MNHPI exceeds delivery of cargo handling gear

MANILA, Philippines - Manila North Harbor Port Inc. (MNHPI), the joint venture between Harbour Centre Port Terminal Inc. and San Miguel Corp., has exceeded the amount of cargo handling equipment it is required to deliver under its P14.5-billion contract with the Philippine Ports Authority (PPA) for the modernization of the Manila North Harbor.

In a report, team leader Virgilio Padua said 125 various types of equipment were needed to be delivered by MNHPI to North Harbor under the contract with PPA, but the company actually brought in 153 units.

“The total minimum cargo handling equipment requirement per contract is 125 units of various types/capacities. The actual delivery made by the team showed that MNHPI has 153 equipment available for its use which is in excess of the minimum equipment requirement,” the report said.

Because of the excess in the expected equipment at North Harbor, Padua said this will ensure “a more efficient operation at North Harbor.”

The inventory was ordered by the PPA general manager, acting on a request by the Philippine Liners Shipping Association (PLSA), to validate the number of cargo handling equipment being utilized by MNHPI in order to determine its compliance with the minimum requirement in its contract with PPA.

MNHPI won the bidding to modernize the already dilapidated Manila North Harbor. The port facility was turned over to MNHPI last March to pave the way for its development. As part of the contract, MNHPI was obligated, at its own expense, to deliver a number of cargo handling equipment to ensure smooth and reliable operations in the port facility.

In the report, the team said it started its actual inventory of equipment at the MNHPI motorpool located at Pier 16, moving on a per pier basis from Pier 2 up to the Marine Slip Way. The team also made a courtesy call to the shipping lines with existing lease agreements with MNHPI to seek assistance in identifying the leased equipment.

The report said MNHPI owns 33 equipment of various types and capacities while 58 equipment were leased from shipping lines and 62 were being leased from third party service providers other than shipping lines.

MNHPI also 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 contract with the PPA.

The cash advance payments were made as part of the company’s commitment to ensure labor peace. 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) last March 30.

Technically, workers formerly under the employ of port users are now MNHPI employees under the agreement with labor.

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 contract took over operations from PPA on the same day.

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 reduction in tariff rates was implemented by MNHPI so that port users can be competitive in terms of lowering their cargo and passenger fees.

On Nov. 19, 2009, 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.

Company 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 also set to hire additional 5,000 to 10,000 workers for the project.

Jobs will be generated directly and indirectly by the ambitious construction and modern operations entailed in the project, officials added.