GrabCar First and Only Transport Network Company legalized by LTFRB

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The first and only Transport Network Company legalized by the Philippine government, GrabCar, the private hire vehicle booking service available through the GrabTaxi app.

GrabCar is the first and only service of its kind in the Philippines to be fully accredited as a Transportation Network Company (TNC) by the Land Transportation Franchising & Regulatory Board (LTFRB).

Natasha Bautista, Head of GrabCar Philippines, said this GrabCar accreditation validates the company’s efforts in providing the safest and most convenient rides for passengers in the Philippines.

“With full accreditation, more Filipino commuters will be able to use GrabCar and be confident that we offer a legitimate and safe private hire service. We will now focus on rapidly expanding our GrabCar service to serve more passengers across the Philippines,” said Bautista.

“Our GrabCar accreditation by LTFRB is a historical occasion. We commend the Philippine government for collaborating with our team to revolutionize transport in the Philippines through the development of game-changing regulations that champion innovation and public safety for society,” she added.

First and only legal service

When GrabCar first entered the market, the service operated on par with the current industry standards. In May 2015, the Department of Transportation and Communications (DOTC) announced that it would create a new classification to accommodate mobile app-based booking services. On July 3rd, GrabCar became the first company to complete all the requirements and receive full accreditation as a TNC.

The requirements for TNC accreditation include: business permit, certificate of registration duly issued by the Bureau of Internal Revenue (BIR), business model proposal with proposed fare rates and service charges, and complaint mechanism against vehicle owners and drivers.

Safety remains top priority

“The stringent safety and training process we’ve implemented since day one has ensured that GrabCar complies with the new TNC regulations seamlessly and can be the first to be fully accredited by LTFRB. We are committed to screening and training our GrabPeer drivers for GrabCar in full compliance with the TNVS accreditation requirements set by LTFRB. In fact, we’re working with our Regional Head of Safety and the LTFRB to consistently ensure that our screening and safety measures are of the highest standard possible,” said Bautista.

“GrabCar has been very collaborative. Since day one of operations, they have been working closely with us to ensure that the policy on TNCs prioritizes passenger safety. We are happy to announce that GrabCar has already been accredited upon meeting all government requirements, and we are positive that this will revolutionize the Philippine transportation industry,” said Roberto Cabrera, LTFRB Executive Director.

GrabCar aims to complement the current transportation options in the country and provide passengers with another safe and affordable ride option. GrabCar believes that with full accreditation by the Philippine government, TNCs will be able to provide a fast, safe and convenient transport option for passengers.

Celebrate GrabCar’s Accreditation

To celebrate its full accreditation by the Philippine government, GrabCar is giving away an unlimited P100 discount on all GrabCar and GrabCar+ rides! 

Just use the promo code LEGALLYGRAB on every booking from July 7 to July 21, 2015.

Happy Anniversary GrabCar ! 

Extended MRT-3 Operating Hours to Be Tested by DOTC

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To give the public another option to beat traffic, the Department of Transportation and Communications (DOTC) and the Metro Rail Transit III (MRT-3) Office will extend the operating hours of the metropolis’ most utilized urban rail transit system starting on 24 February 2014.

The longer hours of service will be tested for one month to determine whether it will be viable in the long run. 

“This is part of our program to mitigate the traffic situation. Based on the test run, we will monitor how much passengers are willing to alter their riding habits by commuting earlier in the morning or later in the evening. We will also see whether this will encourage motorists to take the train instead of their cars,” said DOTC SpokespersonMichael Arthur Sagcal. 

Currently, the rail system’s regular hours of operation are from 5:30am to 10:30pm. For the first 2 work weeks, or from February 24 until March 7, the MRT-3 Office will start operations at 4:30am from the North Avenue station and 5:00am from the Taft Avenue station. 

In the 2 following work weeks, or from March 10 to 21, it will also extend the evening runs up to 10:30pm from the North Avenue station and 11:00pm from the Taft Avenue station, in addition to the earlier opening hours. 

