PPA readies order naming conditions for declaration of Manila port congestion

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The draft guidelines point to . Photo courtesy of MICT operator International Container Terminal Services, Inc.
The draft guidelines point to . Photo courtesy of MICT operator International Container Terminal Services, Inc.
The draft guidelines identify the existence of port congestion during times when yard utilization is 80% at Manila International Container Terminal (above) and at the Manila South Harbor. Photo courtesy of MICT operator International Container Terminal Services, Inc.

The Philippine Ports Authority (PPA) will soon release guidelines detailing circumstances for declaring Manila ports congested or whether an emergency situation exists.

The guidelines will give teeth to Executive Order No. 172 issued last September, which designates the ports of Subic and Batangas as extensions of Manila ports during port congestion and emergency cases.

Manila ports have been congested since the implementation of the Manila daytime truck ban in February. While the ban has been lifted indefinitely in September, congestion persists at Manila ports.

Under the guidelines as contained in a draft PPA Administrative Order obtained by PortCalls, the Secretary of the Department of Transportation and Communications (DOTC), upon recommendation of the PPA Board, will declare the existence of port congestion or emergency situation at the Port of Manila, and lift the declaration as well. The determination of congestion and an emergency situation, however, lies with the PPA general manager.

Conditions under which a port may be declared congested include 80% yard utilization at the Manila International Container Terminal or South Harbor; berth utilization in excess of 80%; vessel turnaround time of more than 12 days; and vessels in queue exceeding 12 ships.

It must be noted that under these metrics, Manila ports may now be declared congested.

Under the draft rules, an emergency situation may also be declared under these conditions: strikes and lockouts resulting in stoppage or substantial disruption of services at the port; destruction of port facilities as a result of man-made or natural disasters; and such other analogous circumstances preventing the free flow of goods and passengers.

When a written request to declare a port congestion or emergency is received from PPA, the DOTC secretary will call for a consultative meeting with stakeholders and concerned government agencies. The PPA will then issue an advisory after the declaration.

Lifting of the declaration will follow the same procedure for imposing the declaration.

Once a Manila port is declared congested or under an emergency, the ports of Batangas and Subic will be deemed as its extensions. The PPA in the case of Batangas and the Subic Bay Metropolitan Authority (SBMA) in the case of Subic will specify and designate which among their terminals are to be considered as the extension.

Foreign vessels with cargoes destined for the Port of Manila may be directed by PPA to berth at Batangas or Subic port or both, and berthing at those ports will be considered as berthing at Manila ports.

Their designation as extensions of Manila ports will only last until the declaration of congestion is in effect.

The rules of SBMA will apply to vessels berthing is Subic, such as but not limited to vessel movement, cargo movement, inspection of cargoes, tariffs, and application of gate pass for cargoes through the gate pass management system.

The rules of the Bureau of Customs (BOC) will also apply to a vessel directed to berth and discharge at the extension port. All revenues collected from the extension port including, but not limited to vessel charges, cargo charges, storage charges, and overstaying penalties, will accrue solely to the account of SBMA or PPA, as the case may be.

The draft order also states that PPA, SBMA, and BOC should coordinate with each other to ensure their regulations and policies are in harmony to facilitate the objective of EO 172.

BOC for its part is also drafting its own guidelines on the diversion of vessels from one terminal or port to another. – Roumina Pablo