The Philippine Institute of Development Studies (PIDS) has underscored the need to improve the standards of the port system and shipping industry by overhauling the traditional mindset and outdated operations and regulations that have trapped the Philippines in a time warp. This would lower the high local freight rates that are slowing down domestic cargo activity, said PIDS senior research fellow Rafaelita Aldaba during a recent forum on the bottlenecks to global competitiveness of Philippine ports and shipping in Taguig City. "Productivity of domestic ports is only half the productivity of foreign ports. The high local rates have a significant impact on Philippine industries,” said Aldaba. She cited a 2010 survey of eight companies from the automobile, electronics, and textile sectors that showed how their total local logistics costs were adversely affected by the lack of competitiveness in port services. Among the competition bottlenecks for the industry are the conflicting dual roles of the Philippine Ports Authority (PPA) and the lack of independence of the Maritime Industry Authority (Marina).

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