FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 
1379 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
Being an archipelagic country, the importance of ports in the Philippines 
cannot be undermined. Ports are instrumental in facilitating long-distance 
market transactions and inter-island connectivity, especially the main islands of 
Luzon, Visayas and Mindanao. 
The Philippine Ports Authority (PP A) was created by Presidential Decree 
(PD) No. 857, otherwise known'and cited as "Revised Charter of the Philippine Ports 
Authority," to facilitate the implementation of an integrated program for 
planning, development, financing, operation and maintenance of ports for the 
entire country. Apart from owning and operating public ports, the Philippine 
Port Authority was mandated to regulate private ports. 
Despite the gUidelines set by PD No. 857, the performance of PP A as a 
supervisory body of all the ports in the country is below par as manifested by 
insufficient and umesponsive port facilities, inefficient service delivery and 
declining revenues. 
This bill proposes to strengthen the PP A by emphasizing its mandate as 
the National Port Planning Body as well as endowing the same with additional 
powers that will beef up its capacity to develop the ports system. It likewise 
proposes to ensure a more systematic management of the ports system in the 
Philippines through the formulation and implementation of a National Ports 
Development Plan, which shall be responsive to the needs of regional trade and 
economic development, compatible with the national intermodal and multi-
modal transport network. 
This proposed measure, being cognizant of the issues pertaining to the 
Philippine Ports Authority, se~ks to amend certain provisions of PD 857 to 
facilitate: 
• A competitive environment among port districts in the country; 
• Efficiency in port services taking into account the physical composition 
and/ or restriction of ports., vessels and cargo traffic; 
• Expanded contribution of the private sector in the development, 
management and operations of the ports; and 
1 


ii' 
• Port privatization excluding the sale or transfer or ownership of port 
assets or facilities. 
In view of the foregoing considerations, approval of this bill is earnestly 
sought. 
2 


FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.B. No. 
1379 
Introduced by Senator Loren Legarda 
AN ACT 
STRENGTHENING 
AND 
STREAMLINING 
THE 
PHILIPPINE 
PORTS 
AUTHORITY, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 
857 AS AMENDED, OTHERWISE KNOWN AS THE REVISED CHARTER OF 
• 
THE PHILIPPINE PORTS AUTHORITY 
Be it enacted by the Senate and House of the Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Section 2 Presidential Decree No. 857 is hereby amended by 
2 
adding Paragraphs (g) and (h) to read as follows: 
3 
4 
"SECTION 2. Declaration of Policies and Objectives. 
5 
a) xxx 
6 
xxx 
xxx 
xxx 
7 
G.) TO FOSTER VIABLE COMPETITION AMONG PORTS AND 
8 
ENSURE EFFICIENT PROVISION OF PORT SERVICES TAKING 
9 
INTO CONSIDERATION THE PHYSICAL CONFIGURATION OR 
10 
CONSTRAINT OF THE PORTS, VESSEL AND CARGO TRAFFIC 
11 
SUCH OTHER RELEVANT FACTOR; 
12 
H.) TO ENCOURAGE PRIVATIZATION AND EXPAND THE 
13 
PARTICIPATION 
OF 
THE 
PRIVATE 
SECTOR 
IN 
THE 
14 
DEVELOPMENT, MANAGEMENT AND OPERATIONS OF THE 
15 
PORTS THROUGH THE BUILD, OPERATE THE TRANSFER 
16 
SCHEME OR ITS VARIANTS, JOINT VENTURES OR SUCH OTHER 
17 
SCHEMES AUTHORIZED BY THIS ACT OR SUCH OTHER LAWS 
18 
AND 
EXISTING 
POLICIES; 
PROVIDED, 
THAT 
PORT 
19 
PRIVATIZATION SHALL NOT INCLUDE THE SALE OR TRANSFER 
20 
OR OWNERSHIP OF PORT ASSETS OR FACILITIES." 
