In light of the recently approved wage increases by the regional wage boards, as well as the rate increases in the price of petroleum products, and in line with the recommendation of the consultants on the study on Commercialization Options for the Philippine Port Sector and the World Bank, increases or adjustments in cargo handling charges may be allowed in accordance with the following guidelines:

1. Authority - Article VII, Section 29, (a),(b) of PD No. 857.

2. Mechanics of Implementation -

2.1 The authorized cargo handling operator/s in a particular port may negotiate directly with the port users which are the shipping lines, importers/exporters, forwarders, domestic shippers/consignees and other concerned parties on the adjustments needed in the existing cargo handling rates;

2.2 The agreed increases shall be covered by an agreement or concurrence duly signed by the representatives of the respective port users as mentioned in Section 2.1 above and witnessed by the PMO-Port Manager;

2.3 The agreement shall be forwarded to the Head Office in five copies, Attention: Manager, Commercial Services Department (CSD);

2.4 The rate adjustment agreement shall be submitted to the PPA Board for approval; and

2.5 After approval by the PPA Board the new rates shall be published in the local/national newspaper as the case may be once a week for two (2) consecutive weeks and shall take effect fifteen (15) days after the second publication.

3. Effectivity - This Administrative Order shall take effect immediately.

Adopted: 26 Feb. 1996

(SGD.) CARLOS L. AGUSTIN
General Manager