OROPORT Cargo-handling Services, Inc. is seeking a 17.8% increase in cargo-handling tariff for the Port of Cagayan de Oro in Misamis Oriental due to higher labor, power, fuel and water costs.
It also proposed including special charges in the tariff, such as those on cranage, bleeding, liquid bulk handling, bagging, additional cranage charges for non-containerized cargo, standby time, and opening/closing of hatch cover.
OROPORT corporate planning manager Ramon Dadole, in a presentation during a public hearing on the proposal that was held in Cagayan de Oro on April 4, noted that the cargo-handling operator’s last tariff increase was in August 2015.
The proposed increase is based on Philippine Ports Authority Administrative Order (AO) 02-2018, which prescribes new standard and uniform formula and procedures for cargo-handling tariff adjustment.
Under AO 02-2018, which took effect in March 2018, a cargo-handling or 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, 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.
OROPORT used as basis for its higher tariff proposal the 2017 CPI against the 2011 CPI.
OROPORT also compared its proposed tariff with those of Mindanao Container Terminal in Tagaloan, Misamis Oriental, and Manila North Harbour in North Harbor, Manila, whose cargoes are of similar type to those that go through Cagayan de Oro port. OROPORT noted that even with the proposed increase at Cagayan de Oro, its tariff would still lag behind the rates of the two ports.
Stakeholders present during the public hearing were given 10 working days after April 4 to submit their position papers.
Under AO 02-2018, the hearing panel will evaluate the documents submitted and file its recommendations with the PPA Board within seven calendar days. The adjustment of cargo-handling tariff will be approved by the PPA Board of Directors.
Cagayan de Oro port, one of Mindanao’s major gateways, handles products in bulk, break bulk, containerized, and roll-on/roll off shipments, as well as services passengers. – Roumina Pablo
