Higher fees make Cebu ‘most expensive PH port’

Cargo forwarders oppose CPA’s new storage policy

The Cebu Port Authority’s increase of storage fees at the Cebu International Port has made Cebu the most expensive port in the Philippines, said critics.

Carmel de Pio-Salvador, Philippine International Seafreight Forwarders Association, Inc. (Pisfa) Cebu chapter president, gave this warning in a letter she read during yesterday’s public hearing initiated by the CPA.

The new fees and penalties which increased up to  1,800 percent were imposed last March 3 to discourage overstaying cargo containers.

Salvador said the Philippine Port Authority (PPA)-managed international ports including Manila imposes lower fees.

Edmund Tan, CPA general manager, said he will meet again with business leaders, importers and exporters and freight cargo forwarders to listen to their  views.

Tan assured that the feedback would be taken up by the CPA board.

In the meantime,  the increased  storage fees stay on until the board decides otherwise.

Tan  said he would propose suspending  implementation of  memorandum circular 02-2015 during the board meeting next week.

Tomas Riveral, commissioner of Oriental Port and Allied Services Corp. (Opascor), said  they understand the business groups’ concerns, but said  the new circular has resulted in freeing up space at the port from  cargo lying there  for a  long period.

Riveral said in the past only 343 containers were  withdrawn every day from the port out of the 450 containers that the port receives, which resulted in port  congestion.

Salvador said the order embodying the new fees and penalties ran counter to the  CPA’s mandate.

She cited Section 2 of R.A. 7621 or the law creating the CPA  where it mentions the policy of the state to promote and establish the growth of autonomous regional port bodies to produce an efficient, safe, economical and coordinated system of movement of goods and persons through the port.

She said the new CPA order makes Cebu the most expensive international port in the country.

“The PPA which  is managing Manila and other international ports in the country is granting 10 days free time storage to importers. This means that PPA understands the dynamics of business particularly for importers bringing in large volumes of containers. This business strategy is to enable importers to save on costs. They can price their products very cheap,” Salvador said.

If the CPA aligns its direction and strategy to the PPA, the free time storage should have been more than 10 days, Salvador said.

The new CPA storage guidelines  cut the number of free storage days of an importer from six days to five days for a container cargo to stay at the CIP.

Salvador said  the reduction of free storage days shows the lack of coordination of the CPA and Bureau of Customs on this rule.

BOC procedures in processing of entries should have been carefully studied particularly on the length of time from lodgement of entries until it is released by category. This means that the resolution should consider the length of time when an importer could release cargoes from BOC.

ANTI-POOR

Business groups said the new CPA order was  anti-poor because it was a given that businessmen would  pass on the additional costs to  consumers.

“Do we allow it to happen that Cebu will have higher prices than Manila and other international ports in the country? Instead of alleviating the plight of the consumers by availing of cheaper goods so that monies could be spent wisely enough for its subsistence, the spiralling of prices will deprive further the poor from accessing affordable goods,” said Salvador.

Minerva Yap of the Department of Trade and Industry agreed with the business groups.

She said the higher cost would  have a domino effect on the market and  put Cebu’s economic growth at a disadvantage.

Those who attended yesterday’s hearing included representatives from the Cebu Chamber of Commerce and Industries (CCCI), Pisfa Cebu chapter, the Cebu Business Club, Mandaue Chamber of Commerce and Chamber of Customs Broker, Inc.