After the 4-week testing period, the MRT-3 Office will make its recommendation to the DOTC on whether the extended operating hours may be regularized, based on its impact on commuters, daily train maintenance requirements, and the additional cost of operation. 

“Our limitations are on maintenance and costs. For maintenance, the coaches have to be checked every night to ensure safety. It seems that we will be able to shorten the turnover process without compromising actual maintenance hours. As for costs, the testing period will allow us to project how much more we need to spend to make it sustainable over time,” Sagcal explained. 

“As always, we are looking for ways to serve the public better. We want to deliver convenient, efficient, and safe transportation options, especially with government’s push to improve infrastructure over the next few years,” he added. 

The DOTC has previously announced that the Philippine National Railways (PNR) will begin its Special Coach service to ply the Tutuban to Sta. Rosa route as another mitigating step to help ease traffic. Together with the Light Rail Transit Authority (LRTA), it is now also finalizing options through which LRT Lines 1 and 2 can accommodate more travellers who will be affected by the various construction works in Metro Manila.

dotc.gov.ph

DOTC: Brand new MRT coaches may help ease traffic by 2015

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With Metro Manila traffic expected to worsen further over the next few years due to the implementation of multiple infrastructure projects, the Department of Transportation and Communications (DOTC) is hoping that it will finally be allowed to add 48 brand new Light Rail Vehicles (LRVs) to the Metro Rail Transit III (MRT-3) system at the soonest possible time.

“We hope that the order preventing us from adding brand new LRVs will be lifted immediately, for the public’s sake. The DOTC will be able to increase MRT-3’s capacity within 2 to 3 years starting from the time that the court allows us to proceed. Since more passengers will be able to take the train, EDSA traffic should be mitigated considerably,” said DOTC Spokesperson Michael Arthur Sagcal.

The transport agency’s MRT-3 Capacity Expansion Project involves the purchase of 48 brand new LRVs through an open and transparent bidding process conducted last year. After the contract was awarded to China’s Dalian Locomotive and Rolling Stock Company in January, however, the Regional Trial Court (RTC) of Makati issued a Temporary Order of Protection (TOP) to halt the process.

The Project will increase MRT-3’s trips per hour from 20 to 24, which will translate to a 60% increase in the number of passengers per hour per direction (PPHPD). This means that, from the current 23,640 people who can avail of the rail service every hour heading towards one direction, the Project will make it possible for 37,824 passengers to enjoy this convenience.

Currently, the rail line’s average daily ridership is already over 560,000, and its highest single-day passenger count is 620,000. The Project will not only help ease the gridlock on EDSA, it will also make the MRT-3 experience much more bearable for its riders.

Sagcal clarified that “the Project will take 2 to 3 years to complete because the LRVs will still be manufactured. A prototype will be tested on the system within 12 to 18 months, followed by the delivery of 3-4 units per succeeding month. This means that traffic decongestion can already start by 2015. All we’re waiting for is the court’s go signal.”

On 30 January 2014, the Makati RTC issued the TOP in favor of MRT Holdings II, Inc., which claims to own and control 100% of the Metro Rail Transit Corporation (MRTC). MRTC owns the MRT facilities pursuant to its 1997 concession agreement with government.

MRTC’s Board of Directors has since confirmed that the filing of this injunctive suit was unauthorized, and the DOTC has pointed out that it has no contractual relationship with MRT Holdings II.

The transportation department believes that it has sufficient legal grounds to proceed with the addition of new LRVs in line with public interest. The Project is urgently needed after MRTC failed to add any LRVs to the rail system despite DOTC’s demands for it do so since 2007.

(From the Department of Transportation and Communications dotc.gov.ph)

DOTC Ready To Defend Public Interest, Need For Additional MRT-3 Coaches

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The Department of Transportation and Communications (DOTC) is ready to defend public interest and argue its case on the need to add forty-eight (48) new Light Rail Vehicles (LRVs) to the Metro Rail Transit III (MRT-3)system at 2:00pm today, before the Regional Trial Court of Makati. 

