NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
In 1974, the Philippine Ports Authority (PPA) was created by virtue of Presidential 
Decree (PD) 857, as amended, to implement an integrated program for the planning, 
development, financing and operation of piers or port districts for the entire country.  
Through the years, the port users (e.g., domestic shippers, exporters and importers) 
have complained of low service levels, inefficient port operations and ever-increasing port 
charges. They claim that the high cost of transport serves as an effective barrier to increased 
trade (both local and foreign) and undermines the country's overall competitiveness.  
There is an urgent need to reform the country's ports administration by separating the 
regulatory and development functions of the Philippine Ports Authority (PPA) by converting it 
into a Philippine Ports Corporation and transferring its regulatory functions to the Maritime 
Industry Authority (MARINA). 
RUFUS B. RODRIGUEZ 
10509
June 6, 2024
12:14 pm


NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
AN ACT 
SEPARATING THE REGULATORY AND COMMERCIAL FUNCTIONS OF THE 
PHILIPPINE PORTS AUTHORITY (PPA) BY CONVERTING IT INTO PHILIPPINE PORTS 
CORPORATION FOR DEVELOPMENT, MANAGEMENT AND OPERATION OF PUBLIC 
PORTS WITHIN ITS SYSTEM AND TRANSFERRING THE REGULATORY FUNCTIONS TO 
THE MARITIME INDUSTRY AUTHORITY (MARINA) 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
Section 1. Title. This Act shall be known as the Philippine Ports Corporation (PHILPORTS) 
Act.  
Section 2. Declaration of Policies and Objectives. It is hereby declared to be the policy of 
the State to avoid conflict of interest arising from regulatory agencies vested with both 
regulatory and development or commercial functions. Under no circumstance should a 
regulatory agency benefit from its own regulation and/or use its regulatory powers to protect 
itself from competition at the expense of public interest. It is in this regard that this Act 
separates the regulatory and development functions of the Philippine Ports Authority (PPA) by 
converting it into a corporation solely for commercial and development purposes and 
transferring its regulatory functions and powers to the Maritime Industry Authority (MARINA).  
Section 3. The Philippine Ports Corporation — 
(a) The PPA shall be converted into Philippine Ports Corporation (PHILPORTS), a
government-owned and controlled corporation (GOCC) attached to the Department of
Transport (DOTr) and mandated to own, develop, manage and operate public ports
within the port system of the old PPA.
(b) While PHILPORTS is a public enterprise, it is not primarily a revenue generating entity
but a service provider. As such, it shall always give utmost priority and importance to
public service delivery and promotion of public interest over commercial/financial profit.
(c) PHILPORTS shall be governed by a Board with fifteen (15) members composed of
representatives from government agencies and industry associations:
GOVERNMENT 
1. Secretary of Transport (DOTr) as Chairman of the Board
2. Secretary of Trade and Industry (DTI)
3. Secretary of Agriculture (DA)
4. Socio-Economic Planning Secretary (NEDA)
5. Secretary of Public Works and Highways (DPWH)
6. Secretary of Tourism (DOT)
7. Secretary of Environment and Natural Resources (DENR)
10509


8. President of PHILPORTS 
 
PRIVATE SECTOR 
 
9. BUSINESS: Representative from the Philippine Chamber of Commerce  
and Industry (PCCI) 
10. LOGISTICS: Representative from the Supply Chain Management 
Association of the Philippines (SCMAP) 
11. PORT USERS: Representative from the Port Users Confederation (PUC)  
12. EXPORTERS: Representative from the Philippine Exporters  
Confederation (PHILEXPORT)  
13. TOURISM: Representative from the National Tourism Congress 
14. SHIPPING: Representative from the shipping industry (PISA) and  
15. CARGO HANDLERS: Philippine Chamber of Arrastre and Stevedoring  
Operators (PCASO)  
 
(d) PHILPORTS shall prepare a long-term port system development plan — taking into 
consideration the needs and requirements of manufacturing, agro-fisheries, tourism, 
transport, and logistics sectors — that will be integrated into the overall transport plan 
of the DOTr and the road infrastructure development plan of the Department of Public 
Works and Highways (DPWH) to promote and ensure inter-modal seamless 
connectivity. The Plan shall likewise take into account the regional development thrusts 
of the National Economic and Development Authority (NEDA).  
 
(e) The Board shall formulate the necessary policies and guidelines for the implementation 
of the Port System Development Plan. These policies must be geared towards the 
enhancement of the country's overall competitiveness. Moreover, port operations and 
performance standards must be developed and used in the development, operations 
and maintenance of its ports.  
 
(f)  PHILPORTS shall collect only the port fees and dues duly approved by the MARINA. 
PHILPORTS shall not: 
 
(i)  
Share from cargo handling revenues and/or any service providers 
contracted by PHILPORTS; and 
(ii)  
Share from any revenue generated by private commercial ports.  
 
