THE country’s two largest port operators, International Container Terminal Services Inc. (ICTSI) and Asian Terminals Inc. (ATI), are set to implement the first tranche of the proposed increase on charges for vessel-related services in their Manila port facilities by November or early December.

The Philippine Ports Authority (PPA) granted a total of 17-percent increase for ICTSI, the operator of Manila International Container Terminal (MICT), and ATI, which manages the Manila South Harbor.

In its disclosure to the Philippine Stock Exchange on Wednesday, both operators said the PPA has allowed the companies to implement a 6-percent tariff increase 30 days after the publication of the rate adjustment in a major newspaper.

Another 11-percent increase will be implemented after six months or by May or June 2012, the two companies said.

The two ports handle more than half of the country’s total cargo shipments.

Both companies said they have received the formal notice from the PPA on Wednesday, which means they can  publish the new rates so its upward adjustment can take effect immediately.

The said rate increase applies only to stevedoring charges on foreign container handling services and will the 2009 rate as basis for the hike in charges.

The PPA reached a decision on the proposed tariff increase less than a year after the two port operators submitted their respective request.

Originally, ATI wanted to hike the rate by 19 percent, while ICTSI asked for an increase of 21 percent. The two companies also pushed for the implementation of the rate increase within the year.

The proposed rates were not approved due to an opposition submitted by the Association of International Shipping Lines (AISL), according to some PPA executives.

Asian Terminals executive vice president Ernst Schulze said the company requested for a 19-percent increase as it is the same rate of the rise of its cost of vessel-related service based on its computation.

“We applied for 19 percent, so we want to recover everything. With 17 percent, that means there’s still a [2-percent] difference,” he said in an earlier interview.

“If we cannot recover all the costs, we will just [strive to] be more efficient in our operations. The cost recovery will not make any difference on the revenues but will affect our bottom line,” Schulze said.

AISL earlier said the group negotiated for a lower tariff increase as the shipping lines are still reeling from high fuel prices, low freight rates and low volumes brought about by the global crisis.