PPA approves 10% hike in Dumaguete port domestic cargo-handling rates

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PPA approves 10% hike in Dumaguete port domestic cargo-handling rates
Dumaguete port. Photo from Department of Transportation.
  • The Philippine Ports Authority approved a 10% increase in domestic cargo-handling rates and a new tariff for foreign non-containerized cargoes at Dumaguete port
  • The 10% adjustment in domestic cargo-handling rates under PPA Memorandum Circular No. 06-2023 is half the 20.2% increase sought by Dumaguete port cargo-handling operator Prudential Customs Brokerage Services, Inc
  • Both MC 06-2023 and MC 05-2023, which contain new tariff for foreign non-containerized cargoes, take effect on August 17

The Philippine Ports Authority (PPA) has approved a 10% increase in domestic cargo-handling rates and a new tariff for foreign non-containerized cargoes at Dumaguete port, both of which take effect on August 17.

The 10% upward adjustment in domestic cargo-handling rates under PPA Memorandum Circular (MC) No. 06-2023 is half the 20.2% increase sought by Dumaguete port cargo-handling operator Prudential Customs Brokerage Services, Inc. (PCBSI).

During a public hearing on PCBSI’s petition last January 27, the operator said the adjustment is a post-recovery measure to address the surge in operating costs, including fuel, labor and maintenance as a result of inflation.

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

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

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.

Meanwhile, PPA under MC 05-2023 also approved PCBSI’s petition for a new tariff for foreign non-containerized cargoes.

For non-palletized cargoes, arrastre will be P108.45 per revenue ton, and stevedoring P27 per revenue ton.

For palletized cargoes, arrastre will be P84.50 per revenue ton, and P19.10 per revenue ton for stevedoring.

Dangerous cargoes will be charged the general cargo rate with premium in accordance with PPA Administrative Order (AO) No. 02-89 (Cargo Handling Rate for Dangerous/Obnoxious Cargoes) and AO 01-90 (amendment to AO 02-89).

PCBSI during the public hearing noted that at the time it was granted a contract in August 2007, 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. – Roumina Pablo