“The authority has made no final decision on the proposed increase since CPA will have to consolidate the position papers and feedback from port stakeholders to be evaluated thoroughly before it is presented to the CPA board,” the CPA said in a statement.
It added that port stakeholders have until Aug. 24 to submit their position papers.
Two business organizations in Cebu expressed concern over the proposed 25 percent increase in domestic cargo handling tariffs, saying the adjustment could add to logistics and distribution costs, potentially raising the cost of doing business and, ultimately, consumer prices.
In separate statements, the Cebu Chamber of Commerce and Industry (CCCI) and the Mandaue Chamber of Commerce and Industry (MCCCI) called for a thorough review of the proposal and its possible economic impact.
Proposal
The proposed increase stemmed from a request submitted by the Port of Cebu Association of Cargo Handling Operators, Inc. (PCACHOI), citing rising operating costs, including inflation, higher wages and fuel price volatility.
A public hearing with port stakeholders was conducted on Aug. 14 at the CPA Social Hall.
During the consultation, representatives from the shipping, cargo handling and business sectors raised questions and offered recommendations regarding the proposed increase, including the basis for the 25-percent adjustment, the approval and implementation process, and the possibility of staggered implementation.
The last adjustment was made on June 4, 2022, through CPA Memorandum Circular No. 4, which approved a 20-percent across-the-board increase in domestic cargo handling tariffs, including cranage fees, at the ports of Cebu.
Thorough review
But the CCCI said it would not support the implementation of a 25-percent increase without sufficient justification, a clear assessment of its impact and meaningful consultation with affected stakeholders.
“We therefore recommend that implementation be deferred while the CPA undertakes a comprehensive review and consultation process. If an adjustment is ultimately warranted, it should be reasonable, proportionate, transparent, and preferably calibrated or phased to minimize its impact on businesses and consumers,” the CCCI said.
The CCCI said the proposed 25-percent adjustment was substantial and could drive up logistics and distribution costs, potentially increasing the overall cost of doing business and consumer prices
Impact on business, consumers
The MCCCI said the proposed 25-percent increase must be carefully considered in terms of its timing and broader economic impact, especially as businesses were already facing weaker market demand, higher operating costs, rising wages, elevated fuel prices and risks associated with the coming El Niño.
An additional increase in logistics costs could put further pressure on businesses, particularly those in Mandaue City and other highly industrialized and logistics-dependent areas, it added.
“Logistics is an essential component of the supply chain, and higher logistics costs ultimately have implications for the prices of goods and, consequently, consumer purchasing power. The concern is not simply the additional cost to businesses, but the potential ripple effect throughout the supply chain—from manufacturers and traders to distributors, retailers, and ultimately consumers,” the MCCCI said.
With the country’s 2.3-percent economic growth in the second quarter, the MCCI said the timing of a substantial tariff increase deserved careful scrutiny, including its justification, the cost structure, and its potential impact on business competitiveness, inflation, and the cost of doing business in Cebu. —Ed: Corrie S. Narisma
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