Home » Ports/Terminals » PH private ports with expired leases can still operate

Private portNON-COMMERCIAL private ports whose foreshore lease contracts (FLC) have expired after 50 years can still operate if they apply for an operating permit with the Philippine Ports Authority (PPA) despite the absence of a foreshore lease.

PPA general manager Juan Sta. Ana has issued Administrative Order 05-2013 amending PPA AO 06-95 (or the Liberalized Regulations on Private Ports Construction, Development and Operation), regarding courses of action on expired FLCs and operating permits.

For a copy of AO 05-2013, go to http://www.scribd.com/doc/195753058/PPA-Administrative-Order-005-2013.

Sta. Ana said he issued the order “to allow, as an interim measure, non-commercial private ports whose FLC has expired … to continue operating … pending resolution of the issue on the appropriate agency to whom the port improvements on the foreshore area shall revert to.”

He said to avoid disruption of operations of the affected private non-commercial ports, the owners or operators may apply for corresponding operating permits, but will be levied 50% port charges on vessels that call and cargoes loaded and unloaded at those ports.

The PPA also requires private non-commercial port operators to deposit in an escrow account in a bank the rentals on the port assets, related facilities and structures.

Sta. Ana said the order takes effect immediately.

Another administrative order, AO 06-2013 dated Dec. 17, or the Amendment to PPA AO 05-2007, states the revised guidelines on the transfer of management of PPA ports to local government units (LGUs) and government corporations (GCs). Under the order, the regulator will continue to undertake any required port development covered by a memorandum of agreement (MOA) with LGUs and GCs. AO 06-2013 takes effect on Jan. 3, 2014.

For a copy of AO 06-2013, go to http://www.scribd.com/doc/195753084/AO-006-2013

Of the port revenue that will be generated by LGUs and GCs, 50% will be remitted to the PPA every quarter as supervision fee.

Meanwhile, third-party cargo-handling operators or the like should not have a term exceeding the stipulated period of the MOA between the LGUs and GCs.

The order stipulates that LGUs and GCs shall hold the PPA free from any liens and encumbrances arising from loans and other agreements entered into by the LGUs and government corporations, whether or not the proceeds were used for port development and similar investments.

Photo from www.ppasomin.com.ph

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