Home » Ports/Terminals » North Harbor concession fee deal in the works

A tripartite group will soon sign a memorandum of agreement (MOA) to facilitate the turnover of North Harbor to winning bidder Manila North Harbour Port, Inc (MNHPI).

The MOA between the Philippine Ports Authority (PPA), Philippine Liner Shipping Association (PLSA) and MNHPI will center on what to do with the contentious provision of a 5% concession fee on ancillary services allowed under the existing MNHPI contract.

MNHPI has draf-ted the agreement that will be forwarded to PPA and PLSA. If all goes according to plan, the MOA will be signed by month’s end.

It maybe recalled that PLSA wants PPA to delete the 5% concession fee provision, claiming it will increase passage fees and freight rates.

The Department of Trade and Industry (DTI), acting on a petition also from PLSA, has asked PPA to reconsider the concession fee. The DTI instead proposed the adoption of a fixed fee, the common practice in most of the country’s gateways.

PPA, however, said that rather than amending the still-unimplemented North Harbor contract just so as to arrive at a compromise on the concession fee, the MOA seems the easier solution.

Another issue hindering the port turnover is that of labor. PPA said it will exert all effort, including bringing in the police, to force dissenting cargo-handlers to honor the 25-year contract of the new port operator.

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