VESSELS SEEK FARE HIKE 5 shipping firms file notice to increase fare by 5% to 47%

CEBU CITY, Philippines - Last week, franchise facilitator Florence Tavera paid P500 for boat fare to Cebu City. When she bought a ticket yesterday to go home to Tagbilaran City, Bohol, the fare was P75 higher.

“Magpaguyod na lang ko sa barko (I’ll just let the boat drag me),” she told in jest.

Tavera is one of thousands of passengers affected by a fare increase implemented by inter-island vessels.

The fare adjustment bites down hard since she travels between Cebu and Tagbilaran at least twice a week.

Five shipping companies have notified the Maritime Industry Authority in Central Visayas (Marina-7) that they are raising their fare rates from five percent to 47 percent due to spiraling fuel costs.

These shipping lines are Ocean Fast Ferries Inc., which operates Ocean Jets fastcrafts; SRN Fast Seacrafts Inc., which operates Weesam Express vessels; Roble Shipping Co. Inc.; Southern Pacific Transport Corp.; and Medallion Transport.

Shipping companies can implement the adjustment seven days after the new rates are published in newspapers and are posted at the vessels, shipping offices and ports, according to Republic Act 9295 or the Domestic Shipping Development Act of 2004.

Some companies began collecting the new rates last month. More companies are expected to follow soon.

“Everybody has a reason to increase the fare. We have more reason to increase after prices of fuel went up 10 times since January 2008,” said Chester Cokaliong, president of the Visayas Association of Ferryboat and Coastwise Service Operators (VAFCSO).

Cokaliong, founder and chief executive officer of Cokaliong Shipping Company, said he has not yet filed a notice to adjust fares for his vessels but may do so if fuel prices continue to go up.

Ocean Fast Ferries Inc. management yesterday announced that their Cebu-Tagbilaran fare will now cost P420 starting today.

“We can no longer bear the increases in the prices of fuel,” said Bernard Maraasin, operations manager of Ocean Fast Ferries Inc.

He said they suspended their Libre Balik Promo for Cebu-Tagbilaran routes. Under the promo, a round trip ticket would cost P500. A one-way ticket was P370.

Aside from fuel prices, the cost of maintenance and crew salaries was cited as a factor.

Ocean Fast Ferries Inc. has three fastcraft vessels plying Cebu-Bohol everyday and serving 1,000 passengers daily. About 60 percent of them are tourists.

MAY FIESTA

The fare adjustment comes at a time when most towns in Bohol are celebrating their fiestas in May.

Bohol residents who work in Cebu like Elma Teruel of the Office of the Presidential Assistant for Central Visayas said she expects sharp reactions when many Boholanos go home for the annual fiesta.

“Ting-uli man kay fiesta..That’s why hinay-hinay pa ang reklamo,” she said.

The higher rates are enough to make her rethink her choice of transport in going home to Bohol, about an hour’s ride away, she said.

Teruel said she would take the regular boat instead of a fastcraft to save on fare since a promised salary increase for government workers would take effect in July yet.

Another fastcarft operator has asked the Marina to be allowed to increase their fare along the Cebu-Tagbilaran and Cebu-Ormoc City route.

Reman Wong Yan of SRN Fast Seacraft Inc., which operates Weesam Express vessels, said their notice to increase was filed on April 22.

This will make the cost of travel between Tagbilaran and Cebu P25 more or an increase from P375 to P400.

The fare for the Cebu-Ormoc route will go up by P30 or P650 from P620.

Roble Shipping Co. Inc. sought a 20-percent to 70-percent increase in their fare rates, ranging from P75 to P500, depending on the accommodation. Cargo freight rates will also go up by 25 percent to 56 percent.

The shipping firm services the following routes: Cebu-Ormoc, Cebu City-Hilongos town in Leyte, Cebu City-Baybay City, Cebu City-Catbalogan town in Samar and Cebu City- Nasipit in Agusan del Norte.

Medallion Transport is seeking a 10 percent to 16 percent increase in passenger fare and cargo freight. This means that fare will go up by about P21 to P25 per passenger and P26 per ton of cargo.

The shipping firm operates vessels that ply routes to Ubay town, Bohol to Bato town in Leyte.

Southern Pacific Transport Corp., which services the route Cebu-Bato town in Leyte, wants to increase its fare by P17 or P170 to P205 for the second class accommodation and P155 to P195 for third class accommodation.

Kinswel Shipping filed its notice to increase on March 13, seeking to increase its fare from P200 to P313.60. The shipping firm operates vessels that ply the Cebu-Bato route.

Ranier Dueñas, Marina-7 supervising maritime industry development specialist, said they expected more companies to file notices of fare adjustment because of the recent fuel price hikes.

Gasoline prices almost breached the P50 per liter mark after oil companies increased their prices on April 12, the seventh round this year.

Cokaliong said some companies were absorbing huge fuel expenses so as not to burden passengers.

But time would come when businessmen won’t be able to hold off a rate hike especially since fuel prices have gone up by a total of P10 per liter since January.

Source: UP Intern Rose C. Garcia