Policy on Regulation of High Speed Craft

Legal basis, policy direction, and scope

The Circular is issued in line with a national program of deregulation, modernization of the existing domestic fleet, and fostering a favorable climate for increased investments.
The Circular is adopted pursuant to Presidential Decree No. 474 and Executive Orders Nos. 125/125A, 185 and 213 and the Philippine Merchant Marine Rules and Regulations (PMMRR) of 1997, including relevant Philippine Merchant Marine and MARINA rule frameworks.
The Circular establishes policy guidelines for regulation of high speed craft in the domestic shipping trade, within MARINA’s mandate.
The Circular applies to all persons, corporations, firms and entities engaged in the operation of high speed craft in domestic marine transportation for compensation for commercial or public use involving carriage of passengers and cargoes between various ports and places in the Philippines.
The Circular covers operations in the Philippine domestic trade of craft that meet its High Speed Craft threshold.

Core definitions for classification and operations

“Coastwise Voyage” means a voyage limited to waters subject to the jurisdiction of the Philippines.
“Dynamically Supported Craft (DSC)” means a craft operable on or above water with characteristics different from conventional displacement ships, such that existing IMO conventions, particularly Safety and Loadline Conventions, apply and equivalent measures achieve an equivalent level of safety.
“Daytime Navigation” starts from daylight between sunrise and sunset under the International Rules of the Road, and in tropical countries like the Philippines it starts at 30 minutes plus minus 0500 H and ends at 30 minutes plus minus 1700 H.
“High Speed Craft (HSC)” means a craft capable of maximum speed in meters per second (m/s) equal to or exceeding 3 70v 0.1667, where V = Displacement corresponding to the design water line in M 3.
For qualification, existing craft constructed under the DSC Code may qualify as HSC upon satisfaction of the HSC speed definition requirements.
The Circular provides that regardless of the above, the minimum service speed of the craft shall be at least 25 knots.
“IACS” refers to International Association of Classification Societies.
“IMO” refers to the International Maritime Organization.
“MARINA” refers to the Maritime Industry Authority (MARINA).
“Maximum Speed” means the speed achieved at maximum continuous propulsion power for which the craft is certified at maximum operational weight and in smooth waters.
“Night Vision Equipment (NVE)” means equipment using camera (low light or thermal imaging) to detect short range targets in darkness, displaying information on separate video monitors for the Master and crew in the wheelhouse.
“Partly Protected Waters Voyage” means a voyage where a vessel is not more than 100 miles by sea from the point of departure and not more than 20 miles from land at any point.
“Protected Waters” means harbors, rivers, or similar areas and waters where a vessel is not more than 3 miles from land.
“Recognized Classification Society” means a classification society that is a full member of IACS.
“The Code” refers to the IMO International Code of Safety for High Speed Craft as incorporated in SOLAS Chapter X.

Acquisition and documentation requirements

Acquisition policy adopts the pertinent provisions of Memorandum Circular No. 104 (including amendments thereto), adopting all pertinent provisions except those specifically provided otherwise in this Circular.
Wooden hulled HSC are not allowed for acquisition under this Circular.
Age limits for importation and/or chartering by reference year require a maximum age as follows: 1997—10, 1998—9, 1999—8, 2000—7, 2001—6, and beyond 2001—5.
All vessels acquired under the Circular must be classed by a recognized IACS classification society with a full set of Rules specifically developed for HSC, prior to delivery to the buyer/charterer.
The owner must submit to MARINA, within sixty (60) days from completion of survey, the certificates issued for annual and/or special surveys.
The HSC must be classed maintained at all times during operation in the domestic trade.
Pre-approval documents for authority to acquire vessels under Memorandum Circular No. 104 are made post-approval requirements, except for: (1) Letter of intent/application, (2) Duly signed Memorandum of Agreement/Deed of Sale/Bareboat Charter Contract, (3) Valid Certificate of Vessel’s Registry, (4) General Arrangement Plan, (5) Class Certificate/Certificate of Compliance with Annual/Special Survey, and (6) Receipt of Payment of Processing Fee of PHP 20,000.00/vessel.

