Aboitiz sues PPA for P500 M

A shipping firm has sued the Philippine Ports Authority for P501.7 million in damages on grounds that it lost this amount after the agency ordered its operations moved from North Harbor to South Harbor, both in Manila.

Judge Antonio Eugenio Jr. of the Manila Regional Trial Court Branch 24 is handling the case.

Aboitiz legal counsel Arthur Lim said his client wants the PPA to recognize its claim of P500 million by including it in the terms of reference being drawn up by the agency for the North Harbor modernization program.

Aboitiz has also asked the court to make the PPA pay P1 million as moral damages, P500,000 as exemplary damages, P200,000 for attorney’s fee and the total cost of suit.

On the other hand, the PPA said it was ready to disprove Aboitiz’s claim. PPA general manager Oscar Sevilla denied that the agency forced Aboitiz to transfer to the South Harbor. “We’re contesting it,” he told The STAR. “We never forced anybody to transfer to any port. We have documentary evidence to prove it.”

Broken promises

Lim said the PPA had agreed to “cushion” whatever adverse effects the transfer of operations would entail upon Aboitiz.

“Defendant likewise committed itself to the reconfiguration of Pier 15 at the South Harbor suitable to the requirements of plaintiff, including ramps and support facilities needed to safely and efficiently operate its ferry vessels at the new site of vessel operations at the South Harbor,” he said.

However, Lim said the PPA allegedly reneged on its commitment “to allow Aboitiz the option of returning to Pier 4, for when they invoked it, the defendant refused,” he said.

The PPA had insisted that Aboitiz stay at South Harbor to allow it to modernize and develop North Harbor.

During the hearing, PPA presented documents and letters that supported its claim on the relocation, according to clerk of court Raul de la Cruz.

Aboitiz, the country’s largest provider of domestic ferry transportation services, has been based at Pier 4 in North Harbor for several years. – With Rainier Allan Ronda