Regulations on Private Ports Operation

Legal basis and governing charters

The Order is issued pursuant to Section 2 (a), (b), Art. II, Section 6 (a) (iii), (iv), (vi), (vii) Art. IV, and Section 26 (a) Article VIII of PD 857, the revised Charter of PPA, as amended.
The Order is also anchored on relevant provisions of Commonwealth Act 141.
Section 15.1 further anchors penalties for violations by referring to Section 43 of P.D. 857, as amended.

Policy statements and regulatory intent

Section 3.1 encourages the development and operation of private ports subject only to requirements of national security and public safety and the regulations.
Section 3.2 allows certain private port categories to be approved at a lower level (General Manager level), while others require PPA Board approval.
Section 3.3 establishes a finite operating permit duration tied to the term of the foreshore lease, with specified rules on disposition upon non-renewal, cancellation, or expiration.
Section 3.4 allows ports with expired private port contracts to be leased out again to previous owners/operators.

Core definitions for private port regulation

Section 2.1 defines “Port Zone” as an area proclaimed by the President for use as a port pursuant to PD 857.
Section 2.2 defines “Foreshore” as land between high and low watermarks that is alternately covered with water and left dry by tides and not located in a port zone, indicated by the middle line between the highest and lowest tides.
Section 2.3 defines a “Foreshore Lease Agreement for Pier Purposes” as a lease contract of foreshore and offshore area granted by DENR thru the Land Management Bureau for a period of not more than twenty-five (25) years, renewable for another period not exceeding twenty five (25) years, at the option of the lessor, subject to existing laws and regulations.
Section 2.4 defines “Private Port” as a port facility constructed and owned by a private person or entity as authorized by the government, classified by operation and purpose into:
- Private Non-Commercial Port: constructed along the seacoast and owned by a private person/entity as a component or accessory to its own business, not offering port services to the general public, with third-party use only incidental and conducted on a limited, non-commercial basis.
- Private Commercial Port: constructed along the seacoast and owned by a private person/entity that offers port services to general port users as its principal business activity.
- Private River Port: a private port located along a river bank.
- Marina: a private non-commercial port constructed for the exclusive use of securing motorboats and yacths.

Coverage, approval pathways, and registration rules

Section 1 applies the Order to all parties seeking clearance to develop, permit to construct, and/or operate a private port facility, and it specifies roles of PPA units and offices in processing applications.
Section 3.2 allows private river ports, private non-commercial ports, and Marina/s to be allowed construction at the level of the General Manager, while all other private port categories are subject to PPA Board approval.
Section 3.3 provides that a Certificate of Registration/Permit to Operate is issued for twenty-five (25) years but not to exceed the term of the foreshore lease contract, and it may be renewed for another 25 years co-terminus with the renewed foreshore lease contract; upon non-renewal, cancellation, or expiration of the foreshore lease contract, the private port facility/structure and other government-owned land utilized become the property of the Authority free from all liens and encumbrances, unless the foreshore area is authorized for reclamation and the corresponding land becomes officially titled to the private port owner.
Section 3.4 provides that private port facilities with expired private port contracts may be leased out again to previous owners/operators.
Section 3.5 states that the Certificate of Registration/Permit to Operate authorizes operation for the duration specifically indicated in the certificate.

Evaluation, clearances, and construction permitting

Section 4 requires applications for development, construction, and operation of private ports to be granted subject to compliance with the Order and other government laws and regulations.
Section 4 imposes an additional minimum criterion for private commercial ports: a minimum investment of at least one (1) concrete berth with a minimum length of 65 meters and a draft of at least 5 meters at mean lower low water (mllw).
Section 4 requires the application to include a summary of:
- site/location/distance/accessibility of the applied foreshore area from other ports/public utilities and infrastructures;
- project scope, description, and technical specifications;
- general port lay-out plan and development plan; and
- company profile.
Section 5 requires the private port investor/owner to file, in triplicate, a formal letter of intent with the Port Management Office (PMO) where the foreshore area is located, together with additional requirements in Annex 1 incorporated into the process.
Section 5.2 mandates processing timelines and endorsements by responsibility centers upon receipt of completed documents:
- PMO evaluates within two weeks, indorses for approval unless national security or safety is affected, informs the applicant of PPA long-range plans, issues a certification that PMO interposes no objection for presentation to DENR for the foreshore lease contract, and elevates the proposal to PDO/HO with recommendation.
- PDO validates within two weeks, concurs with the Port Manager’s findings and recommendations, and endorses to Office of the AGM Operations attention Commercial Services Department (CSD).
- CSD processes within four weeks, notifies denial if prejudicial to national security or safety, otherwise prepares an executive brief and submits to the AGM Operations for recommendation to the General Manager for final approval and clearance to issue a Permit to Construct, and if the facility is a private commercial port, submits to the PPA Board for approval; CSD notifies clearance to develop upon Board/General Manager approval.
Section 6 requires the Authority’s certification that the applied area is consonant with PPA development plans as a pre-requisite to all foreshore lease applications with DENR, whether initial or renewal; this certification may be issued by the Port Manager without awaiting a request from DENR, and approved and updated port development plans must be provided to PMOs and CSD.
Section 7 requires that after DENR issues a foreshore lease contract/order award, the private port investor submits to PPA through the concerned Port District the construction and building plans and a duly accomplished application for Permit to Construct (Annex 2).
Section 7.1–7.3 directs permit-issuing steps and fees:
- CSD informs the Port District Manager of the Board clearance to issue the Permit to Construct.
- The Port District Engineer evaluates plans and documents within three weeks from receipt for signature by the Port District Manager.
- Upon signing, the Port District Manager issues a Billing Notice advising payment of the Permit to Construct fee plus 10% VAT and issues the Permit to Construct upon receipt of the fee, with a copy furnished to CSD.
The graduated Permit to Construct fee structure is:
- Below P10 M: P10,000.00
- P10 M & above: P10,000.00 plus .001 (1/10 of 1%) of the excess of 10 million but not to exceed P100,000.00.
Section 7 authorizes issuance of the Permit to Construct only after payment of the applicable Permit to Construct fee.

