Title
Guidelines on Private Ports in Cebu Jurisdiction
Law
Cpa Administative Order No. 02
Decision Date
Jul 16, 2010
The Cebu Port Authority establishes comprehensive guidelines for the development, construction, and operation of private ports, detailing application processes, operational limitations, and government revenue shares to ensure effective coordination and compliance within its jurisdiction.
private ports
port authority
administrative order
A

Policy and coverage rules

  • The policy requires coordination in the processing of applications to develop, construct, and operate private ports consistent with Sections 5(a) and 7 of Republic Act No. 7621 (Section 1).
  • The order applies to all parties seeking a permit to develop/construct and operate a private port facility (Section 2).
  • The order sets the roles of CPA units and offices in processing, evaluation, and approval of these applications (Section 2).

Key terms and classifications

  • “Authority” means the Cebu Port Authority (Section 3.1).
  • “CHSP” means a Cargo Handling Service Provider, defined as any person or entity engaged in rendering cargo handling services (Section 3.2).
  • “Port Charges” includes harbor fees, tonnage and wharfage dues, berthing or anchorage charges, port dues, and other dues or fees imposed by virtue of existing laws (Section 3.3).
  • “Tariff Rates” are the schedule of rates including tolls, fees, dues, and rent imposed by the Authority (Section 3.4).
  • “General Cargo Port” is a port handling cargoes for loading in general non-specialized stowage areas or standard shipping units (e.g., boxes, barrels, bales, crates, packages, bundles, and pallets) (Section 3.5).
  • “Government Port” is a port owned, managed, and operated by the CPA (Section 3.6).
  • “Government Share” is the percentage share the Authority collects from port charges, wharfage, and cargo-handling services in a private port (Section 3.7).
  • “Private Port” is a port facility constructed, owned, and operated by a private person or entity as authorized by the Authority, classified based on its operation and purpose (Section 3.8).
    • Private Non-Commercial Port is constructed and operated as a component or accessory to the owner’s own business/principal economic activity and does not offer facilities/services to the general public; third-party use is only incidental and conducted on a limited and non-commercial basis (Section 3.8.1).
    • Private Commercial Port offers its port and services to the general public (Section 3.8.2).
  • “Privilege Fee” is the annual fee paid upon issuance of the Certificate of Registration/Permit to Operate for a private commercial port (Section 3.9).
  • “Registered Private Port” is issued a Certificate of Registration by the Authority (Section 3.10).
  • “Unregistered Private Port” has no Certificate of Registration or whose registration has expired (Section 3.11).

Operational parameters for private ports

  • Applications for a Permit to Develop, Construct and Operate a private commercial port must satisfy these parameters (Section 4):
    • The project must not be intended to operate as a general cargo port (Section 4.1).
    • The project must not duplicate an equally functional facility/service adequately provided by the nearest government port or authorized existing private port, but it may be allowed if it provides a facility/service the government port is incapable of providing, as deemed necessary by the Authority (Section 4.2).
    • The port must accommodate spill-over demands from government ports when deemed necessary by the Authority (Section 4.3).
    • Its sole purpose must be to supplement market demand for berths, storage and/or services (Section 4.4).

Government share and limitation rules

  • The Authority collects the following Government Share from port charges, wharfage, and cargo-handling services for private commercial and private non-commercial ports (Section 5).
  • Private Commercial Port:
    • Registered: 50% from port charges; 50% from wharfage; 10% from domestic cargoes; 20% from foreign cargoes from CHSP annual gross revenue (Section 5).
    • Unregistered: 100% from port charges; 100% from wharfage; and no CHSP share figures are separately stated beyond the table’s CHSP row (Section 5).
  • Private Non-Commercial Port:
    • Registered: 50% from port charges; 50% from wharfage (Section 5).
    • Unregistered: 100% from port charges; 100% from wharfage (Section 5).
    • For private non-commercial ports, the table sets CHSP annual gross revenue share as None (Section 5).
  • Limitations must be reflected in the Certificate of Registration/Permit to Operate (Section 6).
  • Private non-commercial ports must operate only as a component/accessory to the owner’s business/principal activity and must not offer services to the general public; third-party use is only incidental and limited to specialized handling for usually homogenous cargo (Section 6.1).
  • A private non-commercial port seeking to operate as a commercial port must apply for a permit to develop, construct and operate as a commercial port under the Order (Section 6.1).
  • Private commercial ports may offer port services to general port users and must treat the activity as main business activity rather than merely a component of the owner’s main business (Section 6.2).

