Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO.8306

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

‘The guidance and supervision of a skilled harbor pilot is necessary before a ship may dock
in a harbor, These harbor pilots and the service they ought to perform are critically important more
especially in modernizing the maritime industry in our country including the facilitation of the safe
and efficient transfer of people and goods from one port to another,

During this status quo, this essential service is regulated in reference to Presidential Decree
85, which objectively has not decrease the complaints submitted relating (o poor quality of the
pilotage service provide, the lack of proper equipment for pilotage, the overcharging of fees, and
collection of unauthorized fees. It is then just proper to say that a new law shall abet in bringing
the world class standard of harbor services into our country.

This proposed law will intensify the function of the Philippine Ports Authority in terms of
regulating pilotage, defining the qualification for appointment as a harbor pilot, and laying down
the accordance as to when a ship must procure pilotage services in compliance with safety
requirements of u leading maritime industry.

‘Thus, the immediate passage of this bill is earnestly sought.

Hl

LUIS RAYMUND “LRAY” K, VILLAFUERTE JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson Cite

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 8306

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
PROVIDING FOR A REGULATORY FRAMEWORK FOR OPEN HARBOR
PILOTAGE IN TITE COUNTRY

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled.

Section 1. Short Title. ~ This Act shall be known as the "Open Harbor Pilotage
Services Act.”

Sec. 2. Police and Objectives. - The State recognizes that harbor pilotage services play
avital role in the efficient operation of ports in ensuring the smooth flows of maritime commerce
and safe transport of persons in avoiding maritime accidents, and in helping the marine
environment. Pursuant thereto, the State shall adopt an open pilotage policy to regulate
pilotage services that comply with international standards and supervise the professional
conduct of harbor pilots in order to attain the following objectives:

(2) To ensure effective and efficient delivery of pilotage scrvices through the
rationalization or pilotage services:

(5) To. ensure navigational safety at all times and protect port facilities, vessels,
passengers and cargocs. particularly the safety or life and property at sea;

(c) Toencourage a healthy competitive environment among harbor pilots and/or
pilotage organizations that shall redound to the benefit of the shipping industry and
passengers dependent on waterborne transport as well as cargo shippers and
consignees without compromising maritime safety and the quality of service of harbor
pilots whose expertise and experience are essential to the achievement of transport
efficiency and profitability;

(d) To professionalize harbor pilotage services and ensure a uniform or national
standard of qualifications, required skills.discipline and level of professionalism for


harbor pilots who are accredited to conduct or provide pilotage services in any pilotage district
or territorial jurisdiction of any government port body or entity;

(c) To avail of the latest developments in maritime technology with respect to
vessel monitoring, ship to shore or ship to ship communications, vessel traffic management
system, among others, and upgrade pilotage services at par with global standards; and

(1) To protect the marine environment within the harbor limits of the ports.

Sec. 3. Scope. - This Act shall apply to all harbor pilots and_pilotage
organizations or persons rendering pilotage services licensed by the Maritime Industry Authority
(MARINA) and accredited by the authorities to render such services in all ports in the country.
whether owned and managed by the government or private persons.

See. 4. Definition of Terms. - As used in this Act:

(a) Accreditation refers to an official recognition, approval or permission granted
by the authorities to a harbor pilot or pilot organization to practice or provide harbor pilotage
services in a particular pilotage district for a prescribed period.

(b) Gross income - refers to the total revenues received by the respective port
authorities from billings assessed against ship owners or agents for pilotage and related services
rendered, whether collected or not.

(c) Harbor pilot - refers to a duly licensed master mariner, accredited by the
authorities to practice his profession, who is not part of the regular complement of the vessel, taken
on board ata particular place, and tasked (o safely. efficiently and effectively perform pilotage
service within a specific pilotage district. A harbor pilot may or may not be a member or a
pilotage organization.

(d) Pilotage Board refers to the governing body tasked to regulate, control and
supervise pilotage service and the conduct of harbor pilots in all pilotage districts in the country
in accordance with Section 5 hereof.

(c) Pilotage Exemption Certificate refers to the certificate or accreditation issued
by the authorities indicating an exemption granted to a_master of a vessel to pilot his own
vessel in a particular port or pilotage district.

(8) Pilotage License refers to the license issued by the MARINA toa master mariner
to exercise his profession as a harbor pilot.

(2) Pilotage Organization refers to the voluntary association of harbor pilots
duly registered with the Securities and Exchange Commission (SEC). No _ harbor pilotage
organization shall be considered as the sole or official association of harbor pilots in a particular
port, pilotage district or geographical area.

