PPA unveils tariffs for Tier 1 ports

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  • The Philippine Ports Authority unveiled the tariff for Tier 1 ports under its terminal management policy
  • Administrative Order 10-2023, dated November 17, outlines base rates for cargo-handling and terminal operators awarded Tier 1 contracts
  • The order coincides with the bidding announcement for the management of Iloilo port, the very first Tier 1-classified port
  • Order takes effect on December 8

The Philippine Ports Authority (PPA) has unveiled the tariff for Tier 1 ports under its terminal management policy.

Effective December 8, PPA Administrative Order (AO) No. 10-2023, issued on November 17, establishes base rates for cargo-handling and terminal operators securing contracts for Tier 1 ports under the Port Terminal Management Regulatory Framework (PTMRF).

The release aligns with the upcoming bidding for the management and operation of Iloilo Commercial Port Complex (ICPC), the first port subject to Tier 1 bidding.

READ: PPA bids out 25-year contract for Iloilo port

PTMRF, outlined in PPA AO No. 03-2016, streamlines guidelines for awarding terminal management contracts. It categorizes investments into three tiers, aiming to simplify the determination of port investment arrangements and boost private sector involvement in port operations for improved service quality.

Tier 1 ports operate under a full 25-year concession.

AO 10-2023 covers rates for various services, including:

  • cargo-handling charges and other cargo-handling related charges
  • roll-on/roll-off terminal fees
  • passenger terminal fees
  • porterage rates
  • waste reception fees

For foreign cargoes, the tariff for stevedoring (non-self-sustaining vessel) for a 20-footer loaded box will be US$116.003 and $97.511 for an empty.

Arrastre for a 20-footer import loaded box is P4,738 and P3,868 for export loaded box.

The tariff for domestic cargoes and other services are similar to Tier 3 rates.

The rates will apply to Tier 1 ports where contracts have been established between PPA and the winning bidder or concessionaire.

Terminal operators/cargo-handling operators with existing development, management and operation contracts and cargo-handling service contracts should adhere to their specified cargo-handling tariff. Rate adjustments will follow the prescribed PPA mechanism, provided contractual terms and conditions are met and certified by the relevant PPA port management office.

During the public consultation on June 21, PPA highlighted that the proposed Tier 1 rates, higher than prevailing rates at ICPC, aim to attract investors. The increased rates intend to facilitate infrastructure and equipment development, enabling bidders to construct a world-class terminal with reasonable returns.

“While the proposal is higher than the current domestic cargo handling rates are, the ports under Tier 1 will be modernized and the key performance indicators will be improved, hence an equitable tariff is just fair,” PPA said. – Roumina Pablo