The second tranche of the increase in cargo-handling tariff at the Manila North Harbor will take effect on July 21, according to port operator Manila North Harbour Port, Inc. (MNHPI).
MNHPI chief financial officer Ariel Victoria, in an advisory dated June 6, provided the new schedule of cargo-handling rates at the Manila domestic terminal pursuant to Philippine Ports Authority (PPA) memorandums last year.
The second tranche, which implements an 8% increase, is part of the 24% upward adjustment in cargo-handling tariff at the domestic port approved by PPA last year.
PPA decided to implement the 24% increase in three tranches for three years, or 8% each year, starting July last year to “cushion the impact of the increase on the public,” general manager Jay Daniel Santiago said earlier.
The first tranche took effect on July 21, 2017; the second will be in force from July 21, 2018; and the last from July 21, 2019.
The rate increase stemmed from MNHPI’s application in 2015 for a 37.5% upward tariff adjustment to cover ballooning costs and recoup its investments at Manila North Harbor.
PPA earlier noted that the impact of the hike would be “negligible” at “less than a centavo or P0.004 centavo… added for a sack of rice passing through the North Harbor…” Stakeholders during the public hearing in 2016, on the other hand, expressed “strong reservations” with the petition for increase, saying the rate was too high and unwarranted.
The 24% hike comes after PPA granted MNHPI a 10% provisional rate increase in 2013 and an 8% tariff rate increase in 2014. The port operator also has a petition with PPA regarding the inclusion of additional services and corresponding fees in its official tariff. The proposal, which underwent public hearing last February, is awaiting a decision from the PPA Board. – Roumina Pablo
