The Philippine Ports Authority (PPA) is planning to change its tariff structure to make it simpler and more uniform.
“I want to deviate from the current tariff structure,” PPA general manager Atty. Jay Daniel Santiago said in a recent interview with media.
Santiago said the present tariff structure, which bases its fees on whether the cargo is a prime commodity or not, is “impractical.”
The PPA chief said the tariff should “not be dependent on the value” of the commodity but on its packaging, or the type of container it is in, and its weight. Cargoes are currently declared as prime commodity have lower rates while non-prime commodity cargoes are imposed higher rates.
“Rice is prime so the handling fee for rice is cheaper. But one sack of rice compared to one sack of corn, which is not prime, or one sack of fertilizer which is not prime, should it matter to the cargo handler? Shouldn’t be, di ba (right)? It’s not dependent on the value, it’s dependent on the packaging and the weight,” Santiago explained.
“So I want the pricing to be uniform insofar as the packaging and the handling is concerned,” he added.
Santiago said PPA is initially looking to categorize the tariff into four types: bulk, breakbulk, containerized, and roll-on/roll-off.
He said the current tariff structure can also be a “source of corruption” because it allows people on the ground to “have a subjective appreciation of what that cargo is.” He said frontliners might allow a shipper to declare a non-prime shipment as prime commodity so the shipper can pay a lower rate and then give the frontliner something in return for the favor.
He said the “aggressive target” is to finalize the new tariff structure before PPA bids out unsolicited proposals for port projects so the new system can be embedded into port contracts.
PPA currently has several unsolicited proposals, which include those for the ports of Davao-Sasa, Iloilo, and General Santos.
The new tariff structure will also be implemented in PPA-operated ports. For ports under concession agreements, the new tariff structure will be considered when concessionaires request for a tariff adjustment.
Asked if there is opposition to the plan, Santiago said terminal operators and stakeholders are “generally happy” with it because it simplifies the tariff structure for them.