Registration, operation permits, cargo handling, and privilege fee

Section 8 requires private port investors and operators to register with PPA for:
- new private port infrastructures; and
- port owners/operators who developed and operated facilities prior to PPA’s creation.
Section 8.1 directs the CSD to issue, within three weeks, a Certificate of Registration and Permit to Operate for private ports whose documentary requirements are complete per Annex 4.
Section 8.1 conditions discounted port dues on official PPA registration and ties discounts to PPA Memorandum Circular 07-94.
Section 8.2 mandates that any private port handling both non-commercial and commercial cargoes is considered and registered as a private commercial port.
Section 8.3 requires PMO to formally advise operating private ports without valid operating permits to register within thirty (30) days from receipt of formal notice.
- If owners do not register after one month from final notice, they are permanently disqualified from availing private port privileges such as discounted port and cargo handling dues, without prejudice to seeking legal remedies.
- The Port Manager must submit to CSD once every six (6) months a complete list of private ports duly registered and those subject for registration until full registration is achieved.
Section 8.4 establishes rules on port charges for unregistered private ports:
- 100% port charges on unregistered private ports are subject to a moratorium schedule.
- The Authority grants a moratorium on imposing the 100% vessel and cargo charges on existing private ports unregistered if owners previously enjoyed reduced fees under PPA Port Tariff referenced in PPA MC 07-94.
- The moratorium runs from the effectivity of PPA MC 07-94 up to May 30, 1996.
- Amounts actually paid in excess of the 50% charges under PPA MC No. 07-94 before the effectivity of this Order are applied against future billings.
Section 9 permits duly registered privately owned ports to undertake cargo handling operations either on their own or by contract upon issuance of its Certificate of Registration/Permit to Operate.
Section 9 requires periodic operational reports to be submitted through PMOs as shown in Annex 5.
Section 10 requires private port owners/operators to pay PPA, through the PMO concerned, the Privilege Fee in lieu of a percentage share from cargo handling revenues:
- Private commercial ports: P20,000 per annum
- Private non-commercial ports: P10,000 per annum
- Marina: P5,000 per annum
- Private river ports: P5,000 per annum
Section 10 extends the privilege fee to cases where cargoes are loaded/unloaded at anchorage provided the cargoes come from or are destined to their registered private port facilities.

Improvements, transfers, expired contracts, and renewal regimes

Section 11 requires that requests for improvement/expansion/rehabilitation of existing private ports during the effectivity of an approved operating permit (except annual preventive maintenance and repair) be evaluated by the Engineering Services Division of the PDO and approved by the District Manager.
Section 11 requires furnishing a copy of the approval to the PDD and CSD.
Section 12 prohibits the sale, transfer, conveyance, or assignment of operating permits unless the private port owner/operator first seeks prior written clearance from the Authority.
Section 13.1 provides that discounted port and cargo handling dues privileges cease effective upon expiration of the foreshore lease/PPA Certificate of Registration unless renewed.
Section 13.2 allows a maximum extension of 6 months for discounted dues privileges if the application for renewal of the foreshore lease and the PPA permit to operate is made prior to the effectivity of the lease expiration to allow sufficient time to complete renewal documentation.
Section 13.3 allows owners/operators of private ports with foreshore leases that can no longer be renewed (those with expired second renewals) to still avail discounted dues if the government portion of the port facilities is covered by a lease agreement with the Philippine Ports Authority.
Section 14 requires forwarding all applications to operate private ports with expired foreshore lease to PPA for appropriate action.
Section 14.1 assigns overall assessment responsibility to the Assistant General Manager for Operations through CSD for all such applications.
Section 14.2 provides that if feasible, a corresponding lease agreement for continuous utilization and operation—including all improvements introduced—will be prepared for management approval.
Section 14.3 requires that rental payments be based on prevailing market values of similar properties in the locality plus other relevant economic factors.

Monitoring, visitorial powers, document repository

Section 12 places the Port Management Office concerned in a monitoring role under Article III, requiring it to inventory existing facilities and notify private ports with foreshore leases to formalize intentions to renew occupancy if interested.
Article III provides that non-application for lease renewal at least thirty (30) days from the expiry date may be construed as advice to effect turn-over of ownership rights to the Authority.
Article III authorizes the Port District Manager to sign turn-over documents on behalf of the Authority and requires forwarding original copies to the AGM for Operations, attention: CSD after turnover is effected.
Section 16 requires private port operators to allow PPA officials and authorized PPA employees entry into private port premises at any time to observe and inspect port operations and facilities under PPA supervisory authority.
Section 17 requires all departments concerned to submit copies of all documents, communications, and records pertaining to private ports to CSD, which shall keep and maintain them for future reference.

Penalties and administrative consequences

Section 15.1 provides that violation of any provision of the regulation subjects the private port owner to penalties under Section 43 of P.D. 857, as amended.
Section 15.2 provides that private port facilities constructed without prior clearance and a valid Permit to Construct issued by the Authority but allowed PPA registration are subject to payment of penalty charges not less than P20,000, in addition to payment of the Permit to Construct fee.

Repeal, separability, and effectivity

Section 18 repeals all PPA orders, rules and regulations, policies, guidelines, memoranda, or circulars inconsistent with the Order.
Section 19 provides separability: if any provision or section is held invalid, the remaining provisions continue in full force and effect.
Section 20 sets effectivity at fifteen (15) days after publication in a newspaper of general circulation.