Monday, October 16, 2006 LGUs told to stop port fees
NO LOCAL government unit (LGU) can collect fees for the use of either public or private ports, Cebu Port Authority (CPA) General Manager Angelo Verdan said.
The Philippine Ro-Ro Operations Association (PROA) has complained that the LGUs of Argao, Cebu and Punta Engaño, Lapu-Lapu City are collecting from rolling cargoes.
The Municipal Government of Argao, Cebu is collecting P100 per truck of goods at the town’s Taloot Port. Of the mount, P80 is for municipal fee and P20 is for barangay fee.
Not allowed
Punta Engaño, on the other hand, has no fixed amount.
PROA president and retired Col. Leo Ordoño told Sun.Star Cebu in a text message that there is Department of Interior and Local Government (DILG) ruling that the Local Government Code doesn’t allow municipalities and barangays to collect fees from port usage.
Odoño, also executive director of the Philippine Inter-island Shipping Association, said he will furnish Sun.Star Cebu a copy of the DILG ruling tomorrow.
Verdan confirmed about the DILG ruling and that all LGUs in the country have been notified about it.
Collection
Lucio Lim Jr., PROA vice president for the Visayas, said collecting fees at the Punta Engaño wharf (which connects to Jetafe, Bohol), and the Taloot wharf (which connects to Loon, Bohol) is jeopardizing the Road Ro-Ro Terminal System (RRTS).
RRTS is a component of the Strong Republic Nautical Highway of President Arroyo. It aims to reduce transport cost of goods from one province to another by 20 to 50 percent.
The arrastre services at the Taloot Port, which is operated by Luvimin Mining and Development Corp., also collects P400 per truck. The collection reportedly goes on even if there are no arrastre services rendered, since the trucks that carry the goods drive straight into the Ro-Ro vessels.
Lim said the P400 of the arrastre fee is about 17 percent of the Ro-Ro fare charges of P2,300 per truck.
A PROA study showed that for every peso the Ro-Ro operators make, they spent 60 percent for fuel. This means the arrastre operators, who shouldn’t be in business anymore because of the RRTS, earn more than Ro-Ro operators.
Lim said they offered to Sonny Orbita of Luvimin Mining and Development Corp. that Ro-Ro operators will just pay P30,000 monthly rental.
But Luvimin officials reportedly refused because their operation is being subcontracted.
Verdan told Sun.Star Cebu that the Taloot Port was to be turned over to the CPA, but they are still waiting for the final agreement between the CPA and the port and road builder. (EOB)
