PORT RULES AND REGULATIONS

OBJECTIVES

 Grasp the meaning of most common terms used in

cargo handling and port operations
 Review the Port Tariff policies and regulations
 Understand the background of PPA’s Creation and
salient provisions of PD 857
 Interpret the rules and regulations embodied in PPA
AO 10-81
 Scope or Coverage

 Important port terminologies

 Background of PPA’s Creation
 PD 857 and its Salient Features
 Port Tariff Policies and Regulations
 Rules and Regulations of AO 10-81
 Conclusion
 Questions and Answers
 Terminologies on Facilities

 Common terms used in the ports

referring to facilities
 Port and Harbor

 Port – a place consisting of a sheltered

harbor, landside terminal facilities and
marine terminal facilities so constructed and
equipped to provide services to ships and her
cargoes.
 Harbor – a watered area partially enclosed
or protected from storms so as to provide
safe and suitable accommodation for ship
 Pier and Wharf

 Pier- structure built into the sea but not parallel to

the coastline and includes any stage, stair, landing
space, jetty, floating barge or pontoon and any
bridge or other works connected therewith
 Wharf – a continuous structure built parallel to the
margin of the sea or alongside riverbanks, canals or
waterways, where vessels may lie alongside to
receive or discharge cargo, embark or disembark or
lie at rest.
SOUTH HARBOR
MICP
Port Facilities
 Transit Shed and Warehouse

 Transit shed – a covered building on the

pier or wharf used for storage of cargo in
transit (I.e. cargo recently unloaded from or
soon to be loaded to a ship)
 Warehouse= covered building located in the
port which is used for longer storage of
cargoes.
Warehouse Facility in General
Bulk Terminal
 Anchorage and Berth

 Anchorage – area within a harbor with

sufficient depth of water for vessels to
maneuver, anchor or load/unload cargoes
which cannot be handled at berth
 Berth – place assigned to a vessel in a port
when lying alongside a pier, quay or wharf
for loading/discharging cargoes
Berth Facility in a Container Port
 Base, Municipal and Private Ports

 Base port – a port which is the center of

administrative or other operational powers within
the port management office of the PPA
 Municipal port – a public port owned and
maintained by the municipal government
 Private port- a port constructed and maintained by
a private entity; may be commercial or not.
 MOST COMMON TERMS USED IN
COMPUTATION OF PORT
DUES AND CHARGES
 Arrastre and Stevedoring

 Arrastre (dockwork)-activities relating to

loading and unloading of cargoes to and
from the ships by workers stationed on docks
or apron of the pier or wharf
 Stevedoring – operational activities relating
to loading or discharging of cargo on board a
vessel by stevedores or personnel other than
ship’s crew
 GRT and NRT

 Gross Registered Tonnage (GRT) =measure

of internal volume of space within a vessel
expressed in terms of 100 cu.ft.to a ton
 Net Registered Ton (NRT) = total enclosed
space of a vessel measured in 100 cu.ft. to a
ton
 Exemptions of GRT

Exempted from internal volume space measurement

are:
 shelter deck spaces,
 lavatories for officers and crew,
 shelters for deck passengers on short voyages,
 condensed spaces,
 close in spaces for machinery, cookhouse and
bakeries, wheelhouse
 Exemptions of NRT

 Excluded from enclosed spaces measurement are:

- Propelling space (machinery and boiler spaces and shaft
trunks in crew ships excluding store rooms and cabin;
-Master and crew spaces; Spaces for help capstan, anchor
gears ;
- Spaces used for navigation of the ship such as chart room,
signals and boatswain stores.
- Donkey boiler and engine if connected to main pumps
- Water ballast spaces other than double bottoms
- -Sail room
 First and Last Discharge

 First discharge is the time when the vessel

starts loading or unloading the goods,
whichever the case maybe
 Last discharge is the time when the vessel
ends loading of unloading the goods.
 First and last discharge records are used in
computation of Free storage period
 Shipside and Bay discharge

 Shipside discharge is the discharging of

cargoes from ship to barge
 Bay discharge is the discharging by the
vessel at anchorage and not on pier or wharf
berth.
 Common Measurements of Weight and
Volume of Cargo Handled by the Port

 Cargo throughput – total volume of cargo

discharged and loaded in the port
 Metric ton- the weight measurement
equivalent to 2,204.02 LBS. Or 1,000
kilograms
 Twenty-foot equivalent unit (TEU) –unit
of measurement used for container, which is
equivalent to a container’s length of 20 feet.
 Revenue Tonnage