21 
1 


1 
SECTION 2. Section 3 of the same Decree is hereby amended by adding 
2 
paragraphs v, wand x to read as follows: 
3 
4 
5 
6 
SECTION 3. Definitions.- xxx 
a) 
xxx 
xxx 
xxx 
xxx 
7 
V) "PORT SYSTEM" INCLUDES GOVERNMENT PORTS, WHICH, 
8 
AS DETERMINED BY THE AUTHORITY ON THE BASIS OF 
9 
CARGO; VESSEL, AND PASSENGER TRAFFIC, STRATEGIC 
10 
LOCATION AND DEVELOPMENT POTENTIALS, CAN PROVIDE 
11 
EFFECTIVE AND ECONOMICAL TRANSPORT FOR GOODS 
12 
AND PASSENGERS; 
13 
W) "SUBSIDIARY" REFERS TO A CORPORATION ORGANIZED 
14 
BY 
THE 
AUTHORITY 
IN 
ACCORDANCE 
WITH 
THE 
15 
CORPORATION CODE OF THE PHILIPPINES TO DEVELOP, 
16 
MAINTAIN, MANAGE AND OPERATE PORTS AND PORT 
17 
SERVICES AS A FINANCIALLY AUTONOMOUS ENTITY; 
18 
X) "JOINT VENURE" REFERS TO THE CORPORATION OR 
19 
ENTITY ORGANIZED UNDER EXISTING LAWS, WITH THE 
20 
AUTHORITY AS THE MINORITY STOCKHOLDER AND THE 
21 
PRIVATE SECTOR AS THE MAJORITY STOCKHOLDER, WHICH 
22 
SHALL DEVELOP, MAINTAIN, MANAGE AND OPERATE PORT 
• 
23 
OR PORT SERVICES AS COMMERCIAL ENTERPRISES." 
24 
25 
SECTION 3. Section 4 of the same decree is hereby amended by inserting a 
26 
new paragraph b redesignating paragraph (b) as paragraph (c) to read as follows: 
27 
28 
SEC 4. Creation of Philippine Ports Authority. - xxx 
29 
a) xxx 
30 
B) THE AUTHORITY SHALL, IN ADDITION TO ITS POWERS 
31 
AND 
JURISDICTION 
OVER 
THE 
DEVELOPMENT, 
32 
MAINTENANCE, MANAGEMENT, AND OPERATIONS OF 
33 
PORTS, SERVE AS THE NATIONAL PORT PLANNING BODY. 
34 
EXCEPT FOR THE MILITARY, OTHER GOVERNMENT 
35 
AGENCIES 
SUCH 
AS 
THE 
PHILIPPINE 
FISHERIES 
36 
DEVELOPMENT 
AUTHORITY, 
DEPARTMENT 
OF 
2 


1 
TRANSPORTATION 
AND 
COMMUNICATIONS, 
2 
DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS, CEBU 
3 
PORT AUTHORITY, LOCAL GOVERNMENT UNITS, AND 
4 
OTHER INDUSTRIAL ESTATES OR SPECIAL ECONOMIC 
5 
ZONES 
INVOLVED 
IN 
THE 
DEVELOPMENT 
OR 
6 
CONSTRUCTION OF PORTS SHALL COORDINATE WITH 
7 
THE 
AUTHORITY 
ON 
THEIR 
PORT 
PLANS 
AND 
8 
PROGRAMS." 
9 
10 
SECTION 4. Section 5 of the same Decree is hereby amended to read as 
11 
follows: 
12 
13 
SEC 5. Port [District] System - [The authority may from time to time 
14 
submit to the President, through the National Economic and 
15 
Development Authority, application for the declaration of specific areas 
16 
as Port Districts. Such applications shall be accompanied by a survey 
17 
plan indicating the geographical location of the area or areas to be 
18 
declared as Port Districts with their respective boundaries properly 
19 
delineated.] 
THE 
AUTHORITY 
SHALL 
ESTABLISH 
AND 
20 
ADMINISTER A PORT SYSTEM COMPRISING OF VITAL PORTS 
21 
SYSTEM COMPRISING OF VITAL PORTS CRITICAL FOR THE 
22 
TRADE AND TRANSPORT NETWORK OF THE COUNTRY. 
