-
8% cargo-handling tariff hike for South Harbor, MICT and 10% for Batangas ok’d
-
The 8% upward adjustment is the second tranche of a 10% increase approved by the Philippine Ports Authority in 2021
-
The 10% hike for Batangas port covers Phases 1 (passenger, roll-on/roll-off, and bulk cargoes) and 2 (Batangas Container Terminal)
-
All rate hikes take effect on May 14
The Philippine Ports Authority (PPA) has approved an 8% increase in cargo-handling tariff at the Manila South Harbor and Manila International Container Terminal (MICT).
At the same time, PPA approved a 10% upward adjustment in cargo-handling tariff at Batangas Port Phases I and II.
The 8% rate increase for South Harbor and MICT, under PPA Memorandum Circular (MC) No. 05-2022, and 10% hike for Batangas port, under MC No. 04-2022, will take on May 14 following their publication in a newspaper of general circulation on April 29.
It must be noted that the 8% adjustment for Manila South Harbor and MICT under MC 04-2022 represents the second and final tranche of a 10% increase approved by PPA in 2021 through PPA Memorandum Circular No. 12-2021.
READ: PPA oks 10% cargo-handling tariff hike at Manila ports
The first 2% tranche was enforced last year with implementation of the remaining 8% up for review by the PPA Board six months after implementation of the initial increase.
The rate adjustment follows closely the proposals in 2021 of port operators Asian Terminals Inc. (ATI) and International Container Terminal Services Inc. (ICTSI) for an increase in cargo-handling tariff.
READ: ATI, ICTSI seek cargo handling rate hikes, meet opposition
ATI had sought an 11% raise for Manila South Harbor, while ICTSI proposed a 10% increase in cargo-handling tariff for MICT, excluding transhipment and new tariff items.
The last cargo-handling tariff rate adjustment for the two ports was in 2018, when PPA granted a 7% rate increase. The port operators are allowed to apply for a cargo-handling tariff adjustment if the consumer price index (CPI) has increased by at least 5% within a three-year period, pursuant to PPA Administrative Order (AO) No. 02-2018.
AO 02-2018 prescribes new standards and uniform formula and procedures for cargo-handling tariff adjustment.
Both ATI and ICTSI had said CPI increased during the period 2018 to 2020, and that they are eligible for tariff adjustment after having complied with requirements of AO 02-2018.
Their latest petitions were subjected to a virtual public hearing in April 2021 where stakeholders opposed the proposal, citing its adverse effect on the cost of doing business.
In 2020, PPA also approved fees for handling foreign empty containers and storage of out-of-gauge cargoes at Manila South Harbor, MICT, and Batangas port. Both fees took effect in January 2021.
READ: PPA sets fees for handling foreign empties at Manila and Batangas ports ; Storage rates for OOG containers at Manila, Batangas ports in effect from Jan 1
Batangas Port
In Batangas port, ATI and its unit, ATI Batangas Inc., proposed a 15.23% increase in cargo-handling tariff last year, higher than the 10% finally approved by the PPA under MC 04-2022.
READ: ATI seeks 15.23% hike in Batangas Port cargo-handling fees
Batangas Port Phase 1 handles passenger, roll-on/roll-off, and bulk cargoes, while Phase 2, called the Batangas Container Terminal, serves international containerized cargoes.
ATI filed in February 2021 separate petitions for the upward adjustment of cargo-handling tariff and other cargo-handling-related and miscellaneous charges covering Batangas Port Phases 1 and 2.
The petitions do not include empty container handling, rates for which took effect last January 2021.
The petitioners referenced in their filing PPA AO 02-2018.
The last cargo-handling tariff rate adjustment for Phases 1 and 2 was approved in 2017, when PPA granted an 11% increase for Phase 1 and a 9% upward adjustment for Phase 2.
Shipping associations during the May 2021 public hearing on the Batangas port proposals expressed opposition to the proposal, saying the country is still in the middle of a pandemic and any cargo-handling rate increase will impact the recovery of businesses and hurt customers. – Roumina Pablo