Acting on a petition filed by Metro Rail Transit Holdings II, Inc., the court issued a 20-day Temporary Order of Protection on 30 January 2014, preventing the transport agency from going ahead with the Project. 

While having no contractual relationship, the DOTC says that MRT Holdings II should be held accountable for Metro Rail Transit Corporation’s (MRTC) failure to add much-needed train coaches to the rail line, after it claimed to own 100% of MRTC. 

“Passenger safety and convenience demand that the project proceed immediately. MRTC has received over P 35.2 Billion in equity rental payments since 2000. Yet it has added zero LRVs, knowing full well that MRT-3 has been operating beyond capacity for years. MRT Holdings II must answer the obvious question: why hasn’t it added LRVs to MRT-3 all this time?” said DOTC Spokesperson Michael Arthur Sagcal. 

The rail transit line has an original design capacity of only 350,000 passengers per day. According to current MRT-3 data, it is already averaging 560,000 passengers daily, and its highest recorded number of single-day riders has reached 620,000. 

Government has made the following equity rental payments to MRTC since 2000, pursuant to the Build-Lease-Transfer (BLT) agreement:

YEAR	PAYMENT IN US DOLLARS	PH PESO EQUIVALENT		YEAR	PAYMENT IN US DOLLARS	PH PESO EQUIVALENT
2000	9,166,665	448,515,054.70		2007	39,999,996	1,754,820,860.36
2001	9,999,996	519,220,323.88		2008	39,999,996	1,844,433,054.49
2002	9,999,996	520,304,865.70		2009	44,583,333	2,108,191,434.15
2003	19,166,670	1,064,526,731.07		2010	118,333,337	5,255,041,829.44
2004	20,000,004	1,121,338,123.04		2011	129,583,330	5,620,838,651.65
2005	38,333,330	2,005,689,396.15		2012	129,999,996	5,482,319,022.33
2006	39,999,996	1,877,620,456.23		2013	129,999,996	5,580,144,026.22

These payments total USD 779,166,641.00 or P 35,203,003,829.41. 

“Those are the numbers: P 35.2 Billion paid to MRTC; more than 560,000 passengers daily; zero trains added to the system. Despite all of this, MRT Holdings II is asking the court to stop the DOTC from improving MRT-3’s services,” Sagcal added. 

To end government’s obligation to continue making equity rental payments to MRTC until 2025 while the latter effectively blocks efforts to improve MRT-3 services, an Equity Value Buy-Out of MRTC is already being prepared by the Department of Finance pursuant to Executive Order No. 126, series of 2013. 

As to the maintenance of the MRT-3 system, it is MRTC’s obligation under the BLT agreement to provide such services. However, MRTC allowed its previous contract with maintenance provider Sumitomo of Japan to lapse in 2010, after which it engaged Sumitomo’s services with short-term contracts only. 

The DOTC acted promptly and stepped in to ensure the safety of the riding public, by first engaging a maintenance provider through an emergency procurement, followed by the regular procurement of a longer-term maintenance service provider last year.

Source: http://www.dotc.gov.ph/

SM Consortium confident to win light rail single ticketing project

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SM Consortium, led by SM Investments Corp. with members BDO Capital and Investment Corp., Advanced Card Systems Ltd. and Penta Capital Investment Corp., is confident of a favorable result in the ongoing financial evaluation of the MRT/LRT Automated Fare Collection System Project.

“With no cost to the government to build and modernize the ticketing system and a one-time concession fee of P1,088,000,000 to be paid to the government unconditionally, we believe that our proposal is most advantageous to the government and the riding public,” said Norman T. Pe, senior vice president of Penta Capital.

