QuestionsQuestions (CPA ADMINISTATIVE ORDER NO. 02)
To ensure coordination in the processing of applications to develop, construct, and operate private ports, consistent with Sections 5(a) and 7 of RA 7621 (Charter of the CPA).
It applies to all parties seeking permits to develop/construct and operate a private port facility, and it specifies the roles of CPA units/offices in processing, evaluating, and approving applications.
A private port is a facility constructed, owned, and operated by a private person or entity as authorized by the CPA. It is classified by nature of operation and purpose into (1) Private Non-Commercial Port and (2) Private Commercial Port.
A Private Non-Commercial Port is an accessory/component to the owner’s own principal business, not offered to the general public (third-party use only incidental). A Private Commercial Port offers port services to the general public as the main activity.
Among others: (1) it must not intend to operate as a general cargo port; (2) it must not duplicate an equally functional facility provided by the nearest government port or existing authorized private port; (3) it should accommodate spill-over demands when deemed necessary by the CPA; and (4) its purpose is to supplement market demand for berths, storage, and/or services.
The Order states that for a private commercial port application, the private port must not be intended to operate as a general cargo port.
The Order sets different Government Share percentages depending on classification (Private Commercial vs. Private Non-Commercial) and registration status (Registered vs. Unregistered). It prescribes 50%/50% for Registered private commercial and non-commercial (port charges/wharfage), and 100%/100% for Unregistered. It also provides CHSP revenue shares for private commercial ports (10% domestic / 20% foreign for Registered; unregistered 100%).
Privilege fees are paid every first quarter of each year during the effectivity of the COR/PTO: PHP 80,000 + VAT for Private Commercial Ports and PHP 30,000 + VAT for Private Non-Commercial Ports.
A Permit to Construct must be applied for and secured from the CPA.
Key items include: letter of intent; site/location/distance/accessibility; project scope/description/technical specifications; general port lay-out and development plan; construction and building plans signed/sealed by licensed engineers; detailed estimates; company profile/owners; DENR ECC and DENR FLA award for foreshore-lease areas; CPA certification that the area is not part of CPA development plans; land titles for river/reclaimed lands; SEC registration; Articles of Incorporation and by-laws; and business plan (Annex).
Fees vary by classification (Private Non-Commercial vs. Private Commercial) and by project cost (below PHP 10 million vs. PHP 10 million and above), and are listed as fixed amounts plus a proportional computation for higher project costs, plus VAT.
The application must include: the Permit to Develop/Construct; a Project Completion Report as inspected by the Authority; and As-built plans.
A penalty charge of PHP 50,000 is imposed. A further grace period of another six (6) months is given after payment; if still not complied with, the Permit to Construct is rendered null and void, and the applicant must re-apply and pay the Permit to Construct fee again.
No. It is non-transferable. Any violation automatically terminates or revokes the registration/permit without need for further action by the CPA.
The COR/PTO does not include authority to operate cargo-handling, porterage, and related services; these require separate permits. Cargo handling by contractors is allowed only if the contractor is accredited by the CPA.
Authorized CPA representatives may enter premises, inspect facilities, and examine records to determine compliance. They may issue compliance orders requiring submission of requirements/data/documents/information for audit, statistical, and other purposes.
Violation of the Order, CPA rules and regulations and future issuances; violation of safety and national security rules; or any violation that constitutes sufficient ground for revocation after proper proceedings.
It takes effect 15 days after publication, once a week for two (2) weeks, in a newspaper of general circulation.