 Revenue tonnage means 1,000 kgs. Or 1.236

cubic meters (40.cu.ft), whichever yields the
greater amount of revenue
 Used in the computation of charges against
cargo in the port.
 Heavy lifts (H/L)

 Heavy lift is any single-package or unit, weighing 5

tons or more
 In bulk – big shipment of cargo of one and the same
kind
 Good order cargo – cargo received complete and in
good condition; opposite of bad order cargo
 Shut out cargo – outbound cargo left out by a
loading vessel

PPA ADMINISTRATIVE ORDER 03-93

Terms Used in Container Opns

 Most common terms used in container

operations
 Container Terminal and Container
Yard
 Container terminal- a port facility designed to
provide an integrated use of berthing facilities for
containership and harbor transport system for
containers and their contents
 Container Yard – An area designated area
in a container terminal usually adjacent to
the marshalling yard where containers and
chassis are received, stacked and dispatched
Containers/Container Terminal
 Container Freight Station and
Marshalling Yard
 Container Freight Station (CFS) – warehouse or
transit shed adjacent to the container yard used for
stuffing and stripping of containerized cargo
 Marshalling yard – a place where containers are
stacked and arranged according to the sequence or
withdrawal to consignee or transferred to CY or
CFS inside port/customs zone.
Container berth and Shore Cranes.
 Full Container Load and Less
Container Load

 Full Container Load (FCL)- container

loaded with cargoes belonging to one
consignee covered by one bill of lading and
meant for door-to-door delivery
 Less Container Load (LCL) – container
loaded with cargoes belonging to two or
more consignees
 Stuffing and Stripping

 Stuffing- packing of cargoes inside a

container van
 Stripping – unloading goods from a
container
 Terms Pertinent to Cargo

 Most common terms relating to cargoes

handled by the port
 Transhipment and Transit Cargo

 Transhipment- removal of goods from one ship to

another for on-carriage from port of discharge to a
further destination.
 Transit Cargo for export – refers to any article
arriving at any port from another domestic port or
place and destined for reshipment to a foreign port.
 ImportedTransit Cargo - refers to any article
arriving at any port from a foreign port or place and
destined for reshipment to another local port.
 Classes of General Cargo
 Loose Cargoes are individual items, boxes, pieces of machinery,
etc.;
 Containerized Cargo are those in standard boxes, usually 8 ft.
wide, often 8.5 ft high and normally 20 or 40 feet long;
 Palletized cargo – are small items such as planks or wood lashed
together into standard-size packages
 Liquid cargo – travels in deep tanks, liquid containers or drums;
 Refrigerate cargoes are perishable goods, that must be shipped
chilled or frozen in insulated holds or containers;
 Heavy and awkward load are cargoes which are large and difficult
to stow cargo
Palletized cargo=General Cargo
Forklift and Pallets in a Warehouse
 Bulk Cargo
 Bulk cargoes are unpacked cargo carried in
shiploads (e.g. raw materials in liquid or solid
forms)
 4 Categories of bulk cargo :
-liquid bulk
- the five major solid bulk,
-the minor bulk and
- specialist bulk
 Description of Different Bulk
Cargoes
 Liquid bulk- Main ones are oil, oil products, liquid
chemicals (caustic soda, vegetable oils, wine). Volume is
from a few thousand tons to half a million or more than a
million
 Five major bulks – homogenous bulk (iron ore, grain, coal,
phosphates and bauxite). Transported in dry bulk carriers
 Minor bulks- Commodities carried in shiploads (steel
products, cement, gypsum, sugar, salt, etc.)
 Specialist bulk cargoes – bulk cargoes that need handling
or storage problems (vehicles, steel products, refrigerated
cargo, pre-fabricated building materials, etc.)
Tanked cargo-General Cargo
Bulk Cargo-Wheat
Grabbers
 The PPA

 The Philippine Ports Authority

 II. Background of PPA’s
Creation
 Before PPA’s takeover of ports in 1974, port
administration was merged with two government
agencies
 BOC –revenue collection
 BPW now (DPWH)-construction and maintenance
of ports
 Need to integrate the two functions under a single
government agency
 PD 505: Creation of PPA

 July 11, 1974

 To integrate and coordinate port planning,
development, control and operations of ports
at the national level
 Need to promote the growth of regional port
bodies to respond to the needs of localities.
 PD 857: Revised Charter of
PPA
 23 Dec. 1975
 Reorganized port administration and operations
functions of PPA.
 Revised the functions embodied in PD505
 PD No. 857 expanded the concept of port
administration not only to focus on revenue
collection, harbor maintenance, and cargo handling
but also to include emphasis on the role of ports as
key to spurring regional growth.
 PPA Policies (Art. II, Sec. 2)

