Port operators International Container Terminal Services Inc. (ICTSI) and Asian Terminals Inc. (ATI) have received the green light to hike cargo handling fees at the Manila port area in Tondo.
In separate disclosures, both firms reported that they had received copies of Philippine Ports Authority (PPA) Memorandum Circular 13-2011 on “Tariff rate increase on vessel-related container handling services at the South Harbor and Manila International Container Terminal.”
ICTSI and ATI earlier said the hike in rates would provide higher revenues, helping both to spend for their respective expansion programs.
The PPA said the adjustment in the vessel-related (stevedoring) tariffs on foreign container handling would be implemented “Pursuant to Board Com Resolution No. 2011-1291 dated Sept. 9, 2011 and as confirmed by the PPA Board Resolution No. 2261 adopted on Sept. 27, 2011.”
Under the order, rates will be adjusted in two phases. The first adjustment of about 6 percent will take place 30 days after the order’s issuance. An 11-percent adjustment will be implemented six months after the first, the PPA order read.
The rate adjustments came despite pleas from importers and exporters to defer the adjustment to next year, or until global trade conditions improve.
Due to economic woes in Europe and the United States, as well as political unrest in the Middle East and the natural calamities in Japan this year, the government was forced to trim its exports and imports growth targets to 5 and 13 percent, respectively, from 10 and 18 percent estimated earlier this year.
The revised export growth target this year is lower than the 33.7-percent growth in exports posted in 2010.
ICTSI, owned by businessman Enrique Razon Jr., posted a net income of $60 million in the January-to-June period from $42.4 million a year ago. For the third quarter alone, net profit rose 61 percent to $31.5 million.
“The higher net income was mainly due to the upsurge in foreign volumes and stronger revenues from storage and ancillary services from foreign operations,” ICTSI said in a previous statement.
For its part, ATI profits fell to P414.2 million in the first half from P587.1 million. This came as revenues slipped to P1.1 billion from P1.24 billion in the same period a year earlier.