Unification and Rationalization of Port Facility Operators and Service Providers
- Immediate integration, unification, and rationalization especially in high-volume ports like North Harbor, Manila.
- Existing operators to unify into one corporation through merger, consolidation, buyout, joint venture, or similar means.
- New qualified operators may join if they provide technical expertise, capital, equipment, or significant transshipment traffic.
- Ownership limitation: No more than 30% ownership by a single corporation except under specific conditions.
- Unified contractor granted contract without public bidding to manage the entire port.
- Labor to receive 5% capital stock via a stock option plan, including retrenched employees.
- Unified contractor to offer at least 30% stock to the public within five years.
- Unification deadline: twelve months from the port’s modernization declaration.
Functions and Responsibilities of the Unified Contractor
- Manage all port services including berth allocation, cargo and passenger handling, security, and provision of equipment.
- Grant subleases and manage port real estate.
- Conduct repairs and maintenance including dredging.
- Finance and develop port infrastructure, both horizontal and vertical, subject to PPA approval.
- Passenger terminal construction required within six months, operational within two years.
- Promote port business and attract new clients.
- Provide security personnel, equipment, and systems, control entry and exit within the operational area.
Functions Retained by the Philippine Ports Authority (PPA)
- Regulatory oversight and approval of port master and development plans.
- Enforce operating, service, and safety standards.
- Maintain tariff setting function.
- Manage harbor traffic and regulate pilotage.
- Collect port and vessel charges.
- Conduct audits and monitor contract compliance.
- Exercise police functions at the port.
Minimum Terms and Conditions of the Contract with Unified Contractor
- Port to remain a common user, multi-purpose facility.
- Unified contractor to pay fixed contract fees with annual escalation and variable fees based on revenue sharing.
- Vessel and port charges collected by PPA at private port rates.
- Unified contractor jointly liable for payment of port charges from port users.
- Upon contract expiration or termination, all port structures and facilities revert to government ownership without obligation to reimburse.
- Compliance with all laws, rules, and regulations mandated.
Protection of Labor
- PPA to ensure protection of labor rights.
- Existing operators responsible for past service and separation benefits.
- If insolvent, unified contractor assumes payment obligations with a right of recourse.
Labor Absorption and Redeployment
- Unified contractor to absorb existing operators’ labor force, subject to qualification.
- Reduction of labor force to be managed through voluntary retirement, retraining, or post-employment assistance.
- Respect for collective bargaining agreements and applicable labor laws.
Social Amelioration Fund
- Unified contractor required to establish a social amelioration fund for legitimate port labor.
Inter-modal Transportation Planning
- Department of Transportation and Communications (DOTC) to prepare a master plan connecting ports with mass transport systems.
- Coordination with public works and other relevant agencies.
Support from Government Agencies
- All government entities ordered to assist PPA in implementing this executive order.
Rule-making Authority
- PPA to issue rules and regulations for enforcement, except Sections 8 and 9 under DOTC jurisdiction.
Repealing Clause
- Repeals or amends inconsistent executive, department, and agency issuances.
Separability Clause
- Invalidity of any provision shall not affect the remainder of the executive order.
Effectivity
- The executive order takes effect 15 days after publication in a newspaper of general circulation.