HOME PAGE ABOUT US CONTACT US SUBSCRIBE ADVERTISE ARCHIVES
TOP STORIES NATION ECONOMY COMPANIES SHIPPING OPINION PERSPECTIVE LIFE SPORTS MOTORING
SEARCH ENGINE
WWWOur Site
Anchored by Jonathan dela Cruz, Salvador Escudero, Boying Remulla, Teddy Boy Locsin and Alvin Capino
Monday to Friday
8:00pm-10:00pm

ARTICLE SERVICES
  • bookmark this page
  • print this article
  • view archive
  •  
    Cargo firm sues government agency
    By VG Cabuag
    Reporter

    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.

    SBMA said that its action against Subic Seaport Terminal Inc. (SSTI), 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 cargo handlers and other users. The said contract was forged by Salonga’s predecessor, Felicito C. Payumo in 2004, when the government inaugurated the P200-million modern fertilizer facility as part of the Philippines’ agriculture program.

    “In as much as we would like to respect the lease agreement with the SSTI, which awarded them the exclusive right of cargo handling of fertilizers, we are to abide by the court which, in this case, nullifies the exclusive right of the SSTI,” SBMA chairman Feliciano Salonga said in a statement.

    In nullifying the government contract with SSTI, Judge Ramon Caguioa of Olongapo City Regional Trial Court said last week that it had negatively affected public interest.

    The court, in a three-page decision, said that “the exclusive rights granted to the SSTI amounted to a combination in restraint of trade or unfair competition because there is no public interest enhanced by reason of such exclusivity.”

    It added that SBMA’s contract with the company, which used the wharf for the handling of fertilizers from cargo ships, negates the essence of the Freeport zone, which was created to promote free flow of goods.

    The court decision was reached after JT Cargo Handling and Port Services Inc., another terminal operator, questioned the validity of SSTI’s exclusive right to handle all cargo operations involving fertilizers in the Freeport zone.

    JT Cargo filed the complaint after SSTI rejected its request to use of Boton Wharf to unload its fertilizers, claiming that SSTI’s exclusive right forces the owners of fertilizers to look for other ports where it can unload shipments, resulting in lost revenues for the SBMA.

    Later, JT Cargo secured a court order allowing the company to unload its fertilizers and other goods in Boton Wharf.

    In 2004, SSTI said that it chose Subic Bay since it featured a deep-sea harbor and it shared the vision of making the Freeport a fertilizer transshipment hub in the country.

    OTHER STORIES
    Decision deferred on lower port fees

    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.

    read more

    Cargo firm sues government agency

    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.

    read more