PPA seeks revised rules on private port development, operation

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2039
  • The Philippine Ports Authority is proposing to revise its policy on the development, construction, operation and maintenance of private ports
  • The proposal streamlines the application process for private port permits
  • Two stages of the application process is eyed: Permit to Develop and Construct and Certificate of Registration

The Philippine Ports Authority (PPA) proposes to revise its policy on the development and operation of private ports by, among others, streamlining the permit application process.

The proposed policy will cover procedures on the development, construction, operations and maintenance, expansion, rehabilitation, and registration of existing ports and turnover of private ports under the jurisdiction of PPA.

It will also provide fees, fines and penalties to be imposed on private ports.

A private port is a port facility constructed and owned by a private person or entity as authorized by the government.

The proposed policy excludes marina, energy-related port projects, and port facilities for recreational boats and similar watercrafts.

At the December 1 second virtual public hearing on the policy’s proposed revisions, the following changes were outlined:

  • A two-stage application for the Permit to Develop and Construct and Certificate of Registration (COR). The current application stages include Clearance to Develop, Permit to Construct, and COR/Permit to Operate (PTO).
  • Two types of private ports (commercial and non-commercial) in contrast to existing types that include marina and river ports.
  • Provision of a list of documentary requirements for each type of application in contrast to present rules based on PPA Administrative Orders 06-95 and 03-2013.
  • 20 working days processing time, with an extension of another 20 working days, in compliance with the Ease of Doing Business and Efficient Government Service Delivery Act of 2018. Currently, an application may take 14 weeks.
  • COR validity of 25 years for a commercial private port and five, 10, or 25 years for a non-commercial private port. Right now, the validity of the COR/PTO is one year, five years, or co-terminus with the lease agreement or foreshore lease contract/miscellaneous lease contract or special use agreement in protected areas.
  • No government share required from commercial private ports that opt to contract out cargo-handling operations, a departure from the existing policy.
  • When a private port is turned over to the government, vessels and cargoes will be assessed and collected 100% port charges, as turned-over ports are already considered government port facilities.
  • Additional provision requiring a registered private owner/operator who opts to contract out cargo-handling operations to third party cargo handling operators to secure a PTO from the concerned port management office.
  • Private commercial port operators may increase cargo/handling charges and other related fees on the landside of private commercial ports once every three years. The current rules state that no rates or fees should be imposed without prior approval from PPA.
  • Penalty of P100,000 and 200% port charges, without prejudice to the issuance of a cease-and-desist order, on ports operating without a valid operating permit. Currently, PPA charges only 100% port charges for existing ports without a valid operating permit.

In adjusting upward the cargo-handling charges and other related fees on the landside, private commercial ports operators should use the consumer price index factor formula, PPA proposed. Cargo-handling charges and other related fees on the landside may be adjusted downward at any time.

Private ports, consistent with PPA’s port environmental policies and regulations, must ensure they minimize the adverse or negative impact of port activities on the environment. They should also make sure all aspects of port operation and port development must serve to protect and preserve the environment.

Private ports should adopt measures on climate adaptation, climate change proofing and setting in place disaster countermeasures and disaster mitigation, among others, and should implement green, resilient and smart port strategies to improve environmental sustainability of their operations.

In a poll during the public hearing, 64% of participants voted in support of the proposed revised policy, while 33% said maybe and 3% said no.

Stakeholders have five working days after the virtual public hearing to submit their position papers on the proposed policy. – Roumina Pablo