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Expect higher cargo tariffs at Manila, Batangas ports from May 14

  • Expect higher cargo tariffs at Manila, Batangas ports from May 14
  • The Philippine Ports Authority released revised schedules of cargo-handling tariff at Batangas Port, Manila International Container Terminal, Manila North Harbor, and Manila South Harbor
  • An 8% tariff increase for MICT and Manila South Harbor and a 10% hike for Batangas port takes effect on May 14
  • On May 15, a 10% increase for Manila North Harbor will take effect

Higher cargo tariffs at Manila and Batangas ports will take effect from May 14, with the release of revised tariff schedules from the Philippine Ports Authority (PPA).

The revised schedule implementing an 8% tariff hike at Manila International Container Terminal (MICT) and Manila South Harbor, and a 10% upward adjustment for Batangas Port Phases I and II will be implemented beginning May 14, according to respective PPA Memorandum Circular (MC) Nos. 06-2022 and 07-2022.

For Manila North Harbor, the revised schedule reflects a 10% increase starting May 15, according to PPA MC 08-2022.

MCs 06-2022, 07-2022, and 08-2022 were dated May 5 and uploaded on PPA’s website on May 6.

MC 06-2022 is pursuant to PPA MC 05-2022, published on April 29 and which approved the 8% cargo-handling rate increase at MICT and Manila South Harbor.

The 8% upward adjustment is the second tranche of the 10% increase approved by PPA in 2021 through MC 12-2021.

READ: PPA oks 10% cargo-handling tariff hike at Manila ports

The first 2% was enforced last year while the remaining 8% was up for a review by the PPA Board six months after the first increase was implemented.

The rate adjustment largely follows the proposal of port operators International Container Terminal Services Inc. (ICTSI) and Asian Terminals Inc. (ATI).

READ: 8% cargo-handling tariff hike for South Harbor, MICT and 10% for Batangas ok’d

ATI sought an 11% hike for Manila South Harbor, while ICTSI asked for a 10% increase, excluding transshipment and new tariff items in 2021, for MICT.

MC 07-2022 implements MC 04-2022, published on April 29 and which approved the 10% upward adjustment at Batangas Port Phases I and II.

ATI and its unit, ATI Batangas Inc., sought last year a 15.23% increase in cargo-handling tariff at Batangas Port.

Phase I handles passengers, roll-on/roll-off, and bulk cargoes, while Phase II, called the Batangas Container Terminal, serves international containerized cargoes.

Meanwhile, MC 08-2022 implements MC 03-2022, which was published on April 30 and approved the 10% increase in cargo-handling tariff and passenger terminal fee at Manila North Harbor.

READ: North Harbor granted 10% rise in cargo-handling, terminal charges

Port operator Manila North Harbour Port Inc. (MNHPI) last year requested a 15.33% increase incargo-handling tariff and passenger terminal fee at the domestic terminal Manila North Harbor, also known as North Port.

All petitions for cargo-handling rate increase were pursuant to PPA Administrative Order No. 02-2018, which prescribes a uniform formula and procedures for cargo-handling tariff adjustment.

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

All port operators, during separate public hearings last year of their petitions, said they were compliant with the requirements of AO 02-2018.

Stakeholders opposed the petitions during the public hearings and requested for a postponement of the tariff increase, noting that businesses are still reeling from effects of the COVID-19 pandemic and any cargo-handling rate hike will impact their recovery and hurt customers. – Roumina Pablo

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