The Confederation of Truckers Association of the Philippines (CTAP) is seeking incentives from government to support the industry which it said is crucial to the economy and the country especially during emergencies like the ongoing pandemic.
Pete Dino, president of CTAP, in a forum yesterday reiterated the group’s opposition to Senate Bill 2094 or the amendment to the Public Services Act that opens up trucking to foreign competition.
Instead it sought reforms for the industry, including the exemption of trucks from the phaseout program based on age of the vehicle.
“The entry of foreign-owned or controlled trucking companies will not impact on the rates … we will have the same cost for the same distance…. But it would only exacerbate traffic,” Dino told the forum, adding “there is no shortage of trucks at present.”
He said there are about 400,0000 trucks registered with the Land Transportation Office, half of which are covered by franchise.
He said smaller players will be eased out once foreign firms are allowed to engage in trucking in the Philippines.
While the trucking business remained stable and their operations unimpeded during the pandemic, CTAP sees the need to uplift the service capability of local truckers to respond to current and emerging trends in transportation.
CTAP said the MVIS, if strictly implemented, will determine the safety of trucks based not entirely on age but on road worthiness.
The government’s Transportation Modernization program orders the phaseout of transportequipment that are 15 years old and above.
The group seeks incentives such as income tax holiday and ease of importation of new equipment.
“Being vertically integrated into the economy, the economic fallout of SB 2094 to the local trucking industry would be tremendous. Allowing foreign majority equity ownership in the local trucking will tip the balance of competition in favor of cash-rich foreign owned and controlled trucking companies. And for an industry with no established level playing field safeguards for its players, the small ones will hardly have the opportunity to compete and grow,” CTAP said in a position paper sent to the Senate Public Service Committee, which it urged to “consider national patrimony first.”
It added: “Trucking is vital to the economy especially in national emergency.
Under normal conditions, the trucking industry facilitates the delivery of raw materials and finished products ; and in times of emergency, ensures the unfettered delivery of supplies, equipment, relief goods, etc.”