23 
24 
THE NATIONAL PORT SYSTEM SHALL COMPRISE ALL 
25 
PORTS IN THE COUNTRY, WHETHER OWNED BY 
THE 
26 
GOVERNMENT 
OR 
UNDER 
PRIVATE 
OWNERSHIP 
AND 
27 
WHETHER OPERATED COMMERCIALLY OR FOR A SPECIAL 
28 
PURPOSE. THE AUTHORITY SHALL HAVE JURISDICTION ON 
29 
ALL PORTS INTENDED OR USED FOR COMMERCIAL PURPOSE 
30 
OR THOSE BUILT PRIMARILY FOR RECEIVING VESSELS FOR 
31 
THE PURPOSE OF LOADING OR DISCHARGING PASSENGERS 
32 
AND CARGOES. PORTS DEVELOPED OR CONSTRUCTED BY 
33 
OTHER AGENCIES OF THE GOVERNMENT SHALL FALL UNDER 
34 
THE JURISDICTION OF THE AUTHORITY UPON THEIR FORMAL 
35 
TURNOVER TO THE LATTER. A PRIVATE PORT THAT CATERS 
36 
EXCLUSIVELY FOR THE TRANSPORT NEEDS OF ITS OWNER OR 
3 


1 
OPERATOR SHALL LIKEWISE FALL UNDER THE JURISDICTION 
2 
OF THE AUTHORITY. 
3 
4 
SECTION 5. Sub-paragraphs (i), (vii) and (viii) of Section 6 (a) of the same 
5 
Decree are hereby amended, a new sub-paragraph(ix) is added and sub-paragraphs 
6 
(ix) and (x) are renumbered as sub-paragraphs (x) and (xi), respectively, to read as 
7 
follows: 
8 
9 
"Sec. 6 Corporate Powers and Duties. 
10 
The Corporate powers of the Authority shall be: 
11 
(i) To formulate in coordination with the DOTe, National Economic 
12 
Development Authority (NEDA) and DPWH, a comprehensive [and 
13 
practicable] NATIONAL, PORTS DEVELOPMENT PLAN (NDPC) 
14 
[for the state and to program its implementation, renew and update 
15 ' 
the same annually in coordination with other national agencies] 
16 
RESPONSIVE TO THE NEEDS OF TRADE AND REGIONAL 
17 
ECONOMIC DEVELOPMENT AND COMPATIBLE WITH THE 
18 
NATIONAL INTERMODAL AND MULTIMODAL TRANSPORT 
19 
20 
NETWORK; 
xxx 
xxx 
xxx 
21 
(vii) TO CONTROL OR ADMINISTER ANY FORESHORE RIGHTS 
22 
OR LEASES, 
INCLUDING THE 
PORT 
FACILITIES 
AND 
23 
IMPROVEMENTS THEREON WHICH ARE DELINEATED IN 
24 
COORDINATION [coordinate] with the Bureau of Lands AND 
25 
DECLARED BY THE PRESIDENT AS PORT ZONE [or any other 
26 
government agency or corporation in the development of any 
27 
foreshore area]. EXISTING LEASES ON FORESHORE AREAS 
28 
DEVOTED TO PORT DEVELOPMENT AND OPERATIONS ARE 
29 
HEREBY TRANSFERRED FROM THE BUREAU OF LAND 
30 
MANAGEMENT TO THE AUTHORITY. 
31 
32 
(viii) To control, regulate and supervise pilotage [and the conduct of 
33 
pilots in any Port District] ,SERVICES BY: 
34 
1. DETERMINING PILOTAGE SERVICES AND FEES; 
35 
2. ACCREDITING 
QUALIFIED 
HARBOR 
PILOTS, 
AND 
36 
PILOTAGE ORGANIZATIONS; AND 
4 


1 
3. IDENTIFYING WHAT PORT IN THE COUNTRY SHALL BE 
2 
UNDER COMPULSORY OR OPTIONAL PILOTAGE. 
3 
(ix) TO ENSURE SAFE AND EFFICIENT NAVIGATION, THE 
4 
AUTHORITY SHALL PROVIDE WITHIN THE PORT LIMITS 
5 
SUCH 
NAVIGATIONAL 
AIDS 
AND 
LIGHTHOUSE 
AND 
6 
COMMUNICATION SERVICES AND STRUCTURES WHICH 
7 
SHALL BE ALLOCATED AND GRANTED EXCLUSIVE RADIO 
8 
FREQUENCY LINE BY THE GOVERNMENT. 
9 
10 
[(IX)] (x) To provide or assist in the provision of training programs and 
11 
users for the efficient discharge of its functions and duties, and 
12 
responsibilities. 
