Manila North Harbour may sue port regulator

TIN news:   Manila North Harbour Port Inc. on Monday threatened to file a lawsuit against state-run Philippine Ports Authority if the latter will not lift its order prohibiting the company from handling foreign vessels and cargoetins.
TIN news:   MNHPI, which is now controlled by San Miguel Corp., sent a letter asking PPA assistant general manager for operations Raul Santos to immediately cancel and rescind Memorandum Order No. 08-2016 and issue a new order allowing the company to render terminal services for foreign vessels/cargo pursuant to R.A. 10688, or the Cabotage Act Amendments and the applicable orders of the Bureau of Customs.
“Otherwise, we shall institute appropriate criminal and administrate actions against you and all of those responsible, for violation of the anti-graft and corrupt practices act with the Office of the Ombudsman, this without prejudice to [MNHPI] filing the appropriate complaint for damages against you and the PPA for depriving [MNHPI] of its clear positive right under the law to render international terminal services for the behalf of the government and port users in Manila,” MNHPI said.
PPA on June 21 issued a memorandum prohibiting MNHPI from providing terminal services to foreign vessels at the Manila North Harbor due to the contractual limitation of MNHPI.
Section 4.02, Article IV of the Contract for the Development, Management, Operation and Maintenance of the Manila North Harbor between PPA and MNHPI expressly provides that MNHPI shall provide and undertake domestic terminal services only at Manila North Harbor.
The port authority issued the memorandum after the Bureau of Customs released Memorandum Order No. 11-2016 entitled Acceptance of Foreign Vessels/cargoes at Manila North Harbor on June 2, enjoining PPA and other agencies to allow foreign vessels to dock at Manila North.
MNHPI said the memorandum of PPA, which took effect immediately, had arbitrarily discriminated against the unlawfully excluded MNHPI by prohibiting it from providing terminal services to foreign vessels at the Manila North Harbor, a privilege which should equally granted to and enjoyed by all port operators with the enactment of the R.A No. 10668.
MNHPO said RA 10688 lifted cabotage restrictions and allowed foreign vessels to sail internal Philippine waters and dock at any port to discharge foreign cargoes imported by the Philippines and load cargoes for export to international ports.
San Miguel Corp. earlier acquired a majority interest in MNHPI after San Miguel Holdings Corp. subscribed to and fully paid for 13 million common shares, resulting in SMHC owning a 43.33-percent equity interest in MNHPI. Together with a 35-percent held by San Miguel-owned Petron Corp., the conglomerate as a group now controls a 78.33-percent interest in the port terminal company.