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Members of the Philippine Liner Shipping Association (PLSA) have requested that a concession fee on bunkering at the port of Manila [pictured] be removed because of its economic impact on local bunker suppliers, shipping lines and other port users.

In a letter to the Department of Transportation and Communications (DOTC), PLSA members requested a review of the privatization contract for the port of Manila. The group wants the port's incoming operator Manila North Harbour Port, Inc. (MNHPI) to be prevented from charging concession fees to companies that offer ship support services at the port.

The concession fee, which is said to be equivalent to 5 percent of service providers' revenues, would mainly cover bunker companies supplying marine fuel to ships at the harbour.

PLSA members pointed out that an additional 5 percent on bunker suppliers' service costs would have an immediate impact on ship operators' freight costs and passenger fares.

"We humbly request that this concession fee on bunkering and other services be deleted because of its economic impact on port users directly and the general public," the group said in its letter to the DOTC.

Bunker companies at the port of Manila currently only pay a registration fee of P2,000.

"The biggest cost factor of shipping is the fuel cost and most, if not all, our members refuel at the North Harbor in order to avail [themselves] of the lower cost of fuel in Manila," the group said.

"This provision will have an impact on shipping operation costs and subsequently, on freight and passenger fares," PLSA members added.

According to the Philippine Ports Authority (PPA) - the North Harbor's current operator - the MNHPI had agreed to suspend the concession fee. However it added that this would not stop the new port operator from reinstating the fee once it takes over.

PLSA members said they may be forced to boycott the port of Manila and move to other nearby terminals if the docking fees at the North Harbour become too expensive.