Cebu port eyes 25% cargo fee hike; business groups raise concerns

Local

THE Cebu Port Authority (CPA) is considering a proposed 25 percent across-the-board increase in domestic cargo-handling tariffs at Cebu’s ports, prompting business groups to warn of higher logistics costs and possible increases in consumer prices.

The proposal came from the Port of Cebu Association of Cargo Handling Operators, Inc. (PCACHOI), which cited rising operating costs, inflation, higher wages and fuel price volatility as reasons for the adjustment, the CPA said in a statement Saturday, Aug. 15.

The CPA held a public consultation on the proposal Friday, both in person and virtually through a Facebook livestream, attended by representatives from the shipping, cargo-handling and business sectors.

Stakeholders questioned the basis for the 25 percent increase, the approval and implementation process, and whether the adjustment could be rolled out in phases.

The CPA stressed that no final decision has been made.

It said stakeholder feedback and position papers will be consolidated and evaluated before the proposal is presented to the CPA Board for deliberation.

Stakeholders have until 5 p.m. on Aug. 24 to submit their position papers.

“CPA assures all port stakeholders that the proposed tariff increase will undergo an appropriate and thorough review and deliberation before any decision on its approval or implementation is made,” it said.

Business groups, meanwhile, have signaled they are not yet convinced the increase is warranted.

The Cebu Chamber of Commerce and Industry (CCCI) said it supports the continued modernization and financial sustainability of the ports.

But the organization, composed of over 1,000 members, does not favor the immediate implementation of a 25 percent increase "without sufficient justification, a clear impact assessment and meaningful consultation with affected stakeholders."

“A 25 percent increase is significant and could add to logistics and distribution costs, with potential implications for the cost of doing business and, ultimately, consumer prices,” the CCCI said.

The chamber urged the CPA to defer implementation pending a fuller review. If an adjustment is approved, it said the increase should be “reasonable, proportionate, transparent, and preferably calibrated or phased.”

The Mandaue Chamber of Commerce and Industry (MCCI) raised similar concerns, emphasizing the importance of domestic cargo handling to an archipelagic economy that relies heavily on inter-island freight and roll-on/roll-off shipping.

“Logistics is an essential component of the supply chain, and higher logistics costs ultimately have implications for the prices of goods and, consequently, consumer purchasing power,” MCCI President Barbara Gothong-Tan said.

Tan said businesses are already facing weaker demand, higher operating costs, rising wages and elevated fuel prices, while the anticipated El Niño adds to the uncertainty.

MCCI also cited the Philippine economy’s 2.3 percent growth in the second quarter of 2026, saying the figures warranted a closer look at whether the proposed adjustment is “truly timely and necessary.”

The chamber said it would continue engaging with stakeholders to push for a “balanced approach” that keeps port operations financially sustainable without placing an undue burden on businesses and consumers.

Both chambers said they plan to submit formal position papers before the Aug. 24 deadline.(RBE)