Metro Pacific wants higher stake in North Harbor firm

MANILA, Philippines - Metro Pacific Investments Corp. (MPIC) wants to increase its stake in Manila North Harbor Port Inc. (MNHPI), the company that won the contract to modernize and operate the North Harbor, from the present 35 percent to 50 percent.

Harbour Centre Ports Terminal Inc. (HCPTI), a company owned by businessman Reghis Romero, currently owns 65 percent of MNHPI.

“We want it to be a 50-50 venture,” MPIC chairman Manuel Pangilinan told The STAR.

During yesterday’s symbolic turnover of the North Harbor from the Philippine Ports Authority (PPA) to MNHPI, Pangilinan said they are committed “to turn North Harbor into a world class port that every Filipino can truly be proud of.”

For his part, MNHPI president and CEO Michael Romero said they humbly accept the challenge before them, even as he reiterated Pangilinan’s commitment to convert the Manila port into an efficient, world-class facility.

Romero also revealed that as of 8 p.m. Sunday, MNHPI has commenced operation, discharged its first vessel at 8 to 9 p.m., and handled its first passenger vessel at 1 to 3 a.m.

Meanwhile, PPA general manager Oscar Sevilla lauded MNHPI for its patience and unwavering support even as the project encountered difficulties.

He said the modernization program is in line with President Arroyo’s 10-point agenda which includes a strong nautical highway. “The North Harbor modernization was planned as far back as 30 years ago, but the plan was only realized today,” Sevilla added.

MPIC said the PPA has directed MNHPI to proceed with the takeover operations on or before April 15, 2010 pursuant to the contract for the development, management, operation and maintenance of the Manila North Harbor.

It added that MNHPI has mobilized its cargo handling equipment, port labor and other complementary operational requirements and has commenced operations at the Manila North Harbor as of 8 p.m. of April 11.

In a memorandum addressed to port district managers, port managers, shipping lines, shippers, consignees and port users, Sevilla advised that their desired port services at the Manila North Harbor may now be coordinated and transacted with MNHPI and its representatives effective April 11.

MNHPI, the joint venture created by MPIC and HCPTI pursuant to the contract with the PPA, is earmarking P14.5 billion for the construction of world-class facilities at North Harbor as part of its modernization program, in a bid to boost intra-regional trade in the country.

MNHPI officials said the P14.5-billion infusion will be used mainly for the construction of a modern passenger terminal and other facilities, acquisition of heavy equipment, dredging operations and acquisition of other equally important equipment such as modern computers to ensure the smooth flow of cargo and passengers.

Once construction of these facilities is realized, intra-regional trade will be boosted and passengers coming in and out Manila will increase, they pointed out.

In a notice of turnover of the Manila North Harbor dated April 8, 2010, Sevilla lifted the suspension it earlier imposed after MNHPI complied with the requirements in the contract for the development, management operation and maintenance of Manila North Harbor, which is now in danger of collapsing.

He also directed MNHPI to implement the notice to proceed not later than April 15 pursuant to the contract. PPA has already awarded to MNHPI the contract to operate North Harbor with the notice to proceed late last year but later suspended the takeover citing, among others, the still unresolved issues with labor and the acquisition of equipment needed to run operations of the port.

MNHPI said it already complied with all the requirements when it signed an agreement with major labor unions last March 30 and delivered 159 pieces of equipment.

MNHPI will absorb more than 1,000 workers at the Manila North Harbor as part of an agreement with major labor groups operating in the area, paving the way for a smooth transition of operations in the coming days.

The commitment was contained in the memorandum of agreement signed between Romero and Jake Azores, Alliance of Port/Transport Workers and Porters – North Harbor (APTWP-NH) president, representing the labor groups last March 30.

The agreement was seen as the last hurdle prior to the takeover of the badly dilapidated port so that modernization efforts can continue.

Under the agreement, MNHPI, among others, has agreed to advance the payment of past service benefits to port workers to be absorbed equivalent to 26 days for every year of service. For those employed prior to Jan. 1, 2000, computation of payment shall be reckoned from Jan. 1, 2000. For those employed after Jan. 1, 2000, computation shall be reckoned from their actual date of employment.

MNHPI has likewise agreed to extend financial assistance to bonafide porters at Manila North Harbor. The absorbed employees shall be considered as new hires and their employment with MNHPI shall be governed by new employment contracts.

The Manila North Harbor modernization project will raise more than P6.8 billion in revenues for the PPA over 25 years and decrease port rates at an average of 10 and 15 percent. More than 1,000 workers of the different operators of North Harbor will be absorbed, while an additional 5,000 to 10,000 jobs will be generated directly and indirectly.