PPA
authorizes 15% cargo handling rate increase
AFTER the expanded value-added tax
(e-vat), domestic cargo shippers will take another blow
in the form of a 15% increase in arrastre and stevedoring
services starting next week. This after the Philippine
Ports Authority (PPA) last week ordered the implementation
of the 15% across-the-board cargo-handling rate increase
for domestic cargoes starting November 8. The implementation
has been pending for the last three weeks. The PPA has
already issued a memorandum circular authorizing all
cargo handlers in the Manila North Harbor to adopt the
rate adjustment. Cargo-handlers Asian Terminals Inc.
and International Container Terminal Services, Inc.
are not included in the decision. "There has been
a tremendous increase in salaries and wages as well
as fuel and power. The increase in cargo-handling rates
is (designed) to recover expenses related to those,"
PPA general manager Oscar Sevilla said. The PPA in October
approved the adjustment but held its implementation
pending resolution of issues related to inflation targets
by the National Economic and Development Authority.
Originally, cargo-handling operators, led by the Philippine
Chamber of Arrastre and Stevedoring Service Operators,
asked for a 25% rate increase but later on agreed to
the 15% offered by the PPA. Shippers, led by the Distribution
Management Association of the Philippines, called the
increase unjustified and said it would further hurt
its members, coming closely as it does to the implementation
of the e-vat.
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Korean
shipbuilder to plunk in $1B in Subic
Korean shipbuilder to plunk in $1B
in Subic; Dutch firm eyes prototype ro-ro project A
Korean shipbuilder is keen on investing $1 billion for
a facility in Subic that can build post-Panamax ships
capable of carrying 8,000 twenty-foot equivalent units
(TEUs). Subic Bay Metropolitan Authority administrator
and chief executive officer Armand Arreza said the signing
of the agreement with the firm, which he refused to
identify, is scheduled on December 15, in time for the
state visit of South Korean President Roh Moo-hyun.
He said the term sheet or the contract for the lease
has already been delivered. Arreza said the investment
would make the Philippines the fourth-largest shipbuilding
country in the world. In Subic, the Korean shipbuilder
would be the largest investment after Acer Corp., now
Wistron Infocomm Philippines. The Korean company already
went to China and Vietnam but opted for Subic for its
natural deep water. Earlier, the SBMA was hesitant to
approve the establishment of a shipbuilding facility
in the area claiming it will destroy the environment,
thus hurt the thriving tourism industry. It changed
its mind after learning that a shipbuilding facility
can in fact attract tourists, aside from the obvious
investments. SBMA is now trying to settle with informal
settlers along the 269-hectare Redondo area to be affected
by the project. There are some 350 structures occupying
the property. The Korean firm wants SBMA to deliver
the government-owned property free of impediments before
formally locating in the area. The project will take
five years to complete. Meanwhile, the Maritime Industry
Authority (Marina) said a top Dutch shipbuilding firm
has expressed interest to invest in the prototype roll
on-roll off (ro-ro) project as an initial step to doing
more business in the country. Marina administrator Vicente
Suazo, Jr. said Damenh is sending representatives within
the year to study the maritime agency's prototype ship
project, and to check out the investment climate. He
added that the Dutch firm is willing to provide technical
and financial assistance once the workability of the
program is established. Marina earlier said eight Japanese
shipbuilding firms have also expressed interest in setting
up shop in Balamban, Cebu and Subic, Zambales. The eight
are now in talks with local vessel operators for possible
orders or tie-ups, especially now that the local market
for second-hand vessels is growing. The Dutch firm will
be the 12th foreign shipbuilder that has expressed interest
to invest in the country after the Philippine government
eliminated its citizenship investment requirement for
foreign investors.
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Instability
causes BOC-Cebu to miss collection target
Instability causes BOC-Cebu to miss
collection target THE Cebu collection district of the
Bureau of Customs (BOC) missed its October target by
almost 50%, weighed down by low import volumes and political
instability. "Businessmen are reluctant to import
because of the political instability of the country,
causing our collection to fall," said Lourdes Mangaoang,
BOC Cebu district collector. She noted that half of
the top 20 taxpayers of Cebu did not import at all.
As of October 25, BOC-Cebu collected P200 million against
the monthly target of P345 million. From January to
October, it raked in P2.6 billion. The entire year's
target is P3.9 billion. Mangaoang said the National
Transmission Corp. (TransCo) for one, has not imported
since September. The company used to pay the bureau
an average of P60 million in duties and taxes every
month. In August, TransCo paid only around P5 million
in duties and taxes. Six steel companies - Cebu Steel,
Sugarsteel, Cadiz Steel, Luvismin Steel, Galva Phil
and Joyland Steel - also did not import because of low
sales in the past months. Around 70% of the district's
revenues come from import duties and taxes. Despite
the shortfall, the Cebu district said its performance
is still better than other districts, which have fallen
short of their targets by an average 50%.
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Tollways
suspends implementation of 10% e-VAT PATRONS
Tollways suspends implementation of
10% e-VAT PATRONS of the country's tollways can heave
a sigh of relief as the scheduled 10% increase in tollway
fees has been suspended indefinitely. Originally scheduled
for November 1 after the Supreme Court upheld the legality
of the expanded value-added tax (e-vat) law, the Philippine
National Construction Corp. said it will be suspending
the increase until the Toll Regulatory Board has formally
approved the adjustment. Charito Chavez, PNCC spokesperson,
said only after the TRB has consented to the increase
can toll operators start calibrating their respective
machines. "I can only speak for the SLEX (South
Luzon Expressway) and the Skyway. There won't be any
increase yet on Nov. 1," Chavez said. An official
from the PNCC revealed that the same decision applies
for the North Luzon Expressway (NLEX), the Manila-Cavite
Coastal Road and the Southern Tagalog Arterial Road
(Star). Once approved by the TRB, the new toll rate
from the SLEX which spans Magallanes to Calamba will
be P84 for Class 1 from P76; P167 for Class 2 from P151;
and P250 for Class 3 from P227. Along the Skyway stretching
from Buendia to Bicutan, the new rates will be P94 for
Class 1 from P85; P187 for Class 2 from P170; and P281
for Class 3 from P255. The toll fees along Coastal Road
will be P17 for Class 1 from P15; P33 for Class 2 from
P30; and P50 for Class 3 from P45. For the Star, the
new toll rates are P16 from P10 for Class 1 vehicles;
P37 from P33 for Class 2; and P57 from P50 for Class
3. As for the NLEX, the new rates will be P223 for Class
1 from P203; P557 for Class 2 from P507; and P669 for
Class 3 from P609.
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