PPA exempts copra from additional cargo handling premium

The Philippine Ports Authority (PPA) has exempted copra from the additional cargo handling premium levied on such shipments.

Administrative Order No. 04-2002 signed last Oct. 21 by PPA general manager Alfonso Cusi specifies that regular cargo handling fees for bulk and breakbulk cargo based on metric ton will now be applied to stevedoring and arrastre charges for copra.

The International Maritime Dangerous Goods (IMDG) Code of the International Maritime Organization (IMO) classifies copra as a spontaneously combustible cargo. It is for this reason that copra is subject to an additional 50 percent cargo handling premium if handled in bulk or breakbulk and a 25 percent premium if containerized.

"While demand for copra is very low, the cost of transporting it is high because of the cargo handling premium when in fact the risk it exposes the stevedores and dockworkers to is very minor," PPA head executive assistant Vincent Tan said.

Tan however emphasized that with this exemption, the issue on safety is not set aside. Copra shall remain to be classified as dangerous cargo and it will be handled, transported and stored accordingly in compliance with pertinent provisions of the PPA.

This PPA order is in compliance with President Arroyo’s directive to further bring down the cost of transporting goods, Cusi said,.

The PPA had already issued eight measures to reduce logistics cost which include the promotion of competition among ports; the development of roro ports; the audit of cargo handling operators; the pegging of the government share from cargo handlers; amending the cargo handling bidding terms of reference; suspension of previously approved increase in wharfage and usage fees; and the convening of the National Port Advisory Council.