JUNE 27, 2017, MANILA—The Board of Directors of the Philippine Ports Authority (PPA) approved on May 25, 2017 the application of Manila North Harbour Port, Inc. for a tariff increase on Manila North Harbour Port, Inc.’s (MNHPI) cargo handling rates.
MNHPI previously applied for a one-time 37.45% increase in tariff in order to recoup their investment at the Manila North Harbor from the time MNHPI took over operations from PPA in 2010.
MNHPI is set to invest about P14.5 billion from 2010 to 2035.
According to PPA General Manager Jay Daniel R. Santiago, MNHPI has so far infused some P5 billion in investments from 2010. However, pursuant to MNHPI’s 25-year concession agreement with PPA signed in 2009, MNHPI is only entitled to apply for tariff increase only after 3 years from takeover and commencement of operations or no earlier than 2013.
“Pursuant to the PPA Board approval of the increase, the 24% tariff increase will be implemented in 3 annual tranches of 8% per year, all based on January 2015 rates,” Santiago explained.
“The first tranche will be implemented on July 21 this year and the remaining two tranches will be on July of next year and July of 2019, respectively. The increase will not be on a compounded basis,” Santiago said.
“The staggered implementation and the non-compounded basis are aimed to cushion to impact of the increase to the public,” Santiago added.
Since 2015, MNHPI is imposing a P214.88 cubic meters cargo-handling rate for loose cargoes while a standard 20-foot container is charged P1,545.93. By July 21, the new rate for loose or non-containerized cargo will be P232.07 or P17.19 higher while a 20-foot container will be charged P123.67 higher or a total of P1,669.60.
The said amount of increases will be the same amount that will be imposed next year and on 2019.
Translating its financial impact to the public, less than a centavo or P0.004 centavo will be added for a sack of rice passing through the North Harbor, which the PPA believe,