Certificate of Public Convenience and entry rules

The issuance of Certificate of Public Convenience (CPC) adopts relevant provisions of Memorandum Circular Nos. 80, 106 and 117, in implementation of EO 185 and EO 213, respectively, intended to promote a more liberal/deregulated atmosphere for liner operations, except as provided in this Circular.
Proposed sailing schedules and frequencies of new entrants are considered favorably as a rule, if no conflict in sailing schedules with other affected HSC operators results on the applied route/link and if the minimum interval between arrival/departures is thirty (30) minutes.
If the above conditions are not met, MARINA shall prescribe, motu propio, sailing schedules that best serve public interest and convenience.
HSC may be prescribed a departure time as that of other duly authorized vessel(s) not otherwise considered an HSC operating in the route.
When an existing authorized HSC operates in the proposed route, the determination of a safe and reasonable schedule is taken by MARINA considering: area of operation, navigational equipment, safe speed to attain proposed travel time, number of existing HSC operators, and availability of berthing space at all ports to be served.
For safety, sailing schedules must provide sufficient rest periods for the crew.
If a new entrant proposes a schedule earlier than existing HSC operators, earlier service may be allowed in recognition of the need for services at the proposed time, unless earlier service intent is shown by the existing operator’s prior acts.
MARINA may limit or qualify further entry of additional HSC in a given route/link when berthing and other facilities and other technical considerations in a port can no longer accommodate additional vessels at a given time after reasonable schedules have been prescribed.
Automatic substitution of vessels is allowed for authorized HSC operators in emergency repairs/drydocking or mechanical/engine trouble, provided (1) no route/link shall be left unserved and (2) written notice to MARINA is made within 24 hours of the substitution including reasons.
The period of CPC validity depends on vessel age upon CPC issuance: for vessels 5 years old and below, CPC is valid for 10 years; for vessels above 5 years old, CPC is valid for 5 years.

Operational limitations and safety standards

HSC operations may be restricted in terms of routes, including: coastwise voyage, partly protected voyage, protected waters, and short sea waters.
HSC are allowed to operate during daytime only as a rule.
Night navigation is allowed only when required aids to navigation and collision avoidance are complied with to the satisfaction of MARINA.
Where Night Vision Equipment (NVE) is not provided, the craft’s operation is restricted to daytime navigation only.
Where NVE is fitted, proper crew training and bridge routine are necessary.
HSC must have special navigation lights similar to the hover craft flashing light for better identification.
Route and operational restrictions must be reflected in the craft’s Certificate of Inspection (CI).
The craft’s operational speed must be limited to 90% of its maximum speed as defined under the Circular.
The craft’s service speed must not be less than 25 knots.
HSC speed must be further restricted by wind force and direction, wave height during severe weather, entering narrow channels, and reduced visibility, among others.
HSC must observe maximum docking or berth impact speeds to avoid causing nuisance in harbors or other confined areas and to avoid damage to the port and/or other vessels.
HSC must not race each other in any event, time or place.
Maximum passenger loading is based on the number of permanent seats on board.
Only seats approved by MARINA in accordance with The Code are allowed.
Craft documentation manuals required by The Code must be carried on board, including: Craft Operating Manual, Route Operational Manual, Training Manual, and Maintenance and Servicing Manual.
Those manuals must be submitted to MARINA for approval.
Maximum service standards require that minimum service standards for HSC are those prescribed for Second Class Accommodations under Memorandum Circular No. 65/65A.
Passenger and crew accommodations must be designed and arranged to protect occupants from unfavorable environmental conditions and minimize injury risk in normal and emergency conditions.
Passenger accommodations must not contain operating controls unless those controls are protected and located so that operation by any crew member will not be impeded by passengers during normal and emergency operations.
Seats must minimize possibility of injury and avoid trapping of occupants, eliminate dangerous projections and hard edges, and allow adequate access to essential or emergency equipment and required means of escape.
Safety belts must be provided for seats facing solid bulkheads or other constructions that may cause injuries in case of collision, and safety belts and attachment must be sufficiently strong to withstand collision loads.
Provision must be made to prevent shifting of baggage, store, and cargo.
Passengers must not be carried on open deck.
Decks, walkways, and stairs intended for passengers must be non-skid; indoor floors may use carpets.
Entrances, stairs, and gangways must have handholds on both sides.
Exit doors, aisles, and passageways must be kept clear of obstructions at all times during travel.
The craft must have a sufficient number of exits suitable to facilitate quick and unimpeded escape of passengers wearing approved lifejackets.
A tape film or actual demonstration on safety features is required in accordance with Memorandum Circular No. 72.
Onboard accessibility requires at least one deck with accessible ramps, passageways, access to gangways, galleys, toilet and bath, safety equipment, and berth/cabins with dimensions conforming with Memorandum Circular No. 65-A requirements.
Accessibility provisions include a Disabled Persons’ Station at the gangplank with appropriate identification mark, lifejackets for exclusive use of disabled persons with appropriate markings, two (2) uniformed crew members with appropriate identification as onboard coordinators, designated seats with appropriate marking near exits/entrance of gangway/gangplank, and posted accessibility posters on fixed berth, designated seats, and places on board.
Waterfront accessibility requires wheelchairs/stretchers stationed at the waterfront or ports, a Disabled Persons’ Station at booking office/s, and at least two (2) shorebased shipping-company personnel with proper identification as coordinators.
Toilet provision requires at least one (1) separate toilet for men and women for every eighty (80) passengers.

