PPA special takeover units as interim operators of unmanaged ports

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PPA special takeover units as interim operators of unmanaged ports
  • Special takeover units (STU) will be created to operate busy ports with no cargo-handling and terminal operators
  • The Philippine Ports Authority said the move will “ensure seamless movement of goods and guarantee safe, convenient, affordable, and world-class port facilities and services”
  • STUs may bring in the minimum cargo-handling equipment required, which may lease from the previous operators
  • An STU will operate until the contract to manage and operate a particular port has been turned over to the winning bidder

The Philippine Ports Authority (PPA) will create special takeover units (STU) to operate busy ports that currently have no cargo-handling and terminal operators.

Putting the STUs in place will “ensure seamless movement of goods and guarantee safe, convenient, affordable, and world-class port facilities and services,” PPA said in a statement.

The move, PPA added, is consistent with the marching order of President Ferdinand Marcos Jr. to benchmark the country’s ports to global standards and best practices. It also adheres to the directive of Transport Secretary Jaime Bautista to improve the port industry and its services to benefit passengers and shippers while maintaining affordable port-related charges.

The STUs will take over and operate the ports, and may bring in the minimum cargo-handling equipment required, which they may lease from the previous operators, PPA said.

The STUs will operate until the contracts to manage and operate the ports have been turned over to the winners of public biddings for new private cargo-handling service providers to be conducted by PPA.

Early this month, PPA created an STU called the Babak Port Services, which will manage, operate, and maintain cargo-handling services at the ports of Babak and Tagpopongan in Samal, Davao del Norte.

READ: Special PPA unit to run 2 Samal ports

PPA said it is already evaluating the creation of STUs for other ports with no current cargo-handling and terminal operators.

The creation of STUs is not new, as the ports authority has been creating such units over the past years to take over the operation of ports when necessary, such as when the existing cargo-handling operator’s contract has expired and no operator has been selected yet.