PHILIPPINE PORTS AUTHORITY

Port Rules and Regulations 2014

PHILIPPINE PORTS AUTHORITY
Port Rules and Regulations 2014

Philippine Ports Authority

Commercial Services Department
3rd Floor, PPA Bldg.
A. Bonifacio Drive, South Harbor
Port Area, Manila, Philippines 1018
P. O. Box 436
Telefax 336-5159
Email: [email protected]
Webpage: http://www.ppa.com.ph
 Port Rules and Regulations
2014

Published by the
Commercial Services Department
Philippine Ports Authority
3rd Floor, PPA Bldg.,
A. Bonifacio Drive, South Harbor
Port Area, Manila, Philippines
P.O. Box 436
Telefax: 336-5159
Email: [email protected]
Homepage: http://www.ppa.com.ph

First Edition SEPTEMBER 2015.

All rights reserved.

No part of this publication may be reproduced, stored in a
retrieval system or transmitted in any form or by any means without prior
approval of the publisher.

Editorial Board

JUAN C. STA. ANA

Chairperson

Raul T. Santos
Emma L. Susara
Editorial Consultants

Editorial Staff

Josephine M. Napiere
Editor

Ma. Cynthia D. Castro

Myriam R. Lorzano
Associate Editors

Port Rules and Regulations 2014

 FOREWORD

The PPA Port Rules and Regulations, a series of books published by the Philippine Ports Authority’s
Commercial Services Department, is the first printed publication which puts under one cover current port
regulations of the Authority.
It answers the call of the national government to simplify and document governmental procedures and
provide the necessary information that will enable the public to transact business with the public sector in the
easiest and most transparent manner.
However, because of the number of rules and regulations issued by the PPA since its establishment in
1974, it is almost impossible to print all the relevant issuances at one time. Hence, the port rules and regulations
are printed in a series of volumes.
This book covers rules and regulations issued in the year 2014.
Other volumes already completed and the years covered by each are:
Port Rules and Regulations Volume 1 (1991-1992) Port Rules and Regulations 2001
Port Rules and Regulations Volume 2 (1990) Port Rules and Regulations 2002
Port Rules and Regulations Volume 3 (1989) Port Rules and Regulations 2003
Port Rules and Regulations Volume 4 (1993) Port Rules and Regulations 2004
Port Rules and Regulations Volume 5 (1988) Port Rules and Regulations 2005
Port Rules and Regulations Volume 6 (1994) Port Rules and Regulations 2006
Port Rules and Regulations Volume 7 (1986-1987) Port Rules and Regulations 2007
Port Rules and Regulations Volume 8 (1985) Port Rules and Regulations 2008
Port Rules and Regulations Volume 9 (1995) Port Rules and Regulations 2009
Port Rules and Regulations Volume 10 (1996) Port Rules and Regulations 2010
Port Rules and Regulations Volume 11 (1997) Port Rules and Regulations 2011
Port Rules and Regulations Volume 12 (1998) Port Rules and Regulations 2012
Port Rules and Regulations Volume 13 (1999) Port Rules and Regulations 2013
Port Rules and Regulations Volume 14 (2000)

Issuances included in the book are those which are of interest to the port clientele, specially those that
bear on their operations in the ports.
The material is arranged by subject heading and then by the date and number of the issuance.
Whenever possible and space permits, the book includes related issuances from the Office of the President
and from other government agencies which have influenced or directed the adoption of certain policies, rules
and regulations within the Authority.
At the bottom of some issuances is the effectivity date of the rule and regulation, and the name and date
of the newspaper of general circulation where it was published.
A QUICK REFERENCE INDEX is likewise provided so that the reader can find the issuance quickly.

i Port Rules and Regulations 2014

 CONTENTS

PHILIPPINE PORTS AUTHORITY

Port Rules and Regulation 2014

Page
Foreword ............................................................................................................................... i

The Philippine Ports Authority ............................................................................................... 10

ANCILLARY SERVICES

Administrative Order No. 01-2014 ..................................................................................... 14

Amendment of PPA Administrative Order No. 07-2013 Entitled
“Simplification of Procedures in the Processing and Issuance of
Permits to Operate Ancillary Services in the Ports

CARGO HANDLING CHARGES

Administrative Order No. 03-2014 ................................................................................. 16

Amendment Item No. 8.1 of the TOR (Annex “D”), of PPA Administrative
Order (A. O.) No. 04-2012, Guidelines on the Provision of Roll-On/Roll-Off
Services at PPA Ports

Memorandum Circular No. 18-2014 ................................................................................. 17

Approved Eight Percent (8%) Additional Increase in Cargo Handling
(CH) Tariff at the Manila North Harbor

CARGO HANDLING OPERATIONS

Operations Memorandum Circular No. 01-2014 ....................................................................... 18

Establishment of Performance Security of Cargo Handling Operators
(CHOs)

LSD Opinion No. 01-2014 ........................................................................................ 19

Establishment of Performance Security of Cargo Handling
Operators (CHO)

Operations Memorandum Order No. 01-2014 ....................................................................... 24

Amendment to PPA Operations Memorandum Order (OMO) No. 01-2013
“Clarificatory Guidelines on the Manpower Management of CH Service
Providers at PPA Ports (Not Allowing Outsourcing)”

Port Rules and Regulations 2014 5

 Administrative Order No. 05-2014 ....................................................................... 26
Amendment to the Composition of Bids and Awards Committee
(BAC) and Comparative Selection and Evaluation Committee
(COSEC) for the Public Bidding and Comparative Evaluation
(CE) of Cargo Handling (CH) Services

Board Resolution No. 2379 ........................................................................................ 29

Board Ex-Com Resolution No. 2014-1389 ................................................................... 30

Administrative Order No. 07-2014 ....................................................................... 31

Amendment to the Composition of Bids and Awards Committee (BAC)
for the Public Bidding for the Provision of Roll-On/Roll-Off (RORO)
Services at PPA Ports

PARKING

Memorandum Circular No. 03-2014 .............................................................. 33

Prescribed Parking Fees at the Port of Zamboanga

Memorandum Circular No. 06-2014 .............................................................. 34

Prescribed Parking Fees at the Port of Dapitan

PASSENGER TERMINAL BUILDING OPERATIONS

Administrative Order No. 04-2014 ............................................................................. 35

Amendments to PPA Administrative Order No. 05-2012, Entitled
“Guidelines in the Selection of Passenger Terminal Building (PTB)
Operator of Existing PPA-Owned PTBs”

Board Ex-Com Resolution No. 2014-1382.......................................................................... 36

Administrative Order No. 06-2014 .............................................................. 70

Amendment to the Composition of Bids and Awards Committee (BAC)
for the Public Bidding for the Selection of Passenger Terminal Building
(PTB) Operator of Existing PPA-Owned PTBs

PASSENGER TERMINAL FEE

Memorandum Circular No. 07-2014 .............................................................. 72

Revised 20% Discounts on Passenger Terminal Fees in All PPA Ports

Memorandum Circular No. 09-2014 .............................................................. 73

New Passenger Terminal Fee at the Manila North Harbor

6 Port Rules and Regulations 2014

Memorandum Circular No. 17-2014 .............................................................. 74
Passenger Terminal Fees at the Ports of Masbate and Legazpi

Memorandum Circular No. 19-2014 .............................................................. 75

Passenger Terminal Fees at the Ports of Dumangas and Iloilo
River Wharf (Progreso)

PILOTAGE

Memorandum Order No. 18-2014 .............................................................. 76

Pilotage Services and Fees at Brgy. Alas-Asin, Mariveles, Bataan

PORT CHARGES

Unnumbered Memorandum Dated January 3, 2014 .............................................................. 77

Sample Computations in the Application of the Increase in Storage
Charges for Foreign Containerized Cargoes under PPA Memorandum
Circular (MC) No. 10-2013

Operations Memorandum Circular No. 02-2014 .............................................................. 84

Amendments to PPA Memorandum Circular (MC) No. 13-2013
Entitled “Clarification of PPA MC No. 22-2004 on the Assessment
of Wharfage on Empty Containers of Shipping Lines Engaged in
Foreign and Domestic Trade”

Memorandum Order No. 09-2014 ..................................................................................... 85

Guidelines in the Preparation of Computation Sheet for Domestic
Non-Containerized Cargoes Subject to Minimum Wharfage Fee
Using the Port Receipting System (PRS)

Memorandum Order No. 20-2014 ..................................................................................... 86

Reduced Port Charges and Charge of the Charging Base for
Dockage-at-Bert at Batangas Container Terminal

Memorandum Circular No. 12-2014 ............................................................................. 88

Approved New Storage Rates for Overstaying Foreign Inbound
Containers that Have Been Cleared and Issued Gate Passes by
the Bureau of Customs (BOC) for Withdrawal

Port Rules and Regulations 2014 7

 Memorandum Order No. 27-2014 ............................................................................. 89
Clarifications on PPA Memorandum Order No. 20-2014 Re:
Reduced Port Charges of the Charging Base for Dockage-
at-Berth at Batangas Container Terminal

Memorandum Circular No. 13-2014 ............................................................................. 90

Clarifications on PPA Memorandum Circular No. 12-2014
Re: Approved New Storage Rates for Overstaying Foreign Inbound
Containers that Have Been Cleared by the Bureau of Customs (BOC)
for Withdrawal

PORT OPERATIONS

Administrative Order No. 08-2014 ............................................................................. 94

Amendments to PPA Administrative Order (AO) No. 06-2013
Entitled “Amendment to PPA Administrative Order No. 05-2007
(Revised Guidelines on the Transfer of the Management of PPA
Ports to Local Government Units [LGUs] and Government
Corporations [GCs]

Board Ex-Com Resolution No. 2014-1399 .............................................................. 96

Memorandum Order No. 36-2014 .............................................................. 98

Changes from Existing to New Nomenclature for Field and
Head Office Units of the Philippine Ports Authority

PORT SAFETY AND SECURITY

Administrative Order No. 02-2014 ............................................................................. 105

Guidelines on the Proper Disposition of Seized, Detained or
Forfeited Vessels Berthed at PPA-Managed Ports

Memorandum Circular No. 14-2014 ............................................................................. 107

Guidelines on the Computation of Cost Opportunity Loss on
Damaged Port Facilities Caused by Vessels

REVENUE COLLECTION

Memorandum Order No. 07-2014 .............................................................. 111

Amendment to Amended Compromised Payment Scheme for
Dormant Accounts

8 Port Rules and Regulations 2014

 BoardCom Resolution No. 2010-1234 .............................................................. 113
BoardCom Resolution No. 2009-1186 .............................................................. 114

SPECIAL TAKEOVER UNITS

Memorandum Order No. 19-2014 ............................................................................. 116

Creating the PPA-Puerto Galera Port Services (PPA-PGPS)

VESSEL OPERATIONS

Memorandum Circular No. 02-2014 ............................................................................. 118

Implementation of PPA Quality Management System (QMS) on
Facilitation of Vessel Entrance and Clearance Processes (VEC)

Memorandum Circular No. 04-2014 ............................................................................. 119

Implementation of PPA Quality Management System (QMS) on
Facilitation of Vessel Entrance and Clearance Processes (VEC)

Memorandum Circular No. 16-2014 ............................................................................. 120

Temporary Arrangement in the Assignment of Berths for Vessels
Calling at the Port of Manila

Executive Order No. 172, s. 2014 ............................................................................. 121

Declaring the Port of Batangas and Subic Bay Freeport
as Extensions of the Port of Manila (MICT/South Harbor)
During Port Congestion and Other Emergency Cases

QUICK REFERENCE INDEX ............................................................................. 124

Port Rules and Regulations 2014 9

 THE PHILIPPINE
CONTENTS
PORTS AUTHORITY

The Philippine Ports Authority was created under Presidential Decree No. 505, which was subsequently
amended by PD No. 857 in December 1975.
The latter decree, which is referred to as the revised charter of the Philippine Ports Authority, broadened
the scope and functions of the PPA to facilitate the implementation of an integrated program for the planning,
development, financing, operation and maintenance of ports or port districts for the entire country.
In 1978, the PPA charter was further amended by Executive Order No. 513, granting the PPA police
authority, creating the National Ports Advisory Council to strengthen cooperation between the government and
the private sector, and empowering the PPA to exact reasonable administrative fines for specific violations of
its rules and regulations.
Subsequently, Executive Order No. 159 was issued in 1987 to give the PPA financial autonomy and the
responsibility for undertaking all construction projects under its port system.
Various functions such as port administration and project execution previously handled, respectively, by
the Bureau of Customs and the Department of Public Works and Highways, were transferred to the PPA.

Objectives
1. Coordinate, streamline, improve and optimize the planning, development, financing, construction,
maintenance, and operation of ports, port facilities, port physical plants, and all equipment used in
connection with the operation of a port;
2. Ensure the smooth flow of waterborne commerce passing through the country’s ports, whether public or
private, in the conduct of international and domestic trade;
3. Promote regional development through dispersal of industries and commercial activities throughout the
different regions;
4. Foster inter-island seaborne commerce and foreign trade.
5. Redirect and reorganize port administration beyond its specific and traditional functions of harbor
development and cargo handling operations to the broader function of total port district development
including encouraging the full and efficient utilization of the port’s hinterland and tributary areas;
6. Ensure that all income and revenues accruing out of dues, rates and charges for the use of facilities and
services provided by the Authority are properly collected and accounted for by the Authority, that all such
income and revenues will be adequate to defray the cost of providing the facilities and services (inclusive
of operating and maintenance cost, administration and overhead) of the port districts, and to ensure that
a reasonable return on the assets employed shall be realized.

10 Port Rules and Regulations 2014

 Functions
1. Formulate and implement a comprehensive and practicable port development plan for the State in
coordination with the National Economic and Development Authority;
2. Supervise, control, regulate, construct, maintain, operate and provide necessary port facilities and
services;
3. Prescribe rules and regulations, procedures and guidelines for the operation of ports;
4. License, control, regulate, supervise any construction or structure within the port district;
5. Provide services, on its own or by contract, within the port district and approaches thereof, including
but not limited to berthing, slipping, or docking of any vessel; loading or discharging of vessels; sorting,
weighing, measuring, warehousing, or otherwise handling of goods;
6. Control and administer any foreshore rights or leases which may be vested in the Authority from time to
time;
7. Coordinate with the Bureau of Lands or any other government agency or corporation in the development
of any foreshore areas;
8. Control, regulate and supervise pilotage and the conduct of pilots in any port district;
9. Provide and assist in training programs for its staff and the staff of port users and operators;
10. Perform or provide other services necessary to carry out its objectives, including the adoption of
necessary measures to remedy congestion in any government port.

Management and Organization

At the policy formulation level, the Philippine Ports Authority is governed by a nine-man Board of Directors.

It is chaired by the Secretary of the Department of Transportation and Communications, with the General
Manager of the Philippine Ports Authority as Vice-Chairman.

Its members are the Director-General of the National Economic and Development Authority, the Secretaries
of the Department of Public Works and Highways, Finance, Trade and Industry, Environment and Natural
Resources, the Administrator of the Maritime Industry Authority, and a representative from the private sector.

Policies approved by the Board are implemented by the General Manager as Chief Executive Officer.
Helping him are his three Assistant General Managers: Finance and Administration, Operations, and Engineering
Services.

Port Rules and Regulations 2014 11

 Central Office departments supervised by the Assistant General Managers deliver support services to the
field or line units.
Frontline services are delivered by the Port Management Offices which are semi-autonomous regional
offices responsible for the activities of the various Terminal Management Offices under their jurisdiction.
Port Management Offices serve as base ports for the supervision of public and private ports within their
area of operation.

Mandate

“To establish, develop, regulate, manage and operate a rationalized national port system in support of
trade and national development.”

Vision

By 2030, PPA shall have provided globally competitive port service in the Philippines characterized by
increased productivity, efficiency, connectivity, comfort, safety, security and environmental sustainability.

Mission

1. Provide reliable and responsive services in ports, sustain development of communities and the
environment, and be a model corporate agency of the government.

2. Establish a mutually beneficial, equitable, and fair relationship with partners and service providers.

3. Provide meaningful and gainful employment while creating a nurturing environment that promotes
continuous learning and improvement.

4. Establish a world-class port operation that is globally competitive adding value to the country's image and
reputation.

CORE VALUES

Excellence. Professionalism, Efficiency

Creativity. Innovation, Adaptability

Customer Satisfaction. Customer Focus

Responsible Citizenship. Sustainability, Accountability, Risk Management

Ethics. Integrity within moral bounds.

Sincerity. Commitment to fulfill mandate.

Teamwork. Synergy of working together. Esprit de corps

12 Port Rules and Regulations 2014

 Role of Philippine Ports in Economic Development

An archipelago consisting of 7,107 islands and islets, the Philippines is greatly dependent on water
transport for trade and commerce between and among its main islands. It has a long coastline facing the Pacific
Ocean to the east and the South China Sea to the west.

The country lies at the heart of Southeast Asia with China to the north, the Indonesian archipelago to the
south, the countries of Laos, Vietnam, Cambodia and Thailand to the west and Malaysia to the southwest.

Against this backdrop, the Philippines enviably occupies a highly strategic point and natural hub of
economic activity in the region.

Because of the Philippines’ geographic configuration, there is heavy reliance on ports to carry on maritime
trade.

As vital nodes of the transport chain providing the major interface between land and water transportation,
ports bridge production and consumption centers.

Demand for water transport is heavy because it is the cheapest means of moving goods from island to
island and from the Philippines to the international markets.

To answer this demand, the government developed the Strong Republic Nautical Highway (SRNH) where
ports were streamlined and maintained to cater to the roll-on/roll-off (RORO) system of moving goods and
people and thus encourage and enhance inter-island trade and commerce and domestic tourism.

Port Rules and Regulations 2014 13

 ANCILLARY SERVICES

January 24, 2014

PPA ADMINISTRATIVE ORDER

NO. 01 - 2014

TO : All District and Port Managers,

Ancillary Service Operators, Cargo Handling Contractors,
Shipping Companies, Consignees/Shippers
and Others Concerned

SUBJECT : Amendment to PPA Administrative Order No. 07-2013 Entitled

“Simplification of Procedures in the Processing and Issuance
of Permits to Operate Ancillary Services in the Ports”

Item 8 of the attached Omnibus Undertaking (Sworn Affidavit) Form, one of the forms prescribed in the
abovementioned Order required to be submitted by an applicant for a Permit to Operate (PTO) ancillary service,
is hereby amended to read as follows:

“8. I hereby hold PPA free from all liens, encumbrances and liabilities resulting
from non-compliance therewith.”

All other provisions of PPA Administrative Order No. 07-2013 remain valid and enforceable.

This Order shall take effect immediately after its publication in a newspaper of general circulation.

(Sgd.) JUAN C. STA. ANA

General Manager

Enclosure: As stated

Published in the Philippine Star – January 30, 2014

14 Port Rules and Regulations 2014

 OMNIBUS UNDERTAKING
(SWORN AFFIDAVIT)

REPUBLIC OF THE PHILIPPINES)

CITY/MUNICIPALITY OF ) S.S.

