Philippines' port tariffs lowest in Asia: ESCAP

Philippines' port tariffs lowest in Asia: ESCAP
Gabriel U. Quemado III, Manila
Manila port charges for a 3,000-TEU containership are about one-sixth of the charges at Japan's Port of Yokohama, one-fourth of the cost in Hong Kong, and nearly a third of the rates in Sri Lanka.
ASEAN Trade - The United Nations Economic and Social Commission for Asia and Pacific's (ESCAP) comparative study on port tariff has announced the Philippines has the lowest port tariffs in the Asia-Pacific region.
The same study showed that notwithstanding this advantage, the country is not at par with its neighbours in terms of level of global competitiveness because of its failure to undertake modernisation programmes to upgrade port technology and facilities.
In fact, in terms of productivity, Philippine ports could use serious improvement.
The ESCAP study, released in New York, covered 21 ports in Japan, Australia, China (including Hong Kong), Singapore, New Zealand, India, Republic of Korea, Taiwan, Thailand, Malaysia, Pakistan, Myanmar and Sri Lanka, and gave a comparative analysis of port tariffs in the region.
The report showed that total costs for a 3,000-TEU containership, including cargo handling, are lowest in Manila - based on nominal exchange rates.
ESCAP found that Manila port charges for a 3,000-TEU containership are about one-sixth of the charges at Japan's Port of Yokohama, one-fourth of the cost in Hong Kong, and nearly a third of the rates in Sri Lanka.
Compared to those in Manila, port charges are higher by 33 percent in Indonesia, 50 percent in Malaysia, 60 percent in Vietnam and 80 percent in both India and Pakistan.
The same study noted, however, that while wharfage, cargo handling and other port charges are relatively low in the Philippines, port facilities in the country are not as modern as those of many of its Asian neighbours.
The government needs billions to upgrade its ports and put it on competitive footing with its Asian counterparts, but it is highly unlikely that the Philippines could generate enough revenue from taxes and port collections to finance much-needed modernisation and expansion programmes.