13 
[(x)] (xi) To perform such acts or provide such services as may be 
14 
deemed proper or necessary to carry out and implement the provisions 
15 
of this decree. 
16 
17 
SECTION 6. Sub-paragraph (v), and (x) of Section 6 (b) of the same decree 
18 
are hereby amended, new sub-paragraphs (xv), (xvi), and (xvii) are added and sub-
19 
paragraph (xv) and (xvi) are her~by renumbered as (xviii) and (xix), respectively, to 
20 
read as follows: 
21 
22 
23 
24 
" (v) To create, REORGANIZE OR ABOLISH OFFICES, 
DETERMINE 
PERSONNEL 
STAFFING 
PATTERN 
AND 
NUMBER 
01' 
AND 
STAFF 
THE 
ORGANIZATION 
WITH 
25 
APPROPRIATE AND QUALIFIED PERSONNEL, [or alter its own 
26 
organization or any Port Management Unit, and staff such an 
27 
organization or Port Management Unit with appropriate and qualified 
28 
personnel] in accordance with what may be deemed [proper or] 
29 
necessary to achieve the objectives of the Authority . 
• 
30 
ANY OFFICIAL OR EMPLOYEE WHO MAYBE REMOVED BY 
31 
REASON OR REORGANIZATION SHALL, IN ADDITION TO 
32 
THE BENEFITS UNDER EXISTING RETIREMENT LAWS, BE 
33 
GRANTED NOT LESS THAN THREE (3) MONTHS BASIC 
34 
SALARY FOR EVERY YEAR OF SERVICE. 
35 
36 
(w) xxx 
5 


1 
(x) To [reclaim,] excavate,enclose or raise any part of the lands FOR 
2 
PORT-RELATED PURPOSES, ON ITS OWN OR THROUGH A 
3 
PRIVATE DEVELOPER, UNDER SUCH ARRANGEMENT AS THE 
4 
AUTHORITY 
MAY 
DEEM 
PROPER. 
THE 
AREAS 
THUS 
5 
RECLAIMED SHALL BE ,ELIGIBLE FOR TITLING IN THE NAME 
6 
OF THE AUTHORITY OR THE PRIVATE DEVELOPER [vested in 
7 
the Authority], 
8 
xxx 
xxx 
xxx 
9 
(xv) 
TO ISSUE PERMIT FOR THE CONSTRUCTION OF PORT 
10 
STRUCTURES, 
IN 
PARTICULAR, 
TO 
ENCOURAGE 
THE 
11 
ESTABLISHMENT AND OPERATION OF PRIVATE PORTS; 
12 
PROVIDED, THAT THE OPERATION AND MAINTENANCE 
13 
THEREOF SHALL BE DIRECTLY CONNECTED TO AND IS AN 
14 
INTEGRAL PART OF THE PRINCIPAL BUSINESS OF THE 
15 
PRIVATE PORT OPERATOR. 
16 
17 
(xvi) TO UNDERTAKE CONSTRUCTION OF PORT FACILITIES 
18 
AND 
PROVIDE 
SERVICES. 
FOR 
THIS 
PURPOSE, 
ANY 
19 
RESTRAINING ORDER OR INJUNCTION AGAINST THE 
20 
AUTHORITY SHALL BE ISSUED ONLY BY THE SUPREME 
21 
COURT, NOT BY LOWER COURTS. 
22 
23 
(xvii) TO ENSURE AMpLE PROTECTION TO PORT LABOR 
24 
FORCE IN CASE OF CHANGE IN THE MANAGEMENT AND 
25 
OPERATIONS OF CARGO HANDLING AND PORT SERVICES, 
26 
THE LABOR FORCE OF THE OUTGOING CARGO HANDLING 
27 
AND PORT SERVICE OPERATOR SHALL, AS 
FAR AS 
28 
PRACTICABLE, BE ENTITLED TO THE FOLLOWING: 
29 
1. 
ABSORPTION FOR EMPLOYMENT BY THE INCOMING 
30 
PORT SERVICE OPERATOR; 
31 
32 
33 
34 
35 
36 
2. 
3. 
