PPA reviews rate hike bids of ICTSI, ATI

MANILA, Philippines - The Philippine Ports Authority (PPA) will review the petition for arrastre or cargo handling rates filed separately by the International Container Terminal Services, Inc. (ICTSI) of ports magnate Enrique Razon, for their Manila International Container Port, and the Asian Terminals, Inc. (ATI) of businessman Eusebio Tanco, for South Harbor.

Raul Santos, PPA assistant general manager for operations, said that ICTSI and ATI had filed separate petitions for an increase in arrastre rates of as much as 21 percent last January.

“A hearing panel was created,” Santos said. It will be up to the hearing panel to schedule the hearings, he said.

It was learned that the cargo handling rates are fees paid by cargo owners shipping their products or goods.

ICTSI asked for the hike in their arrastre rates to recoup investments in container-handling equipment, information technology upgrades, traffic management system and the high costs of power, diesel and daily wage.

ATI cited the same reasons in asking for the rate hike.

PPA allowed the two port operators just over two years ago to increase their arrastre rates by 15 percent in two tranches – the first eight percent implemented in May 2009 and the remaining seven percent in January 2010.

In addition, PPA had allowed the operators to impose a 17-percent increase in vessel-related cargo handling rates also in two tranches – the first 11 percent in November last year and the balance for application in May this year.