Home » SCMAP Perspective » Port Tariff Structure
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Planning Session

The new Board and Committee chairpersons for 2013 begin work for the year with its traditional planning session to map out what will be the focus and priorities for the year. As with the last two years, the activity will be held out of town. The schedule is January 19–20, 2013.

 

Port Tariff Structure

SCMAP has been hearing about a new tariff structure being proposed for the Manila North Harbor. Actually SCMAP has not received any formal notification about this.

 

From what we hear, the Manila North Harbour Port, Inc. (MNHPI) is proposing to create a new structure for port tariff by separating 14 or 15 detailed items from the current tariff. These items are supposed to be daily services rendered but not included or not clearly defined in the current tariff.

 

From information received by SCMAP, the detailed items are:

 

1) Cranage

2) Extra Labor Services

3) Weighing Fees

4) Pier Lighting

5) Lifting of hatchlids

6) Mandatory government agencies (i.e. BOC, DENR etc.) cargo inspection

7) Meal Break Hour Charges (Seguido)

8) Tariff During Suspension of Port Operations

9) Shore Crane Standby

10) Shut Out Charges

11) Gatepass Cancellation I Re-printing I Replacement

12) Amendment Fee

13) Parking- Lost/Damaged Card

14) Garbage Collection

 

Without formal advice on the matter, SCMAP can only make preliminary comments at this time.

 

The idea of unbundling the tariff structure, or breaking down the total tariff into detailed activities and establishing a rate for each activity, is objectionable.

 

  • Some of the 15 specific activities are so basic that they do not deserve a specific tariff. For example, pier lighting and garbage collection. These are basic and necessary. They must be provided and cannot be separated from the main activities called arrastre and stevedoring. This is not to say that the other items are ok to have their own tariff.
  • A structure with 15 detailed components is prone to abuse and will tend to produce a higher total tariff than just the total tariff only, thus giving undue benefit to MNHPI.
  • A tariff schedule with 15 detailed components is too complicated. If such a structure is allowed for MNHPI, each and every port will have its own structure, giving rise to a ridiculous situation. In addition, some charges are petty. Charges such as inspection by government agencies, document cancellation, amendment are out of line and must not be charged to the port user. Also the PPA has already set guidelines for weighing fees.
  • The tariff structure for MNHPI should be aligned with that of other ports.

 

Furthermore, the intention to impose a new tariff structure and increase tariff charges is untimely.because of a bright economic environment.

 

  • Inflation has settled at 3%, lower than the government forecast and estimates by outside organizations (World Bank, Moody’s Investor Services, ADB, Standard & Poor’s, etc.)
  • The forex rate shows a strong peso, having breached the P40 per $ mark.
  • Fuel prices now are lower than six months ago.
  • Bright economic projections can be seen from nearly final estimates of GDP growth this year and announcements of confidence from multinational investors.

 

Address inquiries and comments to Ed Sanchez at tel. 671-8670, fax 671-4793, cell 0918-914-1689, or email scmap.org@gmail.com. Those interested in DMAP training and other activities are requested to send their e-mail addresses.

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