Winning bidder set to take over North Harbor

MANILA, Philippines - The Philippine Ports Authority (PPA) has finally given the much-awaited go-signal for the Manila North Harbour Port Inc. (MNHPI) to take over the operations of the badly dilapidated Manila North Harbor.

MNHPI, a joint venture created by Metro Pacific Investments Corp. (MPIC) and Harbour Centre Ports Terminal Inc. (HCPTI), is earmarking P14.5 billion for the construction of world-class facilities at North Harbor in a bid to boost intra-regional trade in the country.

MNHPI officials said the P14.5-billion infusion will be used mainly for the construction of a modern passenger terminal and other facilities, acquisition of heavy equipment, dredging operations and acquisition of other equally important equipment such as modern computers to ensure the smooth flow of cargo and passengers.

Once construction of these facilities is realized, intra-regional trade will be boosted and passengers coming in and out Manila will increase, they pointed out.

In a notice of turnover dated April 18, 2010, PPA general manager Oscar Sevilla lifted the suspension it earlier imposed after MNHPI complied with the requirements in the contract for the development, management operation and maintenance of Manila North Harbor, which is now in danger of collapsing.

“In the exercise of the inherit functions of the authority…. and upon recommendation of the PPA/MNHPI joint committee that the issues and/or concerns over concession fees, equipment and absorption of port labor have been clarified and/or resolved in accordance with the joint committee resolution No. 04-2010, the Feb. 12, 2010 letter suspending the turnover of the facilities, operation and management of the Manila North Harbor is hereby lifted,” Sevilla said.

He also directed MNHPI to implement the notice to proceed not later than April 15 pursuant to the contract. PPA awarded to MNHPI the contract to operate North Harbor with the notice to proceed late last year but later suspended the take-over citing, among others, the still unresolved issues with labor and the acquisition of equipment needed to run operations of the port.

MNHPI said it complied with all the requirements when it signed an agreement with major labor unions last March 30 and delivered 159 places of equipment. Subsequently, PPA port district manager Constante Farinas Jr. wrote MHPI president and CEO Michael Romero that same day asking him to commence operations of the port.

“Conformably with the notice of turnover dated April 8, 2010 issued by the general manager, and in order to ensure the smooth and uninterrupted operation and management of cargo handling services in the Manila North Harbor, the Manila North Harbour Port, Inc. is hereby directed and authorized to immediately mobilize, among others, cargo handling equipment, port labor and such other complimentary operational requirements as may be necessary and commence operations in accordance with the contract for development, management, operation and maintenance of the Manila North Harbor,” Farinas said.

MNHPI will absorb more than 1,000 workers at the Manila North Harbor as part of its agreement with major labor groups operating in the area, paving the way for a smooth transition of operations in the coming days.

The commitment was contained in a memorandum of agreement signed by Romero and Jake Azores, Alliance of Port/Transport Workers and Porters — North Harbor (APTWP-NH) president, representing labor last March 30. The agreement was seen as the last hurdle prior to the take-over of the badly dilapidated port so that modernization efforts can continue.

Under the agreement, MNHPI, among others, has agreed to advance the payment of past service benefits to port workers to be absorbed equivalent to 26 days for every year of service. For those employed prior to Jan. 1, 2000, computation of payment shall be reckoned from Jan. 1, 2000. For those employed after Jan. 1, 2000, computation shall be reckoned from their actual date of employment.

MNHPI has likewise agreed to extend financial assistance to bonafide porters at Manila North Harbor. The absorbed employees shall be considered as new hires and their employment with MNHPI shall be governed by new employment contracts.

Pursuant to the MOA, members of the APTWP-NH have agreed to be absorbed to the operations of MNHPI at Manila North Harbor.

On Aug. 14, 2009, MNHPI formally submitted its bid of P14.5 billion for the Manila North Harbor modernization project. Last Nov. 19, 2009, the PPA awarded to MNHPI the contract to MNHPI. The joint venture passed all the criteria of the two-year rigorous pre-qualification and bid process mandated by the PPA’s terms of reference.

The project will raise more than P6.8 billion in revenues for the PPA over 25 years and decrease port rates at an average of 10 and 15 percent. More than 1,000 workers of the different operators of North Harbor will be absorbed, while an additional 5,000 to 10,000 jobs will be generated directly and indirectly.