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Members of the Philippine Liner Shipping Association (PLSA) are reported to be looking at pulling out of the port of Manila following a plan to implement a concession fee on ancillary services such as bunkering.

According to local sources, the PLSA and its members are considering Batangas and Subic Bay as alternative ports of call if they are unsuccessful in their bid to have the fee removed due to its economic impact on local bunker suppliers, shipping lines and other port users.

Batangas and Subic Bay ports are both said to be in need of additional cargo volume with underutilized capacity.

PLSA members are opposing the plan by the port's incoming operator Manila North Harbour Port, Inc. (MNHPI) of charging a fee - said to be equivalent to 5 percent of service providers' revenues - to companies that offer ship support services at the port. Services at the port include bunkering, trucking, water, ship repair and suppliers of food and spare parts.

In a letter last month to the Department of Transportation and Communications (DOTC), PLSA members requested a review of the privatization contract for the port of Manila.

PLSA members also 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.

Last month the Philippine Ports Authority (PPA) - the North Harbor's current operator - and MNHPI released Joint Resolution 01-10, which stated that the concession fees would still be implemented and would cover all service providers in the passenger-terminal buildings “and/or other facilities which may be put up” at the port.

The PLSA said that the clause effectively covered the entire port as rebuilding work would have to be carried out at the North Harbour in order to upgrade its infrastructure.

Two weeks ago, the PLSA is reported to have threatened to sue both the Philippine Ports Authority (PPA) and MNHPI over the charge on ancillary services.

MNHPI is 65 percent owned by Harbour Centre Port Terminals Inc. and 35 percent owned by Metro Pacific Investments Corp.