Home » Breaking News, Maritime, Ports/Terminals » Cargo-handling charges at Manila ports up 7% starting June 5

The 7% upward adjustment in international containerized and non-containerized cargo charges takes effect on June 5. Photo of Manila International Container Terminal courtesy of operator International Container Terminal Services, Inc.

The Philippine Ports Authority (PPA) has approved a 7% adjustment on vessel and cargo-handling rates at both the Manila South Harbor and Manila International Container Terminal (MICT). The increase is being implemented in one tranche and takes effect on June 5.

In PPA Memorandum Circular (MC) No. 07-2018 dated May 4, PPA general manager Atty. Jay Daniel Santiago said the approval is pursuant to PPA Board Resolution No. 2709, which approved the 7% increase on vessel and cargo-handling tariff covering international containerized and non-containerized cargoes handled at the two Manila ports.

The approved rate is lower than the 8.7% hike requested by Asian Terminals Inc. (ATI) and International Container Terminal Services, Inc. (ICTSI). ATI operates the Manila South Harbor and ICTSI, the Manila International Container Terminal (MICT).

ATI and ICTSI have filed petitions with PPA early this year for an 8.7% rate increase. Under their contracts with PPA, both terminal operators may file for a rate hike every two years. The last cargo-handling tariff rate adjustment was in 2015, when PPA granted an 8% rate increase.

Their petitions are in keeping with PPA Administrative Order (AO) No. 02-2018, which prescribes a new standard and uniform formula and procedures for cargo- handling tariff adjustment.

Under AO 02-2018, which took effect last March 8, the cargo-handling/terminal operator may apply for a cargo-handling tariff adjustment if the consumer price index (CPI) has increased by at least 5% within a three-year period.

CPI, computed and provided by the Philippine Statistics Authority (PSA), is a statistical measure of the average retail pricing of goods and services commonly purchased by a particular group of people in a particular area.

PPA said AO 02-2018 was issued to ensure integrity and accuracy in the application of adjustment of cargo-handling tariff, as well as transparency and comprehensive deliberation during the conduct of public hearings.

MICT management services and government affairs director Voltaire Wycoco, in a presentation during the public hearing for the rate adjustment last March, said CPI (all items) in the Philippines increased 7.54% from P140.50 in December 2014 to P151.10 in December 2017.

CPI (all items) for National Capital Region likewise rose 8.72% from P130.70 in December 2014 to P142.10 in December 2017, he said.

Both terminal operators said they are eligible for tariff adjustment after having complied with the requirements of AO 02-2018. – Roumina Pablo

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