AFFIDAVIT

(Name of Applicant/Port Owner/Operator), of legal age, (Civil Status), (Position/Title, Name of Company/
Address), after having been duly sworn in accordance with law, do hereby depose and state that;
1. I hereby apply for the Authority’s issuance of Permit to Operate (PTO) (service/s to be provided) at the
Port of .
2. As an applicant, I have full power and authority to do, execute and perform any and all acts necessary
to represent it in seeking from PPA the (type of permit) being applied for.
3. I have complied and secured all the necessary government clearances/permits necessary to operate
my business.
4. I hereby authorize your duly authorized official/employee to verify the statements/documents and
information submitted herewith, to substantiate my eligibility as an applicant for a PTO.
5. It is understood that I have complied with the requirements of other concerned government agencies
prior to the operation of the ancillary service being applied for and I am fully responsible and accountable
in complying with said requirements.
6. I hereby acknowledge that I have full knowledge of pertinent laws, regulations covering ancillary
service operation.
7. I hereby acknowledge that I have fully read the information supplied in the application and any false
or misleading information provided therein shall be a ground for the cancellation to the PTO issued,
without prejudice to the filing of appropriate administrative, civil and criminal case against me and/or
the company/entity I represent.
8. I hereby hold PPA free from all liens, encumbrances and liabilities resulting from non-compliance
therewith.
9. I am executing this Omnibus Sworn Statement to attest to the veracity of the foregoing statements in
support of the above-cited application,

IN WITNESS WHEREOF, I have hereunto set my hand this day of , in

the City of , Philippines.

Ancillary Service Operator

SUBSCRIBED AND SWORN to before me this day of .

(Notary Public)

Doc. No.
Page No.
Book No.
Series of

Port Rules and Regulations 2014 15

 CARGO HANDLING CHARGES

March 05, 2014

PPA ADMINISTRATIVE ORDER

NO. 03 - 2014

TO : All Port District Managers/Port Managers,

Cargo Handling Operators, Ancillary Service Operators,
Shipping Companies, Ship Agents, Consignees/Shippers
and Others Concerned

SUBJECT : Amendment to Item No. 8.1 of the TOR (Annex “D”), of

PPA Administrative Order (A.O) No. 04-2012, Guidelines
on the Provision of Roll-On/Roll-Off Services at PPA Ports

In order to ensure uniform implementation of PPA A.O. No. 04-2012, Item No. 8.1 of the Terms of Reference
(TOR) (Annex “D”) of the aforementioned Order, is hereby amended to be read as follows:

“8.1. The RORO charges and related fees to be collected for the provision of
RORO and other port related services shall be the rates prescribed by
the Authority.”

This Order shall take effect fifteen (15) days from its publication in the Official Gazette or in a newspaper of
general circulation and a copy filed with the University of the Philippines Law Center.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Philippine Star - March 8, 2014

Effectivity Date – March 22, 2014

16 Port Rules and Regulations 2014

December 16, 2014

PPA MEMORANDUM CIRCULAR

NO. 18 - 2014

TO : The Port District Manager

PDO-Manila/Northern Luzon

The Port Manager, PMO-North Harbor

Manila North Harbor Port, Inc. (MNHPI)
Port Users
Others Concerned

SUBJECT : Approved Eight Percent (8%) Additional Increase in Cargo

Handling (CH) Tariff at the Manila North Harbor

Pursuant to the PPA Board of Director’s Ex-Com Resolution No. 2014-1412 and Board Resolution No. 2408
dated December 5, 2014, the revised recommendation of the Board Technical Working Group (TWG) to grant
the Manila North Harbour Port, Inc. (MNHPI) a tariff rate adjustment of not more than eight percent (8%)
increase; in addition to the 2013 provisional increase of 10% granted by PPA, is hereby approved.

The Commercial Services Department shall make the necessary adjustment in the existing CH tariff schedule
of MNHPI at the Manila North Harbor.

The eight percent (8%) increase in CH rate shall be effective 30 days after publication of this Circular in a
national newspaper of general circulation.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Philippine Star - December 20, 2014

Effectivity Date – January 19, 2015

Port Rules and Regulations 2014 17

 CARGO HANDLING OPERATIONS

January 20, 2014

PPA OPERATIONS MEMORANDUM CIRCULAR

NO. 01 - 2014

TO : All Port District Managers,

Port Managers,
Cargo Handling Operators,
And All Others Concerned

SUBJECT : Establishment of Performance Security of

Cargo Handling Operators (CHOs)

In order to prescribe a uniform basis for the establishment of Performance Security to be posted and maintained
by CH Operators pursuant to their CH Contracts with PPA, furnished herewith is a copy of the Legal Services
Department (LSD) Opinion No. 01-2014 – “Establishment of Performance Security of Cargo Handling Operators”
which opines, and therefore prescribes the pertinent provisions of PPA Administrative Order (AO) No. 03-2009
as the legally correct bases for the computation of the Performance Security to be posted by CHOs.

Further, considering that PPA AO No. 03-2009 takes precedence over previous issuances relative to the
establishment of Performance Security and pending amendment of the same, the issuance of clarificatory
guidelines to this effect is not nessesary.

For your guidance.

(Sgd.) RAUL T. SANTOS

Assistant General Manager
for Operations

Encl.: As stated.

18 Port Rules and Regulations 2014

January 8, 2014

OPINION
NO. 01
Series of 2014

FOR : The Assistant General Manager for

Operations

THRU : The Manager

Port Operations Services Department (POSD)

FROM : The Manager

Legal Services Department (LSD)

SUBJECT : Establishment of Performance Security of Cargo

Handling Operators (CHO)

I. Preliminary Statement

This refers to your Memorandum dated September 6, 2013 requesting comments/opinion on

the initial draft of the proposed Guidelines in the Establishment of Performance Security of Cargo
Handling Operators.

II. Antecedents

On January 1, 1997, PPA A.O No. 13-96 entitled “Prescribing PPA Performance Standards
and Rating System for Cargo Handling Contractors and Providing Sanctions Therefore” took effect.
Appendix I of the said A.O. provides for the Table of Amount of Performance Bonds for Cargo Handling
Contracts/Permits wherein the amount of cargo handling gross revenue corresponds to a definite
amount of bond.

On April 12, 2006, PPA A.O. No. 01-2006 entitled “Compendium of Regulations on Cargo
Handling Operations” wad issued. It is provided there that the CHO should put up a performance bond/
security in the amount prescribed by PPA.

Port Rules and Regulations 2014 19

 On October 26, 2007, PPA A.O. No. 04-2007 was issued providing for “Additional Table of
Performance Bond for Cargo Handling Contracts/Permits” wherein Appendix I of PPA A.O. No. 13-96
was amended to expand the Cargo Handling Gross Revenue to up to 800,000,000.00

On April 14, 2009, PPA A.O. No. 03-2009 entitled “Amendment to Article III (Guidelines in the
Conduct of Public Bidding) of PPA Administrative Order No. 01-2006” was issued, providing for a
different computation of performance security required to be posted by the CHO.

In a Memorandum dated September 6, 2013, the Manager of POSD, requested for comments
and recommendation on the proposed draft PPA Memorandum Circular entitled “Clarificatory Guidelines
on the Establishment of Performance of Cargo Handling (CH) Operators”.

III. Issue/s

What Administrative Order should be the basis for the determination of the Performance Security
of CHOs?

IV. Discussion

P.D. 857, as amended granted PPA the power, among others, to provide services (whether on
its own, by contract, or otherwise) within the Port District1, in accordance with this authority, PPA issued
PPA A.O. 01-2006 which provides for the guidelines in conduct of public bidding for cargo handling
services.

Paragraph (f) of provision no. 40 of PPA A.O. 01-2006 entitled Performance Bond, provides that:

“To guarantee the faithful performance of its obligations under the contract
prepared in accordance with the bidding documents, the CH Operator within thirty
(30) calendar days from the signing of the CH contract, put up a performance bond/
security in the amount prescribed by the Authority and the contract to be secured
from the Government Service Insurance System (GSIS) General Insurance Fund,
subject to the requirements prescribed by this Order.”

Perusal of pertinent PPA issued rules and regulations reveals that there are two (2) PPA
regulations which provide for the performance security amount required by PPA to be put up by the
CHOs namely, PPA A.O. 13-96, as amended by PPA A.O. 04-2007 and on the hand the latest issued
PPA A.O. 03-2009.

__________________________________
1
(v) a. section 6. Corporate Powers and Duties, PD 857, as amended

20 Port Rules and Regulations 2014

 PPA A.O. 03-2009 intended solely to amend the bidding procedure as gleaned from the
title itself “AMENDMENT TO ARTICLE III (Guidelines in the Conduct of Public Bidding) OF PPA
ADMINISTRATIVE ORDER NO. 01-2006”. However, said A.O. likewise provided for an entirely new
system of computing the amount of performance bond required to be put up by the CHOs, as stated in
paragraph 40 letter (f), Performance Security, to wit:

To guarantee the faithful performance by the winning bidder of its obligations

under the contract, it shall post a Performance Security within thirty (30) calendar days
from effectivity of the CH Contract. The performance security shall be in any of the
following forms:

(a) Cash, certified check, cashier’s/manager’s check, bank draft/guarantee

confirmed by a reputable local bank;
(b) Irrevocable letter of credit issued by a reputable commercial bank or in case
of an irrevocable letter of credit issued by a foreign bank the same shall be
confirmed or authenticated by a reputable local bank;
(c) Surety bond, callable upon demand, issued by the GSIS or other reputable surety
or insurance company duly licensed by the office of the Insurance Commission;
or
(d) A combination of the foregoing.

The required amount of the above forms of security shall be in accordance

with the following schedule:

P ____________________
FORM OF
(Total gross income from CH
PERFORMANCE
operations of the Port for the
SECURITY
Immediately Preceding Year)

Cash, certified check,

cashier’s check, manager’s
Five percent (5%)
check, bank draft or
irrevocable letter for credit

Bank guarantee Ten percent (10%)

Surety Bond Thirty percent (30%)

On the other hand, PPA A.O. No. 13-96 and PPA A.O. No. 04-2007 provide for a graduated fixed
amount of Performance Bond based on the annual gross revenue of the CHO. PPA A.O. No 03-2009
requires that the amount of Performance Bond of the CHO be based on certain percentage, depending
on the kind of performance security the CHO chooses, of the total gross income from the succeeding
year.

Clearly, the two (2) previously cited provisions are contrary to each other and the following table

Port Rules and Regulations 2014 21

 shows an example of a comparative computation using the two (2) different systems:

Amount of Performance Bond to be put up under:

PPA A.O. 13-96

CHO annual gross
as amended by PPA A.O. 03-2009
revenue
04-2007
Cash (5%) Php 40,000,000.00
Php 800,000,000.00 Php 16,000,000.00 Bank Guarantee (10%) Php 80,000,000.00
Surety Bond (30%) Php 240,000,000.00

It is noted that the provision of PPA A.O. 03-2009 provided for a clear and definite
repeal of the provisions of PPA A.O. Nos. 01-2006 and 04-2007 as the latter forms part of
PPA A.O. 01-2006 as a supplemental provision, to wit:

“Pursuant to Section 6-a (iii), and (v), 6-b (vi) and 23 of Presidential Decree
No. 857, as amended, and in order to further clarify the procedures for bidding and
award of cargo handling (CH) services and to harmonize the requirements thereof
with the other pertinent regulations on the matter, Article III (Guidelines in the Conduct
of Public Bidding) of PPA Administrative Order No. 01-2006, otherwise known as
the “compendium of Regulations on Cargo Handling Operations”, is hereby
amended and modified as follows:” (boldface ours)

It is basic in statutory construction that when the law is clear and unambiguous, the same must
be applied to the letter accordingly without interpretation, as reiterated by the Supreme Court in the
case of PDEA vs. Brodett and Joseph (G.R. No. 196390, September 28, 2011)

“Basic is the rule in statutory construction that when the law is clear and
unambiguous, the court has no alternative but to apply the same according to its
clear language. The Supreme Court had steadfastly adhered to the doctrine that
the first and fundamental duty of courts is to apply the law according to its express
terms, interpretation being called only when such literal application is impossible. No
process of interpretation or construction need be resorted to where a provision of law
peremptorily calls for application.”

Moreover, since PPA A.O. 03-2009 was issued only in April 14,2009, it is the most recent law
issued on the matter and therefore should take precedence.

V. Conclusion/Recommendation

22 Port Rules and Regulations 2014

 In view of the foregoing, it is our view that the provision of PPA A.O. No. 03-2009 is legally
correct bases in the computation of the performance security to be put up by CHOs.

It is therefore recommended that if Management opts to retain the system provided under
PPA A.O. No. 13-26, as amended, there is a need to amend the provisions of PPA A.O. No. 03-2009.
Issuance of an internal guidelines to adopt said policy in the meantime prior to amendment is not
legally acceptable.

Respectfully submitted,

(Sgd.) M.A. HIYASMIN H. DELOS SANTOS

Port Rules and Regulations 2014 23

January 22, 2014

PPA OPERATIONS MEMORANDUM ORDER

NO. 01 - 2014

TO : All District Managers,

Port Managers and
Others Concerned

FROM : The AGM for Operations

SUBJECT : Amendment to PPA Operations Memorandum Order (OMO)

No. 01-2013 - “Clarificatory Guidelines on the Manpower
Management of CH Service Providers at PPA Ports
(Not Allowing Outsourcing)

In consideration of the recent developments in the manpower management enabling CH Operators to ensure
cost-efficient CH operations at PPA Ports through flexibility in allocating manning resources consistent with
port traffic fluctuations, operational peaks, and cargo-mixes, as raised by CH Operators represented by the
Philippine Chamber of Arrastre and Stevedoring Operators (PCASO) during a dialogue held on 16 October
2013, PPA OMO No. 01-2013 is hereby amended as follows.

a] Item 6 of 1st Paragraph to read as:

“All regular, contractual, and/or casual employees who have served for at least six (6)
months or more continuously at the time of separation shall be covered by the Portworkers’
Retirement and Separation Fund (PRSF) and other benefits pursuant to pertinent provisions
of PPA Administrative Order No. 01-2006, as amended”.

b] 2nd Paragraph to read as:

“Upon written request, outsourcing certain CH services will be allowed as may be authorized by the Port
Manager upon issuance of a PMO Certification that any of the following circumstances exist at the port:

1. Sudden surge or expected increase in cargoes to be handled whereby vessel turn-around time will
be adversely affected which may result to demmurage claims despite maximum labor deployment;
2. Refusal of regular portworkers to provide services for certain types of cargoes/commodities due to
justifiable reasons or reasons beyond the control of the CHO or PPA;
3. Arrival of specialized cargoes requiring specific expertise not available in the existing CHO manpower
pool or services not regularly performed or undertaken by the CHO;

24 Port Rules and Regulations 2014

 4. Deployment/utilization of leased CH equipment not part of CH Operator’s current CH equipment
inventory requiring qualified or licensed operators not available in the existing CHO manpower pool;
5. Proper collection and disposal of port-generated garbage.

Such written requests for outsourcing must have the following information:

a. Scope of port operation, or specific cargo handling function or task;

b. Number of additional portworkers required;
c. Duration of work, whether in terms of inclusive dates, particular cargo/commodity type to be
handled or particular vessel to be served;
d. Name of intended Port Labor Provider;
e. Other information which may be required to aid the Port Manager in evaluating validity of
request.”

Other Conditions:

1. All other conditions not included in the foregoing circumstances shall be referred to the Office of the
AGM for Operations for evaluation and approval. Under no instance shall outsourcing be allowed
without prior approval of the Authority.

2. All damages and other consequences brought about by outsourcing shall at all times be the
responsibility of the authorized CH Operator and shall immediately be reported in writing to the Port
Manager concerned without demand therefor.

3. PMO must be provided copies of Contracts of Services of outsourced personnel, including list of names
and qualifications thereof, specific areas of responsibilities, specific duration of such agreements and
on a per-voyage basis.

4. Outsourced personnel shall abide by all the rules and regulations implemented inside the port,
including the wearing of Personal Protective Equipment (PPE) and prescribed uniforms with valid
identification cards (IDs) prominently displayed for security, access control and monitoring purposes.

5. Outsourcing shall only be allowed in exceptional cases. Discretionary implementation thereof shall
not be allowed. As such, the CH Operator shall not be exempted from hiring regular portworkers to
perform its core functions of arrastre, stevedoring and CH equipment operation, among others.

Other provisions of PPA OMO No. 01-2013 not affected by this amendment shall remain effective and in full
force.

For compliance.

(Sgd.) RAUL T. SANTOS

Port Rules and Regulations 2014 25

September 01, 2014

PPA ADMINISTRATIVE ORDER

NO. 05 - 2014

TO : All Port District Managers

All Port Managers
Others Concerned

SUBJECT : Amendment to the Composition of Bids and Awards

Committee (BAC) and Comparative Selection
and Evaluation Committee (COSEC) for the Public Bidding
and Comparative Evaluation (CE) of Cargo Handling
(CH) Services

Pursuant to PPA Board Ex-Com Resolution No. 2014-1389 which was adopted and confirmed by the PPA
Board of Directors per Resolution No. 2379 dated 10 July 2014 on the provisional changes in the present
Revised Delegation of Authorities, the provisions of Section 24 of PPA Administrative Order (AO) No. 03-2009
(Amendment of Article III (Guidelines in the Conduct of Public Bidding) of PPA Administrative Order No. 01-
2006) and Article IV, Section 43, Item b) of PPA AO No. 01-2006 (Compendium of Regulations on Cargo
Handling Operations) are hereby amended as follows:

Section 24 of PPA AO No. 03-2009

24. Bids and Awards Committee (BAC)

a) Constitution of the BAC

The BAC shall be constituted for the conduct of the public bidding of CH
services with the following members or as the General Manager may
determine.

Regular Members:

Chairperson - Port Manager

(PMO having jurisdiction of the port)

Vice Chairperson - Manager, Port Services Division, PMO

26 Port Rules and Regulations 2014

 Members - Manager, Resource Management
Division, PMO

- Manager, Engineering Services

Division, PMO

- Chief Corporate Attorney, PMO

b) Observers:

Authorized representative from each of the following organizations:

i. Shipping Industry;

ii. Philippine Chamber of Arrastre and Stvedoring Operators

(PCASO);

iii. Philippine Chamber of Commerce and Industry (PCCI);

iv. Catholic Bishops’ Conference of the Philippines (CBCP);

v. Volunteers Against Crime and Corruption (VACC); and

vi. Commission on Audit (COA).

c) The BAC shall have at least five (5), but not more than seven (7)
members.

d) Unless sooner removed for a cause, the term of the members of the
BAC shall be co-terminus with the bidding process but not to exceed
one (1) year, from the date of appointment, renewable at the discretion
of the General Manager. In case of resignation, retirement, separation,
transfer, re-assignment, removal, or death, the replacement shall serve
only for the unexpired term: Provided, however, that in case of leave or
suspension, the replacement shall serve only for the duration of the leave
or suspension. For justifiable causes, a member shall be suspended or
removed by the General Manager. In the interest of professionalization,
the General Manager may extend the term of office of deserving
members.

Note: The BAC, at the discretion of the Chairperson, may invite representatives from
Head Office to act as additional observers in all stages of the selection process.

Further, the Comparative Selection and Evaluation Committee (COSEC) as provided for in Article IV, Section
43, Item b) of PPA AO No. 01-2006 is also amended and shall constitute the same members as the Bids and
Awards Committee of CH services.

All other provisions of PPA AO. Nos. 03-2009 and 01-2006, as amended, not affected by this Order shall remain
valid and in full force.

