Case Summary (G.R. No. L-61461)
Factual and Procedural Background
PANTRANCO held CPCs for passenger and freight bus operations from Metro Manila to Eastern Visayas. In March 1980 it sought MARINA approval to operate M/V Black Double between Matnog and Allen as an incident to its highway franchise. MARINA declined, citing adequate service by petitioners and market constraints. PANTRANCO acquired the vessel in May 1981 and commenced operations without further authority. BOT enjoined its operation pending formal application.
Position of Petitioners and BOT’s Rationale
Epitacio San Pablo’s heirs and Cardinal Shipping contended that the Matnog–Allen route was already adequately served and that PANTRANCO could not lawfully intrude without its own CPC. BOT solicited the Justice Minister’s opinion, which—relying on public utility efficiency principles—concluded that incidental ferry service would be superfluous to require separate certification. BOT then motu proprio amended PANTRANCO’s CPC to authorize a “private ferryboat service” exclusively for its buses, passengers, and trucks, subject to separate CPC if opened to the public.
Legal Issue and Statutory Framework
The core question was whether the Matnog–Allen sea passage qualified as a mere ferry (continuation of highway) or as a coastwise/interisland shipping service requiring independent certification. The Public Service Act mandates formal application, publication, hearing, and compliance with MARINA and BOT regulations for coastwise carriers. Prior decisions (e.g., Javellana) distinguish short water crossings by barges or small vessels from longer open-sea voyages, the latter properly classified as coastwise trade.
Analysis of Matnog–Allen Service
Judicial notice of geography and navigational conditions shows that San Bernardino Strait is an open-sea channel subject to tides, rough waters, and a 23-kilometer span requiring about 1½–2 hours of navigation by motor vessel. These characteristics exceed the limited, short-distance river or lake crossings traditionally deemed ferries. Safety and vessel requirements align instead with interis
...continue readingCase Syllabus (G.R. No. L-61461)
Parties
- Petitioners
• Epitacio San Pablo (substituted by heirs)
• Cardinal Shipping Corporation - Respondents
• Pantranco South Express, Inc.
• Board of Transportation (BOT)
Facts of the Case
- Pantranco is a domestic land‐transport corporation holding Certificates of Public Convenience (CPC) to operate buses from Metro Manila to the Bicol Region and Eastern Samar.
- On March 27, 1980, Pantranco applied to the Maritime Industry Authority (MARINA) for authority to lease or purchase M/V Black Double to run a ferry service between Matnog (Sorsogon) and Allen (Samar) for its buses and freight trucks.
- MARINA denied the request on April 29, 1981, noting that existing operators (Cardinal Shipping and Epitacio San Pablo) adequately serviced the route and that market conditions did not justify new entries.
- Despite the denial, Pantranco acquired the vessel on May 27, 1981, for ₱3 million and petitioned the BOT to recognize the ferry operation as an incidental service under its highway franchise, invoking Javellana v. PSC.
- Pantranco began operating the ferry without BOT approval. BOT issued orders in October 1981 restraining Pantranco from operating pending a hearing.
- San Pablo’s heirs and Cardinal Shipping opposed the application before BOT, asserting adequate service by existing operators.
- The Justice Secretary opined on October 20, 1981 that no separate CPC was needed for an incidental ferry service under a bus franchise.
- BOT’s decision dated October 23, 1981 amended Pantranco’s CPC to include a private ferryboat service exclusively for its buses, passengers, and trucks, subject to separate CPC if offered indiscriminately to the public.
- Motions for reconsideration by San Pablo and Cardinal Shipping were denied by BOT on July 21, 1982.
- Both petitioners filed separate p