Cavite ecozone slams Manila truck ban

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The truck ban being imposed by the Manila local government can cause the industrial and export processing zone in the municipality of Rosario, Cavite to lose billions of pesos daily.

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This is the gloomy scenario revealed in an interview with The Manila Times by Mayor Jose “Nonong” Ricafrente of Rosario, Cavite, who criticized Manila government’s move to limit the time and places where heavy-duty cargo trucks can ply the streets of the city.

Ricafrente said: “I can’t estimate the exact figures but it’s highly probable that billions of pesos can be lost daily by the Cavite Export Processing Zone (CEPZ) in Rosario because of this truck ban, and it might even adversely affect the entire province of Cavite.”

He said there were more than 300 corporations within the CEPZ in the town of Rosario, which is included in the Cavite Economic Zone (CEZ) that spans 275 hectares of land. The records of CEZ show that these companies employed more than 62,000 management and production workers and more than 4,500 others are employed by brokers, banks, security agencies, canteens, sub-contractors and other offices doing business inside the Zone. Over a period of three years since 1999, the CEZ had an average net trade balance of $246 million.

“Cavite has many foreign investors like Koreans, Japanese and others,” Ricafrente added. “Most of them have formed communities here because they have chosen to reside where they are nearer their places of work. As a result, they affect the economy of many business establishments here like restaurants, banks, hotels, residential and commercial houses, gasoline stations, resorts, telecommunications, water and electricity providers, and many others. So, the truck ban which adversely affects the timely transport and scheduling of raw materials needed by the export processing zones and the delivery of their finished products for exports can produce a damaging chain reaction affecting many sectors.”

He noted that the truck ban will also cause many workers to lose their jobs if the profitability of corporations goes down. “There are now some moves here to reduce the number of working days as a cost cutting measure, which means less income for workers who are mostly members of militant labor unions capable of staging strikes, leading to suspension of business or permanent closures. This truck ban can lead to driving away of foreign investors who can easily transfer to other countries,” Ricafrente said. “So, no more revenues for our local government here.”

He suggested that there should first be a thorough study and extensive consultation with the affected parties before any truck ban policy should be implemented as this affects the timely and costly delivery of raw materials and export products, using the ports in Manila.

The members of the Cavite Mayors League said the truck ban has now become a vital issue they must tackle because aside from the CEPZ in Rosario, there is also another big multinational business region here that is bound to be affected—the First Cavite Industrial Estates, a 154.5-hectare industrial subdivision in Dasmariñas City, with more than 100 manufacturing firms, built as a result of a joint venture of the National Development Co.; Marubeni Corp., a giant trading house based in Japan; and the Japan International Development Organization, with “projects contributing to industrial and economic development of developing countries.”

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6 Comments

  1. Annalyn Sediego on

    Building seaport in Cavite near CEPZ is really a good idea. But, this takes time to build. Daily losses, due to delayed deliveries, of importers / investors / factories must be considered.

    According to Export Development Council (EDC) and Philippine Exporters Confederation Inc (Philexport), they received complaints from members of the Semiconductor and Electronics Industries of the Philippines Inc that unnecessary fees of PHP 2,500 are charged by local government units on trucking operations as soon as the truck enters their territories. EDC / Phiexport also said that “shippers hesitate to move cargoes either Batangas or Subic ports because of the “pestering” done by certain groups in local government units and mulcting by traffic enforcers.”

    Trucks that are allowed in Manila streets between 10AM to 3PM the past days according to truckers are those only with loaded/ stuffed containers. Transportation of empty containers to exporter’s warehouse for stuffing or returning to carrier’s depot inside Manila port area were not allowed.

    I believe truckers, importers, exporters and other stakeholders would want to help also in clearing the traffic congestion in Manila. Only, should not be immediate and should not result to investors big losses and delay their commitments.

  2. by gulay… the ban was only for additional 2 hours from the existing MMDA ordinance. trucks can operate from 10pm~5am with a window during daytime of 10am ~ 5pm window. trucks operation is then 14 hours a day. Manila government only removed 2 hours from the window so new window is 10am~3pm. the trucks still have 12 hours to operate each day!

    and what manila government wants to be removed is the queuing of the trucks along public streets, parked for hours and sometimes occupying both sides of the streets.

  3. Siony Camacho Bana on

    if it will help relieve the daily grueling traffic congestion atypical in Metro Manila as well as its neighboring busy city , like Quezon City and others , passing an ordinance which will allow those very large delivery trucks to deliver its goods as food , construction materials and etc only as early as between 3 am and 6 am , before school opens and workers report for their job.just like the car coding system that is already in place and it seems to be working. And for those who defy the law (found to be bribing the traffic enforcer) they will be penalized, losing their permit altogether

  4. We must not concentrate the Manila Harbor but instead why build port near to Cavite Sangley Point or near Batangas where bulk of Cargos can be held and transport and also limiting truck to and fro Manila street. Government must build new Harbor like in Japan they have almost port in every economic zones.

    • there is already operational ports in batangas and subic that can accommodate the excess cargoes unloaded in manila port. the government spent P7 billion for batangas port which is under utilized. the ports and serve the calabarzon processing zone, while subic port cn aserve the central luzon and bataan processing zones.

      it is all about money and patronage… port operations in manila are already in private hands – razon, romero and the owner of ATI. these guys are the big contributors to noynoy’s candidacy in 2010 and those of his yellow candidates during the 2013 elections!