PPA, Customs at odds over North Harbor status

A turf war erupted between the Philippine Ports Authority and Bureau of Customs, after the latter allowed Manila North Harbor Port Inc. (MNHPI), operator of the Manila North Harbor, to handle foreign cargo.

The BOC granted Manila North Harbor international port status, citing sections of the Republic Act 10668 that amended the 50-year-old Cabotage Law. This allows the Romero-controlled port to compete with the Manila port operations of International Container Terminal Services Inc. and Asian Terminals Inc.

The PPA said in a letter to Customs Commissioner Alberto Lina that the bureau’s administrative issuances “may open MNHPI to a possible violation of its terminal contract with PPA should it handle foreign cargoes.”

Lina has yet to respond to a request for his comment Thursday.

In its letter dated June 9, 2016,  the PPA said MNHPI “has always been known and was treated as a domestic port since operations of the said port were transferred to PPA in 1976.” It said this was covered by the PPA’s Revised Charter.

However, issuances from the BOC early this month meant that MNHPI “has been effectively converted into a port for international operations of foreign trade.” The recent accreditation of the port as an authorized customs facility likewise allows Manila North Harbor “to load and discharge or handle import/export cargos coming from or intended for carriage by foreign vessels.”

“MNHPI’s contract was the result of a competitive public bidding in 2009 where the terms of the bid parameters limit its cargo handling operations to domestic cargoes only,” the PPA added.

This week, the PPA also warned port offices, harbor pilots, shipping lines and agents against handling international cargoes at the Manila North Harbor.

PPA said in a letter dated June 21, 2016 that the contract for the development, management, operation and maintenance of the Manila North Harbor between PPA and MNHPI “expressly provides that MNHPI shall provide and undertake domestic terminal services only.”

“In view of this contractual limitation, MNHPI is prohibited from providing terminal services to foreign vessels at Manila North Harbor,” the PPA said.

“Accordingly, foreign vessels cannot proceed to Manila North Harbor for purposes of anchorage and/or docking at its berths and unloading of their cargoes, among others,” it added.