Home » Ports/Terminals » North Harbor chaos = P144M loss for Nenaco

NEGROS Navigation Co (Nenaco) is losing about P18 million for every ship it operates or a total of P144 million each week due to delays in operations resulting from lack of equipment at the North Harbor.

Nenaco expects the amount to escalate if new North Harbor operator Manila North Harbour Port, Inc (MNHPI) does not find a solution to the problem very soon.

Prior to the MNHPI takeover of North Harbor, eight Nenaco-operated vessels averaged three round trips a week with a utilization of more than 80%.

But after MNHPI took over on April 11 or roughly two weeks ago, Nenaco vessels averaged only one round trip and had lesser utilization. The carrier blamed this on unpredictability at the port, leading to less cargo bookings.

Despite the chaos, Nenaco chief executive Sulficio Tagud, Jr said Nenaco and other domestic carriers operating at the port can still sustain their operations, thanks to the current high passenger volumes.

“However, what will happen to us once the peak season is over? We will definitely die if such condition prevails longer,” Tagud noted.

He claimed MNHPI “does not care whether business is running smoothly at the port or not. The current condition is a result of purely lack of facilities on the part of MNHPI, which is the exact opposite when they talk big in the (news)papers… that they have the equipment and that they are ready to take over the port.”

Tagud said, “If such conditions continue beyond May, you will see a big number of shipping lines transferring to other ports, particularly the South Harbor and Batangas Port to save on cost.”

As it is, it seems the big winner in all of this confusion is Aboitiz Transport System Corp (ATS) because the domestic carrier does not operate at the North Harbor but does business at nearby Pier 15 in the South Harbor. There have been accounts of disgruntled North Harbor shippers turning to ATS for help in their shipments.

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