North Harbor operator advances P100 million to ensure labor peace

MANILA, Philippines - North Harbor operator Manila North Harbour Port Inc. (MNHPI) has advanced payments of more than P100 million to port and transport workers for their past services as part of its commitment to comply with the terms of its contract with the Philippine Ports Authority (PPA).

MNHPI spokesperson Tricia Sandejas said the cash advance payments were made as part of the company’s commitment to ensure labor peace.

MNHPI is the joint venture created between Metro Pacific Investments Corp. (MPIC) and Harbour Centre Port Terminal Inc. (HCPTI) that won the P14.5-billion contract for the modernization and operation of North Harbor.

It will be recalled that MNHPI has absorbed more than 1,000 port workers after signing an agreement with the Association of Transport and Port Workers — North Harbor (APTW-NH) headed Jake Azores last March 30.

“Technically, workers formerly under the employ of port users are now MNHPI employees under our agreement with labor and daily operations of the port are back in full swing,” Sandejas pointed out.

Last April 15, workers who were absorbed by MNHPI have started receiving their salaries and have begun work when the consortium that won the bidding for the P14.5 billion modernization took over operations from PPA on April 11.

This development came after MNHPI announced that operations of the port will be on a 24-hour basis with port users enjoying a 10-percent reduction in tariff rates. The measure for a reduced tariff rates was implemented by MNHPI so that port users can be competitive in terms of lowering their cargo and passenger fees.

MNHPI also announced that to ensure the smooth entry and exit to and from the Manila North Harbor, as well as the safety of all cargoes, workers, employees and the general public, only legitimate port users will be allowed entry inside the terminals.

MNHPI explained that the new security measure is needed to protect passengers and merchants from criminal elements which have been regular fixtures at the port for several years now.

On Aug. 14, 2009, MNHPI formally submitted its bid of P14.5 billion for the modernization or the dilapidated North Harbor, the country’s busiest port.

Last Nov. 19, the PPA awarded to MNHPI the contract to develop, manage, operate and maintain the North Harbor. 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.

MNHPI officials emphasized that the government will not spend a single centavo for the project and that the modernization of the port into a world-class facility would not only boost intra-regional trade in the county but would also attract visitors from other countries in the coming years.

Based on this agreement, the PPA would also retain its sovereign right to regulate the fees and charges at the piers.

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 to 15 percent. Aside from the absorption of existing port workers, MNHPI is set to hire an additional 5,000 to 10,000 workers for the project.