SHOWN is an aerial view of Cubi Point in Subic Bay, a former naval air station developed by the US Navy. The Subic Bay Metropolitan Authority (SBMA) was sued by a cargo handler after it allowed entities to use Boton Wharf in the facility. SBMA said that its action against Subic Seaport Terminal Inc., which was previously granted the exclusive right to use the said facility, was based on a court order issued last week opening the terminal to other users. --Wikipedia

THE Philippine Ports Authority (PPA) has refused to make an immediate and definite decision regarding a wharfage fee cut intended to lower shipping costs and reduce prices of local exports.

PPA general manager Oscar M. Sevilla admitted last week that he did not ask the plan to be tabled during the agency’s board meeting, a move that may be detrimental for locally-made goods whose prices are higher when sold abroad, owing to the strong peso.

Meanwhile, the said move allowed the PPA buy more time and collect more dues from the port users. The agency only received a fraction of its regular rates for three months after Filipino business groups—including the Philippines Exporters Confederation—was successful in convincing Malacañang to impose a fee reduction.

Last month, the said group undertook a last ditch effort in convincing the port agency to continue charging discounted rates beyond July 20.

Saddled with bankrolling big-ticket port projects, the PPA has always insisted that it is not responsible for high-shipping rates in the country. The agency said that it only receives an estimated 5 percent of the total shipping expenses paid by the port users, including exporters.

Last April 20, the PPA released an order which imposed reduced wharfage rates for three months. Instead of charging P259.70 for every twenty-foot metal container, the agency only imposed a P20 fee.

During the three-month period, the PPA said that the rate cut cost the agency P9 million in lost revenues.

Earlier, Sevilla said that the PPA remains unable to continue the rate reduction since this will sap its finances, weakening its ability to continue the construction of various port programs.

Sevilla said that of its 28 current projects scheduled to be completed by 2008, only half will be finished by this year.

“Where are we getting the money to continue the projects?” he said.

Moreover, the port agency’s revenues are expected to dip as the Philippine cargo volumes in the country are dropping ever since the start of the year.

From January to April, volume decreased by close to 3 percent, or about 1.3 million metric tons as both domestic and foreign cargo declined.

THE Philippine Ports Authority (PPA) has refused to make an immediate and definite decision regarding a wharfage fee cut intended to lower shipping costs and reduce prices of local exports.

A CARGO handler sued the Subic Bay Metropolitan Authority (SBMA) after the agency allowed other entities to use Boton Wharf in Cubi Point, a naval air station in the former US military base.