Roro rates to go up by 15% after Christmas

Saturday, 17 January 2009 01:23

SHIPPERS that ply the Strong Republic Nautical Highway would raise their fees after Christmas. The Philippine Ports Authority has allowed the increase in rates starting December 27.

In a memorandum, the Ports Authority said it has approved the 15- percent rate increase in the roll on, roll off (Roro) terminal fee for cargo and vessels to level the playing field.

The order comes after the Ports Authority last month authorized cargo-handlers to charge customers with a 15-percent rate-recovery adjustment.

Memorandum Circular 10-2008 updates an earlier Memo Circular 17-2003, the basis of the fee that has remained constant since 2003.

Leopoldo Bungubung, the Port Authority’s assistant general manager for operations, signed the memorandum called the “15 percent Cost-Recovery Adjustment of the Roro Terminal Fee [RRTF] for Strong Republic Nautical Highway.

The agency included the Roro terminal operations in the rate adjustment to help operators recover losses from the past couple of years considering they were still using the rates prescribed in 2003.

Members of the Bicol Terminal Arrastre Operators Association last month adjusted their rates. The new rate hike is the third the Ports Authority has allowed in the past three months.

It earlier allowed the Philippine Chamber of Arrastre and Stevedoring Service Operators—the cargo handlers at the Manila North Harbor—to increase rates by 15 percent across the board to recover losses related to fuel, labor and other operational expenses.

The Ports Authority last allowed the chamber to increase rates in 2005 and also by 15 percent.

Late last month port operators International Container Terminal Services Inc. and Asian Terminals Inc. (ICTSI) increased rates by 7 percent. The increase was the second tranche in the 12-percent rate hike the Ports Authority approved in March and was meant to recover losses brought about by the current economic condition.

ICTSI, which operates the Manila International Container Terminal, and Asian Terminals, which manages the Manila South Harbor, have increased their rates by 32 percent and 34 percent, respectively in the last four years.