(h) Pilotage service refers to the act of _ conducting, navigating or
maneuvering a vessel to/from berth or anchorage, along channels, basins, rivers and estuaries,
including all related activities thereof.


(i) Port Authority refers to a body exercising regulatory supervision over
particular ports which include the Philippine Ports Authority and other goverment port
bodies or entitics created under special charter that manage or operate their own port or regulate
private ports within their jurisdiction.

G)_ Tug assistance refers to the act of towing, pulling or pushing a vessel with the
help of specialized watercraft or watercrafts with a single or combined capacity of at least
300 Brake Horse Power (BHP) to direct or control movernent and enable the vessel to maneuver
safely.

See. 5. Pilotage Board - A Pilotage Board is hereby created composed of
government port authorities, bodies or entities with their own special charter mandated to
administer or manage their own ports. The Philippine Ports Authority, through its General
Manager, shall serve as ex-officio Chairman of the Pilotage Board. The chief executive officers
of the Cebu Port Authority (CPA), Authority of the Free Port Area of Bataan (AFAB), Bases
Conversion Development Authority (BCDA). Subic BayMetropolitan Authority (SBMA),
Cagayan Economic Zone Authority (CEZA) and other bodies or entities tasked to supervise
pilotage services in the country shall sit as ex-officio members of the Pilotage Board. The
PPA shall provide technical, legal, administrative, and secretariat support to the Pilotage
Board.

See. 6. Powers, Duties and Functions - The Pilotage Board shall have the following
powers, duties and functions:

(a) To promulgate and adopt common and standard rules and regulations
necessary for the enforcement and administration of pilotage service and the conduct of harbor
pilots in all pilotage districts in the country, which shall include, among others, the
establishment of a pilotage safety trust fund and administrative sanctions against erring harbor
pilots:

(b) To create such committees or technical working groups to facilitate its work or
duties, plans or programs:

(c) To conduct related studics and researches on the latest developments in
maritime technology, maritime communications and vessel traffic systems, among others,
for the continuing improvement of pilotage and ship navigation within the harbor limits;

(d) To cstablish a comprehensive training program in coordination with the

MARINA and Philippine Coast Guard (PCG) for applicants or new harbor pilots as well as
a continuing advance training program for incumbent harbor pilots;

(c) To maintain @ record of the history or the pilotage districts, its harbor pilots
and records of maritime traffic and accidents, among others;

(t) To determine the number of pilotage districts taking into consideration the
volume or maritime traffic and other factors, to determine the optimum number of harbor pilots
within each pilotage district;


(g) To recommend adjustments in pilotage fees, rates and charges;

(h) To conduct investigations on maritime accidents involving harbor pilots or in
connection with the conduct of pilotage services without prejudice to MARINA and PCG to
conduct their separate investigation within their jurisdictions; and

(i) To perform such other things as may be necessary, incidental or conducive
to the functions of the Pilotage Board.

See.7. Open Pilotage Policy. - There shall be an open pilotage policy in every pilotage
district in the country. Pilotage service in the Philippines shall be provided directly by the port
authorities or on a non-exclusive basis through duly accredited pilotage organizations or a
pool or duly accredited harbor pilots. The concemed authority shall ensure that shipping
companies, vessel owners or ship agents shall be able to freely choose from at least two (2)
averedited pilotage organizations or a pool of qualificd harbor pilots in every pilotage district
Non-membership in a pilotage organization shall not bea bar for a duly accredited harbor
pilot to render pilotage services in a pilotage district. A harbor pilot may provide pilotage service
in more than one (1) pilotage district: Provided, That he is duly qualified or accredited to
render services therein.

See. 8. Compulsory Pilotage; Optional Pilotage under Certain Conditions.- As a
general rule, pilotage in all pilotage districts shall be compulsory for all vessels of five hundred
(500) gross tonnage and above when entering or leaving any Philippine port, whether owned by
government or a private entity,

Pilotage for domestic vessels below five hundred (500) gross tonnage or liners
regularly plying Philippine ports may be optional, unless pilotage in the port concerned
is otherwise declared or required by the authorities or the Pilotage Board to be compulsory. Where
a port has been declared or required to be compulsory for domestic vessels, the master or
captain of the same vessel may be allowed to pilot his own vessel if he has been plying or calling
on the same port for at least sixty (60) times: Provided. That said master or captain has been issued
a special accreditation or Pilotage Exemption Certificate (PEC) for the same vessel and for the
specific port