The Department of Transportation and Communication is now evaluating the proposals of the three bidders – AF Consortium led by BPI, SM Consortium and Comworks Berjaya Consortium – which passed the technical proposal stage. 

“SM, the country’s largest retail chain, will be able to maximize the potential of this innovation through the wide retail acceptance and other applications,” added Denny Wong, chairman of Advanced Card Systems Ltd of Hongkong.

The winning bidder will be announced before Dec. 24 and notice to proceed is expected to be issued in the third week of January 2014.

DOTC : MCIAA Donates P 2-Million to Earthquake Victims

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Airport Back to 100% Normal Operations One Day After Temblor

Following the aftermath of Tuesday’s temblor, the Mactan-Cebu International Airport Authority (MCIAA) has decided to donate P 2-Million to the victims of the earthquake in the provinces of Cebu and Bohol out of its Corporate Social Responsibility (CSR) budget.

The MCIAA Board of Directors met yesterday, 17 October 2013, and approved the release of P 1-Million each to the Provincial Governments of Cebu and Bohol as financial assistance for use in their relief operations.

“I commend MCIAA for this generous act at this critical time, and I hope this inspires others to help out as well. I personally visited our kababayans in these areas over the past two days and saw the difficulties they are going through. It is good for them to be reassured that government is here to help them,” said Department of Transportation and Communications Secretary Joseph Emilio Aguinaldo Abaya.

The MCIAA also reported to the DOTC that the Cebu airport has been back to 100% 24-hour normal operations since the day after the earthquake hit, or on 16 October 2013. This confirmation dispels certain false and irresponsible text messages which have been circulated, claiming that the runway was badly damaged and that the airport was closed.

According to the MCIAA, the runway was closed for only 20 minutes right after the temblor hit, in order to allow the Runway Inspection Team to conduct an immediate technical inspection of the runway and taxiway integrity. Having been found to be safe, the runway was reopened for flight operations.

Meanwhile, the passenger terminal building (PTB) was evacuated and closed for around three-and-a-half hours on 15 October 2013 as structural integrity was assessed. No major damages were detected, as minor damages such as cracks were non-structural in nature. Passenger and cargo processing were returned to the PTB from separate buildings by around noon of the same day.

The riding public is advised to remain on alert and to follow any public announcements that may be broadcast at the airport. Should there be a need to evacuate, they should follow the guidance of airport personnel and head to the nearest exits. The MCIAA is appealing for calm and sobriety as aftershocks occur.

The MCIAA reaffirms its commitment to provide the highest level of airport services possible with safety first on its mind, in line with the DOTC’s priority of ensuring passenger safety and convenience.

http://www.dotc.gov.ph/

DOTC Concludes successful Philippine Transit App Challenge

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Top-winning app lets commuters share traffic, weather info, events and others.

The Department of Transportation and Communication’s (DOTC) Philippine Transit App Challenge, the first in Southeast Asia, was a resounding success, drawing participants from as far as Cebu for a three-month hack-at-home competition to develop an app that will ease commuting in the megacities of Cebu and Metro Manila.

At the culminating event held last 14 October at the GT-Toyota Asian Cultural Center Auditorium in UP-Diliman, competition finalists got to demonstrate how their apps worked and the various benefits each offered.

Transport Secretary Joseph Emilio Aguinaldo Abaya thanked the developers for sharing their talent in helping provide tools to the commuting public for navigating the two giant metros.

“I commend all of the participants to our App Challenge, especially the finalists who are here tonight, for spending the last three months being a part of the solution to one of our country’s toughest problems,” he said.

Trip Barker, a community-based trip planner for mass transit systems through which users can share real-time weather, traffic, and events with their community, won the Best App Award and P100,000.00 plus a nomination to the 2014 Mobile Premier Awards at the Mobile World Congress in Barcelona, Spain next February.

There were also three special award winners, each with a P50,000.00 prize.

Sakay.ph, a web- and SMS-based app that gives commuters printable transit directions for jeepneys, buses, and trains in Metro Manila, took the Open Community Award.