PURCHASE EQUITY STOCK NOT TO EXCEED TWENTY 
(20%) PERCENT OF THE AUTHORIZED CAPITAL STOCK 
OF THE INCOMING PORT SERVICE OPERATOR; 
PAYMENT BY THE OUTGOING SERVICE OPERATOR OF 
THE BENEFITS WHICH HAVE ACCRUED TO THE LABOR 
FORCE UP TO THE TIME OF THE TRANSFER OR 
6 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
4. 
ABSORPTION 
BY 
THE 
NEW 
OPERATOR, 
IN 
• 
ACCORDANCE 
WITH 
LABOR 
AND 
SOCIAL 
LEGISLATIONS AND OTHER APPLICABLE LAWS. SAID 
BENEFITS SHALL CONSTITUTE A LIEN ON THE ASSETS 
AND 
EQUIPMENT 
OF 
THE 
OUTGOING 
CARGO 
HANDLER AND PORT SERVICE OPERATOR WHICH THE 
AUTHORITY 
SHALL TAKE 
INTO 
CUSTODY 
AND 
PROPERLY DISPOSE OF TO SATISFY THE LIEN. 
CREATE A PORT WORKER AMELIORATION FUND 
(PWAF) 
WHICH 
SHALL 
BE 
ADMINISTERED 
AND 
MAINTAINED BY THE AUTHORITY TOGETHER WITH 
REPRESENTATIVES FROM THE CARGO HANDLER'S 
ORGANIZATION OR PORT OPERATOR AND THE LABOR 
FORCE. 
15 
[(xv)] (xviii) 
xxx 
16 
[(xv)] (xix) 
xxx 
17 
18 
SECTION 7. Sub-paragraph (ix) of Section 7 (a) of the same Decree and 
19 
Section 7(c) are hereby further amended to read as follows: 
20 
21 
"Sec. 7. Board of Directors 
22 
23 
24 
a) xxx 
xxx 
(ix) 
xxx 
THREE 
(3) 
xxx 
[One 
(I)J 
PRIVATE 
SECTOR 
25 
REPRESENTATIVES [other person] who shall be appointed by the 
26 
President of the Philippines: [representing the private sector] ONE (1) 
27 
FROM THE SECTOR OF SHIPOWNERS, ONE (1) FROM THE 
28 
CHAMBER OF COMMERCE AND ONE (1) FROM INDUSTRY 
29 
SECTOR, who by reason of [his] THEIR knowledge [or] AND 
30 
experience [is] ARE COMPETENT TO BE MEMBERS OF THE 
31 
BOARD OF DIRECTORS, [in the opinion of the President, fit and 
32 
proper person to be Director of the Board.]: PROVIDED, That, in the 
33 
absence of the Director appointed in sub-sections (iii) to (viii) the 
34 
Director concerned shall designate the officer next in rank to him in his 
35 
department or office to act on his behalf as Director. 
36 
xxx 
xxx 
xxx 
7 


1 
(e) The members of the Board or their respective alternates shall 
, 
2 
receive a per diem AND REPRESENTATION ALLOWANCE as [itJ 
3 
THE BOARD may approve for each [board] meeting actually attended 
4 
by them: Provided, [That, such per diems shall not exceed one 
5 
thousand pesos during any month for each member. Provided further; 
6 
That no other allowances or any form of compensation shall be paid 
7 
them except actual expenses in traveling to or from their residence to 
8 
attend Board meetings] THAT THE AMOUNT OF SUCH PER DIEM 
9 
AND ALLOWANCE SHALL BE COMPARABLE TO THOSE 
10 
ALLOWED BY OTHER BOARDS OF OTHER GOVERBNMENT 
11 
CORPORATIONS OF THE SAME SIZE AND INCOME AS THAT 
12 
OF THE AUTHORITY." • 
13 
14 
SECTION 8. Section 8 (c) of the same Decree is hereby amended, a new 
15 
paragraph (d) is added and paragraphs (d),(e) and (f) are hereby designated as(e), (f) 
16 
and (g), respectively, to read as follows: 
17 
18 
19 
20 
"Sec. 8 Management and Staff -
a) xxx 
xxx 
xxx 
xxx 
21 
c.) The general manager shall, subject to the approval of the Board, 
22 
determine the ORGANIZATIONAL STRUCTURE AND staffing 
23 
pattern [and the number of personnel] of the Authority [,] AND define 
24 
their duties and responsibilities [,and] AS WELL AS fix their 
25 
COMPENSATION 
[salaries] 
and 
OTHER 
emoluments. 
