CPA told to stop collecting ‘share’ from Tabuelan port

TABUELAN, Cebu — The House of Representatives Committee on Transportation (COTr) has ordered the Cebu Port Authority (CPA) to temporarily cease collection of their “share” from the Tabuelan Port without any documentation that would support their right to collect portion from the municipal port’s profit.

Under a ten-year memorandum of agreement (MOA) between the Municipal government of Tabuelan and CPA which was signed in 2004, the CPA collects 40 percent of the port’s gross monthly revenue. Five percent of that goes to the barangay treasury while 55 percent is taken by the municipal government.

But the MOA between CPA and Tabuelan has already expired in March 2014. Still, the CPA continues to collect the same partition from the municipal port.

In the period of February 2018 to February 2019, Tabuelan remitted a total of P8 million to the CPA.

Tabuelan Mayor Rex Gerona lamented that when they built the port in early 2000, they did not receive any assistance from CPA. However, when the port started to operate and earn, CPA came in the picture to take over its management.

On Tuesday, April 2, 2019, the COTr held an oversight meeting in Tabuelan following complaints from shipping line owners of irregular charges in the port.

Legislators present during the meeting were Cebu Third District Representative Gwendolyn Garcia, Fourth District Representative Benhur Salimbangon and House Speaker Gloria Macapagal Arroyo.

Garcia moved for the COTr to ask the CPA not to collect further fees from the municipal port since there is no more legal binding to the MOA which has expired five years ago. Garcia’s motion was seconded and carried by the committee.

“What is your basis for collecting that 40 percent when the MOA has already expired five years ago?” Garcia asked CPA Operations Manager Jun Cagegas during the committee meeting.

Salimbangon also lashed at the CPA for collecting shares from the port when they did not shell out any amount for its development.

Cagegas, in a separate interview, said they still have to present before the board of directors of the CPA what has transpired in the committee meeting.

He added that under their charter, they are entitled to collect a ten percent share from all ports, public and private, where they exercise their jurisdiction.

During the oversight meeting presided by Misamis Oriental Representative Peter Unabia, the Visayan Association of Ferryboat and Coastwise Services Operators, Inc. (VAFCSO) said the Tabuelan Port collects fees for arrastre and stevedoring services on their ships even if there are no actual cargo handling services that are being provided there.

Arrastre is a cargo handling service that covers loading and unloading of cargoes from the ship, checking of cargoes and providing equipment for the receiving, storing, delivery and transfer of the cargo, among others. Stevedoring, on the other hand, is the loading and unloading, and storing of cargos within the vessel.

The committee found that the charges being collected by the port, which is managed by the Municipality of Tabuelan, is used for the maintenance and operating expenses of the port.

Gerona said they needed to collect the arrastre and stevedore services fee since 40 percent of the port’s income is already allocated for remittance to the CPA.

Having received inputs from shipowners and tracking services operators during the committee meeting, Gerona said they will pass a resolution in the town council to rename the charges instead to ‘terminal fee.’ /bmjo