Manila’s challenge to shipping lines

Manila’s North Harbour Port Inc (MNHPI) has hit back at charges that its fees would hit consumers by challenging the shipping lines to bring down both cargo and passenger rates following its own 10% reduction in tariffs.

The Manila Standard reported last week that a 5% concession fee has been waived by the port until the facilities have been upgraded. This followed protests by both shippers and the Department of Trade and Industry and Supply Chain Management Association of the Philippines, which expressed concern that higher cost of goods would be passed on to the public.

However, MNHPI president and chief executive Michael Romero responded that the port had no plans to put the fee in place yet. “We have reiterated that no port concession fee has ever been levied by [Manila North]. It does not intend to do so until the major infrastructure are in place,” he said.

This follows a difficult transition period for the new operator, which only took over recently. MNHPI talked of plans to modernize North Harbor into a three-terminal port that would increase the port’s productivity by five times.

The plans, said Mr Romero, covered six years of heavy investment to a total project cost of US$326m, 60% of which will be spent on infrastructure development. He added the port already had 159 units of new equipment, 30% more than the commitment to the previous operator, Philippine Ports Authority (PPA).

However, shipping lines complained of delays due to lack of equipment after MNHPI took over operations with Lorenzo Shipping Corp, the National Marine Corporation and Negros Navigation saying they incurred losses due to unloading difficulties.

The danger for the port is that competition lies close by, and numbers of lines could transfer their custom to South Harbor and Batangas Port.

Source: Port Strategy