The Transport Award went to Transit.com.ph for its app that provides Cebu City commuters with route-planning tools as well as a route editor for city planners and contributors.

Manila Train Guide, a trip-planning app for Metro Manila’s railways, which highlights nearby places of interest, won the Inclusive Technology Award.

Meanwhile, Rklamo, an app that provides a tipping mechanism via SMS for PUV drivers with good behavior was the Voter’s Choice and received P 30,000.00.

The Philippine Transit App Challenge, which was launched by the DOTC alongside the Metropolitan Manila Development Authority (MMDA) and the Cebu City Government in early July, netted 17 entries from which 10 finalists were chosen

http://www.dotc.gov.ph/

Philippine Transit App Challenge Culminating Night on October 14

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The Philippine Transit App Challenge culminating night will take place on October 14. The DOTC is giving out a special award for the app that shows most potential in providing new insight through visualization and data collection for transport improvement in the Philippines.

Last July 2nd, the competition was launched and was followed by a 3-month development period, where participants worked together with volunteer mentors to build their entries. more than a 100 app ideas were received and more than half of those have passed to the prototype phase. After a period of online competition, and with the help of the public vote and the judge evaluation, 10 finalists will be selected for the award ceremony. 

During the culminating night, to be held on October 14, these finalists will pitch their entries live on stage. The winners will be announced during this same event.

http://philippine-transit.hackathome.com/#sthash.pLPsKFCf.dpuf

#MillionSeatsForJuan ! Cebu Pacific is Still the P1 !

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Cebu Pacific held a P1 seat sale for all its Philippine and international destinations. The travel period is from June 1 to December 11, 2014. 

For flights from Manila or Cebu, the base fare is P1, but adding the admin fee (P130), 12% VAT (P15.72) and terminal fee (P200), the total one-way fare comes out at P346.72. However, travelers still have to pay a fuel surcharge of between P200-P450.

For flights from other hubs in the country, the total one-way fare comes out at P161.72. 

For international flights, the total one-way fare comes out to P131. However, travelers still have to pay terminal fees of between P450-P550, as well as fuel surcharge from P400 to P4,840, travel tax of P1,620 and country-specific taxes ranging from P403 to P1,250. 

The promo runs until seats last. 

Book your next Promo Fare at http://www.cebupacificair.com/

XPLORE NAGA 2013 !

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XPLORE NAGA 2013 is offer you one of the largest photography activity this coming Peñafrancia. In tradition in providing you hip and in style events, Xplore Naga 2013 is here to bring to the upcoming festivities to the forefront of festivals in the country and the world. Participants would be treated to a plethora of festivities and experience that aims to capture what makes the Peñafrancia Festival unique in the world. 

The Photography Academy-Manila in partnership with the City Government of Naga and Avenue Square we now give you this event that would surely give you a different take on the usual festivities this September.

Xplore Naga 2013 is an advocacy event for boosting local tourism by The Academy. It is part of the series of PhotoQuests for our Traveller Project, where we will visit local towns and cities with global festivals. 

With this event, first to be held in Naga to showcase to the world the beauty of Naga and its people by creating a gallery of inspirations, dreams, and hopes and using the power of social media to communicate this message. Photos will all be taken in Naga City during the Peñafrancia Festivities by local and professional photographers and students from Manila and Naga City. This would be a month long celebration for all. 

Awards to be given to the winners and an exhibit would follow for the photographs you took for the event at the Plaza Rizal.

Here's the following schedule of activities. 

September 9 

Time: (8AM-12NN)

Venue: TBA

Photojournalism Workshop with Francis Malasig

“Basics of Photojournalism and An Inspection of Photojournalism in the Country”. Francis Malasig of European Press Agency a renowned photojournalist who won the 1994 Freedom Forum Awards

September 13

Time: (2PM-7PM)

Venue: Avenue Square

Join your fellow photographers both hobbyists and professionals in witnessing the Translacion procession. The Formal Opening of the Xplore Naga PhotoQuest on September 13, 2013 at 2PM to 4PM at the Avenue Square and the awarding ceremonies would soon follow at the Avenue Square by 7PM.

