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The Cebu Port Authority renewed Cebu Integrated Arrastre’s contract to operate cargo-handling services in the Cebu baseport’s domestic zone
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The contract covers 15 years
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The renewal is subject to certain conditions, including digitalization of transactions with clients and port users and securing of ISO accreditation for CIA’s quality management and environmental management systems
The Cebu Port Authority (CPA) has renewed the contract of Cebu Integrated Arrastre Inc. (CIA) to manage and operate arrastre, stevedoring and related cargo-handling services in the domestic zone of the Cebu baseport for the next 15 years.
CIA is one of the cargo-handling service providers authorized by CPA to conduct cargo-handling services inside the port to help deliver efficient port operations, the port authority said in a statement.
The Cebu baseport comprises the domestic zone and Cebu International Port.
Signed on March 23, the 15-year contract is subject to compliance with certain conditions, including:
- Full compliance with arrastre, stevedoring and other related charges to be collected as prescribed by the CPA under existing policies, rules and regulations; submission of performance bond on an annual basis
- Full compliance with required minimum cargo-handling and related equipment/gear, all in serviceable and ready-line conditions
- Strict compliance with guidelines provided in the Manual on Dockworkers Safety and Health Standards
- Proper management of cargo-handling-related wastes
- Compliance with environmental laws, health and/or safety protocols as prescribed under existing laws, rules and regulations
- Submission of an updated list of all its employees, workers or laborers
- Quarterly submission of proof of payment of Social Security System and Pag-IBIG premiums as well as value-added tax
Under CPA contracts, all cargo-handling service providers are also required to undertake digitalization of transactions with clients and port users so as to provide online means of assessment, collection, and remittance of payments.
In addition, cargo-handling service providers must secure ISO accreditation of their quality and environmental management systems to streamline processes of frontline services, thereby enhancing customer satisfaction.
CPA has been expanding the Cebu baseport to accommodate more cargoes. In November 2021, CPA inaugurated the P989-million expansion project involving Berths 7 to 10. It also awarded in February 2021 the P508-million Pier 5 project that was scheduled to begin in March 2021 and should be completed by May this year.
Prior to contract renewal, CPA said CIA went through a performance review pursuant to Section 1, Article XI of CPA Administrative Order 01-2000, which lays down the CPA general port rules and regulations, and Section 1.01 CPA AO 03-98, which spells out guidelines and general conditions for the management and operation of cargo-handling services.
The contract signing was attended by CPA general manager Leonilo Miole, CIA president Benjamin Joseph Akol Jr., and other CPA and CIA officials.
