Capacity Building Workshop on Strengthening Transport Connectivity UNITED NATIONS ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC (October 9-10, 2018, Yangon, Myanmar) By: PEDRO G. AGUILAR Executive Director
Outline of Presentation ― ❑ National Maritime Transport Strategy ❑ Traffic volume: Cargo and Passenger ❑ Sustainable transport ❑ Infrastructures and operation ❑ Institution ➢ Governance system ➢ Legal system ➢ Safety
What is PISA? PISA is the umbrella organization of domestic shipping and shipping-related associations. Established in 1977, PISA represents a cross- section of the Philippines’ maritime industry. Its membership includes domestic shipowners, as Regular Members, from the following sectors: (a) Dry Cargo (container/ bulk/ breakbulk), (b) tankers; (c) Ro-Ro and Ro-Pax; (d) Harbor Tugs,
What is PISA? and Associate Members from marine related companies such as: a. Deep sea fishing b. Classification societies c. Protection and indemnity insurance d. Ship building and ship repair
What is PISA? PISA is the recognized domestic shipping organization by different agencies of the Philippine Government which regulates the maritime industry such as: ✓ the Maritime Industry Authority (MARINA) ✓ the Philippine Ports Authority (PPA) ✓ the Philippine Coast Guard (PCG) ✓ the Office of Transport Security (OTS) ✓ the Department of Transportation (DOTr) ✓ the Department of Labor & Employment (DOLE)
What is PISA? PISA, through its Chairman and President, sits as a private sector representative in the Board of Directors of MARINA which is the flag state administration in the Philippines PISA is also a member of the Maritime Industry Tripartite Council (MITC) of the Dept. of Labor & Employment. MITC is a consultative body on matters pertaining to labor issues involving seafarers.
Institutions Governance system ― Maritime Administration ✓ There are more or less twenty one (21) government agencies that directly and indirectly regulate the maritime/shipping industry in the Philippines ✓ Agencies that directly regulate the maritime/shipping industry: • Department of Transportation (DOTr), and • Department of Labor & Employment (DOLE Both headed by a Secretary, the equivalent of Minister in countries with parliamentary system of government.
Maritime Administration DOTr Agencies that directly regulate the Philippine maritime/shipping industry Agency Legal Authority Maritime Industry Authority (MARINA) Created under Presidential Decree No. 474, and Republic Act No. 9295 Philippine Ports Authority (PPA) PPA - Created under Presidential [Cebu Ports Authority (CPA); Subic Decree No. 857, as amended CPA – Created under Republic Bay Metropolitan Authority (SBMA)] Act No. 7621 SBMA – Created under Republic Act No. 7227 Philippine Coast Guard (PCG) Republic Act No. 9993 Office of Transportation Security Created under Executive Order (OTS) 277 as amended by Executive Order No. 311 Copies of the above-cited Presidential Decrees, Republic Acts and Executive Order may be obtained from the following website: https://www.officialgazette.gov.ph/
Maritime Administration Maritime Industry Authority (MARINA) ‒ is the Philippine Flag State Administration; has general jurisdiction and control over all persons, corporations, firms or entities in the maritime industry of the Philippines; constituted as the single maritime administration in the Philippines tasked to implement the STCW Convention under the provision of Republic Act No. 10635
Maritime Administration Philippine Ports Authority (PPA) ‒ tasked with the development, management and operation of all seaports in the Philippines; mandate includes regulation of private ports, and supervision, control, regulation, maintenance, operation and provision of facilities or services necessary in public ports (except the Province of Cebu which is under the CPA, and the Subic Freeport Zone which is under the SBMA).
Maritime Administration Philippine Coast Guard (PCG) ‒ performs Port State Control functions; implements MARPOL 73/78; likewise mandated to conduct Maritime Law Enforment functions and implement laws on fisheries, immigration, tariff and customs, forestry, firearms and explosives, human trafficking, dangerous drugs, and to implement all other applicable laws within the Philippine maritime jurisdiction.
Maritime Administration Office of Transportation Security (OTS) ‒ the single authority responsible for the security of the transporation systems in the Philippines; for sea transport – it implements the International Ship and Port Facility Security ( ISPS ) Code
Maritime Administration Department of Labor and Employment (DOLE) ‒ mandated as the primary policy- making, programming, coordinating and administrative entity of the Executive Branch of the government in the field of labor and employment; for the maritime industry; it implements the provisions of the Maritime Labor Conventio (MLC) 2006
Legal System Policies and rules to promote maritime transport/ coastal shipping ‒ “ The Philippines needs a strong and competitive domestic merchant fleet owned and controlled by Filipinos or by corporations at least sixty percent (60%) of the capital of which is owned by Filipinos and manned by qualified Filipino officers and crew which shall: (a) bridge our islands by ensuring safe, reliable, efficient, adequate and economic passenger and cargo services; (b) encourage the dispersal of industry and the economic development of our regional communities by ensuring the availability of regular, reliable and efficient shipping services; (c) ensure the growth of exports by providing necessary, competitive and economical domestic sea linkage; (d) serve as a naval and military auxiliary in times of war and other national emergencies; and (e) function as an employment support base for our Filipino seafarers.” (Section 2, Republic Act 9295)
Legal System “To attain these objectives, it is hereby declared to be the policy of the State to; (a) promote Filipino ownership of vessels operated under the Philippine flag; (b) attract private capital to invest in the shipping industry by creating a healthy and competitive investment and operating environment; (c) provide necessary assistance and incentives for the continued growth of the Philippine domestic merchant marine fleet; (d) encourage the improvement and upgrading of the existing domestic merchant marine fleet and Filipino crew to meet international standards; (e) ensure the continued viability of domestic shipping operations; and (f) encourage the development of a viable shipbuilding and ship repair industry to support the expansion and modernization of the Philippine domestic merchant marine fleet and its strict adherence to safety standards which will ensure the seaworthiness of all sea- borne structures.”
Legal System (Cabotage Rules) In General ‒ “Section 11. No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines, at least sixty per centum of whose capital is owned by such citizens x x x . The participation of foreign investors in the governing body of any public utility enterprise shall be limited to their proportionate share in its capital, and all the executive and managing officers of such corporation or association must be citizens of the Philippines. ” Section11, Article XII, 1987 Constitution
Legal System Philippine Maritime Cabotage requires ‒ ✓ 60% Filipino Ownership; ✓ Philippine flag; ✓ 100% Filipino crew. U.S. Cabotage – Ship must be built in the U.S. (same as Brazil)
Legal System Cabotage Rules on Maritime Transport ‒ ➢ “ Vessels Eligible for Coastwise Trade.- The right to engage in the Philippine coastwise trade is limited to vessels carrying a certificate of Philippine registry.” (Section 902, Republic Act No. 1937 – Tariff and Customs Code of the Philippines) ➢ “No foreign vessel shall be allowed to transport passengers or cargo between ports or places within the Philippine territorial waters, except upon the grant Special Permit by the MARINA when no domestic vessels is available or suitable to provide the needed shipping service and public interest warrants the same.” (Section 6, Republic Act No. 9295)
Legal System Cabotage Rules “ Upon registration of a vessel of domestic ownership, and of more than fifteen tons gross a certificate of Philippine registry shall be issued for it. "Domestic ownership“ x x x means ownership vested in citizens of the Philippines, or corporations or associations organized under the laws of the Philippines at least seventy-five per centum of the capital stock of which is wholly owned by citizens of the Philippines, and, in the case of corporations or associations which will engage in coastwise trade the president or managing directors thereof shall be such citizens.” (Section 806, Republic Act No. 1937)
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