September 17-21

Time: 10AM

Xplore Naga Gallery at the Plaza Rizal on September 17- 21 2013 at 10AM

See your best photos come to life as we exhibit them in life-size prints at the Plaza Rizal.

Your photos would have the chance to be published and exhibit at the Food and Art Gallerie at the 12th Floor of GT tower, Ayala Avenue, Makati City for 2 months and a coffee-table book will be published by the Academy entitled “Xplore Naga 2013 Book”

Explore and Enjoy the wonderful world of Naga City as it showcase the flavour and color to the country and the world!

For more info, send email at : info@thephotographyacademymanila.com

and visit : www.Thephotographyacademymanila.com

facebook.com/thephotographyacademymanila

DOTC set to postqualify bids for 2 key projects for the Metro Rail Transit (MRT)

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Maintenance provider and magnetic ticket supply contracts at stake

The Department of Transportation and Communications (DOTC) is about to conduct bid evaluation and post-qualification exercises for two key projects for the Metro Rail Transit (MRT) 3 System, namely: the P712-Million MRT-3 System Temporary Maintenance Provider Project and the P 25-million Supply & Delivery of MRT-3 Magnetic Ticket Project.

According to their report, after opening the eligibility documents of three groups which vied for the one-year Maintenance project on June 3, 2013, the DOTC’s Bids and Awards Committee (BAC) found only one proponent, Autre Porte Technique (or “APT”) Global, Inc., to have qualified for the next stages of the bidding process.

DOTC spokesperson Migs Sagcal said that APT Global submitted a bid in the amount of around P 685 Million. Financial proposals of the two other interested groups were no longer opened after they were found to be ineligible.

The disqualified groups were Asiaphil Manufacturing Industries, Inc. in Joint Venture with Korea Railroad, which did not comply with sealing and marking requirements of Republic Act No. 9184 (the Procurement Law); and Commbuilders & Technology Philippines Corporation, which failed to submit a certificate of satisfactory performance.

“Unfortunately, it once more came down to two groups’ failure to comply with the bid requirements. Time and again, we have said that the DOTC-BAC can do nothing but to follow the Procurement Law, which prohibits it from exercising discretion” Sagcal added.

As for the magnetic ticket supply project, only the current MRT-3 contractor submitted a proposal during the bid opening conducted on May 30, 2013. The Transport agency disclosed that Banner Plasticard, Inc. offered to supply and deliver 4,252,000 magnetic tickets to the DOTC-MRT3 in the amount of P 25 million.

The financial proposals of the eligible bidders for both projects will now undergo detailed evaluation, after which their bids will be subjected to postqualification exercises.

The relatively short duration of these projects—one year for the Maintenance contract and thirty (30) days for the Ticket Supply contract—is partly due to the eventual buyout of the owner of the MRT-3 facilities pursuant to Executive Order No. 126 issued by President Benigno S. Aquino III last March, as well as the transition to an Automatic Fare Collection System (AFCS), now being bid out by the DOTC as a Public-Private Partnership Project, by the first quarter of 2015.

Source : dotc.gov.ph

DOTC Seals Agreement for State-of-the-Art Aviation Safety Systems by 2015

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The Department of Transportation and Communications (DOTC) made an agreement paving the way for a world-class aviation system in the Philippines, ensuring the availability of CNS/ATM (Communications, Navigation, and Surveillance/Air Traffic Management) Systems within two-and-a-half years.

Under a Contract Amendment signed last week between the DOTC and the Sumitomo-Thales Joint Venture, the latter will immediately restart the construction of an air traffic management building and the supply of various components such as automation equipment and terminal radars, to enable the use of the satellite technology-based system.