Port Rules and Regulations 2014 27

This Order shall take effect fifteen (15) calendar days from its publication in the Official Gazette or in newspaper
of general circulation and a copy filed with the University of the Philippines Law Center.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Philippine Star - September 9, 2014

Effectivity Date – September 23, 2014

28 Port Rules and Regulations 2014

 SECRETARY’S CERTIFICATE

I, ELSA L. HILARIO, duly designated Corporate Board Secretary of the Philippine Ports
Authority (PPA), a government instrumentality attached to the Department of Transportation and
Communications, created by virtue of Presidential Decree No. 857, as amended, with principal office at
the 6th Floor PPA Head Office Building, A. Bonifacio Drive, South Harbor, Port Area, Manila, and having
custody of the Board records of the PPA, do hereby certify:

That, during the 406th Regular meeting of the Board of Directors of the Philippine Ports Authority
held on 10 July 2014 at the Board Room, 6th Floor, PPA Head Office Building, A. Bonifacio Drive, South
Harbor, Port Area, Manila, the following Resolution was adopted:

RESOLUTION NO. 2379

“RESOLVED, that on motion duly made and seconded, that Ex-Com

Resolution No. 2014-1389 to Ex-Com Resolution No. 2014-1390, which were
adopted during the 269th Meeting of the Executive Committee held on 10 July
2014, at the PPA Board Room, A Bonifacio Drive, South Harbor, Port Area,
Manila, hereto attached and incorporated by reference, be, as they are hereby
approved and confirmed.”

IN WITNESS WHEREOF, I have signed this Secretary’s Certificate for this 10th day of July
2014, at the above-mentioned address.

(Sgd.) ATTY. ELSA L. HILARIO

Corporate Board Secretary

Port Rules and Regulations 2014 29

 SECRETARY’S CERTIFICATE

I, ELSA L. HILARIO, duly designated Corporate Board Secretary of the Philippine Ports
Authority (PPA), a government instrumentality attached to the Department of Transportation and
Communications, created by virtue of Presidential Decree No. 857, as amended, with principal office at
the 6th Floor PPA Head Office Building, A. Bonifacio Drive, South Harbor, Port Area, Manila, and having
custody of the Board records of the PPA, do hereby certify:

That, during the 269th meeting of the Executive Committee of the Board of Directors of the
Philippine Ports Authority held on 10 July 2014 at the Board Room, 6th Floor, PPA Head Office Building,
A. Bonifacio Drive, South Harbor, Port Area, Manila, the following Resolution was adopted:

EX-COM RESOLUTION NO. 2014-1389

“RESOLVED, upon motion duly made and seconded, that the proposed
provisional changes in the present Revised Delegation of Authority (RDA)
to immediately address the effect of the abolition of the Port District Offices
(PDOs) and avoid critical disruptions in the functions of PPA, as indicated in
the matrix hereto attached and incorporated by reference, be, as it is hereby
approved.

IN WITNESS WHEREOF, I have signed this Secretary’s Certificate this 10th day of July 2014,
at the above-mentioned address.

(Sgd.) ATTY. ELSA L. HILARIO

Corporate Board Secretary

30 Port Rules and Regulations 2014

September 01, 2014

PPA ADMINISTRATIVE ORDER

NO. 07 - 2014

TO : All Port District Managers

All Port Managers
Others Concerned

SUBJECT : Amendment to the Composition of Bids and Awards

Committee (BAC) for the Public Bidding for the Provision
of Roll-On/Roll-Off (RORO) Services at PPA Ports

Pursuant to PPA Board Ex-Com Resolution No. 2014-1389 which was adopted and confirmed by the PPA
Board of Directors per Resolution No. 2379 dated 10 July 2014 on the provisional changes in the present
Revised Delegation of Authorities, the provisions of Section 12 of PPA Administrative Order (AO) No. 04-2012
(Guidelines on the Provision of Roll-On/Roll-Off Services at PPA Ports) are hereby amended as follows:

Section 12. Bids and Awards Committee (BAC)

12.1 Constitution of the BAC

The BAC shall be constituted for the conduct of the public bidding with the
following members or as the General Manager may determine.

Regular Members:

Chairperson - Port Manager

(PMO having jurisdiction over the Port)

Vice Chairperson - Manager, Port Services

Division, PMO

Members - Manager, Resource Management

Division, PMO

- Manager, Engineering Services

Division, PMO

- Chief Corporate Attorney, PMO

Port Rules and Regulations 2014 31

 12.2 Observers

Authorized representative from each of the following organizations:

● Philippine Chamber of Commerce and Industry (PCCI)

● Catholic Bishops Conference of the Philippines (CBCP)

● Volunteers Against Crime & Corruption (VACC)

● Commission on Audit (COA)/Resident Auditor.

The BAC shall have at least five (5), but not more than seven (7) regular
members.

Unless sooner removed for cause, the members of the BAC shall have a
fixed term of one (1) year reckoned from the date of appointment, renewable
at the discretion of the General Manager.

Note: The BAC, at the discretion of the Chairperson, may invite

representatives from Head Office to act as additional observers in
all stages of the selection process.

All other provisions of PPA AO No. 04-2012 not affected by this Order shall remain valid and in full force,

This Order shall take effect fifteen (15) calendar days from its publication in the Official Gazette or in newspaper
of general circulation and a copy filed with the University of the Philippines Law Center.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Philippine Star - September 9, 2014

Effectivity Date – September 23, 2014

32 Port Rules and Regulations 2014

 PARKING

May 28, 2014

PPA MEMORANDUM CIRCULAR

NO. 03 - 2014

TO : The Port District Manager, PDO Southern Mindanao

The Port Manager, PMO Zamboanga
Port Users and All Others Concerned

FROM : The General Manager

SUBJECT : Prescribed Parking Fees at the Port of Zamboanga

Please be advised that the following fees, inclusive of Value Added Tax (VAT) are the prescribed parking fees
at the Port of Zamboanga.

REGULAR RATE
RATE FOR SUCCEEDING HOUR
VEHICLE TYPE RATE (VAT Inclusive) OR FRACTION THEREOF (VAT
Inclusive)
FOUR-WHEEL Php 10.00 for first two (2) hours Php 10.00
MOTORCYCLE/TRICYCLE Php 5.00 for first two (2) hours Php 5.00
SIX-WHEEL AND ABOVE Php 20.00 for first two (2) hours Php 20.00
OVERNIGHT STAY Php 50.00
LOST TICKET Php 150.00

SPECIAL RATE
A special rate of Php 10.00 (VAT Inclusive) shall be charged to government employees reporting daily to
Basilan Province (upon presentation of Identification Cards) from 0600H to 1800H, after which the regular
parking rates shall apply.

This Circular shall take effect thirty (30) days after its publication in a local newspaper.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Daily Zamboanga Times - June 11, 2014

Effectivity Date – July 11, 2014

Port Rules and Regulations 2014 33

July 24, 2014

PPA MEMORANDUM CIRCULAR

NO. 06 - 2014

TO : The Port District Manager, PDO Southern Mindanao

The Port Manager, PMO Dapitan
Port Users
All Others Concerned

FROM : The General Manager

SUBJECT : Prescribed Parking Fees at the Port of Dapitan

Please be advised that the following fees, inclusive of Value Added Tax (VAT) are the prescribed parking fees
at the Port of Dapitan:

RATE (VAT RATE FOR SUCCEEDING

VEHICLE TYPE
Inclusive) HOUR (VAT Inclusive)

Php 30.00 for first

Private Vehicle Php 10.00
two (2) hours
Php 15.00 for first
Motorcycle (two-wheeled) Php 5.00
two (2) hours
Php 25.00 for first
Motorcabs Php. 10.00
two (2) hours
Lost Ticket Php 100.00

This Circular shall take effect thirty (30) days after its publication in a local newspaper.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Mindanao Observer - August 14, 2014

Effectivity Date – September 13, 2014

34 Port Rules and Regulations 2014

 PASSENGER TERMINAL
BUILDING OPERATIONS
June 09, 2014

PPA ADMINISTRATIVE ORDER

NO. 04 - 2014

TO : All Port District Managers

All Port Managers
And Others Concerned

SUBJECT : Amendments to PPA Administrative Order No. 05-2012,

Entitled “Guidelines in the Selection of Passenger
Terminal Building (PTB) Operator of Existing PPA-Owned
PTBsˮ

Pursuant to PPA Board Ex-Com Resolution No. 2014-1382 dated 29 April 2014, the following amendments
to PPA Administrative Order No. 05-2012, “Guidelines in the Selection of Passenger Terminal Building (PTB)
Operator of Existing PPA-Owned PTB,” hereto attached as Annex “A”, are hereby prescribed.

All other provisions of PPA AO No. 05-2012 not affected by this Order shall remain valid and in full force.

This Order shall take effect fifteen (15) calendar days from its publication in the Official Gazette or in a newspaper
of general circulation and a copy filed with the University of the Philippines Law Center.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Philippine Star – June 14, 2014

Effectivity Date – June 28, 2014

Port Rules and Regulations 2014 35

 SECRETARY’S CERTIFICATE

I, ELSA L. HILARIO, duly designated Corporate Board Secretary of the Philippine Ports
Authority (PPA), a government instrumentality attached to the Department of Transportation and
Communications, created by virtue of Presidential Decree No. 857, as amended, with principal office at
the 6th Floor PPA Head Office Building, A. Bonifacio Drive, South Harbor, Port Area, Manila, and having
custody of the Board records of the PPA, do hereby certify:

That, during the 267th Executive Committee Meeting of the Board of Directors of the Philippine
Ports Authority held on 29 April 2014 at the Board Room, 6th Floor PPA Head Office Building, A. Bonifacio
Drive, South Harbor, Port Area, Manila, the following Resolution was adopted:

Ex-Com Resolution No. 2014-1382

“RESOLVED, That on motion duly made and seconded, that the attached
revised proposed amendments to PPA Administrative Order No. 06-2012
dated 25 October 2012, “Guidelines for the Selection of Passenger Terminal
Building (PTB Operator”, hereto attached and incorporated by reference, be,
as it is hereby approved.”

IN WITNESS WHEREOF, I have signed this Secretary’s Certificate this 29th day of April 2014,
at the above-mentioned address.

(Sgd.) ATTY. ELSA L. HILARIO

Corporate Board Secretary

36 Port Rules and Regulations 2014

 ANNEX “Aˮ

AMENDMENTS TO PPA ADMINISTRATIVE ORDER NO. 05-2012, ENTITLED “GUIDELINES IN THE SELECTION OF
PASSENGER TERMINAL BUILDING (PTB) OPERATOR OF EXISTING PPA-OWNED PTBsˮ

ORIGINAL PROVISION AMENDED TO READ AS

MAIN POLICY (PPA A.O. No. 05-2012)

Section 9. Criteria for the Award of PTB Contract Section 9. Criteria for the Award of PTB Contract

The PTB Contract shall be awarded to the eligible bidder The PTB Contract shall be awarded to the eligible bidder
that offered the highest rental fee for the PTB for the that offered the highest concession fee for the PTB for
entire duration of the contract and whose bid complies the entire duration of the contract and whose bid complies
with all the requirements and limitations thereof. with all the requirements and limitations thereof.

The minimum concession fee shall not be less than

ten percent (10%) of the average annual gross income
of the PTB at the port for the past three (3) years
for the concession area covering all the spaces for
passengers, the facilities and amenities therein, PLUS
a minimum rental fee for the PTB to be determined
by the Port Manager. For newly constructed PTBs or
existing PTBs with no prior record of gross income,
the minimum concession fee of the PTB at the port
subject of bidding shall be determined and approved
by the Port Manager concerned.

Section 10. Percentage Government Share Note: Section 10 of PPA A.O. No. 05-2012 was DELETED

The winning bidder shall remit to the Authority not later (The winning bidder shall remit to the Authority a
than the tenth (10th) day of every month, a government concession fee payable semi-annually (see Item Nos. 5 &
share on the gross income from passenger terminal fee, 6 of the TOR).)
PTB parking fee and concessionaire contracts, which
shall be at the rate of ten percent (10%).

page 1 of 10

37 Port Rules and Regulations 2014

 AMENDMENTS TO PPA ADMINISTRATIVE ORDER NO. 05-2012, ENTITLED “GUIDELINES IN THE SELECTION OF
PASSENGER TERMINAL BUILDING (PTB) OPERATOR OF EXISTING PPA-OWNED PTBsˮ

ORIGINAL PROVISION AMENDED TO READ AS

BIDDING DOCUMENTS

ANNEX “Aˮ - INVITATION TO BID ANNEX “A” - INVITATION TO BID

2. Bidders should have experience relative to operations 2. Bidders (company or any member of its Board of
and management of a Passenger Terminal Building. Directors, and all of its key officers) should have
The shipping companies shall not be eligible to experience relative to the operation and management
participate in the said bidding, either as a sole bidder of a port terminal or complex, passenger terminal
or as a member in a joint venture. However, individual building (seaport, airport, passenger bus, railroad,
stockholders of the shipping companies are allowed logistics center, otc.)
to be a member of a joint venturer provided that the
individual share holdings shall not exceed 5% nor the Shipping companies that operate passenger
aggregate share holdings of all such stockholders vessels or combination (combo) passenger-cargo
shall exceed 10% of the total shares of the vessels shall not be eligible to participate in the said
corporation that will be formed if it will be declared the bidding, either as a sole bidder or as a member in a
winning bidder. The description of an eligible bidder is joint venture. However, individual stockholders of
contained in the Instructions to Bidders. said shipping companies are allowed to be members
of a joint venture provided that the individual share
holdings shall not exceed 5% nor the aggregate share
holdings of all such stockholders coming from one
company shall exceed 10% of the total shares of the
corporation that will be formed if it will be declared the
winning bidder. The description of an eligible bidder is
contained in the Instruction to Bidders.

page 2 of 10

38 Port Rules and Regulations 2014

 AMENDMENTS TO PPA ADMINISTRATIVE ORDER NO. 05-2012, ENTITLED “GUIDELINES IN THE SELECTION OF
PASSENGER TERMINAL BUILDING (PTB) OPERATOR OF EXISTING PPA-OWNED PTBsˮ

ORIGINAL PROVISION AMENDED TO READ AS

ANNEX “Bˮ - INSTRUCTIONS TO BIDDERS ANNEX “B” - INSTRUCTIONS TO BIDDERS

4. Eligible Bidders 4. Eligible Bidders

Xxx... Xxx...

Provided, that the shipping companies shall not be Provided, that the shipping companies that operate
eligible to participate in the bidding of PTB, either passenger vessels or combination (combo)
as a sole bidder or as a member in a joint venture. passenger-cargo vessels shall not be eligible to
However, individual stockholders of the shipping participate in the bidding of PTB, either as a sole
companies are allowed to be a member of a joint bidder or as a member in a joint venture. However,
venture provided that the individual shareholdings individual stockholders of said shipping companies
shall not exceed five percent (5%) nor the aggregate are allowed to be members of a joint venture provided
shareholdings of all such stockholders shall that the individual shareholdings shall not exceed
exceed ten percent (10%) of the total shares of the five (5%) nor the aggregate shareholdings of all
corporation that will be formed if it will be declared the such stockholders coming from one company shall
winning bidder. exceed ten percent (10%) of the total shares of the
corporation that will be formed if it will be declared the
winning bidder.

page 3 of 10

39 Port Rules and Regulations 2014

 AMENDMENTS TO PPA ADMINISTRATIVE ORDER NO. 05-2012, ENTITLED “GUIDELINES IN THE SELECTION OF
PASSENGER TERMINAL BUILDING (PTB) OPERATOR OF EXISTING PPA-OWNED PTBsˮ

ORIGINAL PROVISION AMENDED TO READ AS

14. The First Envelope shall contain the Eligibility 14. The First Envelope shall contain the Eligibility
Documents and Technical Bid. Documents and Technical Bid.

A. Eligibility Documents A. Eligibility Documents

Xxx... Xxx...

Technical Documents: Technical Documents:

3) Statement of prospective bidder of all completed, 3) Statement of prospective bidder of all ongoing and
ongoing and awarded but not yet started PTB, cargo awarded government and private contracts (E-Form 14).
handling and related contracts (E-Form 14).
Financial Documents:
Financial Documents:
6) Bidder's computation of its Available Paid Up Capital/
6) Bidder's computation of its Available Paid Up Capital/ owner's equity for the Contract (APCC/OE) (E-Form 21)
owner's equity for the Contract (APCC/OE) (E-Form 21)
The APCC shall be at least equal to the paid up capital/
The APCC shall be at least equal to the paid up capital/ owner's equity required for the PTB subject of bidding.
owner's equity required for the PTB subject of bidding.
FORMULA:
FORMULA:
APCC/OE = Paid Up Capital/Owner's Equity per financial
APCC/OE = Paid Up Capital/Owner's Equity per financial statements less paid up capital required for all existing
statements less paid up capital required for all existing PTB contract, cargo handling and related contracts.
PTB contract, cargo handling and related contracts.

page 4 of 10

40 Port Rules and Regulations 2014

 AMENDMENTS TO PPA ADMINISTRATIVE ORDER NO. 05-2012, ENTITLED “GUIDELINES IN THE SELECTION OF
PASSENGER TERMINAL BUILDING (PTB) OPERATOR OF EXISTING PPA-OWNED PTBsˮ

ORIGINAL PROVISION AMENDED TO READ AS

Or, in lieu thereof, a commitment from a bank duly

licensed by the Bangko Sentral Ng Pilipinas to extend to
the prospective bidder a credit line if awarded the PTB Note: The provision on Credit Line Commitment was
contract the amount of which shall be at least equal to deleted.
the paid up capital/owner's equity required for the PTB
contract to be bid.

NEW PROVISION:

8. Bidder's computation of its Net Financial Contracting

Capacity (NFCC) (E-Form 23)

To ensure that the winning bidder is determined to

be financially capable of entering into a contract, an
NFCC requirement is hereby prescribed using the
following formula:

NFCC = K (Current Assets – Current Liabilities) – V

Where

K = 20, which is the prescribed factor for contracts

of more than 2 years, as adopted from civil works
projects;

V = Value of all outstanding contracts or

uncompleted portions of projects under on-going
contracts, including awarded contracts yet to be
started coinciding with the contract to be bid,
capitalization and working capital requirements for
each PTB contract awarded or to be awarded.
page 5 of 10

41 Port Rules and Regulations 2014

 AMENDMENTS TO PPA ADMINISTRATIVE ORDER NO. 05-2012, ENTITLED “GUIDELINES IN THE SELECTION OF
PASSENGER TERMINAL BUILDING (PTB) OPERATOR OF EXISTING PPA-OWNED PTBsˮ

ORIGINAL PROVISION AMENDED TO READ AS

If the bidder submits a computation of its NFCC,

the NFCC must be at least equal to the minimum
concession fee for the PTB for entire the duration of
the contract.
15. The Second Envelope shall contain the Financial Bid. 15. The Second Envelope shall contain the Financial Bid.

Xxx... Xxx...

b) Highest rental fee for the PTB per square meter per b) Highest concession fee for the PTB per year inclusive of
month exclusive of 12% VAT for the entire duration of the 12% VAT for the entire duration of the contract (FB Form 2).
contract (FB Form 2).

Xxx... Xxx...
23. Opening and Preliminary Examination of Bids 23. Opening and Preliminary Examination of Bids

Xxx... Xxx...

23.4 The Financial Bid shall be considered non-complying and 23.4 The Financial Bid shall be considered non-complying and
shall be rejected if the Financial Bid submitted provides a shall be rejected if the Financial Bid submitted provides a
rental fee less than the prevailing rate of the PTB at the concession fee less than the minimum concession fee
port subject of bidding. as specified in the bidding documents.