Provided, further, That the concerned port authority or the Pilotage Board may require
additional qualifications peculiar to the prevailing conditions in the port or port district with
respect to navigability of the channel or fairway, sea current, presence of derelicts and other
related conditions,

‘The concerned port authority may, if necessary, exempt any vessel or class of vessels
navigating in the pilotage district from availing of pilotage services, subject to such conditions as
it’ may deem appropriate, In such a situation, the said port authority shall tke into
consideration the physical and navigational peculiarities or the port including its channels
and fairways, the size, type and maneuvering capability of the vessel, the existence or
navigational aids, the volume of vessel traffic and such other factors which may affect vessel
movement and the level of risk for such navigation.


Sec. 9. Power to Prescribe Pilotage Traffic and Rates. - The authorities shall, upon
the recommendation of the Pilotage Board, have the power to prescribe and impose pilotage
rates and charges for every pilotage service rendered in every pilotage district, including any
special service, if any. In no case shall the authorities impose pilotage rates and charges for
pilotage and special services without prior notice and public consultation. Pilotage rates and
charges for every pilotage service rendered in every pilotage district, including any special
service, must be published in the website of the authoritics, as well as in a conspicuous place to
be determined by the authorities in each port covered by a pilotage district, Any pilotage
rate or charge imposed beyond the published rate shall be void.

The pilotage fees and charges applicable to vessels existing upon the effectivity or
this Act shall continue to apply until such time as new rates and charges are prescribed
and imposed by the authorities as may be necessary. In the nationalization or adjustment of
pilotage rates, the authorities shall require the pilot organizations to submit their Audited
Financial Statements for such period as may be needed for the proper evaluation or such
rate rationalization or adjustment.

See. 10. Government Share, -When the pilotage service is performed by a pilotage
organization or individual harbor pilot, the concerned port authority shall, in consideration
of the grant or such privilege or authorities and for the use of the port facilities, be entitled
tw & government share of at least ten (10%) percent of the gross income realized to be
paid directly to the port authority or entity where the pilotage service was rendered not later
than the fifth day of the succeeding month when the pilotage service was rendered: Provided,
That nothing in this Act shall limit the concerned port authority or entity from adopting other
mode s or collection procedure.

Sec. 11. Qualifications of a Harbor Pilot. be accredited and authorized to
render pilotage service in aspecific pilotage district or port, a licensed harbor pilot must have
the following qualifications:

(a) A Filipino citizen;
(b) Not more than fifty-five (55) years old at time of application;
(c) Of sound physical and mental condition as well as of good moral

character; and
(4) Aholder of @ pilotage license issued by the MARINA.

An application for a harbor pilot accreditation must be filed with the port
authority that has jurisdiction over the port or pilotage district where the applicant desires
to render harbor pilotage service. The Pilotage Board, shall promulgate uniform and nation
wide standard rules. regulations and procedures regarding qualifications, experience
required, physical fitness and other documentary requirements for application — for
harbor pilots. The following criteria, among others, shall be considered in the evaluation of
the applicant: education, relevant trainings, age, length of service or experience as a ship captain



or master of foreign or domestic vessels, length or service as a harbor pilot in other pilotage
districts, and tonnage of vessels handled. An applicant must have no personal interest in
any business or activity, nor derive income from any tugboat operation or any other ancillary
service within the jurisdiction of the port authority where the application for accreditation is
filed.

See. 12. Accreditation of a Harbor Pilot. ~ The accreditation of a qualified
harbor pilot shall have a term of five (5) years. which term may be renewable for the same
period, until they reach the mandatory retirement age. The mandatory retirement age shall be
seventy (70) years old for harbor pilots accredited prior to the effectivity of this Act, and sixty-
five (65) years old for those accredited subsequent to the effectivity or this Act: Provided.
That they shall undergo a revalidation process to be conducted by the MARINA in accordance
with the Intemational Convention on Standards or Training, Certification and Watchkeeping
for Seafarers (STCW) every five (5) years thercafter.

