By Rjay Zuriaga Castor
As a leeway for its privatization, the Visayas Container Terminal (VCT) has approved a 50 percent discount on cargo-handling tariffs at the Iloilo Commercial Port Complex (ICPC) in Lapuz, Iloilo City from April 1 to 15, 2024.
The VTC said the discount, which is only applicable to all tariffs under Tier 1 Classification, is to ensure a smooth transition to the customers and stakeholders of the ICPC.
“Customers that have already paid based on full tariffs can either be refunded or used as deposit for its succeeding shipments,” the VCT said in an advisory.
Meanwhile, regular ICPC customers are granted a 15-day credit line to request for a discount. The request, however, is still subject to the signing of a Payment Terms Agreement and submitting requisite documentary requirements.
The VTC further clarified that the temporary measures do not apply to any clearances and payment obligations with the Philippine Ports Authority (PPA), Bureau of Customs, and other government agencies.
The International Container Terminal Services Inc. (ICTSI) of tycoon Enrique Razonis secured the 25-year cargo-handling contract for the ICPC,the very first Tier 1-classified port of the PPA.
ICTSI’s offer for the 25-year contract involves a concession fee of P750 million for the sixth to 10th year. It is larger than the minimum fixed concession fee of P500 million stated in the contract.
As the new port handler, the Razon-owned company has renamed the Iloilo Port as the Visayas Container Terminal (VCT).
Under the Port Terminal Management Regulatory Framework (PTMRF) of the PPA, tariff for Tier 1 cargo-handling charges encompass roll-on/roll-off terminal fees, passenger terminal fees, porterage rates, and waste reception fees.
For foreign cargoes, the stevedoring tariff for a 20-footer loaded box amounts to US$116.003, and $97.511 for an empty container.
Meanwhile, arrastre rates for a 20-footer import loaded box are set at P4,738, and P3,868 for export loaded boxes.
The PPA previously said that the cargo handling rates for domestic cargoes for Tier 1 ports are similar to Tier 3 rates for the first five years.
“Tariffs similar to Tier 3 rates will be imposed on domestic cargoes shipped through (ICPC) in the first five years of the port terminal management contract for the (VTC),” it said.
The PPA said ICPC will then become an exclusively international terminal after the first five years, while domestic cargoes will be redirected to Fort San Pedro port, which was already bid out as a Tier 3 port.
