End to labor dispute in North Harbor seen, paving way for takeover by winning consortium

MANILA, Philippines – The consortium between corporate titan Manuel V. Pangilinan and businessman Reghis Romero III is hopeful that the ongoing labor dispute at the Manila North Harbor will soon come to an end, allowing them to formally take over the country’s busiest but inefficient terminal.

Manila North Harbour Port Inc. (MNHP), a joint venture between Pangilinan and Romero, was supposed to take over the operations of the Manila North Harbor last Jan. 15 but the Philippine Ports Authority (PPA) was forced to postpone it until the lingering issues have been resolved.

“We’re in touch with the PPA. We are helping out to resolve the issue… I think eventually we will resolve the issue so we are taking a more active role,” Pangilinan told reporters yesterday.

Another bone of contention is the proposed concession fees that MNHP wants to charge. Ship liners have threatened to raise cargo and passenger rates should the new fees be imposed.

MNHP won a 25-year contract to develop and operate Manila North Harbor after hurdling all the technical and financial criteria of the two-year rigorous pre qualification and bid process mandated by the PPA’s terms of reference.

The consortium is spending around P14.5 billion to upgrade the Manila North Harbor, bulk of which will be spent during the first six years.

Under the plan, North Harbor ‘s Terminal 1 will service roll on-roll off (ro-ro) container and passenger vessels. Terminal 2 will service container and passenger vessel, and will also cover the reclaimed Piers 6 and 10 while Terminal 3 will be allotted to conventional, non-containerized, bulk or break-bulk vessels and passenger vessels.

The project is seen to generate more than P6.8 billion in revenues for the PPA over 25 years and decrease port rates at an average of 10 to 15 percent. More than 1,000 workers of the different operators of North Harbor will be absorbed, while an additional 5,000 jobs will be generated directly and indirectly by the construction and modern operations in the modernization.

The North Harbor currently accounts for more than half of the total domestic port business, servicing Metro Manila and nearby provinces of Bulacan, Pampanga, Tarlac, Nueva Ecija, Nueva Vizcaya, Rizal, Cavite, Laguna, Batangas and Quezon.

The port business is one of the sectors identified by Metro Pacific Investments Corp., the local flagship of Hong Kong-based conglomerate Frist Pacific Co. Ltd., as new engines for growth alongside tollways, water, healthcare and mining. –Zinnia B. Dela Peña (The Philippine Star)