A cargo handling firm in Subic has joined farmers and commodities traders in assailing the joint venture between the Subic Bay Metropolitan Authority (SBMA) and Harbour Centre Port Terminal, Inc. (HCPTI), insisting the agreement is unfavorable to government.

Three weeks ago, farmers alleged that the grant of a near monopoly to HCPTI as far as cargo handling operations is concerned would not be in their interest since it would lead to higher charges.

Fertilizer, corn and rice shipments are unloaded at Subic piers for farmers in Central and Northern Luzon and these are handled by firms like Amerasia International Terminal Services, Inc. (Amerasia).

With the agreement in force, farmers said cargo handling charges would skyrocket and noted that SBMA had already granted HCPTI higher cargo handling charges even before it completes its control of all the piers and wharves in Subic.

The Subic Seaport Terminals, Inc. (SSTI), one of the oldest and biggest Subic cargo operators at the Freeport, has accused SBMA of giving HCPTI “unwarranted benefits” and entering a contract that is “grossly disadvantageous to government” and “knowingly approving the grant of privilege or benefit in favor of Harbor Centre which is not qualified or entitled to the same” in violation of RA 3019 or the Anti-Graft and Corrupt Practices Act.

Amerasia filed the first case against HCPTI and alleged that the SBMA's award to HCPTI effectively terminated their existing 25-year contract for cargo handling.

SSTI said HCPTI’s fixed revenue commitment to SBMA of $500,000 (P23 million) for the first year is $340,000 short, and way below the revenues that the latter receives from its locators.

In 2009, SBMA received a total of $837,398.41 (P38.5 million) from existing cargo operators. SSTI also said that there is an unnecessary sharing of revenues by SBMA to HCPTI in the tune of $337,398 or roughly P15 million.

According to the company’s legal counsel, Atty. Julius Raboca, SSTI is also convinced that the non-Subic operator is an unqualified proponent, track record-wise and financially.

“Harbour Centre has not met the technical qualifications of the National Economic Development Authority (NEDA) for a private sector joint venture partner as it has not even completed a similar or related project in the past. Although most of its concession rights involve cargo handling, it is a common knowledge within the industry that Harbour Centre only hires subcontractors to perform its cargo handling activities. It has neither manpower nor equipment to handle cargoes,” said Raboca.

Moreover, Raboca said even if its use of subcontractors will qualify HCPTI as a cargo operator, it has not completed a similar or related project which, per the 2008 NEDA Guidelines on Joint Venture, should cost at least 50 percent of the joint venture project, or P3.27 billion in the case of the P6.54 billion approved SBMA-HCPTI contract.