State-run Philippine Ports Authority granted the petition of San Miguel Corp.-led Manila North Harbour Port Inc. to increase cargo-handling rates by 24 percent over the next three years.
The increase, however, will not be compounded but will be based on the existing tariff rate as of Jan. 19, 2015.
PPA issued Memorandum Circular No. 4-2017 on June 19 approving an 8-percent increase under the first tranche effective July 21, 2017 or 30 days after the memo was published.
The second tranche or the second 8-percent will be implemented on July 21, 2018 while the last and third tranche will be imposed on the same date a year after.
The rate increase was lower than the proposed 37.45 percent tariff increased forwarded by MNHPI last year.
MNHPI said it had no choice but to ask for the increase considering the tremendous economic changes that adversely affected the business environment in the Philippines and affected critical cost drivers necessary to support port operations such as labor, fuel, power and equipment.