PPA approves handling rate hike

Philippine Ports Authority (PPA) is granting a round of probationary increases in cargo handling services in various ports nationwide.

The PPA says 14 ports of various classifications nationwide including the Manila South and North Harbors will receive at least a 10 per cent hike to cushion the impact of the economic crisis affecting the financial performance of many port operators during the last two years.

The increase will cover charges in stevedoring for containerized, non-containerized and ro-ro cargoes for both domestic and international traffic.

Pending the outcome of public hearings conducted by their respective port management offices nationwide, port operators are expected to gain from further increases the PPA will approve.

Port users such as the shipping lines and shippers group preferred not to object to the interim adjustments as they believe in the financial viability facing the port sector.

Some port operators have proposed as much as 30 per cent increase in cargo handling rates to absorb increases in wages, fuel and oil prices and devaluation of the local currency.

The PPAs Commercial Services Division says the agency continues to conduct a public hearing to determine the specific rates required by each port.

However, not all petitioners for the hike will get the required rates they ask for. Many of them have still to comply with all the requirements like submission of financial statements and payment of amelioration pay to their workers.

It is the obligation of port operators to pay their workers the required amelioration pay. Despite the PPA order to implement the Port Workers Amelioration Fund, many cargo handlers still have to allot funds for their laborers benefits.

At the North Harbor, for instance, most of the stevedores of the five cargo handling companies are still deprived of amelioration pay. The PPA insists that it is the obligation of cargo handlers to pay their workers of such benefits.

Shipowners and operators, however, are objecting that such funds be obtained from the round of increases the cargo handlers are asking for.