The original contract between the parties was signed in December 2010, but was disallowed by the Commission on Audit (COA) in May 2011. After a review of its concerns, however, the COA lifted the disallowance in March 2013.

The DOTC and the Joint Venture then worked on the Contract Amendment in order to update the project timeline, scope of works, and prices, to allow the project to proceed.

The state-of-the-art CNS/ATM Systems will modernize aviation safety and security capabilities, increase airport capacity, and minimize flight delays and aircraft collisions by providing safety alerts and warnings, managing the use of the airspace and air traffic flow, and enhancing the communications and monitoring capabilities of the Civil Aviation Authority of the Philippines (CAAP).

“This project will bring the country closer to the highest of international aviation safety standards. Ultimately, it will also result in more revenues for the government, bolster the country’s tourism goals, and lower pollution emission levels through efficient air traffic management,”said DOTC spokesperson Migs Sagcal.

Sagcal added that Secretary of Transportation and Communications Joseph Emilio Aguinaldo Abaya secured the joint venture’s reassurance that the CNS/ATM Systems will be fully in place within President Benigno S. Aquino III’s term, or by November 2015.

The CNS/ATM Systems Development Project was first conceptualized in accordance with the International Civil Aviation Organization (ICAO) Global Air Navigation Plan, and will replace aging vital communications, surveillance, and air traffic control equipment at selected airports nationwide.

Sources: dotc.gov.ph

DOTC Pursues 3-Year Program to Reduce Domestic Shipping Cost for Inclusive Growth

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The Department of Transportation and Communications (DOTC) is beginning a three (3)-year program aimed at generating growth for the country’s agribusiness trade, directly benefitting workers in the agricultural and fisheries sectors across the country, in line with President Benigno S. Aquino III’s push for inclusive growth.

Last Wednesday (May 8, 2013) the Department of Transportation and Communication (DOTC) secured the cooperation of the International Finance Corporation (IFC) on a program to pursue reforms various policy and regulatory reforms in the Philippine shipping sector in order to improve our farmers’ market access and integration by reducing the cost of domestic shipping over the next three years.

From L-R: (seated) DOTC Undersecretary for Planning Rene K. Limcaoco, DOTC Secretary Joseph Emilio Aguinaldo Abaya, IFC Resident Representative Jesse Ang; (standing) Narcisa Rivera of CIDA, MARINA Director Myrna Clemeno, PPA official Amy Aquino, and IFC Senior Program Manager Hans Schrader.

The project will involve a diagnostic review by the IFC to identify areas where pro-competitive practices will help meet these goals. The DOTC will work together with its frontline agencies, the Maritime Industry Authority (MARINA) and the Philippine Ports Authority (PPA), in reviewing the results of the study and implementing the recommendations of the IFC from 2013 to 2016.

“This partnership with the IFC is a very welcome development. It will have a major impact on our economy, especially for farmers and fisherfolk who stand to realize the most gains from our policy reforms,” said the Transport Department.

The DOTC explained further that, by reducing domestic shipping costs, the prices of commodities will also go down. According to a study prepared by the United Nations Development Program (UNDP) in 2005, 24.2% to 43.8% of the wholesale price of food products is on account of transport and logistics costs. 

“By making it cheaper to move agricultural goods from farms to markets, the prices of these commodities will also be reduced, making them more affordable to consumers,” remarked the DOTC. “These benefits are the reason why the DOTC, MARINA, and PPA – all of whom share the President’s vision of inclusive growth – look forward to this project.”

This effort is partly funded by the Canadian International Cooperation Agency (CIDA), and will require no cost on the part of the Philippine government. It is also part of the IFC’s Philippine Agribusiness Trade Logistics program.

According to IFC Resident Representative Jesse Ang, this agreement demonstrates the IFC’s confidence in the DOTC, MARINA, and PPA’s efforts to undertake shipping and port reforms.