[For 
26 
professional and technicpl positions, the General Manager shall 
27 
recommend salaries and emoluments that are comparable to those of 
28 
similar positions in other government- owned corporations, the 
29 
provisions of existing rules and regulations on wage and position 
30 
classification 
notwithstanding.] 
ALL 
POSITIONS 
IN 
THE 
31 
AUTHORITY 
SHALL 
BE 
GOVERNED 
BY 
A 
SALARY 
32 
STANDARDIZATION APPROVED BY THE BOARD BASED ON A 
33 
COMPREHENSIVE JOB ANALYSIS AND AUDIT OF ACTUAL 
34 
DUTIES AND RESPONSIBILITIES OF THE EMPLOYEES. THE 
35 
COMPENSATION PLAN SHALL BE COMPARABLE WITH 
36 
PREVAILING COMPENSATION PLANS IN THE PRIVATE 
8 


1 
SECTOR AND SHALL BE SUBJECT TO REVIEW, WITHOUT 
2 
PREJUDICE TO YEARLY 
MERIT 
INCREASE 
BASED ON 
3 
PRODUCTIVITY AND 
PROFITABILITY. 
THE 
AUTHORITY 
4 
SHALL BE EXEMPTED FROM REPUBLIC ACT NO. 6758, 
5 
OTHERWISE 
KNOWN 
AS 
"THE 
COMPENSATION 
AND 
6 
POSITION CLASSIFICATION ACT OF 1989" OR ANY FUTURE 
7 
SALARY STANDARDIZATION LAW OR ATTRITION LAW 
8 
WHICH MAY HEREINAFTER BE ENACTED. 
9 
D) THE PERSONNEL OF THE AUTHORITY WHO ARE AFFECTED 
10 
BY THE CREATION OF A SUBSIDIARY, JOINT VENTURE OR 
11 
TRANSFER 
OF 
THE 
MANAGEMENT, 
DEVELOPMENT, 
12 
MAINTENANCE AND QPERATION FUNCTIONS OF THE PORTS 
13 
OR PORT SERVICES TO THE PRIVATE SECTOR SHALL BE 
14 
ENTITLED TO THE SAME BENEFITS AS THOSE AFFECTED BY 
15 
THE REORGANIZATION AND SHALL BE ABSORBED BY THE 
16 
PORT 
OPERATING 
FIRMS 
AND 
ENTITLED 
TO 
OR 
17 
GUARANTEED WITH SECURITY OF TENURE FOR NOT LESS 
18 
THAN FIVE (5) YEARS," 
19 
20 
SECTION 9. Section 9-A of the same Decree is hereby amended to read as 
21 
follows: 
22 
23 
[d)] E) xxx 
24 
[e)] F] xxx 
25 
[f)] G] xxx" 
26 
SEC. 9-A. [National] Port Advisory Councils - There are [is 
27 
hereby created as National] SHALL BE ESTABLISHED Port Advisory 
28 
Councils AT THE PORT DISTRICT OFFICES AND PORT 
29 
MANAGEMENT OFFICES to be composed of [the General Manager 
30 
of the Philippine Ports Authority as Chairman and a representativE' 
31 
each from the Department of Labor and Employment, the Bureau of 
32 
Customs, chambers of commerce and industry, import and export 
33 
associations, the local shipping companies, the foreign shipping 
34 
companies, arrastre and stevedoring companies, consumer group, 
35 
shippers council and such other aggrupation as the Authority may 
36 
deem expedient as members, which shall act as an advisory body to 
9 


1 
assist 
the 
Authority 
in 
the 
formulation 
of 
its 
policies.] 
2 
REPRESENTATIVES FROM PPA AS CHAIRMAN, AND DOTC, 
3 
LOCAL GOVERNMENT UNITS (LGUS) MARITIME INDUSTRY 
4 
AUTHORITY (MARINA), PHILIPPINE COAST GUARD (PCG) 
5 
AND NON-GOVERNMENTAL ORGANIZATIONS CONCERNED 
6 
WITH PORT AND MARITIME SECTORS, AS MEMBERS, TO 
7 
ASSIST THE AUTHORITY IN THE FORMULATION OF PORT 
8 
DEVELOPMENT PLANS AND OPERATIONAL POLICIES AND 
• 
9 
RESOLUTIONS." 
