Dumaguete port operator seeks 20.2% hike in cargo-handling tariff

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Dumaguete port operator seeks 20.2% hike in cargo-handling tariff
Baseport of Dumaguete. Photo from Philippine Ports Authority.
  • Prudential Customs Brokerage Services, Inc. is seeking a 20.2% adjustment in cargo-handling tariff for domestic cargoes, and a new tariff for international cargoes for Dumaguete port
  • PCBSI noted the adjustment is a post-recovery measure to address the surge in operating costs, including fuel, labor and maintenance as a result of inflation
  • PCBSI said its tariff petition is primarily based on the increase in consumer price index, noting that the last time the tariff for domestic cargoes was hiked was nine years ago or in June 2013
  • Stakeholders are given five working days after the public hearing to submit their position papers on PCBSI’s petition

Prudential Customs Brokerage Services, Inc. (PCBSI), operator of the Port of Dumaguete, is seeking a 20.2% adjustment in cargo-handling tariff for domestic cargoes, and a new tariff for international cargoes.

At a public hearing conducted by the Philippine Ports Authority on January 27, PCBSI noted the adjustment is a post-recovery measure to address the surge in operating costs, including fuel, labor and maintenance as a result of inflation.

The adjustment is also needed to accomplish commitments to PPA in terms of computerization; for amortization of newly purchased Kone Crane 30-ton forklift; replacement of aging equipment; and enhancing relationship with the labor force, PCBSI said.

The port operator said its tariff petition is primarily based on the increase in consumer price index (CPI), noting that the last time the tariff for domestic cargoes was hiked was nine years ago or in June 2013.

Under PPA Administrative Order 02-2018, a CPI increase of at least 5% in the last three years is among the criteria for a tariff adjustment petition.

PCBSI is also seeking new tariff for import and export cargoes. At the time the company was granted a contract in August 2007, it said Dumaguete port did not yet handle international shipments.

From 2009 to 2012, when the port handled imported nitrite compound, and from 2019 imported cement and rice, PCBSI said it used the nearest government port tariff in Iloilo as tariff.

The company said the 20.2% adjustment in tariff will not have a heavy impact on the combined arrastre and stevedoring tariff for commodities. Based on PCBSI estimates, the adjustment will mean an additional P0.014 per kilo for rice; P0.012 for corn; P0.0128 for sugar; P0.0155 for milk; and P0.01296 for flour.

For containerized shipments, the tariff adjustment will translate to an increase of P103.83 (loaded) and P50.60 (empty) for a 10-footer.

For a loaded 20-footer, the hike will be P198.26 and for an empty, P106.86.

Tariff for a loaded 40-footer will see an additional P350.47 and for an empty, P167.60.

Stakeholders have five working days after the public hearing to submit their position papers on PCBSI’s petition.