‘Cost of living on Rota is a nightmare’

A Rota stakeholder has written a letter addressed to Gov. Arnold I. Palacios pleading for the administration to champion the termination of Rota Terminal and Transfer’s contract as Rota’s sole stevedoring operator stating that the cost of living on Rota has skyrocketed due to exorbitant rates charged by RT&T.

Rota Merchandising Corp. Seabridge agent Pedro Q. Dela Cruz has written to Palacios seeking the administration’s help in lowering the cost of living on Rota which he claims skyrocketed due to RT&T recent rate increase which essentially charges companies shipping goods to Rota double for stevedoring services.

“RT&T is not following the tariff rate dated July 01, 2010, Rule 11: Stevedoring Services pertaining to unloading shipping containers and bulk cargoes, from the carrier to the dock. The rates listed under this section for unloading of containers and bulk cargoes includes the cost of equipment and labor however, RT&T double charges for the equipment and labor cost on top of the established rates as indicated in the July 1, 2021 published tariff,” said Dela Cruz.

As an example, Dela Cruz said the tariff rate for a 20-foot container is $350 which should include equipment and labor charges. However, Dela Cruz said RT&T added an equipment and labor cost charge for said container on top of the $350. Dela Cruz notes that this is also true for 40-foot containers which, under tariff rate rules, should cost $650 inclusive of labor and equipment charges.

To back his argument, Dela Cruz attached a copy of a Seabridge billing which reflected RT&T overbilling Seabridge by over $21,000 for equipment and labor costs.

“The final billing to Seabridge for Voyage V.24R/V.22, August 02,2021, inclusive of the tariff rate, equipment and labor is $34,295.28. You will note that the stevedoring charges for unloading of cargo/container is $9,342.51 and $3,925.90 for special services. If RT&T is to abide with the tariff rate, the final billing to Seabridge should be $13,268.41. Based on Rule 11; RT&T overbilled Seabridge in the amount of $21,026.87,” he said.

On top of violating Tariff rate rules, Dela Cruz said RT&T is effectuating a rate increase for stevedoring rental rates which would reflect an increase of 74% from the previous rates.

“Seabridge suspended shipping services to Rota after Typhoon Mawar from June 2023 to date. Seabridge experienced extensive damage to their fleet of tug boats and barges by Typhoon Mawar thus requiring extensive repair as well as dry docking in the Philippine. Seabridge announced in March 2024 the resumption of shipping services to start April 2, 2024 to Rota. Rota Merchandising Corp., dba, Isla Shipping, requested RT&T to verify the working condition of the crane to make sure that upon arrival of the Seabridge Vessel, M/V Triton on April 2, 2024 that RT&T will provide stevedoring operation. On March 22, 2024, Isla Shipping received an email message advising that RT&T is effectuating rate increase for stevedoring rental rates. The rate increase is 74% from the previous rates,” he said.

Dela Cruz said he has sent an email to Commonwealth Ports Authority chair Joe Ayuyu advising CPA of RT&T’s astronomical rate increase.

“[This is] affecting the people of Rota and it is creating chaos to the economy. Due to this increase, the retail price for 50-lb [sack] of rice is $80, in addition, there is a domino effect on the other staple goods within local stores. As a result of my email to CPA, the other agencies of the Commonwealth government took action to advise RT&T of their negligence in complying to the government requirements governing business activities and reporting requirements in compliance with business regulation,” he said.

Dela Cruz also adds that aside from violating tariff rate rules, RT&T has allegedly been operating without a valid business license for with some of its employees unable to file their income tax returns.

“Governor, there is an abundance of flagrant violations by RT&T over the years and it is incumbent upon your office and the CPA to take immediate action to terminate RT&T’s contract. Taking the corrective measure, your administration will really stand out as defender for the people of Rota, who have long suffered from this monopoly contract with exorbitant charges. The people on Rota were very hopeful with your election as governor and the lieutenant governor that you will take positive measures to correct the current unscrupulous business practices by RT&T over the years. Many complaints were submitted to the previous CPA management but fell on deaf ears due to close political affiliation with the former administration,” he said.

Pleading with Palacios, Dela Cruz said the living situation on Rota, due to the high cost of goods, is a nightmare that must be resolved.

“The current situation right now, the cost of goods has risen astronomically due to the exorbitant charges for freight and stevedoring. The retail price for 50-lb rice is $80 compared to Saipan for $38. Other staple good prices have risen accordingly in the same manner as rice. The cost of living on Rota is a nightmare of which some families are practicing frugal purchases of staple goods and are living from pay check to pay check to make ends meet on a bi-weekly basis. It is disheartening to note that some families take turns in buying groceries and divide among themselves to stretch their meager pay. Thank you for your attention and we look forward to a resolution to this urgent matter so that regular shipping can be reinstated,” he said.