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THE
Philippine Ports Authority (PPA) has implemented
stricter rules before approving a petition for
cargo-handling rate increase, making it more difficult
for the petitioner to secure one as it has to provide
more requirements and a lot more justification.
PPA
general manager Oscar M. Sevilla told reporters last
week the move comes in the wake of several petitions the
state regulator received from operators. These
operators, according to Sevilla, sought approval to
increase cargo handling rates, blaming rising crude-oil
prices as main reason.
The
petitioners include the country’s top two port
operators, International Container Terminal Services
Inc. (ICTSI) and Asian Terminals Inc. (ATI). The rate
of increase petitions goes as much as 30 percent.
Sevilla,
however, told the petitioners that they should first
adhere to the stricter rate- increase guidelines that
PPA board approved last month to prevent any unjustified
increases in shipping cost.
The said
circular was signed on November 16, superceding previous
circulars on the guidelines, but will only take effect
30 days after publication in a newspaper.
“We
really would not like to entertain any increase in
cargo-handling rates at this time as current economic
conditions would not allow it; the very reason we
tightened our guidelines for increases,” Sevilla said.
“However, as soon as current economic climate eases, we
will see if we could allow an upward movement in
cargo-handling rates,” he said adding that the current
levels of rates would stay for the moment.
Sevilla
claimed that under the new guidelines, the petitioners
should present all sorts of legal justification for
adjustment. All requests should now be in matrix form
showing the existing tariff side-by-side with the
adjusted rates.
Operators are also now being required to submit its
financial statements to go with their petition, using
appropriate chart of accounts in accordance with the
Philippine Financial Reporting System, copies of source
documents like government-mandated wage adjustment,
increase in power and fuel cost, and exchange rate of
the Philippine peso to the US dollar, among others.
For
across-the-board increase, the state firm is now
requiring detailed computation of the new rates as well
as copies of source documents such as the consumer price
index, wage adjustment orders, increases in power, and
fuel and the exchange rates.
The
source documents, on the other hand, should include
figures for the year the last increase was granted up to
the present year where adjustment of rate is required.
Upon
recommendation of the committee handling the petition,
the board of PPA will have the final word on the
approval, but they could also give provisional rate
increase pending completion of the review and approval.
Once
approved, the increase should be published in a
newspaper of general circulation and will be implemented
after 30 days.
ICTSI
and ATI became eligible to ask for a rate increase after
the full implementation of its 20-percent and 22-percent
increase spread in the last two years from 2005.
On the
other hand, Philippine Chamber of Arrastre and
Stevedoring Operators is petitioning for an
additional-rate increase since last year. PPA has
allowed the group 15-percent increase in late 2005, or
just half of its original petition of 30 percent. |
