FOLLOWING orders from Transportation Secretary Leandro Mendoza, the Philippine Ports Authority (PPA) has indefinitely deferred its decision extending the implementation of the wharfage fee cut.
PPA general manager Atty Oscar Sevilla told PortCalls the decision will depend on the outcome of a joint PPA and transport department study on the discount’s effects on exporters and on PPA operations.
“All requests for (wharfage fee) reduction should now be addressed to the Transport Department… they are now to decide if the wharfage fee should be cut further,” Sevilla added.
Since January, the PPA has reverted to the original wharfage fee of P259.70 and P391.05 per 20 footer and 40 footer, respectively, after the reduced fee of P20 and P40 lapsed last December 31.
The deferment is not welcome news to the country’s exporters already suffering from the strong and fast appreciation of the Philippine currency.
The Federation of Philippine Industries (FPI) and Philippine Exporters Confederation (Philexport) said the wharfage cut would help cushion the effects of the strong peso on exports. Both expect the peso to appreciate even more this year.
The peso was Asia’s best-performing currency for 2007, appreciating almost 20% since the start of 2007.
Earlier, PPA said it will extend the implementation of the reduced fee on a quarter to quarter to basis.
Based on PPA records, exporters saved P27 million in the first six months of the implementation of the reduced fee. The PPA, however, has lost about P100 million in revenues since April last year.
