CPA’s proposed 25% port fee hike draws business pushback

CEBU, Philippines — The proposed 25 percent increase in domestic cargo-handling tariffs at Cebu’s ports is drawing opposition from business groups, which warn that higher logistics costs could add to the burden on companies and consumers at a time of weak economic growth and elevated operating expenses.

The Cebu Port Authority has scheduled a public hearing and consultation on the proposed tariff adjustment on yesterday (August 14) at the CPA Social Hall. The increase would apply to domestic cargoes handled at all ports in Cebu.

The Mandaue Chamber of Commerce and Industry (MCCI) said domestic cargo handling is critical to the Philippine economy, facilitating the movement of goods between islands through inter-island shipping and roll-on/roll-off services.

A 25 percent increase, however, warrants closer scrutiny because of its potential impact on businesses that are already dealing with weaker demand, higher wages, elevated fuel costs and other operating pressures, the chamber said.

“An additional increase in logistics costs could put further pressure on businesses,” MCCI said, particularly those operating in Mandaue and other industrial and logistics-dependent areas.

Higher cargo-handling charges could also ripple through supply chains, raising costs for manufacturers, traders, distributors and retailers and potentially feeding into consumer prices, according to the chamber.

The concern comes as the Philippine economy expanded 2.3 percent in the second quarter of 2026, reflecting the need for caution in imposing additional costs on businesses.

MCCI said the CPA should first provide a detailed justification for the proposed adjustment, including its cost structure and projected impact on businesses and consumers.

It likewise, urged stakeholders to assess whether the increase is necessary and timely, given its potential implications for competitiveness, inflation and the overall cost of doing business in Cebu.

The Cebu Chamber of Commerce and Industry (CCCI) also expressed concern over the proposed increase, while supporting efforts to modernize the ports and ensure their efficiency, safety and financial sustainability.

CCCI said it does not support immediate implementation of the 25 percent increase without sufficient justification, impact assessment and meaningful consultation with affected stakeholders.

The chamber recommended deferring implementation while the CPA conducts a comprehensive review and consultation process. If an adjustment is ultimately deemed necessary, it should be reasonable, proportionate and transparent, and preferably implemented through a calibrated or phased approach to limit its impact.

Both business groups said they remain open to working with the CPA on a sustainable port system, but stressed that maintaining competitive logistics costs will be critical to Cebu’s economic growth.

The proposed tariff increase places the CPA at the center of a broader balancing act: securing the financial sustainability of port operations while avoiding additional costs that could weaken business competitiveness and ultimately be passed on to consumers.