“The exclusive port operator and cargo handler at the Subic Bay is armed with an authority to collect fees and modernize the dock…”
Harbour Centre Port Terminals Inc. (HCPTI) is trying its best to keep its cool in spite of an adverse publicity.
The exclusive port operator and cargo handler at the Subic Bay is armed with an authority to collect fees and modernize the dock―but it has remained amiable with co-locators amid unfounded claims from them that it is charging “exorbitant” royalty fees.
Some long-time and even pioneering co-locators have complained that paying the royalties “will increase the cost of goods,” especially those that pass through Subic, the nation’s second busiest port.
Perhaps, these complaining co-locators, who exploited the port before HCPTI’s ascension before, should bear in mind that that they are now dealing with a legitimate entity officially appointed by the Subic Bay Metropolitan Authority in 2011 under a joint venture agreement.
The Supreme Court affirmed the JVA while the SBMA later issued a notice to proceed with HCPTI’s management of Subic port operations. HCPTI’s authority naturally raised concerns that long-time co-locators would be displaced during the transition from the previous exclusive operator.
HCPTI tried to allay the fears of the so-called aggrieved parties and did its best to work out deals to give time them time to taper down their operations or continue with new lease contracts.
HCPTI sources said the company had been patient with the recalcitrant group that peddled the story that the port operator was charging a 55-percent to 65-percent royalty on them. Such accusations of extortion were belied by other co-locators, who claimed they were given the option to pay a fee to continue operations in the joint venture areas.
The so-called required royalties were actually the suggestion of SBMA Senior Deputy Administrator Ramon Agregado, who thought that HCPTI should be allowed to charge a fee to existing co-locators so they may continue to operate within HCPTI’s jurisdiction, instead of outrightly terminating their leases during the transition period.
HCPTI never demanded royalties and were open to work and reach amicable agreements with co-locators so they may continue to operate. Again, HCPTI was extremely patient and even generous to let the complaining co-locators continue their operations. HCPTI has every legal right not to renew the current co-locators’ contracts but it remains open to negotiate the continuation of their respective leases.
Port operations entail a myriad of logistical and administrative complexities, requiring a balanced approach to fee structuring. HCPTI vowed that its fee structures were meticulously crafted to ensure operational sustainability, especially for the long-time co-locators affected by the transition.
The Subic port operator has been tolerant of the noise and has opted to be civil to allow the re-negotiation of terms, instead of outrightly shutting them down.
I’ve found no formal complaints filed against HCPTI nor SBMA, yet. Everything seems to be a trial-by-publicity. If such a complaint does exist or will exist, I hope SBMA chairman Eduardo Aliño and his team stick to the letters of law and regulations.
The only answer to this mess is transparency. I have gathered both from official and unofficial sources that HCPTI seems to be doing everything above board and has every right to charge co-locators the fees for using the land areas specified within the JVA.
HCPTI’s entry in Subic, meanwhile, is expected to enhance and modernize the non-containerized cargo facilities of the Subic Bay Freeport Zone (SBFZ).
HCPTI’s development, operation and management of several ports should bring in significant investments and create job opportunities for the local community. It will also attract more businesses and stimulate economic growth in the area.
The full execution of the JVA, for one, will double the port’s bulk and breakbulk cargo volume within the next few years. Consequently, it will result in the influx of the needed capital equipment and information technology infrastructure necessary for the port’s efficient operations.
HCPTI, in implementing the JVA, plans to bring in modern cargo handling equipment and a much-needed automation from berthing to delivery to speed up both cargo and ship turnaround times.
The company aims to attract new locators and investors to the SBFZ, raise foreign direct investments and boost economic growth,
Hopefully, the modern port operation will integrate the entire northern Philippines into the rest of the Asian and global value chains.
These can be done without fanfare and ruckus.
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