‘GREED’ OVER  PUBLIC WELFARE
Public Welfare

‘GREED’ OVER PUBLIC WELFARE

Business sector cries foul as the new city port tariff jumps 360%-401%

Nov 22, 2021, 5:35 AM
Roy Moraleta

Roy Moraleta

Columnist

THE Tacloban City businessmen are up in arms against a new set of tariff charges set by the Philippine Ports Authority (PPA) and are now being collected by the new port service contractor Global Port.

The local businessmen suspect that the “exorbitant” rates are another “money-making scheme” that will punish the local economy that has yet to recover fully from the onslaught of “Yolanda” eight years ago.

The city business sector claimed the new tariff rates are “outrageous”, “exorbitant”, and “abrupt” and feared that the rate jump of 360-401%, will severely affect the local economy and the people of Region 8.

A post that went viral over the week by a local businessman named Rhoel Ladera claimed that “the unannounced tariff increase will hurt Taclobanons and Leytenos in general.

“They abruptly implemented a 360% increase on general cargoes and 401% increase on foreign cargoes.”

Ladera said the “outrageously bloated tariff” imposed upon all shippers—general and foreign — by the Global Port, a private port services contractor that now handles the Tacloban Port services, will cause a big jump in the prices of cement, steel, flour, rice, fertilizers, and other commodities unloaded at the Tacloban port.

Citing an example

Ladera said that a businessman unloading 1,000 metric tons of cement now pays almost Php550,000 in tariff, very much higher than the previous rate of only Php98,000.

According to him, a foreign vessel unloading 4,000MT of cement will have to pay about Php2.3 million from about Php700,000 before. “That amounts to almost Php20 per bag from Php6 in the past,” he added.

Ladera said that a shipper had just paid almost P1.3 million in port charges from the usual amount of around Php276,000 before the increase was imposed.

Also, other cargo charges of around Php80,000 before have now jumped to as high as Php207,000.

“Imagine the inflationary effect this will bring to the local economy and the impact on the consumers.”

With commodity prices going up soon and everyone getting affected, the Philippine Chamber of Commerce and Industry PCCI-Tacloban Leyte has taken moves to protect the local consumers and businesses.

Even the local government units in the region and concerned stakeholders are looking into the issue to stop the collection of the new port charges.

‘Money Making’

The new tariff increases set by the PPA and are now collected by the Global Port have been branded by netizens as “an unbelievable ‘money-making’ scheme, short of robbing the consumers in broad daylight”.

Businessman Wilson Uy, an official of PCCI-Tacloban Leyte, said: “Grabe ini nga money making! Alam na they are not helping our people gin hihimo nera na milking cow it Taclobanon and people in region 8 being the center of trade and commerce in (EasternVisayas).”

“PPA doesn’t give a damn about us, it doesn’t give a damn about the effects of the port transactions… someone made very good money out of these transactions at our expense!!!,” a netizen named Neil Warren Chu said.
“What appears to be a deliberate scheme to collect exorbitant fees is simply greed that must be stopped,” Chu said.
“This massive increase is to the disadvantage of the poor Waraynon… we should ‘moderate’ our greed’,” Clem Montallana said.

Questionable basis

One affected netizen has questioned the basis on which the enormous increase was based.

“This is the common problem of too much privatization. Regulatory agencies in most cases favor the private corporation’s welfare over that of the consuming public, especially when the price is right.”

No public consultation made

“Hala! I haven’t read, see, or heard any public consultation on this. Was there any that we may not be aware of? Kuyawa. Mag increase gud na ini mga commodities dinhi ha at. Kairo man,” another wary netizen commented.

Just following “orders”

In an interview, Danilo Singzon, an official of Global Port in Tacloban, said Global Port has nothing to do with the setting of tariff rates… they are only following a government-approved regulation.

“Ang tariff ay hindi namin control. They are regulated by PPA. Sila po ang naglabas ng tariff at ang tariff na ini-implement ngayon was released 2019 pa, ngayon lang nila ini-implement. Hinantay siguro nila na mag-take over yung bagong port operator saka nila pinatupad yung bagong rates. But the tariffs come from PPA at hindi kami ang nag-design nito.”

Inconsiderate PPA

The head of the PPA holding office at the Tacloban port area could not be reached despite efforts by Opinyon 8.

On this, the city business sector is one in saying that “their “unavailability” to shed light on the issue is “unwarranted”.

“Just consider the serious economic implications of the huge tariff they are now imposing on a region that has just barely recovered from the onslaught of Yolanda, and is still reeling from the ill-effects of Covid-19 pandemic,” it said.
“It is simply greed over public welfare…” it added.

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