Xxx... Xxx...

page 6 of 10

42 Port Rules and Regulations 2014

 AMENDMENTS TO PPA ADMINISTRATIVE ORDER NO. 05-2012, ENTITLED “GUIDELINES IN THE SELECTION OF
PASSENGER TERMINAL BUILDING (PTB) OPERATOR OF EXISTING PPA-OWNED PTBsˮ

ORIGINAL PROVISION AMENDED TO READ AS

ANNEX “D” - TERMS OF REFERENCE ANNEX “D” - TERMS OF REFERENCE

5. Rental Fee and Percentage Government Share 5. Concession Fee

5.1 The rental fee for the PTB shall be the amount committed 5.1 The concession fee for the PTB shall be the amount
in the financial bid of the winning bidder per square meter committed in the financial bid of the winning bidder per
per month exclusive of 12% VAT. year inclusive of 12% VAT.

The minimum rental fee shall not be less than the

prevailing rental rate of the PTB at the port subject of
bidding, including all the spaces for passengers, the
facilities and amenities therein. (Note: The prevailing
rental rate of the PTB at the port subject of bidding
shall be determined by the BAC).

5.2 The percentage government share on the gross income Note: Item 5.2 of the TOR was deleted.
from the passenger terminal fee, PTB parking fee and
concessionaire contracts shall be ten percent (10%)
thereof.

6. Criteria for Award of PTB Contract 6. Criteria for Award of PTB Contract

6.1 The PTB Contract shall be awarded to the eligible bidder 6.1 The PTB Contract shall be awarded to the eligible bidder
that offered the highest rental fee for the PTB for the that offered the highest concession fee for the PTB for
entire duration of the contract and whose bid complies the entire duration of the contract and whose bid complies
with all the requirements and limitations thereof. with all the requirements and limitation thereof.

Xxx... Xxx...

page 7 of 10

43 Port Rules and Regulations 2014

 AMENDMENTS TO PPA ADMINISTRATIVE ORDER NO. 05-2012, ENTITLED “GUIDELINES IN THE SELECTION OF
PASSENGER TERMINAL BUILDING (PTB) OPERATOR OF EXISTING PPA-OWNED PTBsˮ

ORIGINAL PROVISION AMENDED TO READ AS

8. Financial Obligations 8. Financial Obligations

8.1 The PTB Operator shall pay the Authority the monthly 8.1 The PTB Operator shall pay to the Authority the annual
rental fee for the PTB on or before the tenth (10th) day of concession fee for the PTB payable semi-annually not
the following month. later than the tenth (10th) working day from the start
of operations and every six (6) months thereafter.

8.2 The PTB Operator shall remit to the Authority not later
than the tenth (10th) day of every month. the committed
government share on the gross income from passenger Note: Item 8.2 of the TOR was deleted
terminal fee, PTB parking fee and concessionaire
contracts.

Xxx... Xxx...

ANNEX “E” – TECHNICAL COMPONENT ANNEX “E” – TECHNICAL COMPONENT

E-FORM 14 – (see Annex 1) E-FORM 14 – (see Annex 1-a) - Amended Form

E-FORM 21 – (see Annex 2) E-FORM 21 – (see Annex 2-a) - Amended Form

E-FORM 23 – (see Annex 3-a) - New/Additional Form

ANNEX “F” – FINANCIAL COMPONENT

FB FORM 1 (see Annex 3) ANNEX “F” – FINANCIAL COMPONENT

FB FORM 2 (see Annex 4) FB FORM 1 (see Annex 4-a) - Amended Form

FB FORM 2 (see Annex 5-a) - Amended Form

page 8 of 10

44 Port Rules and Regulations 2014

 AMENDMENTS TO PPA ADMINISTRATIVE ORDER NO. 05-2012, ENTITLED “GUIDELINES IN THE SELECTION OF
PASSENGER TERMINAL BUILDING (PTB) OPERATOR OF EXISTING PPA-OWNED PTBsˮ

ORIGINAL PROVISION AMENDED TO READ AS

ANNEX “G” – PRO-FORMA PTB CONTRACT ANNEX “G” – PRO-FORMA PTB CONTRACT

4. Consideration - In consideration of the rights and 4. Consideration - In consideration of the rights and
privileges granted by the AUTHORITY to the PTB privileges granted by the AUTHORITY to the PTB
OPERATOR, the latter shall, pay a rental fee for the PTB OPERATOR, the latter shall, pay an annual concession
in the amount of________________________________ fee for the PTB in the amount of ___________________
(Php ). In addition, the PTB OPERATOR shall (Php ) payable semi-annually on the tenth
remit to the AUTHORITY ten percent ( 10% ) of its gross (10th) working day from the start of operations and
income from passenger terminal fees PTB parking fees every six (6) months thereafter.
and concessionaire contracts.

Any obligation of the PTB OPERATOR which is unpaid Any obligation of the PTB OPERATOR which is unpaid
when due shall bear interest and penalty charge in when due shall bear interest and penalty charge in
accordance with existing regulations. accordance with existing regulations.

It is further agreed that the consideration mentioned It is further agreed that the consideration mendtioned
above is exclusive of the Value Added Tax (VAT) and the above is inclusive of the Value Added Tax (VAT) and
VAT due thereon, including any subsequent increase the VAT due thereon, including any subsequent increase
thereof, if any, shall be borne and paid for by the PTB thereof, if any, shall be borne and paid for by the PTB
OPERATOR. OPERATOR.

5. Cash Deposit - Upon signing of the Contract, the PTB 5. Cash Deposit - Upon signing of the Contract, the PTB
OPERATOR shall make a deposit with the AUTHORITY OPERATOR shall make a deposit with the AUTHORITY
an amount equivalent to one (1) month advance rental an amount equivalent to six (6) months advances
and additional two (2) months rental, as security deposit concession fee as security deposit for the PTB. The
for the PTB. The security deposit shall be applied for security deposit shall be applied for the payment of back
the payment of back rentals and government share, if fees, if any, and for the expenses and charges billed
any, and for the expenses and charges billed against the against the PTB OPERATOR for water, telephone and
PTB OPERATOR for water, telephone and other utility other utility services still remaining unpaid upon the
services still remaining unpaid upon the expiration or expiration or termination of the Contract.
termination of the Contract.
page 9 of 10

45 Port Rules and Regulations 2014

 AMENDMENTS TO PPA ADMINISTRATIVE ORDER NO. 05-2012, ENTITLED “GUIDELINES IN THE SELECTION OF
PASSENGER TERMINAL BUILDING (PTB) OPERATOR OF EXISTING PPA-OWNED PTBsˮ

ORIGINAL PROVISION AMENDED TO READ AS

22. Suspension, Cancellation or Termination of Contract 22. Suspension, Cancellation or Termination of Contract
- The AUTHORITY may, without prejudice to other - The AUTHORITY may, without prejudice to other
remedies against the PTB OPERATOR, extra judicially remedies against the PTB OPERATOR, extra judicially
suspend, cancel or terminate this Contract on any of the suspend, cancel or terminate this Contract on any of the
following grounds: following grounds:

a. Failure of the PTB OPERATOR to remit on due date to a. Failure of the PTB OPERATOR to remit on due date to
the AUTHORITY any two (2) monthly committed financial the AUTHORITY any two (2) semi-annual committed
obligations. financial obligations.

Xxx... Xxx...

page 10 of 10

46 Port Rules and Regulations 2014

ANNEX - 1

Port Rules and Regulations 2014 47

 E Form – 14
(Existing Form to be amended)

STATEMENT OF COMPLETED, ONGOING, AND AWARDED BUT NOT YET STARTED PTB, CARGO
HANDLING (CH) AND RELATED CONTRACTS

Annual
Title of the PTB, CH Effectivity Average
Contract Paid Up
and related Contract Type of PTB/Cargo and Expiry Throughput
Location of Port Term (no. of Capital
and Name of Party Handling Service Dates of the (Metric
years) Required
Contracted With Contract Tons, TEUs,
or Units)

COMPLETED

(for the last five (5) yrs.

or period as prescribed
by the BAC)

1.

2.

3.

5.

48 Port Rules and Regulations 2014

 ONGOING

1.

2.

3.

5.

AWARDED

1.

2.

3.

4.

5.

49 Port Rules and Regulations 2014

 AWARDED BUT NOT
YET STARTED

1.

2.

3.

5.

Notes:

This statement shall be supported with:

1. Copy of Notice of Award

2. Copy of PTB, CH and related contracts
3. Certification from the Government or Private Port Owner Concerned as to the annual volume of cargoes handled

Please use additional sheet if necessary.

(Name of Firm)

By:

_________________________________________
(Name and Signature of Authorized Signing Official)

Date: ____________________________________

50 Port Rules and Regulations 2014

ANNEX - 2

Port Rules and Regulations 2014 51

 E Form -21
(Existing Form to be Amended)

COMPUTATION OF AVAILABLE PAID UP CAPITAL/OWNER’S EQUITY

FOR THE CONTRACT (APCC/OE)

The APCC/OE shall be at least equal to the paid up capital/owner’s equity required for the PTB
contract subject of bidding.

FORMULA:

APCC/OE = Paid Up Capital/Owner’s Equity per financial statements less paid

up capital required for all existing PTB contracts, CH and related contracts
awarded but not yet started.

(Name of Prospective Bidder) APCC is Php _______________.

OR COPY OF THE BANK CREDIT LINE COMMITMENT THE AMOUNT OF WHICH

SHALL BE AT LEAST EQUAL TO THE APCC/OE REQUIRED FOR THE PTB
CONTRACT TO BE BID.

(Name and Signature of Authorized Signing Official)

Date: _________________

52 Port Rules and Regulations 2014

ANNEX - 3

Port Rules and Regulations 2014 53

 FB FORM 1
(Existing Form to be amended)

FINANCIAL BID SUBMISSION FORM

(Name of Company)

(Address)

Date:

The Chairperson
Bids and Awards Committee
PHILIPPINE PORTS AUTHORITY
PDO
Address

Dear Sir:

In response to your “INVITATION TO BID” dated ______________________, the undersigned (Name

and Position in the Company) of (Name of Company), duly organized in accordance with the laws of the
Republic of the Philippines, after having been issued and examined the Instructions to Bidders, Terms
of Reference and Pro-forma PTB Contract for the Lease, Management, Operation and Maintenance
of PTB at the Port of ____________________, hereby submits the (proposed rental rate for the PTB
and committed government share on the gross income from passenger terminal fee and PTB parking
for the entire duration of the contract).

Personally, and for and in behalf of the firm, I do hereby certify that:

a. All the statements made in this Financial Bid and in the required attachments, altogether
consisting of ________ ( ) pages which are consecutively numbered and signed in
full by me on the bottom margins, are true and correct.

b. This Financial Bid is made for the lease, management, operation and maintenance of
PTB at the Port of _____________.

c. The General Manager of the Philippine Ports Authority (PPA) or his duly authorized
representative is hereby authorized to look into the books of accounts, documents, and
other relevant records of our company, or to secure certified copies of our company’s
financial statements filed with the Bureau of Internal Revenue, for the purpose of
verifying and ascertaining our technical and financial capabilities as a PTB operator.

54 Port Rules and Regulations 2014

 d. Any public official, surety company, bank, equipment manufacturer or distributor or any
other person, firm or corporation is hereby authorized and requested to furnish any pertinent
information requested by the Authority as necessary to verify the documents submitted regarding
the competence and general reputation of the company.

I hereby agree that the venue of court action on any case(s) arising or resulting from the conduct of public
bidding for the aforesaid PTB shall be filed exclusively in a proper court of the City/Municipality of (to be
determined by the BAC).

I hereby guarantee the truth and correctness of the foregoing information and hold the firm and myself liable,
criminally and civilly, for any misrepresentation or false statement made harein.

Very truly yours,

_________________________________________
(Name and Signature of Authorized Signing Official)

REPUBLIC OF THE PHILIPPINES

S.S.
CITY OF ____________________

SUBSCRIBED AND SWORN to before me this ____ day of ______ 201__ in _________. Philippines, affiant
exhibiting to me his Community Tax Certificate No. ___________ issued on _____________ at ____________.

NOTARY PUBLIC

Doc. No. ;
Page No. ;
Book No. ;
Series of .

Port Rules and Regulations 2014 55

 ANNEX - 4

56 Port Rules and Regulations 2014

 FB FORM 2
(Existing Form to be amended)

COPY OF THE PROPOSED RENTAL FEE

FOR THE PTB AT THE PORT OF ______________ PER SQUARE
METER PER MONTH EXCLUSIVE OF 12% VAT FOR THE ENTIRE
DURATION OF THE CONTRACT

Port Rules and Regulations 2014 57

 ANNEX 1-a

58 Port Rules and Regulations 2014

 E Form – 14
(As Amended)

STATEMENT OF PROSPECTIVE BIDDER ONGOING AND AWARDED GOVERNMENT AND PRIVATE

CONTRACTS

Effectivity
Title of Contract Paid Up
Location of Service Contract Term and Expiry
and Name of Party Type of Service Capital
Area (no of years) Dates of the
Contracted With Required
Contract

ONGOING

1.

2.

3.

4.

5.

59 Port Rules and Regulations 2014

 AWARDED

1.

2.

3.

4.

5.

Notes:

This statement shall be supported with:

1. Copies of Notices of Awards
2. Copies of contracts

Please use additional sheet if necessary.

(Name of Firm)
By:

(Name and Signature of Authorized Signing Official)

Date: _____________________________________

60 Port Rules and Regulations 2014

ANNEX 2-a

Port Rules and Regulations 2014 61

 E Form -21
(As Amended)

COMPUTATION OF AVAILABLE PAID UP CAPITAL/OWNER’S

EQUITY FOR THE CONTRACT (APCC/OE)

The APCC/OE shall be at least equal to the paid up capital/owner’s equity required for the PTB contract
subject of bidding.

FORMULA:

APCC/OE = Paid Up Capital/Owner’s Equity per financial statements less paid up

capital required for all existing PTB contracts, CH and related contracts awarded but
not yet started.

(Name of Prospected Bidder) APCC is Php _______________.

_________________________________________
Name and Signature of Authorized Signing Official)

Date: _______________________________

62 Port Rules and Regulations 2014

ANNEX 3-a

Port Rules and Regulations 2014 63

 E Form – 23
(New/Additional Form)

COMPUTATION OF NET FINANCIAL CONTRACTING

CAPACITY (NFCC)

To ensure that the winning bidder is determined to be financially capable of entering into a
contract, an NFCC requirement is hereby prescribed using the following formula:

NFCC = K (Current Assets-Current Liabilities)-V

Where

K = 20, which is the prescribed factor for contracts of more than 2 years, as
adopted from civil works projects;

V = Value of all outstanding contracts or uncompleted portions of projects under

on-going contracts, including awarded contracts yet to be started coinciding
with the contract to be bid, capitalization and working capital requirements
for each PTB contract awarded or to be awarded.

(Name of Prospective Bidder) NFCC is Php ______________________________.

(Name and Signature of Authorized Signing Official)

Date: ____________________________

64 Port Rules and Regulations 2014

ANNEX 4-a

Port Rules and Regulations 2014 65

 FB FORM 1
(As Amended)

FINANCIAL BID SUBMISSION FORM

___________________________
(Name of Company)

___________________________
___________________________
(Address)

Date: __________________

The Chairperson
Bids and Awards Committee
PHILIPPINE PORTS AUTHORITY
PDO _____________________
Address

Dear Sir:

In response to your “INVITATION TO BID” dated _______________, the undersigned (Name & Position in the
Company) of (Name of Company), duly organized in accordance with the laws of the Republic of the Philippines,
after having been issued and examined the Instructions to Bidders, Terms of Reference and Pro-forma PTB
Contract for the Lease, Management, Operation and Maintenance of PTB at the Port of ________________,
hereby submits the (proposed concession fee for the PTB for the entire duration of the contract).

Personally, and for and in behalf of the firm, I do hereby certify that:

a. All the statements made in this Financial Bid and in the required attachments, altogether consisting
of _______________ ( ) pages which are consecutively numbered and signed in full by me on the
bottom margins, are true and correct.

b. This Financial Bid is made for the lease, management, operation and maintenance of PTB at the Port
of _______________.

c. The General Manager of the Philippine Ports Authority (PPA) or his duly authorized representative is
hereby authorized to look into the books of accounts, documents, and other relevant records of our
company, or to secure certified copies of our company’s financial statements filed with the Bureau of
Internal Revenue, for the purpose of verifying and ascertaining our technical and financial capabilities
as a PTB operator.

66 Port Rules and Regulations 2014

 d. Any public official, surety company, bank, equipment manufacturer or distributor or any
other person, firm or corporation is hereby authorized and requested to furnish any pertinent
information requested by the Authority as necessary to verify the documents submitted regarding
the competence and general reputation of the company.

I hereby agree that the venue of court action on any case(s) arising or resulting from the conduct of public
bidding for the aforesaid PTB shall be filed exclusively in a proper court of the City/Municipality of (to be
determined by the BAC).

I hereby guarantee the truth and correctness of the foregoing information and hold the firm and myself
liable, criminally and civilly, for any misrepresentation or false statement made herein.

Very truly yours,

_________________________________________
(Name and Signature of Authorized Signing Official)

REPUBLIC OF THE PHILIPPINES

S.S.
CITY OF ____________________

SUBSCRIBED AND SWORN to before me this ___ day of ______ 201_ in _________. Philippines, affiant
exhibiting to me his Community Tax Certificate No. __________ issued on __________ at ____________.

NOTARY PUBLIC

Doc. No. ;
Page No. ;
Book No. ;
Series of .

Port Rules and Regulations 2014 67

 ANNEX 5-a

68 Port Rules and Regulations 2014

 FB FORM 2
(As Amended)

COPY OF THE PROPOSED CONCESSION FEE

FOR THE PTB AT THE PORT OF ________________ PER SQUARE
METER PER YEAR INCLUSIVE OF 12% VAT FOR THE ENTIRE
DURATION OF THE CONTRACT

Port Rules and Regulations 2014 69

September 01, 2014

PPA ADMINISTRATIVE ORDER

NO. 06 - 2014

TO : All Port District Managers

All Port Managers
Others Concerned

SUBJECT : Amendment to the Composition of Bids and Awards

Committee (BAC) for the Public Bidding for the Selection
of Passenger Terminal Building (PTB) Operator of
Existing PPA-Owned PTBs

Pursuant to PPA Board Ex-Com Resolution No. 2014-1389 which was adopted and confirmed by the PPA
Board of Directors per Resolution No. 2379 dated 10 July 2014 on the provisional changes in the present
Revised Delegation of Authorities, the provisions of Section 4 of PPA Administrative Order (AO) No. 05-2012
(Guidelines in the Selection of Passenger Terminal Building (PTB) Operator of Existing PPA-Owned PTBs) are
hereby amended as follows:

Section 4. Bids and Awards Committee (BAC)

4.1 Constitution of the BAC

The BAC shall be constituted for the conduct of the public bidding with the
following members or as the General Manager may determine.

Regular Members:

Chairperson - Port Manager

(PMO having jurisdiction over the PTB)

Vice Chairperson - Manager, Port Services Division, PMO

Members - Manager, Resource Management

Division, PDO

- Manager, Engineering Services

Division, PMO

- Chief Corporate Attorney, PMO

70 Port Rules and Regulations 2014

 4.2 Observers

Authorized representative from each of the following organization:

● Philippine Chamber of Commerce and Industry (PCCI)

● Catholic Bishops Conference of the Philippines (CBCP)

● Volunteers Against Crime & Corruption (VACC)

● Commission on Audit (COA)/Resident Auditor

The BAC shall have at least five (5), but not more than seven (7) regular members.

