Cagayan de Oro Port Authority Creation Act

Creation and supervision of authority

A public-benefit corporation named the Cagayan de Oro Port Authority is created (the Authority).
The President shall organize the Authority within six months after approval under the governing framework of the Philippines Act that the Authority is organized under.
The Authority operates under the supervision of the President of the Philippines.

Key definitions for the port

Terminal facility includes the seaport and its accessories: wharves, piers, slips, docks, dry docks, bulkheads, basins, warehouses, cold storage, and loading/unloading equipment; bus terminals and accessories; rail terminals and accessories; and air terminals and accessories.
Transportation facility covers rails and rail cars; highways and wheeled vehicles; bridges, tunnels, tramways, subways; passenger or cargo boats, ferry boats, lighters, tugs, barges, scows, harbor craft; aircraft, runways, ramps, taxi-ways; and any other facility for carriage of persons or goods in use or later designated.
Port District means the territorial jurisdiction of the Authority.
Pier head line limits how far piers may be extended.
Bulkhead line limits how far bulkheads or solid fill may be extended.
Harbor line limits how far piers, wharves, bulkheads, or other works may be extended and limits deposits.
Navigable waters cover all navigable portions of the seas, estuaries, and inland waterways.
Wharf, pier, dock, dry dock, bulkhead, basin, warehouse, lighter, anchorage, goods, rates, vehicle, and vessels are defined for purposes of the Act and its by-laws.

Territorial jurisdiction and public-domain transfer

The Authority’s jurisdiction applies to a Port District co-extensive with the present territorial jurisdiction of the City of Cagayan de Oro.
The President may designate an initial smaller territory for organization, and the territory may be expanded later by resolution of the Commission subject to approval of the President, but never beyond the boundaries of the Port District defined by the Act.
All lands of the public domain within the territorial limits of the Authority—whether existing at approval or reclaimed—are deemed ceded to the Authority.

Commission governance and functions

A Port Commission called the Cagayan de Oro Port Commission is vested with the duty to carry out the Act, exercise corporate powers of the Authority, and direct business affairs.
The Commission’s functions include:
- Managing and governing port activities in the Port of Cagayan de Oro and related terminal facilities within the Port District.
- Investigating, preparing, adopting, implementing, and executing a comprehensive and orderly plan for development of the Port District, and updating it as warranted.
- Raising revenue through fees, tolls, charges, rentals, and the like for use of property, equipment, or facilities owned or controlled by it.
- Allocating twenty per cent of the Authority’s income to the Special Port Works Funds and ten per cent to the general fund of the City of Cagayan de Oro.
- Raising and administering capital outlays through loans from local or foreign financial institutions, together with government revenues accruing by law.
- Determining by survey and engineering design the exact location, system, and character of terminal facilities it owns, constructs, establishes, effects, operates, or controls.
- Constructing and maintaining terminal facilities, including accessory buildings and installations within the Port District.
- Establishing and enforcing regulations for conservation and protection of navigable waters; proper designation and use of anchorages, harbor lines, pierhead lines, and bulkhead lines; and effective control over construction, excavation, or fill in waters within, adjoining, or proximate to the port, subject to the Republic of the Philippines’ paramount jurisdiction.
- Prescribing and enforcing rules and regulations on use of wharves, piers, and anchorages by ships and on movements of ships within port waters.
- Determining the Authority’s organization and creating functional units as needed, including consideration of officials and employees’ benefits.

