Lines back bid to gain control of North Harbour

Fearing the possibility of a looming monopoly by the Romero family over local ports, the Philippine Lines Shipping Association, (PLSA), which comprises eight of the biggest users of the Manila North Harbour, has thrown its support behind Metro Pacific Investments (MPIC), which is seeking control of the country’s busiest and premier domestic port, the Philippine Star reported.

MPIC chairman Manuel V Pangilinan said the company was contemplating withdrawing from its joint venture with the Romero-led Harbour Centre Port Terminal (HCPTI) if it fails to get majority control of the Manila North Harbour Port (MNHPI).

MNHPI president Michael Romero said his group is not ceding control of the joint venture firm to MPIC, pointing out that such a move would go against its commitment to modernise the aging North Harbour. The group is in the process of consolidating its port operations business under a new corporate entity to be called Harbour Centre Port Holdings in preparation for its planned initial public offering.

The creation of a joint venture company between MPIC and HCPTI was one of the requirements set by the Philippine Ports Authority (PPA) as part of the Manila North Harbour contract.

In a letter to the PPA, the PLSA, which contributes 70 percent of the domestic container market, said it believes that allowing Pangilinan’s group to have a majority stake in MNHPI will give MPIC the ability to reorganise MNHPI and have a professional management team run the port.

Currently, MNHPI is 65 percent owned by the family of businessman Regis Romero’s HCPTI with MPIC holding the balance of 35 percent. The consortium bagged in October the right to operate and manage the Manila North Harbour for 25 years.

The turnover, originally slated for January, had been postponed several times due to strong opposition from ship liners, cargo handlers and labour groups.

The PLSA expressed concern over the prospect of the looming monopoly by the Romero family of three of the country’s ports – the North Harbour, the neighbouring Harbour Centre Port and the Subic Port.

(Source:www.cargonewsasia.com)