asia say [that], given a choice, they will reach for, they will recommend or they will buy [a] Reader’s Digest Trusted Brand over a leading product.”

In its June 2014 issue, the magazine stated: “St. Luke’s has been awarded a Platinum Trusted Brand award this year—showing just how much trust people from all over the Philippines place in the hospital’s services.”

This year’s Trusted Brand Award was divided into three categories: Gold Trusted Brand (brands that score higher than their rivals); Platinum Trusted Brand (brands that performed and scored exceptionally higher, compared to their nearest competitors); and Asia Trusted Brand (brands that win the Trusted Brand award in at least three of the countries surveyed). St. Luke’s won the Gold Trusted Brand Award in 2007 and 2008, and has received the Platinum Trusted Brand Award every year since 2009.

The latest award was received by Marilen Lagniton, St. Luke’s senior vice president (SVP) for Patient Experience and head of the Marketing Group, and Dr. Jose Moran, SVP for Medical Practice and medical director of St. Luke’s-Quezon City, from Carney during the awarding ceremony held at the Crowne Plaza Manila
Galleria hotel.–Lito Gagni, Businessmirror

E-mail: hugagni@yahoo.com.