(g) The revenues collected by PHILPORTS shall be used for the development, 
modernization, expansion, operation and maintenance of its ports. PHILPORTS shall 
be exempt from declaring corporate dividends to the National Treasury in order to 
provide adequate resources for port development and modernization.  
 
(h) Within one hundred and eighty (180) days from its constitution, in compliance with RA 
10149 (GOCC Governance Act of 2011) and the rules and regulations of the 
Governance Commission for GOCCs (GCG), PHILPORTS shall adopt an ownership 
and operations manual and the government corporate standards governing GOCCs. 
The manual shall be consistent with the Medium-Term Philippine Development Plan 
issued by the National Economic and Development Authority (NEDA) and shall 
include:  
 
(i) 
Objectives of State ownership 
(ii) 
Role of national government in the governance of GOCCs 
(iii) 
Modes of implementation of the ownership policy 


(iv) 
Guidelines on the monitoring of the operations of all GOCCs including their 
Related Corporations. These shall include Strategy Maps, Charter 
Statements, Performance Commitments and such other mechanisms; 
(v) 
The roles, relationships and responsibilities of the State, the Government 
Agencies to which the GOCC is attached, and the GOCC 
(vi) 
Disclosure and transparency requirements vii. Code of Ethics of Directors 
and Officers 
(vii) Creation of board committees and similar oversight bodies 
(viii) Integrated corporate reporting system  
(ix) 
Statement of the social responsibilities of the GOCC, and  
(x) 
Such other matters as the GCG may deem proper to include in the 
ownership policy  
 
(i) The Board of Directors as well as key officers of PHILPORTS shall be governed by 
the "fit and proper rule" guidelines stipulated by the Governance Commission for 
GOCCs (GCG).  
 
(j) PHILPORTS shall likewise:  
 
(i) 
establish 
performance 
evaluation 
systems 
including 
performance 
scorecards and conduct periodic study, examination, evaluation and 
assessment of its performance  
(ii) 
conduct compensation studies and develop a competitive compensation and 
remuneration system which shall attract and retain talent, at the same time 
allowing the GOCC to be financially sound and sustainable  
(iii) 
maintain a website and post therein for unrestricted public access, in 
compliance with GCG's full disclosure requirements, PHILPORTS'  
 
(a) annual audited financial statements for the last 5 years 
(b) performance report 
(c) quarterly, annual reports and trial balance 
(d) current corporate operating budget 
(e) complete compensation package of all the board members and 
officers, including travel, representation, transportation and any 
other form of expenses or allowances 
(f) local and foreign borrowings 
(g) performance scorecards and strategy maps 
(h) government subsidies and net lending among others.  
 
(k) PHILPORTS, with approval from the Board, may issue bonds and incur indebtedness, 
if necessary, to carry out its Programs. It may also enter into joint venture arrangements 
with the private sector in the development and operation of its ports.  
 
(l) PHILPORTS shall develop a port privatization program in keeping with the principles 
of New Public Management that posits greater private sector participation in the 
delivery of public services.  
 
Section 4. Regulatory Functions transferred to MARINA. All regulatory powers and 
functions of the defunct PPA shall be transferred to the MARINA. 
 
a) Prescribe rules and regulations, procedures, and guidelines on the planning, 
development, construction, maintenance, control, supervision and management of any 
Port or Port District all ports in the country; 
b) Impose, modify, enforce, and regulate dues, rates, or charges on port services or port 
related services; 


c) Issue, regulate, and supervise permits or licenses to construct ports, ports facilities, 
warehouses, and other facilities within port districts;  
d) Exercise control or administer any foreshore rights or leases which may be vested to 
MARINA from time to time; 
e) Control, regulate, and supervise pilotage and the conduct of pilots in any Port District; 
f) Direct and regulate the appropriate berthing, mooring, anchoring, or removal of any 
vessel; and  
g) Exercise the right of eminent domain, by expropriating the land or areas surrounding 
the Port of harbor, which in the opinion of MARINA, are vital or necessary for the total 
development of the Port District. 
 
Section 5. Implementing Rules and Regulations. Within ninety (90) days from the effectivity 
of this Act, the government agencies that will serve as members of the Board shall promulgate 
the necessary rules and regulations to implement this Act.  
 
Section 6. Repealing and Separability Clauses. PD 505, PD 857, LOI 1005-A, and all laws, 
decrees, orders, rules and regulations, policies, programs or parts thereof, which are 
inconsistent with any of the provisions of this Decree, are hereby repealed or modified 
accordingly.  
 
Section 7. Separability Clause. If, for any reason, any section or provision of this Act is 
declared to be unconstitutional or invalid, the other sections or provisions of this Act which are 
not affected thereby shall continue to be in full force and effect.  
 
Section 8. Effectivity Clause. This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or a newspaper of general circulation.  
 
Approved,