-
Manila North Harbour Port, Inc. is seeking a 10.58% tariff adjustment for cranage services at North Port, the domestic terminal at Manila North Harbor
-
At the same time, MNHPI is asking for a 9.8% increase in tariff for 13 other services
-
The petition for cranage increase, filed on October 19, 2021, will adjust the current rate for a 20-footer laden container of P1,417 to P1,566.92
Manila North Harbour Port, Inc. (MNHPI) is seeking a 10.58% tariff adjustment for cranage services and 9.8% hike for 13 other services at North Port, the domestic terminal at Manila North Harbor.
The petition for increase in cranage services, filed on October 19, 2021, will adjust the current rate for a 20-footer laden container of P1,417 to P1,566.92, MNHPI corporate affairs and claim head Mark Vincent Escalona said in a virtual Philippine Ports Authority (PPA) public hearing on the petition on February 7.
The 13 services covered by the proposed 9.8% tariff hike are the following:
- Hustling of containers
- Lift-on lift-off
- Administrative fee (shut-out/re-voyage)
- Non-standard lifts
- Crane standby
- Extra labor services
- Equipment rental/hire
- Restowing of containers (via dock/bay-to-bay)
- Weighing fees (non-mandatory weighing)
- Lifting and closing of hatch covers, lids and supporting beams
- Handling of gearbox (ship’s gear/shore crane)
- Dangerous cargo area fee (containerized/non-palletized/palletized)
- Collection of garbage
MNHPI said it is requesting approval of the 9.8% tariff adjustment for the 13 services, per Memorandum Circular Number 24-2018. MC 24-2018 identified the approved tariff for other services in North Harbor.
Both the petition for tariff hike for cranage and the 13 other services are based on consumer price index (CPI) adjustments.
Escalona noted the last tariff increase for cranage was the 10% adjustment in 2018 under PPA Memorandum Circular (MC) No. 19-2018.
MNHPI’s petition is in accordance with PPA Administrative Order (AO) No. 02-2018, which prescribes a new standard and uniform formula and procedures for cargo-handling tariff adjustment, and PPA AO 11-2019, which provides 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 CPI has increased by at least 5% within 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 purchased by a particular group of people in a particular area.
Escalona noted that the CPI percentage adjustment from 2017 to 2020 was at 10.58%.
He added that 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 also cited investments made by the terminal operator, which have reached P11.79 billion as of December 2022.
In MNHPI’s sample computation, the effect of the 10.58% increase in cranage to basic commodities is “very minute or minimal”, Escalona noted.
For example, it will be P0.078 per kilogram (kg) of rice, flour, banana, sugar, corngrits, edible oil, and dressed chicken; P0.004 per piece of 50 gram egg; and P0.071 per 900 gram pack of milk.
Supply Chain Management Association of the Philippines (SCMAP) executive director Corazon Curay during the virtual public hearing said they are not against development at the ports but manifested their opposition to the proposal, saying they “have not seen a good improvement in terms of productivity” in using cranes at North Port.
SCMAP was part of various industry groups and chambers of commerce that sent a letter to PPA in September 2020 asking to suspend the implementation of a new policy at North Port that requires shipping lines to use quay cranes and pay cranage fees. Curay noted that PPA has not yet responded to their letter.
MNHPI in June 2020 issued a policy requiring all container vessels to berth at Terminal 1 starting June 22, which as a consequence means domestic ships need to use the quay cranes and pay cranage fees. Prior to the new policy, domestic shipping lines calling North Port have the option to use the lift-on/lift-off (Lo-Lo) berths served by gangs, a group of cargo workers employed by stevedoring companies to work the ships.
Domestic shipping lines predominantly operate ships that are fitted with their own gears that do not necessarily require the service of quay cranes. Domestic shipping lines call ports that are still not equipped with quay cranes, thus, the use of ships with own gears.
MNHPI executive director Mariano Turnes, meanwhile, said North Port’s productivity “in all terms is way beyond the contractual minimum services required” and that its cranes has an average of 23 moves per hour but can perform 40-45 moves per hour and that they have vessels “that are performing beyond that.”
Stakeholders are given five working days from the public hearing to submit their position papers on MNHPI’s proposal. – Roumina Pablo and Sel Guevara