Unless sooner removed for cause, the members of the BAC shall have a fixed term
of one (1) year reckoned from the date of appointment, renewable at the discretion
of the General Manager.

Note: The BAC, at the discretion of the Chairperson, may invite representatives
from Head Office to act as additional observers in all stages of the
selection process.

All other provisions of PPA AO No. 05-2012 not affected by this Order shall remain valid and in full force.

This Order shall take effect fifteen (15) calendar days from its publication in the Official Gazette or in newspaper
of general circulation and a copy filed with the University of the Philippines Law Center.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Philippine Star - September 9, 2014

Effectivity Date – September 23, 2014

Port Rules and Regulations 2014 71

 PASSENGER TERMINAL FEE

July 24, 2014

PPA MEMORANDUM CIRCULAR

NO. 07 - 2014

TO : All Port Managers

Others Concerned

SUBJECT : Revised 20% Discounts on Passenger Terminal Fees in All

PPA Ports

Further to PPA Memorandum Circular No. 04-2009, PPA grants the following 20% discount to the following:

1. Senior Citizens – Pursuant to Republic Act No. 9257 or the Expanded Senior Citizens Act of
2003;
2. Person with Disability (PWD) – Pursuant to RA 9442 or the An Act Amending Republic Act No.
7277. Otherwise Known as the “Magna Carta for Disabled Persons, and For Other Purposes;
and
3. All year round discount for students

Only those with valid Identification Card will be given the twenty (20%) percent discount.

Further, PMOs are also directed to make the proper monitoring and reporting of the discounts provided per
category.

All concerned field offices are enjoined to implement this Circular fifteen (15) days after its publication in a
newspaper of general circulation.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Philippine Star - August 5, 2014

Effectivity Date – August 20, 2014

72 Port Rules and Regulations 2014

September 09, 2014

PPA MEMORANDUM CIRCULAR

NO. 09 - 2014

TO : The Port District Manager

PDO-Manila/Northern Luzon

The Port Manager, PMO-North Harbor

Manila North Harbor Port, Inc. (MNHPI)
Port Users
Others Concerned

SUBJECT : New Passenger Terminal Fee at the Manila North Harbor

Pursuant to the PPA Board of Directors’ Ex-Com Resolution No. 2014-1394, the new Passenger Terminal
Fee (PTF) of Php 84.82 (plus 12% VAT) or Php 95.00 (VAT inclusive) at the Manila North Harbor is hereby
approved.

The new PTF shall be effective 15 days after publication of this Circular in a national newspaper of general
circulation.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the following newspapers:

Philippine Star
September 12, 2014
Manila Bulletin
Effectivity Date – September 27, 2014

Port Rules and Regulations 2014 73

November 05, 2014

PPA MEMORANDUM CIRCULAR

NO. 17 - 2014

TO : The Port Managers

PMO Bicol
PMO Masbate
Port Users
Others Concerned

FROM : The Officer-in-Charge

SUBJECT : Passenger Terminal Fees at the Ports of Masbate and

Legazpi

The Passenger Terminal Fees at the Ports of Masbate and Legazpi have been approved by the General
Manager on April 15, 2014, respectively.

The following rates have been published in a local newspaper (Mayon Times on October 1, 8 and 15) and shall
take effect on November 14, 2014, 30 days after the last publication.

PARTICULAR RATES (INCLUSIVE OF VAT)

Legazpi 20.00
Masbate 30.00

All rates are subject to necessary discount accorded to students, senior citizens and persons with disability,
pursuant to PPA MC No. 07-2014

(Sgd.) RAUL T. SANTOS

74 Port Rules and Regulations 2014

December 23, 2014

PPA MEMORANDUM CIRCULAR

NO. 19 - 2014

TO : The Port Manager

PMO Panay/Guimaras
Port Users
Others Concerned

FROM : The General Manager

SUBJECT : Passenger Terminal Fees at the Ports of Dumangas and Iloilo

River Wharf (Progreso)

The following Passenger Terminal Fees at the Ports of Dumangas and Iloilo River Wharf (Progreso) have been
approved by the undersigned on September 9, 2014:

PARTICULAR RATES (INCLUSIVE OF VAT)

Iloilo River Wharf (Progreso) 30.00

Dumangas 30.00

The said rates have been published in a local newspaper (Panay News) on November 18, 2014 and shall take
effect on December 18, 2014, 30 days after its publication:

All rates are subject to necessary discount accorded to students, senior citizens and persons with disability,
pursuant to PPA MC. 07-2014

(Sgd.) JUAN C. STA. ANA

Port Rules and Regulations 2014 75

 PILOTAGE

August 13, 2014

PPA MEMORANDUM ORDER

NO. 18 - 2014

TO : The Port District Manager

PDO-Manila/Northern Luzon

The Port Manager
PMO-Limay

Manila Bay Harbor Pilots Partnership

GN Power Mariveles Coal Plant, Ltd. Inc
Others Concerned

SUBJECT : Pilotage Services and Fees at Brgy. Alas-Asin,

Mariveles, Bataan

After evaluation made on the agreement between the Manila Bay Harbor Pilots Partnership and GN Power
Mariveles Coal Plant, Ltd., Inc., the Authority hereby confirms the agreed pilotage services and fees at Brgy.
Alas-Asin, Mariveles, Bataan, as follows:

1. Regular Pilotage Services Fees

a. Docking*
b. Undocking*
c. Mooring
d. Unmooring Current applicable pilotage fees
e. Conduction in
f. Conduction out
*plus premium fee per PPA AO No. 04-2003
2. Special Services
a. Bow-out
Current applicable pilotage fees
b. During inclement weather* and/or poor visibility**
* monsoonal trade winds or during typhoon season
and when sea swell reaches one (1) meter on
broad side
Php 40,000.00
** if one (1) mile or less visibility due to rain or smog
or during night time from 1800H to 0600H
c. Transportation Php 4,000.00

Further, no other charges will be charged except for those fees which were already resolved by the concerned
parties and concurred by the Authority.

(Sgd.) JUAN C. STA ANA

General Manager

76 Port Rules and Regulations 2014

 PORT CHARGES

January 3, 2014

MEMORANDUM

TO : All Port District Managers

Port Managers
Port Users
Others Concerned

SUBJECT : Sample Computations in the Application of the Increase

in Storage Charges for Foreign Containerized Cargoes
under PPA Memorandum Circular (MC) No. 10-2013

To ensure uniform interpretation and implementation of the increase in storage charges for foreign containerized
cargoes prescribed under PPA MC No. 10-2013, attached are sample computations corresponding to some
assumptions for guidance to all concerned.

(Sgd.)
for: RAUL T. SANTOS
AGM for Operations

Port Rules and Regulations 2014 77

 SAMPLE COMPUTATIONS
New Storage Rates for Foreign Containerized Cargoes
Per PPA MC No. 10-2013 effective Jan. 2, 2014

A. Imported Container - Storage shall be charged on cargoes that remain in any gov't-
owned port beyond the five (5) Free Storage Period (FSP)
after the day that the last item of cargo is discharged from the
carrying vessel.
A-1. Assumption 1. 20-Footer Container
2. Last discharge of cargo from vessel - January 1, 2014
3. Date of withdrawal of cargo - February 5, 2014

Dwell Time Cumulative

Date Rate Per Day
(Days) Amount
January 2, 2014 1 FSP 0.00
January 3 2 FSP 0.00
January 4 3 FSP 0.00
January 5 4 FSP 0.00
January 6 5 FSP 0.00
January 7 6 Php 481.30 Php 481.30
January 8 7 481.30 962.60
January 9 8 481.30 1,443.90
January 10 9 481.30 1,925.20
January 11 10 481.30 2,406.50
January 12 11 529.43 2,935.93
January 13 12 529.43 3,465.36
January 14 13 529.43 3,994.79
January 15 14 529.43 4,524.22
January 16 15 529.43 5,053.65
January 17 16 577.56 5,631.21
January 18 17 577.56 6,208.77
January 19 18 577.56 6,786.33
January 20 19 577.56 7,363.89
January 21 20 577.56 7,941.45
January 22 21 625.69 8,567.14
January 23 22 625.69 9,192.83
January 24 23 625.69 9,818.52
January 25 24 625.69 10,444.21
January 26 25 625.69 11,069.90
January 27 26 673.82 11,743.72
January 28 27 673.82 12,417.54
January 29 28 673.82 13,091.36
January 30 29 673.82 13,765.18
January 31 30 673.82 14,439.00
February 1, 2014 31 721.95 15,160.95
February 2 32 721.95 15,882.90
February 3 33 721.95 16,604.85
February 4 34 721.95 17,326.80
February 5 35 721.95 18.048.75

78 Port Rules and Regulations 2014

 A-2. Assumption 1. 20-Footer Container
2. Last discharge of cargo from vessel - December 20, 2013
3. Date of withdrawal of cargo - January 24, 2014

Dwell Time Cumulative

Date Rate Per Day
(Days) Amount
December 21, 2013 1 FSP 0.00
December 22 2 FSP 0.00
December 23 3 FSP 0.00
December 24 4 FSP 0.00
December 25 5 FSP 0.00
December 26 6 Php 240.65 * Php 240.65
December 27 7 240.65 * 481.30
December 28 8 240.65 * 721.95
December 29 9 240.65 * 962.60
December 30 10 240.65 * 1,203.25
December 31 11 240.65 * 1,443.90
January 1, 2014 12 240.65 * 1,684.55
January 2 13 529.43 2,213.98
January 3 14 529.43 2,743.41
January 4 15 529.43 3,272.84
January 5 16 577.56 3,850.40
January 6 17 577.56 4,427.96
January 7 18 577.56 5,005.52
January 8 19 577.56 5,583.08
January 9 20 577.56 6,160.64
January 10 21 625.69 6,786.33
January 11 22 625.69 7,412.02
January 12 23 625.69 8,037.71
January 13 24 625.69 8,663.40
January 14 25 625.69 9,289.09
January 15 26 673.82 9,962.91
January 16 27 673.82 10,636.73
January 17 28 673.82 11,310.55
January 18 29 673.82 11,984.37
January 19 30 673.82 12.658.19
January 20 31 721.95 13,380.14
January 21 32 721.95 14,102.09
January 22 33 721.95 14,824.04
January 23 34 721.95 15,545.99
January 24 35 721.95 16,267.94

Php 240.65 - old rate*

Port Rules and Regulations 2014 79

 B. Exported Container - Storage shall be charged on cargoes that remain in any gov't-
owned port beyond the FSP of four (4) calendar days from the
day that the cargo is received at the port
B-1. Assumption 1. 20-Footer Container
2. Date of receipt of cargo at the port - January 2, 2014
3. Date of loading of cargo in the vessel - February 5, 2014

Dwell Time Cumulative

Date Rate Per Day
(Days) Amount
January 2, 2014 1 FSP 0.00
January 3 2 FSP 0.00
January 4 3 FSP 0.00
January 5 4 FSP 0.00
January 6 5 Php 60.15 Php 60.15
January 7 6 60.15 120.30
January 8 7 120.30 240.60
January 9 8 120.30 360.90
January 10 9 120.30 481.20
January 11 10 120.30 601.50
January 12 11 120.30 721.80
January 13 12 132.33 854.13
January 14 13 132.33 986.46
January 15 14 132.33 1,118.79
January 16 15 132.33 1,251.12
January 17 16 132.33 1,383.45
January 18 17 144.36 1,527.81
January 19 18 144.36 1,672.17
January 20 19 144.36 1,816.53
January 21 20 144.36 1,960.89
January 22 21 144.36 2,105.25
January 23 22 156.39 2,261.64
January 24 23 156.39 2,418.03
January 25 24 156.39 2,574.42
January 26 25 156.39 2,730.81
January 27 26 156.39 2,887.20
January 28 27 168.42 3,055.62
January 29 28 168.42 3,224.04
January 30 29 168.42 3,392.46
January 31 30 168.42 3,560.88
February 1, 2014 31 168.42 3,729.30
February 2 32 180.45 3,909.75
February 3 33 180.45 4,090.20
February 4 34 180.45 4,270.65
February 5 35 180.45 4,451.10

80 Port Rules and Regulations 2014

 B-2. Assumption 1. 20-Footer Container
2. Date of receipt of cargo at the port - December 21, 2013
3. Date of loading of cargo in the vessel - January 24, 2014

Dwell Time Cumulative

Date Rate Per Day
(Days) Amount
December 21, 2013 1 FSP 0.00
December 22 2 FSP 0.00
December 23 3 FSP 0.00
December 24 4 FSP 0.00
December 25 5 Php 60.15 * Php 60.15
December 26 6 60.15 * 120.30
December 27 7 60.15 * 180.45
December 28 8 60.15 * 240.60
December 29 9 60.15 * 300.75
December 30 10 60.15 * 360.90
December 31 11 60.15 * 421.05
January 1, 2014 12 60.15 * 481.20
January 2 13 132.33 613.53
January 3 14 132.33 745.86
January 4 15 132.33 878.19
January 5 16 132.33 1,010.52
January 6 17 144.36 1,154.88
January 7 18 144.36 1,299.24
January 8 19 144.36 1,443.60
January 9 20 144.36 1,587.96
January 10 21 144.36 1,732.32
January 11 22 156.39 1,888.71
January 12 23 156.39 2,045.10
January 13 24 156.39 2,201.49
January 14 25 156.39 2,357.88
January 15 26 156.39 2,514.27
January 16 27 168.42 2,682.69
January 17 28 168.42 2,851.11
January 18 29 168.42 3,019.53
January 19 30 168.42 3,187.95
January 20 31 168.42 3,356.37
January 21 32 180.45 3,536.82
January 22 33 180.45 3,717.27
January 23 34 180.45 3,897.72
January 24 35 180.45 4,078.17

Php 60.15 - old rate*

Port Rules and Regulations 2014 81

 C. Transhipped Container - Storage shall be charged on cargoes that remain in any gov't-
owned port beyond the FSP of fifteen (15) calendar days from the
day of arrival to the day of departure
C-1. Assumption 1. 20-Footer Container
2. Day of arrival of cargo at the port - January 1, 2014
3. Day of departure of cargo - February 5, 2014

Dwell Time Cumulative

Date Rate Per Day
(Days) Amount
January 2, 2014 1 FSP 0.00
January 3 2 FSP 0.00
January 4 3 FSP 0.00
January 5 4 FSP 0.00
January 6 5 FSP 0.00
January 7 6 FSP 0.00
January 8 7 FSP 0.00
January 9 8 FSP 0.00
January 10 9 FSP 0.00
January 11 10 FSP 0.00
January 12 11 FSP 0.00
January 13 12 FSP 0.00
January 14 13 FSP 0.00
January 15 14 FSP 0.00
January 16 15 FSP 0.00
January 17 16 US$ 10.94 US$ 10.94
January 18 17 10.94 21.88
January 19 18 10.94 32.82
January 20 19 10.94 43.76
January 21 20 10.94 54.70
January 22 21 12.03 66.73
January 23 22 12.03 78.76
January 24 23 12.03 90.79
January 25 24 12.03 102.82
January 26 25 12.03 114.85
January 27 26 13.13 127.98
January 28 27 13.13 141.11
January 29 28 13.13 154.24
January 30 29 13.13 167.37
January 31 30 13.13 180.50
February 1, 2014 31 14.22 194.72
February 2 32 14.22 208.94
February 3 33 14.22 223.16
February 4 34 14.22 237.38
February 5 35 14.22 251.60

82 Port Rules and Regulations 2014

 C-2. Assumption 1. 20-Footer Container
2. Day of arrival of cargo at the port - December 14, 2013
3. Day of departure of cargo - January 24, 2014

Dwell Time Cumulative

Date Rate Per Day
(Days) Amount
December 14, 2013 1 FSP 0.00
December 15 2 FSP 0.00
December 16 3 FSP 0.00
December 17 4 FSP 0.00
December 18 5 FSP 0.00
December 19 6 FSP 0.00
December 20 7 FSP 0.00
December 21 8 FSP 0.00
December 22 9 FSP 0.00
December 23 10 FSP 0.00
December 24 11 FSP 0.00
December 25 12 FSP 0.00
December 26 13 FSP 0.00
December 27 14 FSP 0.00
December 28 15 FSP 0.00
December 29 16 US$ 5.47 * US$ 5.47
December 30 17 5.47 * 10.94
December 31 18 5.47 * 16.41
January 1, 2014 19 5.47 * 21.88
January 2 20 10.94 32.82
January 3 21 12.03 44.85
January 4 22 12.03 56.88
January 5 23 12.03 68.91
January 6 24 12.03 80.94
January 7 25 12.03 92.97
January 8 26 13.13 106.10
January 9 27 13.13 119.23
January 10 28 13.13 132.36
January 11 29 13.13 145.49
January 12 30 13.13 158.62
January 13 31 14.22 172.84
January 14 32 14.22 187.06
January 15 33 14.22 201.28
January 16 34 14.22 215.50
January 17 35 14.22 229.72
January 18 36 15.32 245.04
January 19 37 15.32 260.36
January 20 38 15.32 275.68
January 21 39 15.32 291.00
January 22 40 15.32 306.32
January 23 41 16.41 322.73
January 24 42 16.41 339.14

US$ 5.47- old rate*

Port Rules and Regulations 2014 83

January 24, 2014

OPERATIONS MEMORANDUM CIRCULAR

NO. 02 - 2014

TO : All Port District Managers

Port Managers
Shipping Lines
Cargo Owners
Others Concerned

SUBJECT : Amendments to PPA Memorandum Circular (MC)

No. 13-2013 Entitled “Clarification of PPA MC No.
22-2004 on the Assessment of Wharfage on Empty
Containers of Shipping Lines Engaged in Foreign
and Domestic Trade”

To address the issue raised during the meeting held today attended by AISL and the Terminal Operators (ATI
and ICTSI), PPA MC No. 13-2013 is hereby amended, whereby, the condition prescribed under Items II - B.3
and III-B.2 which states “to ensure that foreign empty containers brought in the country are the same containers
to be used in the exportation of Philippine products, the shipping lines shall present to the PMO concerned the
Special Permit to Load or Loading List which contain the numbers of the containers for validation purposes” is
hereby deleted.

For guidance.

(Sgd.) RAUL T. SANTOS

AGM for Operations

84 Port Rules and Regulations 2014

June 30, 2014

PPA MEMORANDUM ORDER

NO. 09 - 2014

TO : All Port District Managers

Port Managers
Others Concerned

SUBJECT : Guidelines in the Preparation of Computation Sheet for

Domestic Non-Containerized Cargoes Subject to Minimum
Wharfage Fee using the Port Receipting System (PRS)

This memorandum order is issued to address the concern in the preparation of Computation Sheet for domestic
non-containerized cargoes whose weight or measurement falls within the minimum charge.

For all domestic non-containerized cargoes within minimal volume falling under the minimum domestic
wharfage fee of Php15.00, the following procedures shall be observed in the preparation of computation sheet
using the recently launched Portsite Receipting System:

1. For cargoes weighing/measuring less than 1.67 metric ton or less than 2.15 revenue ton, use “1”
as the value to be entered in the “Quantity” field.

2. The minimum wharfage fee of Php15.00 shall be entered in the “rate” field. The minimum charge
of Php. 15.00 shall automatically be reflected under the “amount” field.

This procedure shall only be temporary while the enhancement is being developed that would allow generation
of Computation Sheet showing the minimum wharfage fee rate of Php15.00 with the exact cargo weight or
measurement for statistical data purposes.

