Minutes of Meeting dated February 9, 2011

FEBRUARY 9, 2011


The meeting was called to order at 9:45 am by the preside, Port Manager, Mario M. Malinao. In attendance were the DFPC Division Chiefs , Transshipment Agents, Processors, Local Fish Buyers and Fish Bait Suppliers and Local Vessel Operators. (Please see attached attendance sheet)

The Port Manager Malinao welcomed and greeted everyone with a pleasant morning. He acknowledged the presence of the port clients who attended the meeting and expressed his appreciation over the participation of the business locator’s officers and key personnel. Mr. Malinao went directly to the point on the agenda of the meeting. A Memorandum dated February 2, 2011 was received by the DFPC instructing all regional ports to review the current port fees and charges imposed for the use of facilities and recommend adjustments in rates incorporating any increases in operating expenses. A consultation/dialogue is required prior to implementation of proposed rates and fees. The National government cannot simply increase its tariff without consultation with stakeholders and business locators.

Mr. Malinao explained to the body that PFDA generate its own income to operate the hwole port facilities. He added that PFDA as an authority and government owned instrumentality, is not entitles to government subsidy. He emphasized that the need to adjust a number of port rates/tariffs is reasonable and timely considering the increase in cost of operations incurred and the lapse of time from previous increase.

The Port Manager informed the body that the management would like to consult the clients regarding its proposal on the adjustment of selected port fees. Some of the port charges were adjusted since 1991. DFPC staff studies carefully the reasonable amount needed to increase and it was determined that only an average of a peso or two was proposed adjustment.

Prior to the discussion of port charges affected by upward increase, Mr. Luisito-Romeo M. Correa clarified that the port rates shall be inclusive of VAT for uniformity and fast transaction Hence, all rates were VAT inclusive and rounded off to a whole number. Port Manager Malinao proceeded with the per line presentation of the fees to be increased. The clients were then given an opportunity to pose his/her objections/comments or agree.

On Agenda No. 1

A. Equipment Rental

The Port Manager explained that the adjustment of rates for this item is necessary considering the prices of fuel increased in the past many folds as well as the cost of repair and maintenance of the vehicles. There were no objections and reactions raised from the body.

B. Berthing Fee (Local)

Mr. Malinao informed the body that Berthing Fee for local vessels was not included in the previous years increase. He pointed out the need to increase this item and reiterated that the absence of government subsidy made it difficult for the DFPC to maintain the facilities considering the high operations cost.

The body was convinces and showed an affirmation to the proposed rate.

C. Port Entry Fee (Local)

There are no comments or objections from the body. The PM proceeded to the next item.PM Malinao informed the body that after the construction of DFPC was completed, the local vessel did not utilize did not utilize the facilities of the port because they realized the benefits and advantaged of the facilities to their operations. DFPC need to maintain these facilities and in order to sustain its operations, DFPC management deemed it necessary to include the port entry fee as one of those considered for adjustment.

D. Vessel Repair

A representative from Sanko Pacific Tuna Co., Ltd. asked if this only covers major reparit of the vessel. PM answered that this covers any form of repair undertaken while vessel is at berth a DFPC.According to PM Malinao, a repair fee shall be collected from any vessel undertaking repair and this is on top of the berthing fee. He added that this is the first time the port collects such fee.

E. Wharfage Fee

Mr. Malinao cited and informed the body that as per PFDA policy, when a boat operator/transshipment agents load food provision to the vessel, no single centavo should be collected.

PM Malinao clarified that the wharfage fee for food items shall only be collected if the food provisions are supplied by the chandler.

A representative from Sanko Pacific Tuna Co., Ltd., one of the transshipment agent, revealed to Mr. Malinao that the Sunscor of Toril supplied food provisions to their vessels. PM advised them to inform Sunscor Grocerama to pay corresponding wharfage fees to DFPC upon entering the port.

On the other hand, Mr. Sazo, Bait supplier, was happy that only a minimal amount was adjusted to the item, wharfage fee for baits. He even thanked the Port Manager.

PM announced that DFPC will start to collect wharfage fee for entry of Meat/Poultry and Other Products inside the port.

Ms. Vangie Vicente, Operations Manager of Polar Bear Freezing Corp. reacted and made some clarifications in case the volume falls below one tonnage.

After thorough discussion, DFPC management and the body agreed and proposed a new rate which is P 0.05/kg. Ms. Vicente was satisfied and pleased with the new rate. She commented that the new rate is reasonable.

F. Ice Conveyance

After presentation of this item, the clients posed no objection.

G. Water Conveyance

The body agreed on the rates however one transshipment agents requested that PM’s assurance for the availability of ice supply for their operations

The Port Manager committed to them priority as long as they make advance reservation.

H. Departure Clearance Fee

Mr. Malinao explained to the body that although the management made a proposed rate for this item, Departure Clearance Fee being a provision in Fishery Administrative Order No. 199, cannot be increased without the requisite amendment to the said FAO. Implementation is on hold pending the amendment that would authorize PFDA to increase the DCF from time to time after a consultation with affected clientele. Hence, the implementation is still on hold.

I. Royalty Fee

PM Malinao asked Ms. Minda Rada, Operations Manager of TWA, Inc., regarding her comments on the proposed rate.

Ms. Rada answered that the increase is fair enough and she is amenable of the proposed rate.

J. Residue Buyer’s Fee

Mr. Makinano, Chief HMOD informed the body the rate of non-accredited buyer is higher compared to accredited buyer simply because they don’t pay the accreditation fee, which is an incentive for the accredited buyers.

The body posed no objections and comments.

K. Cargo Handlers Fee (per hour)

L. Parking FeeThe body agreed and raised no objection.

After PM’s presentation, one of the Bait supplier questioned if he should still pay parking fee for his delivery trucks aside from paying wharfage fee for the baits delivered.

PM Malinao answered that definitely he should still pay because it is different.

M. Unloading Transshipment Fee

The adjusted rate for Unloading Transshipment Fee is P 0.60 per kilogram regardless of the time of unloading. The old rates for day and night operations was abolished.

N. Ice Delivery Charge (per block)

The increase was necessary due to increase in fuel prices, repair and maintenance cost.

There was no objection and comment from the body.

Please find attached sheet re. the summary of adjusted rates of various port fees. As a recapped, the Port Manager reviewed and presented again per items to the body.

The body scrutinized the list and expressed their affirmation. The DFPC management and the clients both agreed and set the effectivity date on March 01, 2011.

On Agenda No. 2

After thorough discussion of per line items of port fees subjected for increased, the preside proceeded with a presentation of adjustment of other rates which were not increased rather rounded off to make the VAT inclusive to facilitate ease in computation and fast transaction.

The clients generally agreed with the adjustment as presented during the meeting except on a couple of items, thus a re-computation acceptable by both parties was made and agreed upon.

The table below shows the itemized revised rates, to wit:

There was no objection raised from the port clients and business locators. All are amenable and agreed that an increase of the selected port fees be implemented.Mr. Malinao while reviewing the attendance sheet, informed the clients that the meeting has secured attendance of the majority and matters discussed will be carried over.

Finally, Mr. Malinao clarified and emphasized to the attendees that the implementation of the adjustment of port fees shall be effective on March 01, 2011 and the rates are exclusive of VAT.

In reply, the body signify approval to the adjustment. The proposed upward increase of the port fees above-mentioned was unanimously agreed by all concerned port clients.

The meeting was adjourned at 12:30 PM

Prepared by:

OPM Staff

Noted by:

Port Manager


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