The Philippine Ports Authority (PPA) has allowed the operator of the Manila North Harbor to increase cargo handling fees, which was sought to help cover the increasing cost of inputs like labor and fuel.
PPA said in a statement that San Miguel Corp.-controlled Manila North Harbour Port Inc. would increase cargo handling rates by 24 percent over the next three years.
According to PPA Memorandum Circular No. 4-2017 issued last June 19, the first tranche of the increase of 8 percent would be implemented by July 21, 2017 or 30 days after the memo has been published.
The second installment of 8 percent will be implemented on July 21, 2018, while the last tranche will be imposed on the same date a year after.
PPA clarified that the increase would not be compounded but would be based on the existing tariff rate as of Jan. 19, 2015.
It said the company sought the increase due to “tremendous economic changes that adversely affected the business environment in the Philippines that have affected critical cost drivers necessary to support port operations.”
PPA has been recently highlighting steps it was taking to bolster transparency. It earlier allowed the livestreaming of all its bidding activities.
PPA General Manager Jay Daniel R. Santiago said the measure was aimed to “stamp out corruption in small- and big-ticket procurement projects in the agency.”
“In order to maintain the integrity and credibility of the bidding process, the PPA is going live for every bidding process the agency is conducting,” Santiago said.
“The public can simply log on to our website (www.ppa.com.ph) and click Bidding Live Streaming to view, specifically the opening of bids, and help us reduce, if not eliminate, irregular acts during the entire process,” he added.
PPA is setting aside P7.42 billion in capital spending this year to implement several projects that include the modernization of Mindanao and Visayas ports like Iloilo, Gen. Santos, Cagayan de Oro and Zamboanga.