For guidance and compliance.

(Sgd.) JUAN C. STA. ANA

General Manager

Port Rules and Regulations 2014 85

August 18, 2014

PPA MEMORANDUM ORDER

NO. 20 - 2014

TO : All Port District Managers

Port Managers
Shipping Lines
Terminal Operator - Port of Batangas-Phase II
Others Concerned

SUBJECT : Reduced Port Charges and Change of the Charging Base

for Dockage-at-Berth at Batangas Container Terminal

Pursuant to the letter dated August 1, 2014 from the Office of the President and to attract more ship calls and
boost maximum utilization at BCT, the PPA’s recommendation for the reduction of the rates on port charges
(Port Dues and Dockage-at-Berth) and the change of charging base for Dockage-at-Berth has been approved.

The reduction on port charges and the change in the charging base shall therefore be as follows:

a. Port Charges
First six (6) months – 90% discount
Port Charge
From To
US $0.081 US $0.008
From To
Succeeding six (6) months – 50% discount
Port Dues
US $0.081 US$0.040
After one (1) Year – No discount
US $0.081

First six (6) months – 90% discount

Port Charge
From To
US $0.039 US $0.004
From To
Succeeding six (6) months – 50% discount
Dockage-at-Berth
US $0.039 US$0.020
After one (1) Year – No discount
US $0.039

86 Port Rules and Regulations 2014

 b. Charging Base

Port Charge From To

Per GRT per calendar Per GRT per block of 24

Dockage-at-berth
day or fraction thereof hours or fraction thereof

In the implementation of the reduced port charges, please be guided of the following.

a. The 90% discount for the first six (6) months and 50% discount for the succeeding months for Port
Dues and Dockage-at-Berth shall apply to all foreign vessels calling at BCT;

b. Where the ultimate goal for the reduction is to attract greater foreign ship calls, the area referred
to is the Batangas Container Terminal, Port of Batangas-Phase II;

c. Vessels traditionally calling MICT or South Harbor which intend to call at BCT wanting to avail of
the reduced port charges are entitled to the incentives;

d. The BCT is designed for foreign container vessels. However, any kind of vessel which under
certain cases are allowed by the Authority to dock at BCT are entitled to the reduced port charges.

e. There shall be no discount after the one (1) year period.

The Port Management Office at Batangas Port, shall submit to the Office of the AGM for Operations, Attn.: CSD,
a monthly monitoring report on the forgone revenues from the rate reduction, as well as, the additional ship calls
and revenue, as a result of this incentive.

Pursuant existing rules and regulations, the Order shall take effect 30 days after publication in newspaper of
general circulation.

For compliance.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the following newspapers:

Manila StandardToday
August 27, 2014
Philippine Star
Effectivity Date – September 26, 2014

Port Rules and Regulations 2014 87

September 16, 2014

PPA MEMORANDUM CIRCULAR

NO. 12 - 2014

TO : The District Manager, PDO-Manila/Northern Luzon

The Port Manager, PMO-South Harbor
Officer-In-Charge, PPA-MICT
International Container Terminal Services, Inc. (ICTSI)
Asian Terminals, Inc. (ATI)
Port Users
Others Concerned

SUBJECT : Approved New Storage Rates for Overstaying Foreign Inbound

Containers that Have Been Cleared and Issued Gate Passes by
the Bureau of Customs (BOC) for Withdrawal

Pursuant to PPA Board Resolution No. 2401 dated September 12, 2014 and the Memorandum from the Office
of the President dated September 15, 2014, the new storage rates for overstaying foreign inbound containers
that have been cleared and issued gate passes by the BOC for withdrawal is hereby approved, which are as
follows:

11th day after Imported Containers

New Storage Charge are Cleared and Issued Gate
Passes by the BOC for Withdrawal
20 footer Php 5, 000.00
35 footer 8, 750.00
40 footer 10,000.00
45 footer 11,250.00

The new storage charges shall be applicable only at the Manila International Container Terminal, and the Ports
of South Harbor, Batangas and Subic.

The Circular shall be effective 15 days after publication in national newspaper of general circulation.

For compliance.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Philippine Star - September 17, 2014

Effectivity Date – October 2, 2014

88 Port Rules and Regulations 2014

September 30, 2014

PPA MEMORANDUM ORDER

NO. 27 - 2014

TO : All Port District Managers

Port Managers
Shipping Lines
Terminal Operator – Port of Bantangas-Phase II
Others Concerned

SUBJECT : Clarifications of PPA Memorandum Order No. 20-2014

Re Reduced Port Charges and Change of the Charging
Base for Dockage-at-Berth at Batangas Container Terminal

To avert possible confusion on the implementation of the reduced port charges and change in the charging base
for dockage-at-berth prescribed under PPA Memorandum Order (MO) No. 20-2014, the following clarifications
are hereby issued:

 The 90% discount for the first six (6) months shall start on September 26, 2014 up to March 25,
2015;

 The 50% discount for the succeeding six (6) months shall start on March 26, 2015 until
September 25, 2015.

 No discount shall be granted starting September 26, 2015. On this date, the applicable current
regular rates apply.

For your guidance.

(Sgd.) JUAN C. STA. ANA

General Manager

Port Rules and Regulations 2014 89

October 01, 2014

PPA MEMORANDUM CIRCULAR

NO. 13 - 2014

TO : The District Manger, PDO-Manila/Northern Luzon

The District Manager, PDO-Southern Luzon
The Port Manager, PMO-South Harbor
The Port Manager, PMO-Batangas
Officer-In-Charger, PPA-MICT
International Container Terminal Services, Inc. (ICTSI)
Asian Terminals, Inc. (ATI)
Port Users
Others Concerned

SUBJECT : Clarifications on PPA Memorandum Circular No. 12-2014

Re Approved New Storage Rates for Overstaying Foreign
Inbound Containers that Have Been Cleared by the Bureau
of Customs (BOC) for Withdrawal

To ensure proper implementation of the approved new storage charges for overstaying foreign inbound
containers prescribed under PPA Memorandum Circular (MC) No. 12-2014, the following clarifications are
hereby issued:

1. Storage charge is the amount assessed on articles, baggage and containers for storage in the
port premises, cargo shed and warehouses of the government. It shall be charged on cargoes that
remain in any government-owned port beyond the “free storage period” (FSP).

2. For imported cargoes or for foreign inbound containers, a five (5) day FSP is given after the day
the last item of cargo is discharged from the carrying vessel.

3. After the FSP of five (5) days, the storage rates for foreign inbound containers contained under
PPA MC No. 10-2013 applies until the provisions of PPA MC. No. 12-2014 become applicable.

4. Overstaying foreign inbound containers contemplated under PPA MC No. 12-2014 is understood
to mean that the following conditions are present:

90 Port Rules and Regulations 2014

  The vessel carrying the foreign inbound containers actually berthed;

 The foreign inbound containers have been discharged at the port;

 Said foreign inbound containers that have been discharged at the port are given five (5) days
FSP which shall commence after the day that the last item of cargo is discharged from the
carrying vessel;

 Foreign inbound containers stayed at the port despite BOC’s issuance and gate passes for
withdrawal after payment of duties and taxes

5. Issuance of clearance is understood to mean that it is through the On Line Release System
(OLRS).

6. Pursuant to Customs Memorandum Order No. 43-2010 dated October 13, 2010, OLRS processes
the release instruction message and facilitates release of goods from the transit facility. The transit
facility does the actual releasing of cargoes and issuance of gate pass for the goods to be brought
out of the port.

7. After having been cleared through OLRS, the importers are given another ten (10) days allowance
to pull out their containers, the storage charges applicable of which during this period, are the
rates prescribed under PPA MC No. 10-2013.

8. Should the same foreign inbound boxes cleared through OLRS overstay at the port after the ten
(10) days allowance, the new storage rates per day under PPA MC No. 12-2014 indicated below
shall apply:

11th day after Imported Containers

New Storage Charge are Cleared and Issued Gate Passes
by the BOC for Withdrawal

20 footer Php 5,000.00

35 footer 8,750.00
40 footer 10,000.00
45 footer 11,250.00

Port Rules and Regulations 2014 91

 9. All overstaying foreign inbound containers that have been cleared through OLRS prior to the
October 2, 2014 effectivity, shall still have ten (10) days from October 2, 2014 before the new
storage rates apply.

10. The new storage charges shall be applicable only at the MICT, South Harbor, Batangas and Subic
ports.

Attached is a sample computation on the application of the new storage charges for easy reference.

For guidance of all concerned.

(Sgd.) JUAN C. STA. ANA

General Manager

92 Port Rules and Regulations 2014

 SAMPLE COMPUTATION FOR THE NEW STORAGE RATE
PURSUANT TO PPA MEMORANDUM CIRCULAR NO. 12-2014

Sample 1:

A 20-footer foreign import container was cleared through On Line Release System (OLRS) and have been
issued gatepass by the Bureau of Customs for withdrawal on the 16th day. However, said container was pulled
out from the port only on the 35th day.

Dwell Time Cumulative

(Days) Amount
Rate Per Day REMARKS
1 NONE 0.00
2 NONE 0.00
3 NONE 0.00 Free Storage
Period
4 NONE 0.00
5 NONE 0.00
6 481.30 481.30
7 481.30 962.60
8 481.30 1,443.90
9 481.30 1,925.20
10 481.30 2,406.50 Rate per day
pursuant to PPA
11 529.43 2,935.93 MC No. 10-2013
12 529.43 3,465.36
13 529.43 3,994.79
14 529.43 4,524.22
15 529.43 5,053.65
Cleared by BOC
through OLRS
16 577.56 5,631.21
17 577.56 6,208.77
18 577.56 6,786.33 *10 days allowance
19 577.56 7,363.89 after clearance
20 577.56 7,941.45 from BOC through
OLRS starting
21 625.69 8,567.14 Oct. 2,2014
22 625.69 9,192.83 (Rate/day pursuant
23 625.69 9,818.52 to PPA MC No. 10-
24 625.69 10,444.21 2013)
25 625.69 11,069.90
26 5,000.00 16,069.90
27 5,000.00 21,069.90 New Storage
28 5,000.00 26,069.90 Rate per day at
29 5,000.00 31,069.90 Php5,000/TEU
30 5,000.00 36,069.90 should foreign
inbound container
31 5,000.00 41,069.90 overstay after 10
32 5,000.00 46,069.90 days from issuance
33 5,000.00 51,069.90 of BOC clearance
34 5,000.00 56,069.90 through OLRS and
35 5,000.00 61,069.90 gatepass

* in terms of payment of existing storage charges.

Port Rules and Regulations 2014 93

 PORT OPERATIONS

October 17, 2014

PPA ADMINISTRATIVE ORDER

NO. 08 - 2014

TO : All Port District Managers, Port Managers

Port Users and Others Concerned

SUBJECT : AMENDMENTS TO PPA ADMINISTRATIVE ORDER (AO) NO. 06-2013,

ENTITLED “AMENDMENT TO PPA ADMINISTRATIVE ORDER NO.
05-2007 (Revised Guidelines on the Transfer of the Management of
PPA Ports to Local Government Units (LGUs) and Government
Corporations (GCs))ˮ

Pursuant to PPA Board Ex-Com Resolution No. 2014-1399 dated 15 September 2014, Section 2, Item 2.1 of
PPA AO No. 06-2013 is hereby amended to read as:

“Section 2. Quarterly Supervision Fee (QSF)

2.1 The Supervision Fee to be remitted by the LGU or GC to PPA shall be

equivalent to fifty (50%) percent of the port revenues generated.

The fifty (50%) percent QSF shall be imposed and be made a condition
of the MOA only on those LGUs with requests for PPA to undertake port
development projects including capital dredging for the port. Otherwise the
ten (10%) percent QSF shall be applied.

LGUs may request for non-coverage from the application of 50% QSF which
the approval thereof by the Authority shall be subject to the submission of
documents as proof of LGU’s investments in port development as may be
required by the Port Management Office exercising jurisdiction thereat.

The Port Manager concerned shall issue a Certification that the LGU is
qualified for said non-coverage.

The General Manager, based on the documents submitted and

recommendations from the Assistant General Manager for Operations,
may then approve the grant of non-coverage and the same shall be made
part of the MOA.

94 Port Rules and Regulations 2014

 In future MOAs, the LGUs shall apply for non-coverage prior to the
execution of the MOA and the same shall likewise be made part of the
MOA.”

All other provisions of PPA AO No. 06-2013 not affected by this Order shall remain valid and in full force.

This Order shall take effect fifteen (15) calendar days from its publication in the Official Gazette or in a newspaper
of general circulation and a copy filed with the University of the Philippines Law Center.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Philippine Star – October 25, 2014

Effectivity Date – November 8, 2014

Port Rules and Regulations 2014 95

 SECRETARY’S CERTIFICATE

I, ELSA L. HILARIO, duly designated Corporate Board Secretary of the Philippine Ports
Authority (PPA), a government instrumentality attached to the Department of Transportation and
Communications, created by virtue of Presidential of Transportation Decree No. 857, as amended, with
principal office at the 6th Floor PPA Head Office Building, A. Bonifacio Drive, South Harbor, Port Area,
Manila, and having custody of the Board records of the PPA, do hereby certify:

That, during the 271st meeting of the Executive Committee of the Board of Directors of the
Philippine Ports Authority held on 12 September 2014 at the Board Room, 6th Floor, PPA Head Office
Building, A. Bonifacio Drive, South Harbor, Port Area, Manila, the following Resolution was adopted:

EX-COM RESOLUTION NO. 2014-1399

“RESOLVED, that on motion duly made and seconded, that the proposed
amendment to Section 2, item 2.1 of PPA Administrative Order No. 06-2013
dated December 17, 2013 (Amendment on PPA Administrative Order No.
05-2007, otherwise known as the "Revised Guidelines on the Transfer of
Management of PPA Ports to Local Government Units (LGUs) and Government
Corporations (GCs), be, as it is hereby approved, to read as follows.

“Section 2. Quarterly Supervision Fee (QSF)

2.1 The Supervision Fee to be remitted by the LGU or GC to PPA shall

be equivalent to fifty (50%) percent of the port revenues generated.

The fifty (50%) percent QSF shall be imposed and be made a condition
of the MOA only on those LGUs with requests for PPA to undertake port
development projects including capital dredging for the port. Otherwise
the ten (10%) percent QSF shall be applied.

LGUs may request for non-coverage from the application of 50%

QSF which the approval thereof by the Authority shall be subject to
the submission of documents as proof of LGUs investments in port
development as may be required by the Port Management Office
exercising jurisdiction thereat.

96 Port Rules and Regulations 2014

 The Port Manager concerned shall issue a Certification that the LGU is
qualified for said non-coverage.

The General Manager, based on the documents submitted and

recommendations from the Assistant General Manager for Operations
may then approve the grant of non-coverage and the same shall be
made part of the MOA.

In future MOAs, the LGUs shall apply for non-coverage prior to the
execution of the MOA and the same shall likeiwise be made part of the
MOA.”

IN WITNESS WHEREOF, I have signed this Secretary’s Certificate this 15th day of September
2014, at the above-mentioned address.

(Sgd.) ATTY. ELSA L. HILARIO

Corporate Board Secretary

Port Rules and Regulations 2014 97

December 16, 2014

PPA MEMORANDUM ORDER

NO. 36 - 2014

TO : All Port Managers

All Department Managers
All Terminal Operators
All Cargo Handling Operators
All Shipping Lines and Ship̕ s Agents
All Shippers and Consignees
Others Concerned

SUBJECT : Changes from Existing to New Nomenclature for Field

and Head Office Units of the Philippine Ports Authority

In view of the on-going implementation of the re-structuring of the Philippine Ports Authority under its
Rationalization Plan, please be advised that henceforth the new nomenclature as shown in the attached matrix
for PPA Field and Head Office Units is hereby prescribed.

The use of the new nomenclature shall start on 01 January 2015.

This Order shall take effect immediately upon its publication in the Official Gazette or in a newspaper of general
circulation and a copy filed with the University of the Philippines Law Center.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Philippine Star - December 20, 2014

98 Port Rules and Regulations 2014

 NEW NOMENCLATURE FOR FIELD OFFICES OF THE PHILIPPINE PORTS AUTHORITY

PMO
OLD STRUCTURE NEW STRUCTURE DESCRIPTION OF GEOGRAPHICAL COVERAGE
CODES
1 PMO SOUTH HARBOR 1 PMO NCR SOUTH NCS 1. Starting from Del Pan Bridge and then along
the south bank of the Pasig River proceeding
downriver and then southwards following the
coastlines and contiguous coastal waters of
Manila, Pasay, Parañaque, Las Piñas and
Cavite Province including all government and
private ports located therein except those
under the jurisdiction of the Philippine Navy
(Sangley Point)
2. South Harbor also covers the north bank of
Pasig River from Del Pan Bridge up to the
start of the access road leading to the Manila
International Container Terminal (MICT).
3. With an imaginary line drawn from the mouth
of Pasig River to Corregidor Island, South
Harbor will cover the navigational approaches
south of this line.
4. All private ports located along Pasig River
except those along the coast of Laguna de
Bay which are under the jurisdiction of the
Laguna Lake Development Authority (LLDA)
2 PMO NORTH HARBOR 2 PMO NCR NORTH NCN 1. Starting from the access road leading to the
MICT and proceeding northward along the
coastlines and contiguous coastal waters of
Manila, Malabon and Navotas.
2. With an imaginary line drawn from the mouth
of Pasig River to Corregidor Island, North
Harbor will cover the navigational approaches
north of this line
3. All private ports located along this coast.

