|
THE
board of the Philippine Ports Authority (PPA) has
approved the cargo-handling rate increase of the
country’s two biggest port operators in Manila as a
result of the rising costs of fuel and labor, among
others.
According to a PPA order released Tuesday, there will be
a total rate increase of 12 percent for all
vessel-related foreign container-handling services, but
only 5 percent of it will take effect on April 2, and
the rest in 2009.
The
increases will take effect for the Manila South Harbor,
operated by Asian Terminals Inc. (ATI), and Manila
International Container Terminal, run by International
Container Terminal Services Inc. (ICTSI).
The
foreign-exchange rate to be used in computing the vessel
tariff, meanwhile, will be P43 per US dollar to minimize
the impact of the rapid appreciation of the local
currency, the order said.
The
remaining 7-percent increase, on the other hand, will be
implemented at the start of 2009. However, Sevilla said
PPA management will first review the effect of the
previous rate hike before implementing the next-round
increase.
Since
last year, both ATI and ICTSI have been negotiating for
a rate increase, together with the Association of
International Shipping Lines (AISL), claiming that costs
related to fuel, labor and other operational expenses
are growing at a faster pace than revenues.
PPA’s
approval followed AISL’s February board meeting that
approved the 12-percent to 14-percent increase. Both
terminal operators became qualified to increase
cargo-handling rates on the completion of the two-tranche
rate increased in 2005.
PPA
expects other cargo-handling operators nationwide to
follow the lead of ATI and ICTSI, but Sevilla said they
will only allow the increases if they are satisfied with
the justification of the firms.
Since
last year, PPA has been receiving a number of petitions
for a rate increase that went as high as 30 percent. The
state-run firm could not, however, move fast since it
may affect the prices of basic commodities.
Under
the new PPA guidelines, the application or request for
rate increase should be presented in matrix form and
show the existing tariff separately, the adjusted tariff
applied for and the legal or other justification for
such application.
Individual service providers are also required to submit
financial statements to include the balance sheet,
income statement using appropriate chart of account in
accordance with the Philippine financial reporting
system; detailed computation of proposed rates; and
copies of source documents like government-mandated wage
adjustment, increase in power and fuel cost, and the
peso-dollar exchange rate.
For
across-the-board increases, the PPA requires a detailed
computation of the proposed rates, as well as copies of
source documents, such as the consumer price index, wage
adjustment orders, increases in power and fuel and the
foreign-exchange rates. |
