THE Philippines Anti-Red Tape Authority (ARTA) found "no sound legal and empirical basis to establish the need" for the Philippine Ports Authority's (PPA) container monitoring system, reports Manila's Port Calls.

ARTA recommends that the PPA instead explore "cost-effective alternatives" to address potential congestion without burdening stakeholders, said the report.

Fees associated with system implementation will entail additional costs for stakeholders, ARTA said. The recommendation followed an ARTA re-evaluation of PPA's regulatory impact statement on the system's proposed implementing rules.

The final decision on implementing the regulation remains with PPA and the PPA board.

ARTA recommended that the port agency instead explore "cost-effective alternatives" to "address potential congestion without burdening stakeholders".

The recommendation followed an ARTA re-evaluation of PPA's regulatory impact statement (RIS) on the system's operating rules based on PPA Administrative Order (AO) No 04-2021.

While PPA noted the system is "preventive for future congestion," ARTA said, "costs of implementation for the industry should be thoughtfully considered."

ARTA said the fees associated with system implementation will entail additional costs for stakeholders, particularly in relation to the use of PPA-authorised container staging facility outside the ports.

The collection of registration fees for accreditation with TOP-CRMS "highlights the conflicting mandates of the PPA as regulator and port operator," said ARTA.

The agency also found PPA's statement during a June 2023 consultation meeting that there is currently no port congestion "contradicts the system's intended purpose, as stated."