10 
11 
SECTION 10. Section 13 (a) of the same Decree is hereby amended to read as 
12 
follows: 
13 
14 
"Sec. 13. Borrowing Powers - xxx 
15 
a) The Authority may, after consultation with the [central bank] 
16 
BANGKO SENTRAL NG PILIPINAS and the Department of 
17 
Finance, and with the approval of the President of the Philippines 
18 
raise funds, either from local or international sources by way of 
19 
loans, credits or securities, AS WELL AS THE FLOTATION OF 
20 
BONDS and borrowing instruments, including the power to create 
21 
pledges, mortgages and other voluntary liens or encumbrances on 
22 
any of its assets or properties." 
23 
24 
xxx 
xxx 
xxx 
25 
SECTION 11. Section 22 of the same Decree is hereby amended to read as 
26 
follows: 
27 
28 
"Sec.22. Remedies for Non- Payment- If the master, owner, or 
29 
agent of any vessel refuses or neglects to pay on demand any dues, 
30 
rates or charges made under this Decree or any part thereof OR ANY 
31 
DAMAGE TO PORT FACILITIES, the Authority may, in addition to 
32 
any other remedy provided by law, detain or arrest or its own 
33 
authority such vessel and' tackle, apparel or furniture belonging to the 
34 
vessel, and detain the same until the amount or amounts due have 
35 
been paid." 
36 . 
10 


1 
SECTION 12. Section 30 of the same Decree is hereby amended by adding 
2 
paragraphs(b) and (c) to read as follows: 
3 
4 
"Sec. 30. Transfer of Existing and Completed Physical Facilities -
5 
a) 
In accordance with the transitory provisions of this Decree, 
6 
there shall be transferred to the Authority all existing and completed 
7 
public ports facilities, quays, wharves, docks, land buildings and other 
8 
property, movable or immovable, belonging to those ports declared as 
, 
9 
Port Districts for purposes of this Decree. 
10 
11 
b) 
THE 
ADMINISTRATION, 
REVENUE 
COLLECTION, 
12 
MANAGEMENT, 
OPERATION 
AND 
DEVELOPMENT 
OF 
13 
GOVERNMENT PORTS' WHICH ARE NOT EMBRACED OR 
14 
INCLUDED IN THE PORT SYSTEMS ESTABLISHED BY THE 
15 
AUTHORITY MAY, UPON THE CONCURRENCE OF THE 
16 
AUTHORITY, BE DEVOLVED TO THE LOCAL GOVERNMENT 
17 
UNITS. 
18 
19 
c) PRIOR TO ANY DEVOLUTION, THE AUTHORITY SHALL 
20 
ENSURE THAT THE LGU 
SHALL HAVE THE PROPER 
21 
TRAINING TO OPERATE AND MANAGE THE DEVOLVED 
22 
PORTS. DOTC 
AND 
OTHER AGENCIES WHICH 
HAVE 
23 
FINANCED AND CONSTRUCTED PORTS ON THEIR OWN MAY 
24 
TURN THEM OVER TO THE AUTHORITY FOR OPERATION. 
25 
THE SAME PORTS MAY ALSO BE DEVOLVED BY THE 
26 
AUTHORITY TO THE LOCAL GOVERNMENT UNITS." 
27 
28 
SECTION 13. Implementing Rules and Regulations. - The Chairman of the 
29 
Authority shall, within sixty (60) days from the approval of this Act, promulgate the 
30 
rules and regulations as may be necessary for the effective implementation of this 
31 
Act. 
32 
33 
SECTION 14. Separability Clause. - If for any reason, a section or provisions 
34 
of this Act is declared to be unconditional or invalid, the other sections or provisions 
35 
of this Act which are not affected thereby shall continue to be in full force and effect. 
36 
11 


1 
SECTION 15. Repealing Clause. - All laws, decrees, orders, rules and 
2 
regulations or parts thereof inconsistent with this Act are hereby repealed or 
3 
amended accordingly. 
4 
5 
SECTION 16. Effectivity: - This shall take effect fifteen (15) days following 
6 
its publication in at least two (2) national newspapers of general circulation. 
7 
8 
Approved, 
12