Group slams PPA tariff hike

MANILA, Philippines - A consumers’ group has decried the 24 percent increase in cargo handling tariff approved by the Philippine Ports Authority (PPA) for Manila North Harbour Port Inc., saying such move would lead to higher cost of goods.

“The members of the (PPA) technical working group are going against what President Duterte had laid down in his 10-point socioeconomic agenda, which is to increase business competitiveness, attract investments and protect Juan dela Cruz from economic shocks,” United Filipino Consumers and Commuters president Rodolfo Javellana Jr. said.

“Consumers will ultimately bear the brunt of this tariff increase because traders will just pass on the added costs to the public. The public will always be at the losing end,” he added.

MNHPI asked for the tariff hike to upgrade its facilities at the Manila North Harbor.

PPA general manager Jay Daniel Santiago said the upward adjustment will be implemented in three tranches.

The first tranche of eight percent from MNHPI’s January 2015 tariff rates will take effect this year, while two succeeding tranches of eight percent increase each will be implemented in 2018 and 2019, respectively.

Javellana said MNHPI virtually has a monopoly on domestic trade, which means it should actually reduce cost rather than increase it.

“It is unfair and unjustified for a monopoly like MNHPI to be allowed to impose upward tariff adjustments. Port stakeholders have no choice but to transact business with them,” he said.