CPA slashes wharfage fees by 50% for Cebu exporters

CEBU, Philippines - PhilExport-Cebu yesterday announced that exporters can avail of a 50 percent discount on wharfage fees starting today.

This ensued after the Cebu Port Authority (CPA), in its resolution No. 424-2009 implemented to support the Cebu export industry and duly approved by the Philippine Ports Authority (PPA).

In a statement furnished to The Freeman yesterday, PhilExport-Cebu applauded the action of the CPA which as always been supportive of the exporters, described the move as “big relief” for the exporters who have since the start of the year been reeling from the effects of the global financial crisis.

After the news that the PPA has reduced its wharfage rates in Manila, PhilExport-Cebu executive director Fred Escalona immediately wrote a letter dated August 24, 2009 to CPA general manager Angelo C. Verdan requesting the CPA to also accord the same benefits to Cebuano exporters.

The current wharfage fee for a 20 footer van is P602.34 while the rate for a 40-footer van is P956.70. These amounts will be cut in half starting today, until the end of this year.

For his part, Verdan said that CPA hopes that “they have shown their support to the local export industry in Central Visayas, with the approval of the substantial reduction in wharfage rates.”

On the other hand, the export sector in Cebu is hoping to see full recovery especially starting next year, as the global economy starts to show upward trend.

Hopefully, Escalona said the Cebu export industry would see no further closures and retrenchments in the next few months.

Escalona said that the industry has seen slight improvement of orders especially in the home décor sector, and hopefully it will expand to the recovery of orders to the furniture makers.

“We can feel/see the sign of improvements already because the orders have started to pick up starting with the home decors,” Escalona said.

Also, some players in the furniture sector are also experiencing a slight recovery of orders, as early as now.

“Hopefully we won’t see any closures and manpower reduction in the export sector starting this second semester,” Escalona said.

In 2008, there were a total of 75 PhilExport members from the furniture industry. About 12 companies are not renewing their membership, its either they are closing their factories of they are not just renewing their membership, he said.

Aside from home decors that is showing recovery, Escalona said the fashion accessories’ export is also improving, as the market abroad especially in the US, is starting to shop affordable products, such as fashion accessories and home decors.

This year, the Cebu export industry, primarily the home furnishing and fashion accessories sectors are growing at a rate of 10 percent to 15 percent in terms of order volumes.

He said positive performance of home decors, and fashion accessories is a good indication that the buying interest abroad is starting to pick-up. “It will start with the small and affordable products.”