See. 13. Duties, Responsibilities and Discipline of Harbor Pilots. - The rules,
regulations and procedures promulgated by the Pilotage Board shall cover not only the control
and supervision or pilotage service in the country but also the conduct, duties, responsibilities
and discipline or harbor pilots. All harbor pilots must, at all times, observe the terms and
conditions set forth in the pilotage license and accreditation,

See. 14, Pilotage Organization. - The harbor pilots in a pilotage district may

organize themselves into a corporation, partnership or association which shall adopt its own
rules or by-laws: Provided, That such rules shall not contravene the rules and regulations
promulgated by the Pilotage Board. Such by-laws or rules shall be submitted to the
port authority or entity where such pilot organization operates, together with the record
or the association which shall contain, among others, the roster of its officers and members,
dctils of the vessels serviced, marine accidents involved, marine protests filed and
financial information on collection and

expenditures

See. 15. Tug Assistance; Compulsory Tug Assistance, When Required — Under
normal conditions, any vessel may be allowed to maneuver in port without tug assistance.
The respective other port authorities and entities shall determine when a vessel must be
assisted by a tugboat or set or tugboats (o ensure its safe navigation or mancuvering towards
its desired berth or destination. However, tug assistance shall be compulsory under the
following circumstances:

(1) When the size or tonnage or the vessel, or the peculiar conditions in the port or
channel, as may be determined by the concemed port authority or entity, requires tug
assistance;

(2) During prevailing conditions in the port such as strong current, wind factor
or inclement weather or any condition or situation affecting safe navigation;


(3) When the vessel is incapable or maneuvering itself;

(4) When the vessel opts to avail or tug assistance, even if under normal
conditions tug assistance is not necessary; and

(5) Such other situations, as may be determined by the PPA and the
concemed port authorities or entitics. The master or ship captain, vessel owner or agent shall
have a free choice of tugboat operators or in the selection or procurement of tugboats: Provided,
‘That, it is the required minimum towing or pushing capacity. Considering pilotage and towage
services are public utilities whose paramount consideration is public convenience, pilots with
existing accreditation, as well as members, employees and officers of pilotage organizations,
including their relative by consanguinity within the fourth civil degree, are prohibited

from being stockholders, owners, officers, or employees or a towage company, or
from holding any other interest in a towage company or tugboat operation, or from receiving
any form or remuneration, direetly or indireetly, from towage companies or the operation of tug
boat services

However, harbor pilots who operated tugboat services prior to the effectivity of this
‘Act shall be given a period of two (2) years from such effectivity to divest themselves or such
business interest.

See. 16. Penalties. - Any violation of the provisions of this Act. including the charging
of fees beyond the rates to be published pursuant to Section 9 hereof or the prohibition against
conflict of interest under Section 15 hereof, the terms and conditions of the accreditation
or pilotage license, or the pertinent rules and regulations on pilotage by a pilot or pilotage
organization shall, after due notice and hearing by the concemed port authority, be penalized by
a fine of not less than One hundred thousand pesos (PhP 100,000.00) but not to exceed Five
hundred thousand pesos (PhPS00.000,00) and suspension of the accreditation from three (3) to
twelve (12). months, or cancellation thereof. The concerned port authority may also
recommend to the MARINA the revocation of license of a harbor pilot who acts in violation
of this Act.

Any violation committed by a tug-boat operator shall, after due notice and hearing
by the MARINA, be administratively penalized by suspension of the certificate or public
convenience of not less than three (3) months but not more than twelve (12) months, or the
cancellation thereof.

See. 17, Transitory Provisions. - Harbor pilots duly authorized to render pilotage
services prior to the effectivity and implementation of this Act shall continue to exercise their
profession until they reach the mandatory retirement age, subject to revalidation requirement
under Scetion 12 or this Act. They shall be given preference over new applicants as long as,
they have substantially complied with the requirements promulgated pursuant to this Act.

All rules, regulations, administrative orders, circulars and related issuances on
pilotage services promulgated by the different port authorities shall continue to apply until
otherwise updated, repealed or modified by the Pilotage Board.


Sec. 18. Implementing Rules and Regulations.Following the effectivity or this
jotage Board shall immediately convene and promulgate the — necessary

implementing rules and regulations of this Act within a period of ninety (90)
days from its effectivity.

Act, the P

See. 19. Separahitity Clause,- If any part or provision of this Act is declared
as unconstitutional or invalid by a court of competent authority, the remaining provisions
which are not affected thereby shall continue to be in full force and effect.

Sec. 20. Repealing Clause. ~ Executive Order No. 1088 dated February 3, 1986 is
hereby repealed. Other laws, decrees, issuances, rules and regulations, or any part thereof, which
are inconsistent with or contrary to the provisions or this Act, are hereby repealed or
modified accordingly,

Sec. 21. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,