 Implement and integrate program for

planning, development, financing and
operations of Ports or Port Districts for the
entire country
 OBJECTIVES- Six objectives (Art. 11, Sec.
2-a to 2-f)
 Corporate Powers and Duties

 Article IV, Section 6 (a) and (b) of PD 857

 Supervise, control, regulate, construct, maintain, operate
and provide facilities and services in its ports
 Prescribe rules and regulations, procedures and guidelines
relating to the operations and management of ports
 Provide services whether on its own by contract of
otherwise
 Control, regulate and supervise pilotage and conduct of
pilots
 Levy dues, rates, or charges for the use of port facilities and
provision of port services
 Board of Directors (Sec.7 Art.IV of
PD 857

 Ex-Officio members
 DOTC Secretary-chairman
 PPA GM-Vice chairman
 Members are:NEDA Director General; Sec.
DPWH;Sec. Finance;Sec. DENR;Sec. Trade and
Industry;Administrator MARINA;
 One private sector representative appointed by the
President of the Philippines.
 National Port Advisory Council or NPAC
(EO 513 as amended by Malacanang Order No. 15 dtd 11
Feb. 1987)

 A group of representatives from various sector of

port community which act as an advisory body to
assist the PPA in the formulation of its policies
 Composition of NPAC :
 PPA GM as chairman; one representative
from:DOLE, BOC, PCCI, Import and Export
Assn.; FSA ( local shipping companies);AISL
( foreign shipping companies) PSC shippers
council, consumers group and other pertinent
groups.
 Port Tariff

 Tariff Policy and Regulations of the PPA

 Art. VII Dues and Rates

 Dues and rates collectible by PPA may be

increased or decreased upon approval by the
President of the Phil. of PPA’s recommendation for
such changes.
 The government share from all Contractors and
port-related service operators shall be at a rate not
less than 10% taken from their gross income earned
from such services (Letter of Instructions No. 1005-
A issued on April 11, 1980)
 Port Tariff: Port Dues and Charges

 Two kinds of Port Charges: Charges

against vessels and Charges against cargo
 Charges against vessels include port dues
dockage fee and Lay up fees
 Charges against cargo include wharfage
and storage
 Exemptions
 AFP ships and other govt. agencies used exclusive for training;
 Naval, diplomatic and academic ships owned by foreign govt. not for
commercial use;
 Vessels of foreign govt. covered by special arrangement with Phil.
Govt.;
 Vessels seeking shelter due to medical emergency, inclement weather
and other emergencies;
 Vessel ordered stopped from discharging cargo due to port
congestion;
 Cargoes owned by govt agencies or private entities granted exemption
from wharfage or storage;
 Registered export products of firms registered with BOI granted
special incentives by the authority;
 Port Dues

 Also called harbor dues or harbor fees

 is a one –time charge assessed against the vessel engaged in
the international trade every time it calls at any port whether
private or government
 Assessed based on GRT of the ship
 Current Rate of PPA is $ 0.081(US Dollars) per GRT
 Dollar Rates are converted to Phil. Currency at a prescribed
Exchange rate
 Exchange rate is based on one-month averages
 Which vessels are subject to port
dues or harbor fees?

 Vessels engaged in foreign trade including

those engaged in barter trade entering the
port for loading/discharging or embarking or
disembarking of passengers
 Foreign vessels entering the port for
bunkering or taking ancillary services and
changing crew
 Computation of Port/Harbor Dues

 Example: Vessel is 45,000 GRT

 Port Dues as of Jan.1,2005 is US$0.081/GRT
 Exchange Rate is P48.50/US$1.00 as of 1 Sept 2007
 Computation of Port Dues is:
Total PD = {(PD rate/GRT x GRT) x E/R} + VAT
= {(US$ 0.081/GRT x 45,000 GRT) x P48.50} + (12% NPD)
= P176,782.50 + (12% x P176,782.50)
= P197,996.40
 Charges against Vessels

 Dockage or berthing charges are charges against a vessel

engaged in international trade for berthing in a government
or private port.
 Based on GRT of the ship, per calendar day or fraction
thereof, provided the ship is not more than 50,000 GRT
 Government port- current fees is $0.039 US dollars per
GRT, per calendar day or fraction thereof
 Private port registered with PPA, the current charge is
$0.020 US Dollars per GRT, per calendar day or fraction
thereof
 Fraction of a day is counted as one whole day
 Dockage at Anchorage

 Vessels engaged in foreign trade that do not berth

but drop anchor at either government or privately-
owned port, shall be charged Dockage at
Anchorage fees
 The amount charged is one-half (1/2) of the
corresponding dockage at berth at a government
port, provided the ship is not more than 50,000
GRT(for computation purposes).
 Computation of No. of Days Vessel
Stayed at Berth and Anchorage

 Vessel arrived at berth of a port at 2230 Hr.

