PCCI bucks PPA proposal to hike storage fees

The country’s largest business organization is against the planned move by the Philippine Ports Authority (PPA) to increase storage fees for foreign containerized cargo, joining the mounting call from industry groups to junk the measure seen increasing the cost of doing business in the country.

George Barcelon, president of Philippine Chamber of Commerce and Industry (PCCI), told the Inquirer last week that the move was ill-timed as everyone is struggling with a number of economic challenges.

“We are sounding off that at this point that there should be no increase. We are hoping it will not push through because the storage infrastructure is already there and there are really no new expansions to justify an increase,” Barcelon said in a phone interview.

The PPA is looking to increase by 32 percent the fees for import, export and transshipment containers, as well as a 150 percent surcharge of the corresponding storage rates with an increase for reefer containers.

These storage rates are collected by the PPA when cargo remains in their facilities beyond the free storage period of five calendar days after the day that the last item of cargo is discharged from the carrying vessel for imported cargo

For export cargo, assessment comes four calendar days from the day that the cargo is received at the port, while it is 15 calendar days from the day of arrival to the day of departure for foreign transshipments.

The PCCI official was concerned that the proposed hikes will worsen the already challenging business environment in the Philippines, amid rising interest rates and their projection that fuel costs might soon increase if the Israel conflict in the Middle East escalates.

“There might be a snowball effect. So, we should hold off on any measures that will increase the cost of doing business,” he added. INQ