SUGGESTED OUTLINE FOR TRANSPO REPORT

I. WHAT IS A PORT?
A. Definition
1. A place for the lading and unlading of the cargoes of vessels,
and the collection of duties or customs upon imports and
exports. A place, either on the sea- coast or on a river, where
ships stop for the purpose of loading aud unloading, from
whence they depart, and where they finish their voyages. Source:
http://thelawdictionary.org/port/

II. RATIONALE FOR REGULATING THE PORTS INDUSTRY

A. Economic Basis
1. The country’s archipelagic configuration requires an efficient
maritime transport infrastructure composed of ports and shipping for
growth and socioeconomic integration.
2. Maritime transport is the major means by which the islands are
connected and the movement of commodities and people is
facilitated. The Philippines is primarily linked to the international trade
system via maritime transport.
3. Ports have a crucial role in the competitiveness of the maritime
industry and the entire Philippine economy, since its operations and
services influence significantly the value of the supply chain.
a) In 2015, the Philippine Port Authority (PPA) achieved around
13.2 billion PHP revenues and invested approx. 22.5 billion
PHP in the development of their Port Management Offices.
b) From January to May 2017, net income of PPA grew to P3.96
billion from P3 billion in the same period last year
c) The numbers below show the traffic of ships, passengers,
containers channeled through the ports:

4. Having established that the ports being nodes that connect land and
maritime transport are a vital component of the maritime industry, it
now becomes imperative to maintain the efficiency and
competitiveness of ports, which can be achieved through the
intervention of the government.

B. Legal Basis
1. Presidential Decree No. 857 (amendatory law of PD 505)
recognized
a) the need to integrate and coordinate port planning,
development, control and operations at the NATIONAL LEVEL,
and
b) The need to promote the growth of regional port bodies
responsive to the needs of the individual localities.
2. This is particularly stated in Section 2 of said decree, which declared
the implementation of an integrated program for the planning,
 development, financing and operation of Ports or Port Districts for the
ENTIRE country as a State policy.
3. Even prior to the decree of 505 / 857, the state has recognized the
need to supervise or regulate the ports industry such as Revised
Admin Code of 1917, and Act 3002 ... (segue to timeline)

III. LAWS AND REGULATIONS

A. Timeline
Prior to the creation of the Philippine Ports Authority (PPA) port administration
in the country was merged with the revenue collection of the Bureau of
Customs (BOC) while the maintenance of the port and harbor maintenance
was the responsibility of the Bureau of Public Works (BPW).
1. Pre - 1970s
Revised Administrative Code of 1917 expressly provides the Bureau of
Customs (BOC) regulatory powers over ports.

SECTION 1154. Port regulations. – A collector of customs may prescribe

local administrative regulations, not inconsistent with law or the general
Bureau regulations, for the government of his port or district, the same to be
effective upon approval by the Insular Collector.

Bureau of Public Works (BPW):

Section 1901 provides:

(h) The construction and repair of lighthouse towers and buildings

appertaining thereto; the construction of wharves, docks, jetties,
retaining walls, and all other port works; the work of reclaiming land from
the sea by dredging, filling in, or otherwise, and the construction of all
structures in connection with the improvement of the facilities for loading and
unloading vessels, and the construction, repair, and maintenance of bridges
crossing navigable waters, and river and harbor improvements; but when a
bridge is constructed across navigable waters, the project for the construction
thereof shall be prepared with the concurrence of the Bureau of Customs,
and in case of its disagreement with the Bureau of Public Works, the
(Governor-General) President of the Philippines shall decide

2. 1970s
There were already 591 national and municipal ports plus 200 private
ports scattered all over the country

Prior to the declaration of martial law in the Philippines, the operation

of arrastre and stevedoring services in the country's various domestic
ports was in great disarray. The pernicious "cabo system" ruled by
bosses had proliferated and caused untold burdens to legitimate labor
groups. Violence and thefts in the ports were rampant and imperilled
both human and cargo traffic between the islands.
The cabo system - was more specifically referred to in the same
report as a manner of payment of wages wherein a cabo or gang
 leader collects the wages of all his men and does the paying himself.
In the process, he gives less than what is due to the worker.

3. November 1972,
following the proclamation of martial law an Ad Hoc Committee on
Waterfront Services was created to study the problems of arrastre
and stevedoring operations in these ports. The committee was
composed of representatives of the Department of Labor, the shipping
community the arrastre and stevedoring labor contractors, the Bureau
of Customs, the labor sector and port end-users, under the
chairmanship of the Deputy Commissioner of Customs.
Recommendation: Only one stevedoring and arrastre contractor for
such shipping companies. The objective was to integrate such
services in each port so only one contractor would service such port.
August l,1973 and September l, 1974
the Bureau of Customs approved and implemented the
recommendation of the Ad Hoc Committee on the initial integration of
arrastre and stevedoring services.
Meanwhile...
The Bureau of Customs had proposed to the Reorganization
Committee and to Congress the creation of a separate government
agency to integrate the functions of port operations, cargo handling
and port development and maintenance to enable the Bureau to
concentrate on tax and customs duties collection. Moreover, the
World Bank, as a condition for the grant of a port development
loan in 1973, stipulated the creation of a port authority to oversee
the implementation of projects under that loan.
4. 1975
The Philippine Ports Authority was created under Presidential
Decree No. 505 which was subsequently amended by P. D. No.
857 in December 1975.
Functions: Carrying out an integrated program for the planning,
development, financing and operation of ports and port districts
throughout the country.