Permit duration, transfer limits, and duties

  • The permit allows operation only for the duration specifically indicated in the Certificate of Registration/Permit to Operate (Section 6.3.1).
  • The owner/operator must operate the private port for twenty five (25) years, but in no case may it exceed the term of the Foreshore Lease Agreement (FLA) (Section 6.3.2).
  • If the permit is non-renewed, cancelled, or expires, the private port facility/structure built on foreshore and other government-owned land used for the operation becomes the property of the Authority, free from all liens and encumbrances, unless the foreshore area is authorized to be reclaimed and the corresponding land becomes officially titled to the private port owner (Section 6.3.2).
  • The Certificate of Registration/Permit to Operate is non-transferable; any violation automatically terminates or revokes the registration/permit without further action by the Authority (Section 6.3.3).
  • The Certificate of Registration/Permit to Operate does not include authority to operate cargo-handling, porterage, and other related services, which are covered by separate permits (Section 6.3.4).
  • The owner/operator must pay all dues, fees, and charges due to the Authority during the lifetime of the permit (Section 6.3.5).
  • The grantee must maintain facilities in good condition and is responsible for safe, secure, efficient operations and for any damage to property or person arising from operations (Section 6.3.6).
  • No alterations/improvements other than ordinary repair for wear and tear may be made on existing facilities (as shown on the Authority-stamped As-Built plan) without prior approval of the Authority (Section 6.3.7).
  • The grantee must allow use of its facility to other port users in case of emergency, necessity, or congestion at the government pier upon written orders of the Authority (Section 6.3.8).
  • The grantee must comply with CPA existing and subsequent applicable rules and other laws/regulations promulgated by proper authorities; failure is sufficient ground for the Authority to revoke the permit after proper proceedings (Section 6.3.9).
  • The owner/operator must request Authority approval for improvements/expansion/rehabilitation except for annual preventive maintenance and repair purposes (Section 14).

Application, fees, and registration process

  • All applications for private ports are granted subject to compliance with this Order and other government laws and regulations (Section 7).
  • Applications for development and construction of private commercial ports must proceed through the Authority’s evaluation and approvals.

Permit to Construct (application and fee)

  • New private commercial ports and existing commercial ports intending to expand or improve must apply for a Permit to Construct with the Authority (Section 8).
  • A Permit to Construct application must be submitted to the Office of the General Manager for evaluation and approval of the Cebu Port Commission (Section 8.1).
  • The application for Permit to Construct must include the following (Section 8.2):
    • Letter of intent (Section 8.2.1).
    • Site/Location/Distance/Accessibility of applied foreshore area from other ports/public utilities/infrastructure (Section 8.2.2).
    • Project scope, description, and technical specification (Section 8.2.3).
    • General port lay-out plan and development plan (Section 8.2.4).
    • Construction and building plans including:
      • Plan and working drawings duly signed and sealed by a licensed Civil Engineer (Section 8.2.5.a).
      • Technical specifications (Section 8.2.5.b).
      • Detailed estimates (Section 8.2.5.c).
      • Design analysis of the structure duly signed and sealed by a licensed Civil/Structural Engineer (Section 8.2.5.d).
    • Company profile, including a brief of owners/stockholders (Section 8.2.6).
    • For foreshore lease area: 2 copies of DENR Environmental Compliance Certificate (ECC) (Section 8.2.7).
    • Photocopy of award of DENR Foreshore Lease Agreement (FLA) (Section 8.2.8).
    • CPA certification that the area is not part of CPA development plans, to be issued by the Engineering Services Department (ESD) (Section 8.2.9).
    • For river banks or reclaimed lands: two (2) certified true copies of land titles (Section 8.2.10).
    • One (1) photocopy of SEC Registration (Section 8.2.11).
    • One (1) photocopy of Articles of Incorporation and by-laws (Section 8.2.12).
    • Business Plan (format attached as Annex A-Ba) (Section 8.2.13).
  • After approval, the applicant must pay the Permit to Construct fee (Section 8.3):
    • Private Non-Commercial Port:
      • Below Php 10 million: Php 20,000 + VAT (Section 8.3).
      • Php 10 Million & above: Php 30,000 + 0.001 (1/10 of 1% of the excess of Php 10 million) but not to exceed Php 100,000 + VAT (Section 8.3).
    • Private Commercial Port:
      • Below Php 10 million: Php 60,000 + VAT (Section 8.3).
      • Php 10 Million & above: Php 80,000 + 0.001 (1/10) of the excess of Php 10 Million but not to exceed Php 100,000 + VAT (Section 8.3).

Certificate of Registration/Permit to Operate (COR/PTO)

  • Private port investors who satisfactorily established new port infrastructures and port owners/operators who developed and operated facilities prior to the Authority’s creation must register with the CPA (Section 9).
  • A Certificate of Registration/Permit to
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