Question & AnswerQ&A (EXECUTIVE ORDER NO. 59)
Under Presidential Decree No. 857, the revised charter of the Philippine Ports Authority.
The government policy is to accelerate the modernization and development of government ports in partnership with the private sector, unify facility operators and service providers, encourage investment in port infrastructure, and ensure labor benefits from modernization.
They are required to unify into one corporation through merger, consolidation, buyout, joint venture, or any similar means.
No single corporation is allowed to own more than 30% of the outstanding capital stock of a unified operator unless the corporation has an existing permit or license from PPA or vessels regularly call at that port.
The PPA retains regulatory functions including approving port plans, prescribing safety standards, tariff setting, harbor traffic management, collecting port charges, auditing, contract monitoring, and maintaining police functions.
Responsibilities include providing all port services such as berth allocation, cargo handling, security, granting subleases, repairing and maintaining facilities, financing infrastructure development, and attracting new business.
All permanent or semi-permanent improvements made by the contractor become the property of the government without any reimbursement, free of liens or encumbrances.
It ensures protection of labor rights, requires operators to be responsible for past service benefits, mandates absorption of labor by the unified contractor, and requires social amelioration funds for port labor.
The unification must be completed within twelve (12) months from the time the port is declared by the PPA for modernization.