Home » Ports/Terminals » North Harbor takeover pushed back to Feb 15

New schedule of cargo handling tariff at the port now in effect

MANILA North Harbour Port, Inc’s (MNHPI) takeover of the North Harbor has been deferred to February 15, 2010, the second such deferment in the last two weeks.

The original takeover date was January 1 but this was later moved to January 15.

The deferment comes after the Philippine Liner Shipping Association, the country’s largest domestic shipping association, in a letter to Philippine Ports Authority (PPA) general manager Atty Oscar Sevilla dated January 14, 2010, said the one-month transition period from the time of the Notice to Proceed given to MNHPI last December was too short to effect the necessary changes to operators’ processes.

“For years, our customs, the cargo owners, have been enjoying certain concessions which we cannot remove overnight,” PLSA president Daniel Lacson said in the letter.

“Good business practice dictates that there has to be a reasonable period of phasing in of new systems in order to minimize disruption and miscommunications.

“Apparently, one month is too short a time for the ‘smooth transition’ that we were promised to be attained.”

There are also many key issues that have been left unsettled. PLSA members, for one, are requesting for a 15-day credit line to allow time for reconciliation and processing of accounts, a request earlier denied by the new port operator.

They are also pushing for a free six-day storage period for 30 days from January 15 since cargo owners are in the habit of delivering their outbound cargoes a few days early but withdrawing inbound cargoes days after their arrival.

In addition, a deferment of the 5% concession fee on ancillary services to be levied by MNHPI on shipping companies is being sought. PLSA members claim the concession fee will run up to hundreds of millions of pesos a year which the port operator will pass on to shipping companies and, which in turn, will merely be passed on to service users.

Currently, service providers only pay PPA an annual fee of P2,000 for a permit to operate, also the standard fee in Batangas, South Harbor and other private ports nationwide.

New cargo-handling fees

In a related development, PPA issued on January 7, 2010 Memorandum Circular 1-2010 which contains the new schedule of cargo handling tariff at the North Harbor as prescribed by MNHPI ( click here for copy). The tariff took effect on January 15, 2010.

The order amends the cargo-handling tariff under PPA MC No. 08-2008 dated August 5, 2008.

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