BUSINESSES can expect savings on supply-chain costs, thanks to the memorandum of understanding (MOU) on capacity building signed by the port regulator and a Belgian port-management body.
The MOU signed by the Philippine Ports Authority (PPA) and the Port of Antwerp International will help the Filipino port body to simplify port management in the Philippines. This may reduce costs related to supply-chain requirements.
“This agreement will definitely give us the edge to further simplify and reduce the complexities in our overall supply chain, considering it is a challenge for a country composed of more than 7,000 islands,” PPA General Manager Jay Daniel R. Santiago said on Wednesday.
The signing of the MOU, he added, is an offshoot of the ongoing seminar on Logistics, Supply Chain Management and Ports Master Planning currently conducted by PPA in coordination with the representatives of the Port of Antwerp International and Antwerp-Flanders Port Training Center.
“This is also in line with the thrust of the current administration to streamline government processes to trim down the cost of doing business in the Philippines through faster delivery of government services,” Santiago said.
The MOU will pave the way for the establishment of a technical cooperation between the two parties on capacity-building to enhance the skills, abilities and knowledge in the management and operation of the port, thereby creating an environment of well-trained, knowledgeable and able port professionals for the Filipino port regulator, while strengthening the traditional friendship between the parties and its ports.
Both parties also agreed to prepare a plan of cooperation through the principles of mutual benefits and reciprocity in relation to the conduct of an analysis on the possibilities of the planned cooperation, which includes port development, promotion, customer service and developing mutually beneficial relations to maritime business and international trade, in all related aspects.
The memo also includes the exchange and cooperation in the development, modernization and management of ports; the improvement of the legal and regulatory framework; the increasing of the profitability of transport and logistics-related operations; and the introduction of new management structures.
It also spells out agreements on mutual attraction of investments in the development of port infrastructure and industrial and logistic port zones; improvement of energy efficiency of port facilities and the introduction of renewable-energy sources; and the conduct of research and consultancy projects for port, maritime and logistics services in the Philippines jointly between parties.
Port of Antwerp International Managing Director Kristof Waterschoot said the agreement “is one of the steps to familiarize the Belgians with the plans and programs of the PPA and determine possible collaboration as well as present the competitive advantages of the Belgian technologies and services and hope that it will discover potentials for cooperation.”
The pact will last for at least a year and can be extended or renewed based on mutual agreement between the parties while the costs and expenses incurred in connection with the execution and implementation of the agreement will be borne by each party.
“With the dream of the Philippines of becoming a shipping super hub to compete with the likes of Hong Kong and Singapore, among others, this MOU puts the country a step closer in achieving that dream,” Santiago said.