The powers, duties, and jurisdiction of the Bureau of Customs

concerning arrastre operations were transferred to PPA.

5. 1978
The charter was further amended by Executive Order No. 513 that
granted the police authority to the PPA, the creation of a National
Ports Advisory Council (NPAC) to strengthen the cooperation between
the government and the private sector, and empowering of the
Authority to exact reasonable administrative fines for specific
violations of its rules and regulations. PPA was attached to what was
 then the Ministry of Public Works and Highways (MPWH) which
also served as the executing agency for all port construction projects.

6. 1987
The PPA was removed from the jurisdiction of the MPWH (now
Department of Public Works and Highways) and attached to what is
now the Department of Transportation and Communications
(DOTC) for policy and program coordination.

By virtue of Executive Order No. 159, the PPA is now vested with the
function of undertaking all port construction projects under its port
system, relieving DPWH of this responsibility. This executive order
also granted PPA financial autonomy.

B. Regulators and their Powers

1. Bureau of Customs and Bureau of Public Works (now the DPWH)
2. Philippine Ports Authority
a) Was formed based on the recommendation of BOC to the
Reorganization Committee and the Congress
b) PD 505 created the PPA which is attached to the Department
of Public Works and Transportation
c) CORPORATE duties based on Section 6 of PD 857: (this is
not verbatim)
(1) Formulate Port Development Plan, and to program its
implementation
(2) To supervise, control, regulate, construct, maintain,
operate and provide facilities and services necessary in
the ports
(3) To prescribe rules and regulations,
procedures/guidelines on the ESTABLISHMENT,
construction, maintenance and OPERATION of all
other ports, including private ports in the country
(4) To license, control, regulate, supervise any
CONSTRUCTION, or STRUCTURE within any port
district
(5) To provide service (whether in its own contract or
otherwise) within the port districts (e.g., berthing,
towing, mooring, moving, slipping, docking, loading,
discharging any vessel, sorting, weighing, measuring,
storing, handling goods
(6) To exercise control / administer ANY FORESHORE
RIGHTS or LEASES
(7) To coordinate with Bureau of Lands, etc. in the
development of any FORESHORE AREA
(8) To control, regulate and supervise pilotage and the
CONDUCT OF PILOTS
 (9) To provide or assist in provision of training programs
and facilities
(10) Et cetera (acts deemed necessary)
d) The above corporate duties were echoed in Albano v. Reyes
(1989).
e) Corporate powers include:
(1) See Section 6(b)
3. Independent Ports Authorities
a) XXXXXXX
4. Summary:

Agency Powers Legal Basis

Jurisprudential confirmation

Bureau of Customs 1. Prescribe local Revised Administrative Code

administrative port regulations of 1917
2. Issue certificates, licenses,
or other documents incident to
registration and documentation
of Philippine vessels
3. Authorize clearance of
foreign vessel to and from
coastwise ports
4. Effect searches, seizures,
and arrests by certain officials
5. Impose tonnage dues on
vessels engaged in Philippine
trade

Bureau of Public Works 1. Construction of wharves, Revised Administrative Code

docks, jetties, and all other of 1917
port works
2. Ports and harbors
maintenance

CURRENT

Philippine Ports Authority 1. (listed above) PD 505

2.
3.
4.
5.

Independent Port Authorities 1. Various charters. There are

2. a handful of independent
3. port authorities (IPA) that
4. were created either as part
5. of special economic zones
to decentralize the PPA’s
control and create more
competition with its ports, or
to provide direct control to
some LGU’s over their ports.
 IPA’s are government
agencies, the most notable
of which are the Cebu Port
Authority (CPA) and the
Subic Bay Metropolitan
Authority (SBMA) that
manages Subic Freeport.
They have provided limited
competition at best.

With the exception of the

Subic Bay Freeport and the
Mindanao Container Port
Terminal, all other ports
were spun-off from the PPA
port system. As IPAs, the
port authorities can set their
own rates but normally take
a cue from the PPA. The
IPAs were created to
decentralize control of the
PPA, to create more
competition with its ports,
and to allow an LGU to have
greater control of its ports.

Bureau of Customs 1.
2.
3.
4.
5.

A. Philippine Port System

1. The Philippine Port Authority (PPA) dominates the Philippine port
system as the main developer, operator and regulator of ports in the
country (see Figure). (Source: https://dirp3.pids.gov.ph/ris/dps/pidsdps0502.pdf)

2. The Philippine port system has four categories:

a. the PPA ports system consisting of public and private ports;
b. ports under the jurisdiction of independent port authorities (IPA);
c. municipal ports devolved to the local government units (LGUs) and
d. the Road RORO terminal system (RRTS).

IV. ISSUES ON REGULATIONS - can be deleted if no time

 A. http://www.ombudsman.gov.ph/UNDP4/wp-
content/uploads/2013/01/PhilPortSector_Basilio.pdf

V. CLOSING (latest news on Philippine Ports) - Gusto niyo pa ba? O wag na?