Manning, qualifications, and minimum safe manning tables

HSC must be completely manned by Filipino officers and ratings, except as authorized by MARINA.
Masters, officers, and ratings on board must be duly qualified, competent, certified, and medically fit under PMMRR 1997.
Watchkeeping personnel must meet training requirements of STCW 1978 and The Code as amended.
Personnel not performing watchkeeping duties must undergo basic safety training under The Code.
At least one Red Cross certified First Aider with appropriate identification must be designated for every 100 passengers.
Minimum safe manning is set through tables for Deck Department and Engine Department, indexed by tonnage (GT) and horsepower, including required licenses/positions.
Deck Department minimum manning requires, by tonnage (GT), the following positions and deck rating rule:
- Below 100 GT: 1 Master, 2nd Mate, 1 1st Officer, 3rd Mate, and Deck Rating*.
- Over 100 to 250 GT: 1 Master, Chief Mate, 1 1st Officer, 3rd Mate, and Deck Rating*.
- Over 250 to 500 GT: 1 Master, Master Mariner, 1 1st Officer, 3rd Mate, and Deck Rating*.
- Deck Rating* rule: one deck rating for every 100 authorized passenger capacity.
Engine Department minimum manning is set by horsepower ranges with combinations of engineers depending on unmanned, manned single, and manned multi-eng RM (double) categories, including required chief engineer, second engineer, third engineer, and fourth engineer combinations.
Nighttime navigation is allowed only when an NVE properly fitted and operated by the Master and one duly qualified officer is present.

Administrative fines and sanctions for violations

Ship operators/owners who violate or fail to comply with policies/guidelines are subject to administrative fines and/or penalties provided under the Public Service Act, as amended, and other relevant MARINA rules and regulations.
Imposition of fines is without prejudice to criminal and/or civil action in regular courts against the company and/or responsible officials, or to a recommendation to the Professional Regulations Commission for suspension/cancellation of the license, as applicable.
For violations by operators/owners and seafarers, the administrative consequences follow an infraction schedule:
- First Infraction: P25,000/vessel for operator/owner and P5,000 for seafarer.
- Second Infraction: P50,000/vessel and/or suspension of CPC/PA/SP for operator/owner and P10,000 and/or suspension of SIRB for seafarer.
- Third Infraction: P100,000/vessel and/or cancellation of CPC/PA/SP for operator/owner and P25,000 and/or cancellation of SIRB for seafarer.

Repeal, separability, and transitory compliance

Inconsistent provisions of existing MARINA Circulars, rules and regulations, Orders or Decisions are repealed or modified accordingly.
If any provision or part of the Circular is declared invalid or unconstitutional, the remaining provisions remain in full force and effect.
MARINA must undertake a re-inspection of existing fast craft vessels to determine compliance with the Circular’s requirements.
Existing vessels that may be classified as HSC under the Circular are given until 01 January 1998 to comply with Secs. Y–VII requirements.
If existing vessels do not comply by 01 January 1998, they must be reclassified as conventional vessels or as appropriate.