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PIA Press Release
2007/10/05

Port users approve permit fee hike

Davao City (5 October) -- Stakeholders of the Philippine Ports Authority (PPA) recently approved the new rate adjustment for ancillary services and regulatory fees.

In a public hearing held on September 19 at the PPA conference room of the Port Management Office-Davao, service providers approved PPA's proposal to increase annual permit fees and annual regulatory fee to PhP 500 and PhP 2500 from the existing PhP 300 and PhP 1, 500, respectively.

"It has been ten years since PPA implemented the Memorandum Circular No. 07-97 issued in March 4, 1997 for the standardized fees for these services," PPA PMO-Davao Port Manager Atty. Christian Santillan, the main panelist expressed during the brief orientation of the said hearing.

Other government panelists include representatives from the Department of Trade and Industry-XI Atty. Lucky Siegfred Balleque, National Economic Development Authority-XI Miguel Herrera III and Maritime Industry Authority-XI Virgilio Armonia.

Balleque, Herrera and Armonia, likewise, positively justified the increase, citing the rise in Consumer Price Index (CPI) which embodies the statistical estimate of the level of prices of goods and services bought for consumption purposes by households nationwide between 1997 and 2006.

CPI has risen sharply from PhP 83.10 in 1997 to PhP 139.10 in 2006 based on the National Statistics Office figure which substantiates PPA's increase of 67.39% in its permit and regulatory fees, DTI Rep. Herrera explains.

The changes in the CPI is a gauge of inflation, thus, it can be used for indexation (or evaluation) of wages, salaries, pensions, or regulated or contracted prices at a given time.

"Government regulatory bodies like PPA should attune its rates with the times in order to continually provide responsive and quality services and the increase is actually minimal compared to what the private sectors have imposed for the last ten years," Balleque conveys during the deliberation.

Public and private sector partnership is necessary to support and sustain port development, operations and services. Hence, regulatory as well as permit fees are among means to enable the government to serve its clients better, Armonia expresses.

Ancillary services refer to Type I and Type II-classified business/operations within government and registered private ports of the PPA. These complement the port's major services such as cargo handling, pilotage and porterage.

Type I support services in the ports where the government collects 10% share from revenues cover the following: cargo checking, equipment/appliance hire, vessel maintenance/repair, waste disposal and other types which may later be classified by PPA.

For Type II services, PPA collects fixed regulatory fees from: bunkering, canteen operations, cargo ship surveying, handling, cleaning, container repair, communication, fumigation, laundering, lighterage/barging, parking/garage, reproduction, security, shops/stores, transport, towing/tugging, water supplies, water taxi, weighbridge and other allied services.

Service operators who use government-owned facilities at the ports such as water supply, weighbridge and truck scale (Type I) are subject to payment of permit fee and remittance of at least 10% from their gross income as government share to PPA. (PPA SoMin/PIA XI) [top]

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