PPA to DMAP: 15% cargo handling hike above board

THE Philippine Ports Authority (PPA) finally broke its silence on allegations of the Distribution Management Association of the Philippines (DMAP) that it earlier approved the 15% cargo-handling rate increase without public consultation. PPA general manager Atty. Oscar Sevilla told PortCalls the allegations were baseless and that the approval of the cargo-handling rate increase was above board. "The increase is justified considering the recent increases in labor and fuel cost. We have approved the increase as a cost-recovery measure and not to burden shippers," he stressed. He added that the hike is minimal and its effect on shippers
could not be felt immediately. Earlier, DMAP sent a letter to the PPA seeking justification for the timing of the cargo-handling rate increase and to show how it arrived at such an increase. It said the hike would directly impact their business considering the latest implementation of the expanded value-added tax. DMAP threatened not to pay the increase if PPA failed to justify its decision. Sevilla said the PPA will soon send a letter to DMAP to answer its inquiries, but declined to give further details. "The PPA assures them that the increase has been approved without prejudice to others and it has been approved with proper public consultation," Sevilla said. In November, the PPA authorized the implementation of the 15% increase after withholding its implementation for three weeks pending
the resolution of some issues brought up by the National Economic and Development Authority. Originally, cargohandling 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%. The increase does not include services of cargo handlers Asian Terminals Inc., and International Container Terminal Services, Inc.