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The Port of Cebu Association of Cargo Handling Operators, Inc. proposed a 25% increase in domestic cargo-handling tariff at Cebu port
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PCACHOI said the proposed increase is necessary with current tariff rates no longer sufficient to cover actual operating costs
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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
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Deadline for port stakeholders to submit their position papers on the proposal is on August 24 at 5 p.m.
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Cebu Port Authority assured all port stakeholders that the proposed tariff increase will undergo a thorough review before any decision on its approval or implementation is made
The Port of Cebu Association of Cargo Handling Operators, Inc. (PCACHOI) has proposed a 25% increase in domestic cargo-handling tariff at Cebu port.
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.
Tariff rates are set by the government port authority, then collected and paid to the cargo-handling/port operator with a percentage going to the government.
READ: CPA issues guidelines for uniform implementation of domestic cargo-handling rates
The last approved increase in cargo-handling tariff was in 2022, when Cebu Port Authority (CPA) through Memorandum Circular No. 04-2022 increased domestic cargo-handling tariff by 20%, excluding cranage and stevedoring fees.
READ: Cebu port domestic cargo-handling tariff up 20% starting July 1
The across-the-board proposal, which the group proposes to become effective this month, 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.
Position papers
CPA in a separate statement said representatives from various shipping sectors and the cargo handling industry during the public consultation raised questions and recommendations, including the basis of the proposed 25% adjustment, the approval and implementation process, and the possibility of a staggered implementation.
CPA said it will consolidate and thoroughly evaluate the position papers and feedback from port stakeholders before presenting to the CPA Board. Deadline for port stakeholders to submit their position papers will be on August 24 at 5PM.
CPA said it assures all port stakeholders that the proposed tariff increase will undergo an appropriate and thorough review and deliberation before any decision on its approval or implementation is made.
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
