Epitacio San Pablo v. Pantranco South Express, Inc.

G.R. No. L-61461 August 21, 1987

Gancayco, J.
FACTS:

Pantranco engaged in the land transportation business with PUB service for passengersand freight and
various certificates for public conveniences to operate passenger busesfrom Metro Manila to Bicol
Region and Eastern Samar; through its counsel, it wrote
toMaritime Industry Authority (MARINA) requesting authority to lease/purchase a vesseln
amed M/V Black Double to be used for its project to operate a ferryboat service fromMatnog, Sorsogon
and Allen, Samar that will provide service to company buses and freighttrucks that have to cross San
Bernardo Strait; request was denied by MARINA

It nevertheless acquired the vessel MV Black Double; it wrote the Chairman of the Boardof Transportation
that it proposes to operate a ferry service to carry its passenger busesand freight trucks between Allen and
Matnog in connection with its trips to Tacloban Cityfor the purpose of continuing the highway, which is
interrupted by a small body of water,the said proposed ferry operation being merely a necessary and
incidental service to itsmain service and obligation of transporting its passengers; that being so, it believed
thatthere was no need for it to obtain a separate certificate for public convenience to operatea ferry service
Matnog to cater exclusively to its passenger buses and freight trucks.
BOTg r a n t e d t h e r e q u e s t . C a r d i n a l S h i p p i n g C o r p o r a t i o n a n d t h e h e i r s o f S a n
P a b l o f i l e d separate motions for reconsideration.
ISSUES:
1. WON a ferry service is an extension of the highway and thus is a part of theauthority
originally granted PANTRANCO; 2. WON a land transportation company can be authorized
to operate a ferry service or coastwise or interisland shipping service along
itsa u t h o r i z e d r o u t e a s a n i n c i d e n t t o i t s
f r a n c h i s e w i t h o u t t h e n e e d o f f i l i n g a s e p a r a t e application for the same
HELD:
1. No.

ferry
- continuation by means of boats, barges, or rafts, of a highway or the connection of highways located
on the opposite banks of a stream or other body of water. The
termnecessarily implies transportation for a short distance, almost invariably between tw
opoints, which is unrelated to other transportation

ferry service
- service either by barges or rafts, even by motor or steam vessels, betweenthe banks of a river or stream to
continue the highway which is interrupted by the body of water, or in some cases to connect two
points on opposite shores of an arm of the sea s u c h a s b a y o r l a k e w h i c h d o e s n o t
i n v o l v e t o o g r e a t a d i s t a n c e o r t o o l o n g a t i m e t o navigate
coastwise or interisland service
- service which involves crossing the open sea

motorship
,
steamboat

or
motorboat service
( e n g a g e d i n t h e c o a s t w i s e t r a d e ) service between the different islands, involving more
or less great distance and over moreor less turbulent and dangerous waters of the open sea, to
be coastwise or inter-island service; considered coastwise or inter-island service

conveyance of passengers, trucks and cargo from Matnog to Allen is certainly not a ferryboat service but a
coastwise or interisland shipping service. Under no circumstance canthe sea between Matnog and Allen be
considered a continuation of the highway. While aferry boat service has been considered as a
continuation of the highway when crossing rivers or even lakes, which are small body of waters separating the land, however, whenas in this case the two terminals, Matnog and Allen are separated by an
open sea it cannot be considered as a continuation of the highway. PANTRANCO should secure a
separateC P C f o r t h e o p e r a t i o n o f a n i n t e r i s l a n d o r c o a s t w i s e
s h i p p i n g . I t s C P C a s a b u s transportation cannot be merely amended to
include this water service under the guise that it is a mere private ferry service.