Authority powers, by-laws, and corporate powers

The Authority has perpetual succession under its corporate name until otherwise provided by law.
It may prescribe by-laws and adopt amendments to promote or enhance its business.
It may adopt and use a seal; sue and be sued; and enter into contracts.
It may acquire, own, hire, use, operate, and dispose of personal property; acquire, own, use, lease, operate, and dispose of real property and interests in it; and make improvements, including reclamation of foreshore and submerged lands within the Port District.
Reclaimed land is deemed ipso facto transferred in ownership to the Authority.
It may enter into contracts with public or private entities for reclamation under terms and conditions it deems for the public interest.
It may acquire, hold, alienate, mortgage, pledge, or otherwise dispose of shares of capital stock, bond securities, or other evidence of indebtedness of other corporations or co-partnerships, and exercise ownership rights including the right to vote.
It may exercise the right of eminent domain.
It may exercise powers necessary or incidental to its authorized purposes and to the exercise of foregoing powers, except the power to levy taxes or assessments.
It may charge fees for issuing permits in amounts sufficient to cover administrative costs involved.
It may make expenditures in foreign countries, pay commissions, and hire/contract experts and consultants both foreign and local.
It may spend for promotion of the business affairs of the Authority.
It may exercise all powers of a corporation under the Corporation Law insofar as not inconsistent with the Act.

Governing structure and appointments

The Authority’s powers and functions are vested in and exercised by a Port Commission composed of:
- A Chairman.
- A Vice-Chairman who shall be the Port Manager.
- Four directors who are persons of known competence in economics and/or business, shipping, port, industrial or agricultural management, preferably from the region of Northern Mindanao.
- The Collector of Customs of the Port of Cagayan de Oro as an ex officio member.
The President appoints the Chairman, Vice-Chairman, and directors with the consent of the Commission on Appointments.
The Port Manager is appointed by the President with the consent of the Commission on Appointments upon recommendation of the Secretary of Public Works and Communications from career engineers in government service.

Commission duties, meetings, and internal rules

The Commission may prescribe, amend, modify, or repeal by-laws, rules, and regulations governing the general business of the Authority, subject to approval of the President.
It defines the duties and fixes the compensation of the Port Manager, Assistant Port Manager, and other officers subject to approval by the President.
It approves the annual budget and supplemental budgets submitted by the Port Manager.
It performs other duties related to the welfare of the Port District.
A quorum is four members of the Commission.
Per diems and allowances are:
- The Chairman receives one hundred pesos per day of meeting actually attended.
- Each director and the Collector of Customs receive not to exceed thirty pesos per day of meeting actually attended, exclusive of traveling expenses.
Commission meetings may not exceed four meetings a month.
Appointments and promotions of Authority officers and employees are based on merit, seniority, and efficiency; no political test or qualification is prescribed or considered.

Port Manager powers and executive organization

The Port Manager is chief executive of the Authority and receives eighteen thousand pesos per annum.
The Port Manager manages, directs, and supervises Authority operations and internal administration subject to Commission control and supervision.
The Port Manager prepares memoranda for each agenda item for Commission meetings and submits proposals/recommendations needed for effective and beneficial business operations.
The Port Manager executes Commission-approved policies and administers Commission-approved measures.
The Port Manager devises the executive organizational pattern, submits organizational and functional charts to the Commission, and enforces executive elements.
The Port Manager appoints and employs subordinate officials and employees subject to Commission confirmation.
The Port Manager prepares and submits to the Commission budget proposals of all kinds.
The Port Manager performs other duties and exercises other powers directed or authorized specifically by the Commission.
Authority activities are carried out under the Port Manager’s direct supervision with assistance of:
- An Assistant Port Manager heading a Department of Engineering.
- An Executive Assistant heading a Department of Administration and Programming.
- An Assistant on Facilities heading a Department of Maintenance and Operations.
- Such other officials as the Commission appoints upon the Port Manager’s recommendation.

Term rules, vacancies, and ethical prohibitions

Initial director terms: two serve two years, and three (including the Chairman) serve four years.
After the initial appointments, each director serves four years.
Any appointee filling a vacancy serves only the unexpired term of the director succeeded.
In case of concurrent vacancy of Chairman and Port Manager, or in absence/incapacity of both, the most senior Commission member by length of service acts as Chairman.
Commission members are prohibited from directly or indirectly engaging in partisan political activity.
Commission members are prohibited from being interested in any business that may be affected by or related to the exercise of the Authority’s functions and powers.
No Commission member may be financially interested, directly or indirectly, in any contract entered into by the Authority or any special privilege granted