Cranage rates up 10%, tariffs rise 9% at North Harbor

• Cranage rates will increase 10% while tariffs for 13 other services will rise 9% at NorthPort, the domestic terminal at Manila North Harbor

• The higher cranage rates take effect from August 17, according to PPA Memorandum Circular 04-2023

• The new tariff rates for 13 other services under MC 08-2023 will kick in from August 18

• The approved rates are slightly below the 10.58% for cranage and 9.8% for other services petitioned by operator Manila North Harbor Port Inc

The Philippine Ports Authority (PPA) approved a 10% increase in cranage rates and 9% rise in tariff for 13 other services at NorthPort, the domestic terminal at Manila North Harbor.

Under PPA Memorandum Circular No. 04-2023, which takes effect starting August 17, the new cranage rates at North Port will be P1,558.50 per loaded 20-footer container and below, and P1,310.50 per empty 20-footer and below.

For boxes above 20-footer, the rate will be P2,180 per loaded and P1,689 per empty.

The approved 10% increase is slightly lower than the 10.58% that NorthPort operator Manila North Harbor Port Inc. (MNHPI) had proposed in a petition filed in October 2021.

RELATED READ: North Harbor operator seeks higher tariff for cranage, 13 other services

In a PPA public hearing on the petition on Febuary 7, MNHPI corporate affairs and claim head Mark Vincent Escalona said the last tariff rise for cranage was in 2018, when PPA MC 19-2018 granted a 10% increase.

In addition, PPA under MC 08-2023 approved the 9% rate increases for 13 other services at NorthPort, slightly less than the MNHPI petition for 9.8%. The order takes effect on August 18.

The 13 services are:

1. hustling of containers
2. lift-on lift-off
3. administrative fee (shut-out/re-voyage)
4. non-standard lifts
5. crane standby
6. extra labor services
7. equipment rental/hire
8. restowing of containers (via dock/bay-to-bay)
9. weighing fees (non-mandatory weighing)
10. lifting and closing of hatch covers, lids and supporting beams
11. handling of gearbox (ship’s gear/shore crane)
12. dangerous cargo area fee (containerized/non-palletized/palletized)
13. collection of garbage

PPA first approved the tariff for the 13 other services at NorthPort in 2018 under MC 24-2018.

MNHPI’s petitions for rate increase are in keeping with PPA Administrative Order No. 02-2018, which prescribes a standard and uniform formula and procedures for cargo-handling tariff adjustment, as well as PPA AO 11-2019, which contains the omnibus rules of procedures on private service provider-initiated applications for new tariff and/or adjustment of fees and charges.

Under AO 02-2018, which took effect in March 2018, the cargo-handling/terminal operator may apply for a cargo-handling tariff adjustment if the consumer price index (CPI) has risen at least 5% during 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 bought by a particular group of people in a particular area.

During the hearing, MNHPI’s Escalona noted the CPI percentage adjustment from 2017 to 2020 was 10.58%.

He said MNHPI has no outstanding obligation with PPA and has been complying with its contract with the ports authority, as evidenced by certificates issued by PPA Port Management Office-NCR North Harbor in September 2021.

He cited investments made by the terminal operator that had reached P11.79 billion as of December 2022. – Roumina Pablo