page 1 of 6

99 Port Rules and Regulations 2014

 NEW NOMENCLATURE FOR FIELD OFFICES OF THE PHILIPPINE PORTS AUTHORITY

PMO
OLD STRUCTURE NEW STRUCTURE DESCRIPTION OF GEOGRAPHICAL COVERAGE
CODES
3 PMO LIMAY 3 PMO BATAAN/AURORA BNA Coastal areas and contiguous coastal waters
of Bataan, Corregidor, Bulacan, Pampanga
and Aurora including private ports located
therein except for ports under the administrative
jurisdiction of the Aurora Special Economic
Zone Authority (ASEZA).
4 PMO BATANGAS 4 PMO BATANGAS BGS Coastal areas and contiguous coastal waters of
Batangas and Romblon including private ports
located therein
5 PMO SAN FERNANDO 5 PMO NORTHERN LUZON NLZ Coastal areas and contiguous coastal waters of La
Union, Zambales, Pangasinan, Ilocos Sur, Ilocos
Norte, Batanes Province, Cagayan and Isabela
including private ports located therein except for
the following:
1. San Fernando Port in San Fernando, La
Union which is under the administrative
jurisdiction of the Bases Conversion
Development Authority and its regulated ports
2. Subic Port in Olongapo City, Zambales which
is under the administrative jurisdiction of the
Subic Bay Metropolitan Authority (SBMA) and
its regulated ports
3. Ports of Irene and San Vicente in Sta. Ana,
Cagayan which are under the administrative
jurisdiction of the Cagayan Economic Zone
Authority (CEZA) and its regulated ports
6 PMO CALAPAN 6 PMO MINDORO MDO Coastal areas and contiguous coastals waters of
Mindoro Island and Lubang Island including private
ports located therein

page 2 of 6

100 Port Rules and Regulations 2014

 NEW NOMENCLATURE FOR FIELD OFFICES OF THE PHILIPPINE PORTS AUTHORITY

PMO
OLD STRUCTURE NEW STRUCTURE DESCRIPTION OF GEOGRAPHICAL COVERAGE
CODES
7 PMO LEGAZPI 7 PMO BICOL BCL Coastal areas and contiguous coastal waters of
Albay, Sorsogon, Camarines Sur, Camarines
Norte, Catanduanes including private ports located
therein
8 PMO PUERTO 8 PMO PALAWAN PLW Coastal areas and contiguous coastal waters of
PRINCESA Palawan Province (and all its islands) including
private ports located therein
9 PMO ILOILO 9 PMO PANAY/GUIMARAS PNG Coastal areas and contiguous coastal waters of the
entire Panay Island, Guimaras Island and Semirara
Islands including private ports located therein
10 PMO DUMAGUETE 10 PMO NEGROS NOS Coastal areas and contiguous coastal waters of
ORIENTAL/SIQUIJOR Negros Oriental and Sequijor Island including
private ports located therein
11 PMO TAGBILARAN 11 PMO BOHOL BHL Coastal areas and contiguous coastal waters of
Bohol Province including private ports located
therein
12 PMO TACLOBAN 12 PMO EASTERN LEYTE/ ELS Coastal areas and contiguous coastal waters of
SAMAR Eastern Leyte and Samar including private ports
located therein; all ports in Southern Leyte shall
also be under PMO-ELS except Maasin, Padre
Burgos and Limasawa.
13 PMO PULUPANDAN 13 PMO NEGROS NBB Coastal areas and contiguous coastal waters of
OCCIDENTAL/BACOLOD/ Negros Occidental including private ports located
BANAGO/BREDCO therein
14 PMO ORMOC 14 PMO WESTERN LEYTE/ WLB Coastal areas and contiguous coastal waters of
BILIRAN Western and Southern Leyte and Biliran including
private ports located therein; the following ports in
Southern Leyte shall also be under PMO-WLB:
Maasin, Padre Burgos and Limasawa
page 3 of 6
101 Port Rules and Regulations 2014
 NEW NOMENCLATURE FOR FIELD OFFICES OF THE PHILIPPINE PORTS AUTHORITY

PMO
OLD STRUCTURE NEW STRUCTURE DESCRIPTION OF GEOGRAPHICAL COVERAGE
CODES
15 PMO CAGAYAN DE ORO 15 PMO MISAMIS MOC Coastal areas and contiguous coastal waters of
ORIENTAL/CAGAYAN Misamis Oriental and Camiguin Island including
DE ORO private ports located therein except for the
Mindanao Container Terminal (MCT) in Tagoloan,
Misamis Oriental which is under the administrative
jurisdiction of PHIVIDEC Industrial Authority (PIA)
and its regulated ports within the Municipality of
Tagoloan, Misamis Oriental
16 PMO ILIGAN 16 PMO LANAO DEL LNI Coastal areas and contiguous coastal waters of Lanao
NORTE/ILIGAN del Norte including private ports located therein
17 PMO NASIPIT 17 PMO AGUSAN AGS Coastal areas and contiguous coastal waters of Agusan
del Norte including private ports located therein
18 PMO SURIGAO 18 PMO SURIGAO SUG Coastal areas and contiguous coastal waters of
Surigao del Norte, Surigao del Sur, Siargao Island and
Dinagat Islands including private ports located therein
19 PMO OZAMIZ 19 PMO MISAMIS MOZ Coastal areas and contiguous coastal waters of
OCCIDENTAL/OZAMIZ Misamis Occidental including private ports located
therein
20 PMO DAPITAN 20 PMO ZAMBOANGA DEL ZDN Coastal areas and contiguous coastal waters
NORTE of Zamboanga del Norte including private ports
located therein
21 PMO DAVAO 21 PMO DAVAO DVO Coastal areas and contiguous coastal waters of
Davao del Sur, Davao Oriental, Davao del Norte and
Samal Island including private ports located therein
22 PMO ZAMBOANGA 22 PMO ZAMBOANGA ZBA Coastal areas and contiguous coastal waters
of Zamboanga del Sur, Zamboanga Sibugay,
Zamboanga City and Basilan Island (except those
ports which are part of ARMM) including private
ports located therein
page 4 of 6
102 Port Rules and Regulations 2014
 NEW NOMENCLATURE FOR FIELD OFFICES OF THE PHILIPPINE PORTS AUTHORITY

PMO
OLD STRUCTURE NEW STRUCTURE DESCRIPTION OF GEOGRAPHICAL COVERAGE
CODES
23 PMO GENERAL SANTOS 23 PMO SOCSARGEN SSG Coastal areas and contiguous coastal waters of
South Cotabato, General Santos City, Sarangani,
Balut and Sarangani Islands including private ports
located therein
24 PMO COTABATO 24 PMO COTABATO CBO Coastal areas and contiguous coastal waters of
Maguindanao (except Polloc Port) and Sultan
Kudarat including private ports located therein

25 PMO MARQUEZ MRQ Coastal areas and contiguous coastal waters of

Marinduque, Quezon Province and Polillo Group of
Islands including private ports located therein
26 PMO MASBATE MSB Coastal areas and contiguous coastal waters of
Masbate, Ticao Island and Burias Island including
private ports located therein

page 5 of 6

103 Port Rules and Regulations 2014

 NEW NOMECLATURE FOR HEAD OFFICE UNITS OF THE PHILIPPINE PORTS AUTHORITY

OLD NAME NEW NAME (OR NEW UNIT) REPORTING TO

1 STRATEGIC PLANNING DEPARTMENT CORPORATE PLANNING DEVELOPMENT GENERAL MANAGER

2 MANAGEMENT INFORMATION AND INFORMATION AND COMMUNICATIONS GENERAL MANAGER
SERVICES DEPARTMENT TECHNOLOGY DEPARTMENT
3 LEGAL SERVICES DEPARTMENT LEGAL SERVICES DEPARTMENT GENERAL MANAGER
4 PORT MANAGEMENT SYSTEMS AND GENERAL MANAGER
ORGANIZATION DEVELOPMENT
DEPARTMENT
5 PORT OPERATIONS AND SERVICES PORT OPERATIONS AND SERVICES ASST. GEN. MGR. FOR OPERATIONS
DEPARTMENT DEPARTMENT
6 COMMERCIAL SERVICES COMMERCIAL SERVICES DEPARTMENT ASST. GEN. MGR. FOR OPERATIONS
DEPARTMENT
7 PORT POLICE DEPARTMENT PORT POLICE DEPARTMENT ASST. GEN. MGR. FOR OPERATIONS
8 PPA TRAINING CENTER PPA TRAINING INSTITUTE ASST. GEN. MGR. FOR OPERATIONS
9 PROJECT DEVELOPMENT PORT PLANNING AND DESIGN ASST. GEN. MGR. FOR
DEPARTMENT DEPARTMENT ENGINEERING
10 HARBOR MAINTENANCE DREDGING AND SURVEY DEPARTMENT ASST. GEN. MGR. FOR
DEPARTMENT ENGINEERING
11 FACILITIES CONSTRUCTION AND PORT CONSTRUCTION AND ASST. GEN. MGR. FOR
MAINTENANCE DEPARTMENT MAINTENANCE DEPARTMENT ENGINEERING
12 CONTROLLERSHIP DEPARTMENT CONTROLLERSHIP DEPARTMENT ASST. GEN. MGR. FOR FINANCE &
ADMINISTRATION
13 TREASURY DEPARTMENT TREASURY DEPARTMENT ASST. GEN. MGR. FOR FINANCE &
ADMINISTRATION
14 HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE MANAGEMENT ASST. GEN. MGR. FOR FINANCE &
DEPARTMENT DEPARTMENT ADMINISTRATION
15 ADMINISTRATIVE SERVICES ADMINISTRATIVE SERVICES ASST. GEN. MGR. FOR FINANCE &
DEPARTMENT DEPARTMENT ADMINISTRATION
16 INTERNAL CONTROL DEPARTMENT INTERNAL AUDIT DEPARTMENT BOARD OF DIRECTORS

page 6 of 6

104 Port Rules and Regulations 2014

 PORT SAFETY AND SECURITY

January 24, 2014

PPA ADMINISTRATIVE ORDER

NO. 02 - 2014

TO : All Port District Managers, Port Managers,

Shipping Companies/Agents, Cargo Handling Operators,
And Others Concerned

SUBJECT : Guidelines on the Proper Disposition of Seized, Detained or

Forfeited Vessels Berthed at PPA-Managed Ports

1. AUTHORITY

1.1 Sections 6-a (ii), (vi), (x), 26 and 28 of PD 857, as amended

1.2 Article IV, Section 29 PPA A.O. No. 13-77 entitled “General Port Regulations of the Philippine
Ports Authority”

2. SCOPE

This Order shall cover all vessels that are subject of seizure, detention, and/or forteiture by an authorized
government entity utilizing the berthing facilities of ports under the jurisdiction of PPA.

3. OBJECTIVES

3.1 To ensure the safety of all persons inside the port premises, including passengers of vessels,
especially during its arrival or departure or during embarkation or disembarkation operations;

3.2 To ensure the safety of vessels and port facilities within the jurisdiction of PPA;

3.3 To optimize the utilization of berths and quay-side facilities and back-up areas of PPA-managed
ports

4. GENERAL GUIDELINES

4.1 As a matter of policy, the allocation of a berth belonging to or operated by the Authority shall be
at the Authority’s discretion

4.2 No seized/detained/forfeited vessel shall be berthed or unberthed alongside a wharf or pier

belonging to or operated by the Authority without its permission or contrary to its directives, nor
shall said vessel occupy a berth other than its assigned berth.

Port Rules and Regulations 2014 105

5. SPECIFIC GUIDELINES

The following procedural steps shall be followed by all concerned parties in the movement of a vessel
which has been the subject of seizure, detention, and/or forfeiture by an authorized government entity:

5.1 The Port Manager shall notify in writing the authorized government entity in actual or constructive
possession of such vessel, within thirty (30) days from receipt of Advice/Notification of Seizure
citing the need for said vessel to be moved out of its existing berth to an available anchorage
area;

5.2 The Master/owner/agent of the seized or detained vessel shall be notified by the Port Manager
of the vessel’s shifting order with the advice to settle accrued vessel charges prior to effectivity
of the seizure order, including interest and penalties, if any;

5.3 If a seized vessel is unable to move out when so required by the Authority, the same shall be,
or caused to be moved out in any appropriate or environmentally sound manner without further
notice to the owner, provided that all the expenses to be incurred by the Authority shall be borne
by the owner/agent of said vessel;

5.4 If, within fifteen (15) days after the notification, no owner or agent can be found or appears
before the Port Manager and the vessel has been declared the property forfeited in favor of
the government, the PMO shall make proper representation with the authorized government
arresting agency for the payment of port charges due to PPA once sold at auction or disposed
of in accordance with law.

6. REPEALING CLAUSE

All PPA issuances and policies or part thereof inconsistent with or contrary to any of the provisions of this
Order are hereby modified or repealed accordingly.

7. SEPARABILITY CLAUSE

Any provision or portion of this Order declared by competent authority as invalid shall not affect its other
parts or provisions to which the declaration does not relate.

8. EFFECTIVITY

This Order shall take effect fifteen (15) days after its publication in the official gazette or in any newspaper
of general circulation.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Philippine Star - January 30, 2014

Effectivity Date – February 14, 2014

106 Port Rules and Regulations 2014

October 24, 2014

PPA MEMORANDUM CIRCULAR

NO. 14 - 2014

TO : All Port District Managers/Port Managers

Shipping Companies/Agents, Cargo Handling Operators
Harbor Pilots̕ Associations and Others Concerned

SUBJECT : Guidelines on the Computation of Cost of

Opportunity Loss on Damaged Port Facilities
Caused by Vessels

1. AUTHORITY

1.1 Section 6 (a) (ii), and 28 of P.D. 857, as amended.

1.2 PPA Administrative Order No. 05-79 entitled “Guidelines on the Action to be Taken Against
Vessels Causing Damage to the Piers or Other Property, Private or Government”

2. SCOPE

This Circular shall apply on damage/s caused by any foreign or domestic vessels on the facility/ies at
PPA-managed ports.

3. OBJECTIVES

3.1 To ensure safe maneuvering and berthing of vessels for the protection of port facilities within the
jurisdiction of the Authority.

3.2 To recoup investment and cover revenue losses due to inoperability or non-availability of the
damaged PPA piers/wharves or port facilities.

4. GUIDELINES

4.1 As a policy, where any vessel causes damage to the pier/wharf or physical port facility owned
or maintained by the PPA, the Port Manager or his duly authorized representative shall, within
twenty-four (24) hours from the time the incident occurred, file a sworn damage claim with the
Vessel Master/Operator/Agent copy furnished the local office of the Philippine Coast Guard
(PCG) if domestic vessel is involved, or the Collector of Customs if foreign vessel, stating
therein the following information:

Port Rules and Regulations 2014 107

 a. Name and voyage number of the vessel involved;
b. Name of Master and owner or agent of the vessel;
c. Exact date and time of the incident;
d. Facility/ies damaged and the corresponding extent and estimated value of the damage;
e. The locality, nature, probable cause of the circumstances surrounding the incident;
f. Names of, nature and extent of injury to persons or loss of life, if any; and
g. Other relevant information.

4.2 The procedures under Article II, Sections 5 to 10 of PPA Administrative Order No. 05-79 entitled
“Guidelines on the Action to be Taken Against Vessels Causing Damage to the Piers or Other
Property, Private or Government” shall apply insofar as filing of claims and proceedings are
concerned.

4.3 In addition to the detailed estimate of the damage, the PMO Engineering Services Division
Manager or his representative shall submit to the Port Manager a computation of the Cost of
Opportunity Loss (COL) using the following formula:

Net Ave. Gross Rev. = Ave. Gross Rev. (last 5 years) – Ave. Non-applicable Rev.
(last 5 years)

Net Ave. Daily Rev. per Meter of Berth = Net Ave. Gross Rev. ÷ Total Effective
Berth Length x 365 days

COL = Net Ave. Daily Rev. per Meter of Berth x Total Length of
Damaged Berth x Estimated Total Number of Days the Facility will be
inoperable or unavailable.

4.4 For purposes of these guidelines, the Total Effective Berth Length refers to the overall
measurement of the entire operational berthing facility within a given wharf or pier of which the
damaged facility is part of it, as determined by the Port Manager.

4.5 The non-applicable revenue shall include but not limited to the following fees:

a. Foreshore/Miscellaneous Lease Certification

b. Admin/Port Police Clearance
c. Permits to Operate/Occupy
d. Filing Fees
e. Space and Land Rentals
f. Privilege Fees
g. Sale of gate passes/Stickers

108 Port Rules and Regulations 2014

 4.6 For clarity, hereunder is an Illustrative Example of COL computation:

Port Dumaguete (Baseport)

Date of Incident – 08 July 2009
Total Effective Berth Lenght – 801m
Total Berth Length of Damaged Port Facility – 165 m.

Average Gross Revenue for the last 5 years – ₱ 29,866,422.00

(2009-2013 Port Dues, Usage, Wharfage)
Less: Average Non-applicable Revenue Sources
for the last 5 years (2009-2013) – 1,649,368.00
Net Average Gross Revenue ₱ 28,217,054.00

Net Average Gross Revenue – ₱ 28,217,054.00

Divided by: Total Effective Berth Length 801 m. x 365 days
Net Average Daily Revenue Per Meter Berth = ₱ 96.51

Cost of Opportunity Loss as of EO April 2013 or 1,391 days since date of

incident (08 July 2009)

₱ 96.51 x 165 m. x 1,391 days = ₱ 22,150,492.65

Add: 0.05 Factor to consider other expenses such as clean-up of oil spills, removal of
derelicts, underwater surveys and any legal and administrative cost = ₱1,107,524.63

Total COL = ₱ 23,257,517.28

===========

4.7 The above COL computation shall be included in the detailed estimates of damaged facility and
shall form part of the total liability and amount of damages to be paid by the party found liable.

5. SEPARABILITY CLAUSE

If, for any reason, any section or part of this Circular is deemed invalid by competent Authority, the
declared or invalid section or part thereof shall not affect the other sections or parts to which such
declaration or nullity does not apply or relate.

Port Rules and Regulations 2014 109

6. REPEALING CLAUSE

Any provision of existing PPA rules and regulations which are inconsistent herewith shall be deemed
amended or modified accordingly.

7. EFFECTIVITY

This Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation.

For compliance.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Philippine Star - October 30, 2014

Effectivity Date – November 14, 2014.

110 Port Rules and Regulations 2014

 REVENUE COLLECTION

June 09, 2014

PPA MEMORANDUM ORDER

NO. 07 - 2014

TO : All Port District Managers

All Port Managers
All RC Head Concerned

SUBJECT : Amendment to Amended Compromise Payment Schemes

for Dormant Accounts

1. Authority

1.1 Section 6. a) (iii) Presidential Decree No. 857, as amended

1.2 Board Resolution No. 2188 issued on May 25, 2009

1.3 BoardCom Resolution No. 2009-1186 as confirmed by Board Resolution No. 2188

1.4 BoardCom Resolution No. 2010-1234 as confirmed by Board Resolution No. 2218

1.5 Ex-Com Resolution No. 2014-1379 as confirmed by Board Resolution No. 2368

2. Purpose

This Memorandum Order is issued for purposes of re-issuing PPA Memorandum Order No. 24-2010 to
expedite and facilitate the collection of dormant accounts without resorting to lengthy and costly judicial
proceedings.

3. Coverage

This Memorandum Order is a collection program which covers all dormant accounts (over 365 days old),
except the dormant rental billings in PMO North Harbor which are covered by separate orders under
PPA Memorandum Order No. 03-2009 and PPA Memorandum Order No. 20-2009.

4. Guidelines

4.1 BoardCom Resolution Nos. 2009-1186 and 2010-1234 prescribed the following schemes of
payment for dormant accounts:

4.1.1 Zero (0%) percent interest and penalty charges on those who will make full payment
within 12 months (covered by post-dated checks) from receipt of the latest Notice of
Collection.

Port Rules and Regulations 2014 111

 4.1.2 For those who cannot pay in full within the prescribed period, their accounts may be
restructured under the following conditions:

4.1.2.1 Initial Payment of at least 25% of the total principal account;

4.1.2.2 Balance to be restructured equally within a maximum period of 24

months by executing a Restructuring Agreement with PPA, duly covered
with the corresponding monthly post-dated checks (PDCs), with interest
and penalty charges as follows:

4.1.2.2.1 Simple interest of 6% per annum and penalty charge of

6% per annum from invoice date up to the date of the
Restructuring Agreement, added and forming part of the
principal restructured amount;

4.1.2.2.2 plus built-in interest of 6% per annum during the

restructuring period; and

4.1.2.2.3 0% penalty charges during the restructuring period

4.1.2.2.4 Defaulted amortization shall be charged interest of 12%

per annum and penalty charges of 25% per annum in
accordance with the existing guidelines (PPA Administrative
Order No. 01-02).

5. Amendment

Section 4.1.2.3 of PPA Memorandum Order No. 24-2010 is hereby amended to read as follows:

“4.1.2.3 This Collection Program may be availed of only up to December 31,

2015.”

6. Repealing Clause

This Memorandum Order repeals, amends or modifies all circulars, regulations and other issuances
which are inconsistent herewith.

7. Effectivity

This Memorandum Order shall take effect within thirty (30) days from the date of publication in the
Official Gazette or any newspaper of general circulation.

