Cargo handler scores non-renewal of contract

CEBU CITY – Port workers, office employees and executives of Oriental Port and Allied Services Corp. (Opascor) held a protest rally last Monday in front of the Cebu Port Authority (CPA) in this city to denounce the decision of CPA not to renew the contract of Opascor.

The protesters threatened to continue with the protest rally every day until CPA reconsiders what they called the authority’s "arbitrary, dubious and illegal decision."

Opascor is the lone cargo-handling operator for foreign vessels at the Cebu International Port. Its 10-year contract with CPA will expire on Jan. 9, 2001.

Antonio J.B. Elumir, Jr., CPA general manager, had informed Opascor management of the decision of the CPA board of commissioners not to renew its contract and instead subject the award of the new contract through public bidding.

"Starting year 2001, the authority intends to start the upgrading of the Cebu International Port in partnership with an entity that will provide the cargo-handling services. We can only do this if we do it in accordance with the general rule of subjecting such activity through a transparent public bidding," Elumir wrote Benjamin C. Akol, Opascor president, in his letter dated Oct. 9, 2000.

Opascor claimed the CPA decision is high-handed and illegal since its contract provides for renewal based on the company’s performance that has always been satisfactory. CPA makes the annual performance evaluation of Opascor.

Opascor said the non-renewal of its contract would lay off hundreds of its workers and employees and compound the unemployment problem.