The Philippine Ports Authority (PPA) has issued the revised schedule of cargo-handling tariff at Manila South Harbor and Manila International Container Terminal (MICT) that reflects the approved 7% increase that takes effect on June 5.
PPA Operations Memorandum Circular (OMC) No. 02-2018 dated May 15, is pursuant to PPA Memorandum Circular (MC) No. 07-2018 that approved the 7% increase in vessel and cargo-handling charges for international containerized and non-containerized cargoes handled at the two Manila international terminals.
The adjustment will be implemented in one tranche and covers arrastre and stevedoring for both containerized and non-containerized goods, roll-on/roll-off charges, miscellaneous charges (payable to whoever requested the services), penalty charges, and extra-labor services. Charge for dangerous cargoes shall be in accordance with PPA Administrative Order (AO) No. 02-1989 (cargo-handling rate for dangerous/obnoxious cargo) and its amendment under AO 01-1990.
The rates in the revised schedule exclude value-added tax.
PPA’s approved rate is lower than the 8.7% hike requested by Asian Terminals Inc. (ATI), which operates the Manila South Harbor, and International Container Terminal Services, Inc. (ICTSI), which operates MICT.
ATI and ICTSI filed petitions with PPA early this year seeking 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 when adjustment to the cargo-handling tariff is applied, as well as to promote transparency and comprehensive deliberation during 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 were eligible for tariff adjustment after having complied with the requirements of AO 02-2018. – Roumina Pablo