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The Port of Cebu Association of Cargo Handling Operators, Inc. is open to implement in tranches its proposed 25% increase in domestic cargo-handling tariff at Cebu port, according to the Cebu Port Authority
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This is in response to the suggestion of Philippine Chamber of Commerce and Industry regional governor for Central Visayas Felix Taguiam
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PCACHOI said current tariff rates are no longer sufficient to cover actual operating costs
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The rate adjustment will support reliable cargo-handling services, port digitalization initiatives, improved operational efficiency and sustainability, and will increase the share of government
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Final positions will be submitted next week, after which the CPA will make its policy recommendation
The Port of Cebu Association of Cargo Handling Operators, Inc. (PCACHOI) is open to implement in tranches its proposed 25% increase in domestic cargo-handling tariff at Cebu port, according to the Cebu Port Authority (CPA).
This is in response to the suggestion of Philippine Chamber of Commerce and Industry (PCCI) regional governor for Central Visayas Felix Taguiam during a requested consultative meeting on September 29 for a gradual or staggered implementation of the tariff increase, citing current business conditions, CPA said in a statement.
Nilo Servila of PCACHOI responded for their group saying they are willing to have a phased rollout.
The meeting, where PCACHOI presented its proposed increase initially made on August 14, was attended by various chambers of commerce in Cebu. These include the Cebu Chamber of Commerce and Industry (CCCI), Mandaue Chamber of Commerce and Industry, PCCI Lapu Lapu, Minglanilla Chamber of Commerce and Industry, MEPZCEM Chamber Inc., and Cebu Furniture Industries Foundation, Inc. Also in attendance were the Cebu Port Commission, CPA management team, and PCACHOI members.
CPA said CCCI vice president for business advocacy and policy Francis Dy pointed out that businesses are themselves facing rising costs and called for a balance among all affected stakeholders.
Sherwin Asumbrado of PCACHOI, meanwhile, said cargo-handling service providers have been operating at a loss due to rising costs and added that the upcoming increase in labor costs could further affect operations.
A P42 daily minimum wage increase will take effect on October 14 for private sector workers in the Central Visayas Region, which covers Cebu.
In a presentation during the August 14 public consultation, PCACHOI said the proposed increase is necessary with current tariff rates no longer sufficient to cover actual operating costs, including higher wages and government statutory contributions, inflation, and fuel price volatility.
“The proposed 25% tariff adjustment is a necessary and responsible measure to offset the continued rise in operating costs, not a profit driven initiative,” it added.
READ: Cebu port operators seek 25% hike in domestic cargo-handling rates
The last approved increase in cargo-handling tariff was in 2022, when CPA through Memorandum Circular No. 04-2022 increased domestic cargo-handling tariff by 20%, excluding cranage and stevedoring fees.
The across-the-board proposal, which the group proposes to become effective by October 1, includes the tariff for arrastre, stevedoring, quay crane, and other related port services.
Compared to rates implemented in Philippine Ports Authority-managed ports, PCACHOI said current domestic containerized cargo-handling rates in Cebu port are lower, and will remain lower even if the proposed 25% increase is approved.
For general cargo, rates in Cebu port will be higher than PPA’s tariff for port terminal management framework (PTMRF) ports if the proposed 25% is approved, but will still be lower than the tariff for PPA non-PTMRF ports such as the domestic terminal in Manila North Harbor.
PCACHOI said the rate adjustment will support reliable cargo-handling services, port digitalization initiatives, improved operational efficiency and sustainability of cargo-handling operations at Cebu port, and will increase the share of government.
Final positions, recommendation
CCCI said it will first discuss the proposal and provide feedback to CPA on their final position next week or earlier.
CPA acting deputy general manager Glenn Castillo, for his part, thanked the participating stakeholders for attending the consultation and expressed hope that discussions would lead to a win-win outcome for all parties.
The CPA management, after gathering feedback from stakeholders, will submit a recommendation to the CPC, the CPA’s governing body.
If CPC approves the final policy, it will have to be published with effectivity after 15 days.
PCACHOI comprises of United South Dockhandlers, Inc.; Puerto Servicio de Cebu Inc.; Metro Cebu Arrastre and Stevedoring Services, Inc.; Cebu Arrastre and Stevedoring Services Corp.; Cebu Integrated Arrastre; and Oriental Port and Allied Services Corp.— Roumina Pablo