(Sgd.) JUAN C. STA. ANA

General Manager

Published in the Philippine Star - June 11, 2014

Effectivity Date – July 10, 2014

112 Port Rules and Regulations 2014

 SECRETARY’S CERTIFICATE

I, DAVID R. SIMON, duly designated Secretary of the Board Committee, as created by the
Board of Directors of the Philippine Ports Authority (PPA), and having custody of the Board records of
the said committee, do hereby certify:

That during the 232nd Meeting of the Board Committee held on 1 May 2010 at the Meeting Room,
Discovery Shores, Station 1, Balabag, Boracay Island 5608 Malay, Aklan, the following Resolution was
adopted:

BoardCom Resolution No. 2010-1234

“RESOLVED, That on motion duly made and seconded, and considering

the significant amount of dormant accounts collected from several port users in
the various ports of the country, the proposal of Management for the extension
of the validity period of PPA Memorandum Order No. 43-2009, entitled
“Compromise Payment Scheme for Dormant Accounts”, previously authorized
under BoardCom Resolution No. 2009-1186, with corresponding amendment
granting a 12-month payment period with post-dated checks without interest
and penalty charges, for the purpose of collecting the remaining dormant
accounts as well as give ample time for the PMOs to retrieve the supporting
documents and reconcile them with the port users concerned, be, as it is
hereby approved and extended until December 31, 2011.”

IN WITNESS WHEREOF, I have signed this Secretary’s Certificate this 4th day of May 2010,
at the above-mentioned address.

(Sgd.) ATTY. DAVID R. SIMON

Corporate Board Secretary

Port Rules and Regulations 2014 113

 SECRETARY’S CERTIFICATE

I, DAVID R. SIMON, duly designated Secretary of the Board Committee, as created by the
Board of Directors of the Philippine Ports Authority (PPA), and having custody of the Board records of
the said committee, do hereby certify:

That during the 220th Meeting of the Committee held on 22 May 2009 at the Meeting Room,
Discovery Shores, Station 1, Balabag, Boracay Island 5608 Malay, Aklan, the following Resolution was
adopted:

BoardCom Resolution No. 2009-1186

“RESOLVED, That on motion duly made and seconded, and to expedite

the process of collecting long overdue account receivables, the request of
the port users for reduction of interest rates and penalty charges from the
prescribed rates of 12% per annum and 25% per annum, respectively, be, as it
is hereby approved, as a one-time collection program, subject to the following
schemes of payment:

1. Zero (0%) percent interest and penalty charges on those who made
previous payments on their principal obligations as well as those who
will make full payment within 30 days from receipt of the latest Notice
of Collection.

2. For those who cannot pay in full within 30 days, their accounts may
be restructured under the following conditions:

2.1 Initial Payment of at least 25% of the total amount due to PPA;

2.2 Balance to be restructured within a maximum period of two (2)

years; and

2.3 Execute a Restructuring Agreement with PPA within 30 days

from remittance of the initial payment.

2.3.1 Interest Rate and Penalty Charges

2.3.1.1 Simple interest and penalty charges at the

rate of 6% per annum each from invoice
date up to the date of the Restructuring
Agreement, added to and forming part of
the principal restructured amount;

114 Port Rules and Regulations 2014

 2.3.1.2 plus built-in interest of 6% per annum
during the restructuring period

2.3.1.3 0% penalty charges during the restructuring

period

2.3.2 Charges for Defaulted Amortization

Defaulted amortization shall be charged interest of

12% per annum and penalty charges of 25% per
annum in accordance with the existing guidelines
(PPA Administration Order No. 01-02).

3. This one-time Collection Program may be availed of only within three

(3) months reckoned from the date of publication of the guideline on
said collection program.

IN WITNESS WHEREOF, I have signed this Secretary’s Certificate this 25th day of May 2009,
at the above-mentioned address.

(Sgd.) ATTY. DAVID R. SIMON

Corporate Board Secretary

Port Rules and Regulations 2014 115

 SPECIAL TAKEOVER UNITS

August 14, 2014

PPA MEMORANDUM ORDER

NO. 19 - 2014

SUBJECT : Creating the PPA-Puerto Galera Port Services (PPA-PGPS)

To ensure the continuous and efficient operations of the cargo handling services at the Port of Puerto Galera
in Barangay Balatero, Puerto Galera, Oriental Mindoro and in the exercise of the inherent functions of the
Authority to directly provide and operate cargo handling and other related services as prescribed by Presidential
Decree No. 857, as amended, there is hereby created the PPA-Puerto Galera Port Services (PPA-PGPS).

The PPA-PGPS shall, henceforth, provide and operate the cargo handling services at the said port, with powers,
functions and duties as are or may be necessary to enable it to carry out its purposes, subject to the following
guidelines:

1. Ensure the continuous and uninterrupted delivery of vital cargo handling and other related services in a
more efficient manner.

2. Utilize and employ members of the existing labor force as may be needed in the CH operation subject
to the individual screening of the members of the labor force pursuant to the pertinent provisions of PPA
Administrative Order No. 01-2006, as amended.

3. Collect at existing rates and amounts, such charges for services rendered.

4. Disburse funds to finance the necessary expenses of operations in accordance with the system prescribed
by the Authority.

5. Conduct inventory of cargoes received and still in the custody of the operator as of takeover date.

6. Conduct inventory of cargo handling equipment, gears, tools and other property of the operator.

7. Conduct inventory of cargo records and claims.

8. Conduct inventory of unused forms and supplies which can be used for the takeover.

9. Conduct inventory of office and field personnel.

10. Submit monthly operational and financial reports to the AGM for Operations.

116 Port Rules and Regulations 2014

The management, supervision and control of the PPA-PGPS shall be under the Officer-in-Charge of PMO-
Calapan to be complemented by the PPA officials and employees as the General Manager, Port District
Manager, or Port Manager may hereafter designate.

This Order takes effect immediately and shall remain in force until such time that a qualified CH operator is
selected and duly authorized to operate in the aforesaid port, unless earlier revoked or modified as may be
warranted under the circumstances.

For guidance.

(Sgd.) JUAN C. STA. ANA

General Manager

Port Rules and Regulations 2014 117

 VESSEL OPERATIONS

April 21, 2014

PPA MEMORANDUM CIRCULAR

NO. 02 - 2014

TO : All PPA Officials/Employees

And Others Concerned

REFERENCE : PORT OF ILOILO, ILOILO COMMERCIAL PORT

COMPLEX (ICPC)

SUBJECT : Implementation of PPA Quality Management

System (QMS) on Facilitation of Vessel
Entrance and Clearance Processes (VEC)

Pursuant to Executive Order No. 605 entitled “Institutionalizing the Structure, Mechanisms and Standards to
Implement the Government Quality Management Programs, Amending for the Purpose Administrative Order
No. 161, s 2006”, and our commitment to DOTC’s Performance Governance System (PGS), the PPA QMS for
the Port of Iloilo, Iloilo Commercial Port Complex (ICPC) is officially implemented together with the approved
QMS Manuals consisting of the Policy and Procedure Manuals.

The Quality Policy Statement, as follows, is hereby adopted, made known and should be understood within
PPA, as required by the ISO 9001 Standard:

“It is the policy of the Philippine Ports Authority to consistently provide and continually improve
the quality of its port operations and services in the facilitation of vessel entrance and clearance
processes at the Port of Iloilo that satisfy and needs of its clients and comply with international and
national statutory and regulatory requirements”.

The Port Manager and the PSD Manager of PMO Iloilo are hereby designated as the PMO Management
Representative and PMO Deputy Management Representative, respectively, and shall have responsibilities as
contained in the approved QMS Manuals.

All concerned PPA officials and employees are enjoined to comply with the provisions of said Manuals.

(Sgd.) JUAN C. STA. ANA

General Manager

118 Port Rules and Regulations 2014

June 02, 2014

PPA MEMORANDUM CIRCULAR

NO. 04 - 2014

TO : All PPA Officials/Employees

And Others Concerned

REFERENCE : PORT OF OZAMIZ, OZAMIZ CITY

SUBJECT : Implementation of PPA Quality Management

System (QMS) on Facilitation of Vessel
Entrance and Clearance Processes (VEC)

Pursuant to Executive Order No. 605 entitled “Institutionalizing the Structure, Mechanisms and Standards to
Implement the Government Quality Management Programs, Amending for the Purpose Administrative Order
No. 161, s 2006”, and our commitment to DOTC’s Performance Governance System (PGS), the PPA QMS for
the Port of Ozamis is officially implemented together with the approved QMS Manuals consisting of the Policy
and Procedure Manuals.

The Quality Policy Statement, as follows, is hereby adopted, made known and should be understood within
PPA, as required by the ISO 9001 Standard:

“It is the policy of the Philippine Ports Authority to consistently provide and continually improve
the quality of its port operations and services in the facilitation of vessel entrance and clearance
processes at the Port of Ozamiz that satisfy the needs of its clients and comply with international and
national statutory and regulatory requirements”.

The Port Manager and the PSD Manager of PMO Ozamiz are hereby designated as the PMO Management
Representative and PMO Deputy Management Representative, respectively, and shall have responsibilities as
contained in the approved QMS Manuals.

All concerned PPA officials and employees are enjoined to comply with the provisions of said Manuals.

(Sgd.) RAUL T. SANTOS

Officer-in-Charge

Port Rules and Regulations 2014 119

November 3, 2014

PPA MEMORANDUM CIRCULAR

NO. 16 , Series of 2014

TO : International Container Terminal Services, Inc. (ICTSI)

Asian Terminals Inc. (ATI)
Association of International Shipping Lines, Inc. (AISL)
Post District Office – Manila
PMO South Harbor
Shipping Lines/Agents
All Others Concerned

SUBJECT : Temporary Arrangement in the Assignment

of Berths for Vessels Calling at the Port of
Manila

Executive Order No. 172 dated September 13, 2014 has declared the Port of Batangas and Subic Bay Freeport
as extensions of the Port of Manila during port congestion and other emergency cases. Moreover, Article IV,
Section 6 (a)(x) of Presidential Decree No. 857, as amended, empowers the adoption by the Philippine Ports
Authority (PPA) of necessary measures to remedy port congestion.

In line with this mandate, and in order to ensure the efficient and orderly utilization of available and existing
berths at the Port of Manila (Manila International Container Terminal [MICT]/South Harbor) and Subic Bay
Freeport, the following temporary arrangement in the assignment of berths is hereby prescribed:

1. All ad hoc vessels calling at the Port of Manila including those presently on queue shall be berthed at
South Harbor or Subic Bay Freeport. Ad hoc vessels shall refer to vessels designated or arranged to
call at the Port of Manila for a specific purpose and not on a regular basis.

2. A dual-caller vessel shall be directed by PPA to berth at South Harbor or MICT upon its arrival at pilot
boarding station. A dual-caller vessel shall refer to a vessel whose ports of loading and/or unloading
are both South Harbor and MICT.

3. This temporary arrangement shall be valid until November 30, 2014.

PPA shall closely coordinate with the concerned Terminal Operators in the implementation of this Circular.

This Circular shall take effect immediately

(Sgd.) JUAN C. STA. ANA

General Manager

120 Port Rules and Regulations 2014

 MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 172

DECLARING THE PORT OF BATANGAS AND SUBIC BAY FREEPORT AS EXTENSIONS OF

THE PORT OF MANILA (MICT/SOUTH HARBOR) DURING PORT CONGESTION AND OTHER
EMERGENCY CASES

WHEREAS, it is a declared objective of the State to ensure the smooth flow of waterborne commerce
passing through the country’s ports, whether public or private, in the conduct of international and
domestic trade;

WHEREAS, port congestion is one of the major factors hindering the free flow of goods and services
passing through the ports, with its domino effects immediately cascading and impacting on the
demand-supply chain and eventually to the country’s economic growth and performance;

WHEREAS, the Port of Manila is considered as the Philippines’ most important port not only in
terms of revenues it generates but also because of its being the premier international gateway to
the country;

WHEREAS, the past six (6) months have witnessed how port congestion at the Port of Manila,
specifically, the Manila International Container Terminal (MICT) and the South Harbor, have
tremendously disrupted industries and businesses not only in Metro Manila but across the country,
and how it has highlighted the important and crucial role that the government has to play in mitigating
its impact and finding immediate solutions;

WHEREAS, the drastic restriction in the movement of trucks transporting cargoes in and out of the
Port of Manila because of the shortened operating window of trucks due to truck ban imposed by
certain Local Government Units resulted in the abnormal movement, accumulation and piling up of
cargoes and eventually severe port congestion;

Port Rules and Regulations 2014 121

 WHEREAS, there is a need to adopt measures to immediately and effectively address the existing
port congestion in the Port of Manila in order to avert further damaging effects to the country’s
economy, and also to put in place a mechanism that will immediately address future similar situations;
and

WHEREAS, the Port of Batangas and the Subic Bay Freeport are not only ports of closest proximity
to the Port of Manila but have the required capacity to handle export and import cargoes in terms of
equipment, manpower and berth.

NOW THEREFORE, I, BENIGNO S. AQUINO III, President of the Philippines, by virtue of the
powers vested in me by law, do hereby order:

Section 1. EXTENSION OF THE PORT OF MANILA. It is hereby declared that whenever there is
congestion in the Port of Manila, or in case of emergency situations affecting public interest such as,
but not limited to, strikes or lock-outs and natural calamities, resulting to serious disruptions in port
operations, designated ports in the Port of Batangas and the Subic Bay Freeport shall be considered
as extensions of the Port of Manila.

The designation of the specific port shall be made by the Philippine Ports Authority (PPA) in the case
of the Port of Batangas and the Subic Bay Metropolitan Authority (SBMA) in the case of the Subic
Bay Freeport.

Section 2. DECLARATION OF PORT CONGESTION. The Secretary of the Department of

Transportation and Communications (DOTC) shall declare the existence of port congestion or
emergency cases upon the recommendation of the Board of Directors of the PPA. The conditions
for such declaration shall be based on the guidelines to be prescribed and approved by the PPA
Board of Directors.

Section 3. EFFECTS OF DECLARATION OF PORT CONGESTION OR EMERGENCY CASES.

The declaration by the DOTC Secretary of the existence of port congestion or emergency cases
affecting public interest shall have the following effects:

1. The designated ports in the Port of Batangas and the Subic Bay Freeport shall be deemed
as extensions of the Port of Manila.
2. Foreign vessels with Port of Manila as the port of destination or origin may be directed to
berth either at the Port of Batangas or Subic Bay Freeport. For said purpose, the berthing
in said ports shall be considered as berthing at the Port of Manila.
3. All rules and regulations being enforced at the Port of Batangas or Subic Bay Freeport as
promulgated by the PPA and SBMA, respectively, including berthing and other port fees,
among others, shall apply to foreign vessels directed to berth thereat.

Section 4. VALIDITY OF THE DECLARATION. The extension of the Port of Manila shall exist for
the duration of the existence of port congestion or emergency cases and shall be lifted once the
situation in the Port of Manila has already normalized, as determined by the DOTC Secretary.

122 Port Rules and Regulations 2014

Section 5. SEPARABILITY CLAUSE. If any part or provision of this Order is held invalid or
unconstitutional, the other parts or provisions not affected thereby shall remain valid and effective.

Section 6. REPEALING CLAUSE. All orders, proclamations, rules, regulations, or parts thereof,
which are inconsistent with this Order, are hereby repealed, amended or modified accordingly.

Section 7. This Executive Order shall take effect immediately upon publication in a newspaper of
general circulation.

DONE, this 13th day of September, in the year of our Lord, Two Thousand and Fourteen.

(Sgd.) BENIGNO S. AQUINO III

By the President:

(Sgd.) PAQUITO N. OCHOA, JR.

Executive Secretary

Port Rules and Regulations 2014 123

 QUICK REFERENCE INDEX
ISSUANCE BY SUBJECT CLASSIFICATION

Administrative Order Memorandum Order PPA Board Ex-Com Resolution

AO 01-2014 page 14 MO 07-2014 page 111 BER 2014-1382 page 36
AO 02-2014 page 105 MO 09-2014 page 85 BER 2014-1389 page 30
AO 03-2014 page 16 MO 18-2014 page 76 BER 2014-1399 page 96
AO 04-2014 page 35 MO 19-2014 page 116
AO 05-2014 page 26 MO 20-2014 page 86 PPA Board Resolution
AO 06-2014 page 70 MO 27-2014 page 89 BR 2379 page 29
AO 07-2014 page 31 MO 36-2014 page 98
AO 08-2014 page 94 PPA Unnumbered Memorandum
Operations Memorandum Circular Memo dated Jan. 3, 2014 page 77
Memorandum Circular OMC 01-2014 page 18
MC 02-2014 page 118 OMC 02-2014 page 84 LSD Opinion
MC 03-2014 page 33 LSD 01-2014 page 19
MC 04-2014 page 119 Operations Memorandum Order
MC 06-2014 page 34 OMO 01-2014 page 24
MC 07-2014 page 72
MC 09-2014 page 73 Executive Order
MC 12-2014 page 88 EO 172 page 121
MC 13-2014 page 90
PPA BoardCom Resolution
MC 14-2014 page 107
BCR 2010-1234 page 113
MC 16-2014 page 120
BCR 2009-1186 page 114
MC 17-2014 page 74
MC 18-2014 page 17
MC 19-2014 page 75
ISSUANCE BY DATE OF DOCUMENT

January 2014 June 2014 16 Sept. - MC 12-2014 page 88

03 Jan. - Memo page 77 02 June - MC 04-2014 page 119 30 Sept. - MO 27-2014 page 89
08 Jan. - LSD 01-2014 page 19 09 June - AO 04-2014 page 35
20 Jan. - OMC 01-2014 page 18 09 June - MO 07-2014 page 111 October 2014
22 Jan. - OMO 01-2014 page 24 30 June - MO 09-2014 page 85 01 Oct. - MC 13-2014 page 90
24 Jan. - AO 01-2014 page 14 17 Oct. - AO 08-2014 page 94
24 Jan. - AO 02-2014 page 105 July 2014 24 Oct. - MC 14-2014 page 107
24 Jan. - OMC 02-2014 page 84 10 July - BR 2379 page 29
10 July - BER 2014-1389 page 30 November 2014
March 2014 24 July - MC 06-2014 page 34 03 Nov. - MC 16-2014 page 120
05 Mar. - AO 03-2014 page 16 24 July - MC 07-2014 page 72 05 Nov. - MC 17-2014 page 74

April 2014 August 2014 December 2014

21 April - MC 02-2014 page 118 13 Aug. - MO 18-2014 page 76 16 Dec. - MC 18-2014 page 17
29 April - BER 2014-1382 page 36 14 Aug. - MO 19-2014 page 116 16 Dec. - MO 36-2014 page 98
18 Aug. - MO 20-2014 page 86 23 Dec. - MC 19-2014 page 75
May 2014
28 May - MC 03-2014 page 33 September 2014
01 Sept. - AO 05-2014 page 26
May 2010 01 Sept. - AO 06-2014 page 70
4 May - BCR 2010-1234 page 113 01 Sept. - AO 07-2014 page 31
09 Sept. - MC 09-2014 page 73
May 2009 13 Sept. - EO 172 page 121
25 May - BCR 2009-1186 page 114 15 Sept. - BER 2014-1399 page 96

124 Port Rules and Regulations 2014

Commercial Services Department
3rd Floor, PPA Bldg.
Bonifacio Drive, South Harbor,
Port Area, Manila Philippines
P.O. Box 436
TELEFAX 336-5159
Email: [email protected]
Homepage http://www.ppa.com.ph