The Philippine Ports Authority’s decision to raise tariffs on inter-island shipping and the subsequent hike in port fees continues to draw flak from various quarters, with fears the action will result in dramatic increases in the prices of consumer goods shipped by sea before landing in retail outlets.
The latest to contest the hikes in fees was the National Economic and Development Authority regional council, which is seeking the suspension of the new tariffs in the Visayas.
NEDA’s Regional Development Council VIII passed a resolution asking the PPA to suspend the implementation of the new tariffs in the ports of Tacloban, Ormoc and other parts of Eastern Visayas.
The request was supported by the Philippine Chamber of Commerce and Industry Tacloban-Leyte Inc., which is seeking a comprehensive consultation with stakeholders affected by the increases.
The PCCI said, “local traders will find it difficult to engage shipping companies to transport their cargoes.”
The Tacloban City Sangguniang Panglunsod earlier passed a resolution asking for a reconsideration of the new tariffs.
Fears were raised that the hike in port fees would result in higher prices of consumer goods in the region, which was badly affected by the COVID-19 pandemic.
Typhoon Odette also caused severe damage to infrastructure in the area, compounding the problem of high prices.
PCCI said local businesses were not consulted on the PPA’s plan to impose higher tariffs by virtue of the agency’s Port Terminal Management Regulatory Framework, which provides for uniform port tariffs nationwide.
The new order did not take into account the vast differences in collections and earnings of the country’s ports managed by the PPA.
The smaller ports in the regions would be charging the same rates as the biggest ports, thus hurting the regional economies.
Under the most extreme case, the 360-percent increase in port tariffs would result in higher prices of the most essential commodities such as rice, cement, sugar and feeds.
The higher fees are then passed on to consumers, already reeling from the effects of the pandemic.
Aside from Tacloban, the port of Zamboanga City also sought the suspension of the increased tariffs to 700 percent.
The Philippine Inter-Island Shipping Association also requested the House committee on transportation to review the new tariffs as the rates appeared to be higher in areas which could least afford to pay the new fees.
The organization said no public hearings were held in the Visayas and Mindanao, adding that a regulatory impact assessment was necessary “to determine the reasonableness” of the new rates.
The ports of Zamboanga, Tacloban and Puerto Princesa were already bidded out, hence the new operators started collecting the drastically increased port tariffs.
GlobalPort, the company that won the bidding to handle the operations of the port of Tacloban, said they were in no position to change the rates approved by the PPA. As a private company under contract with the PPA, GlobalPort said it was “bound by the terms and conditions” set by the authority.