Unification and Rationalization of Port Operators and Service Providers
- PPA to implement a program to integrate all facility operators and service providers in key ports
- Mandates unification through merger, consolidation, buyout, joint venture, or equivalent means
- Other qualified operators can invest/join if they provide expertise, capital, or generate traffic
- No single corporation may own more than 30% of stock except under specific conditions
- Unified contractor granted management contract without public bidding
- Labor stock option plan reserves 5% ownership for labor and retrenched employees
- Unified contractor required to start divestment offering at least 30% shares to the public by year 5
- Unification program to be completed within 12 months from port modernization declaration
Functions and Responsibilities of the Unified Contractor
- Manage all port services: berth allocation, cargo & passenger handling, security, and others
- Sublease port areas and buildings; manage port real estate and collect rents
- Perform repairs and maintenance including dredging
- Finance and develop port infrastructure subject to PPA approval, including capital dredging
- Construction of passenger terminal to start within 6 months and be operational within 2 years if required
- Promote and attract new port clients and additional business
- Provide security personnel, equipment, and systems for cargo and facility protection
Functions Retained by the Philippine Ports Authority (PPA)
- Regulatory functions remain with PPA despite award of port operations
- Approve master and development plans for ports
- Enforce operating service and safety standards
- Maintain tariff setting authority
- Responsible for harbor traffic management and pilotage regulation
- Collect port and vessel charges for government
- Conduct periodic audits and monitor contractual compliance
- Retain police functions within port areas
Minimum Terms and Conditions of Port Management Contract
- Port to remain a common user, multi-purpose facility
- Unified contractor pays fixed and variable fees to PPA with escalation clauses
- PPA collects vessel and port charges based on private port rates
- Unified contractor jointly liable for port charges payable to PPA
- Improvements made by the contractor become government property at contract end or early termination without reimbursement
- Contractor must comply with all applicable laws, rules, and regulations
Labor Protection Measures
- PPA to ensure protection of labor rights in port modernization
- Existing operators responsible for labor benefits; unified contractor assumes these if operators insolvent
Labor Absorption and Rights
- Unified contractor to absorb existing operator labor force subject to qualification
- Reduction of labor force requires offering voluntary retirement and retraining programs
- Respect for existing collective bargaining agreements and labor laws mandatory
Social Amelioration Fund
- Unified contractor must establish a fund for labor welfare upon beginning operations
- Terms and conditions to be prescribed by PPA
Inter-modal Transportation Plan
- DOTC to develop master plan for inter-modal transport linking ports to mass transport systems
- Coordination with DPWH, Philippine National Railways, LRT Authority, PPA, and other agencies
- Objective to enhance safe and efficient movement of cargo and passengers
Support from Other Government Agencies
- All government departments and instrumentalities mandated to support PPA’s implementation of this order
Implementing Rules and Division of Responsibilities
- PPA tasked to issue implementing rules and regulations
- Sections on social amelioration fund and inter-modal transport managed by DOTC
Repealing Clause
- Prior inconsistent executive, department, or agency issuances repealed or amended
Separability Clause
- Invalidity of any provision does not affect the rest of the executive order
Effectivity
- Executive order effective 15 days after publication in a newspaper of general circulation