Brunei, Philippine Governments Renew UPT
By Rosli Abidin Yahya

Bandar Seri Begawan - The governments of Brunei and the Philippines have renewed the bilateral agreement on uniform port tariff (UPT) in a bid to spur cross-border trade movement within the Brunei, Indonesia, Malaysia, Philippines East Asian Growth Area (BIMP-EAGA).

The Mindanao Economic Development Council (MEDCo) said in a statement that the agreement, which provides for more incentives and lower port charges, will be extended until 2007 in response to requests of private shipping firms.

Under the agreement, accredited vessels served by the ports of Brunei and Philippines are entitled to special charges including US$0.040 per Gross Registered Tonnage (GRT) for port dues and US$0.020 per GRT for dockage fees.

The special rates are lower than the standard port dues of US$0.81 per GRT and dockage fees of US$0.039 per GRT charged for vessels engaged in foreign trade.

Seaports covered under the renewed UPT agreement are the ports of Davao, General Santos, Polloc, Zamboanga, Jolo, Puerto Princesa, Cagayan de Oro, Iligan, Bbngao, Nasipit and Ozamis in the Philippines; and Muara and Kuala Belait ports in Brunei.

The UPT agreement has been extended three times since its implementation in September 1999.

Philippine Ports Authority (PPA) officials recommended the first two-year extension until 2003 when the agreement expired in September 2001. The extension was renewed in the succeeding years.

MEDCo Secretary Jesus Dureza said the move is seen to continually increase vessel traffic among the ports within the BIMP-EAGA region.

Dureza said Mindanao's cargo traffic during the first quarter this year significantly increased due to the bustling exchange of sea cargoes in the economic region.

Data from MEDCo showed that the volume of cargo passing through Mindanao's seaports grew by 5.7 per cent during the first three months this year, with 4.7 million metric tonnes of cargo compared to last year's 4.4 million metric tonnes.

"The extension of the UPT agreement offers a huge opportunity for the private sector to sustain Mindanao's economic engagement in EAGA and further strengthen the robust trading relationships that have been there for a long time," Dureza said. -- Courtesy of Borneo Bulletin

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