July 11.
 She left for anchorage a 0130 Hr of July 13.
 Dropped anchor 0230 Hr of the same day
 Lifted anchor at 1200 Hr the next day, July
14 for another port
 Computation of No. of Days at
Berth

 At Berth
July 11= 1 ½ Hrs =1 day (Fr: 2230 -2400 Hr)
July 12 =24 Hrs.= 1 day (Fr: 0000-2400 Hr)
July 13 = 1 ½ Hrs= 1 day ( Fr: 000-0130 Hrs)
Total = 27 Hours = 3 days
 Computation No. of Days at
Anchorage

 At anchorage
Dec. 13 = 21 ½ Hrs = 1 day (Fr: 0230-2400
Hr)
Dec. 14 = 12 Hrs =1 day ( Fr: 0000-
1200Hr)
Total = 33 ½ Hrs = 2 days
 Computation of Dockage/Berthing
Fees in Government Port

 Vessel of 45,000 GRT arrived on July 1 2009

 Stayed at berth for 2 days (government port)
 Berthing Rate is US$ 0.039/GRT/Calendar day
 Exchange Rate is P46.50/US Dollar
 Computation of Charges at Government Port
Formula: B.Fees = {(GRT x B.Rate)E/R} x No. of
Days
={(45,000 GRT x $0.039/GRT)P46.50} x 2 days
=P163,215.00
ADD: 12% VAT of P19,585.00 = P182,800.80
 Computation of Dockage at Anchorage

 Vessel of 45,000 GRT called at port on 1 July 2009

 Dropped anchored at anchorage
 Rate: US$0.020/GRT/Calendar Day
 No. of days at anchorage: 2 days
 Conversion Rate: P46.50/one US Dollar
 Dockage(anchorage) = {(GRT x Rate)E/R} x No. of days
={(45,000GRT x $0.020/GRT)P46.50}x 2 =
P83,700.00
= Add VAT of 12% or P10,044 = P93,744.00
 BIMP-EAGA PORT DUES AND
DOCKAGE
 BIMP(Brunei, Indonesia, Malaysia and the
Philippines)
 EAGA-East Asia Growth Areas
 Vessels carrying the flag of these states are entitled
to special port charges against vessels
 Basis is a Memorandum of Agreement among these
countries that began in the later period of the 1990
decade
 Amount of Port Dues and Charges
for BIMP-EAGA Ships

 Port Dues current rate is $0.040 US dollars

per GRT
 Dockage - $0.020 US dollars per day or
fraction thereof.
 Formula applied are the same as those earlier
presented for non-BIMP-EAGA ships
 What vessels are charged with
dockage or berthing fees?

 Vessels engaged in foreign trade, including

those engaged in barter trade, that berth at
any port of call
 DOMESTIC DOCKAGE FEE
(USAGE FEE)

 Vessels engaged in domestic trade that

berth or drop anchor at any government or
private port shall be charged a domestic
dockage fee (also called Usage Fee)
 Basis of computation: Per GRT; Per
Calendar Day or Fraction thereof
 Rates: Dockage Domestic (Usage Fees)
Basis of computation: GRT/calendar day

 In govt. port the rate is :

Below 6 GRT = no charge
Between 6 GRT to 100 GRT- P61.00/Calendar day or
fraction thereof (as of Jan 2007);
(Effective 01Jan 2008 rate will be P72.00/CD; and on 01 Jan
2009, rate will be P82.00/calendar day
Over 100 GRT= P0.60/GRT/Calendar day or fraction
thereof effective 01 Jan 2007; by 01 Jan 2008 rate will be
P0.70 and on 01 Jan 2009 rate will be P0.80/calendar day
 In private port – ONE HALF (1/2) of the domestic
dockage fee of the government port.
 Computation of Usage (or
domestic berthing fees)
 Vessel of 250 GRT docked at domestic port
this month and stayed at berth for 5 days
 Rate/GRT/Cal.Day: P0.60
 Computation:
USAGE = (GRT x Rate) No. of days
= 250GRT x P0.60/GRT x 5DAYS = P750.00
 Add 12% VAT or P90.00
 Total Charges= P750.00+P90.00= P840.00
 Charges Against Cargo

 Wharfage charges are the amount assessed against

the cargo loaded or discharged by the vessel based
on revenue tonnage for non-containerized cargo or
number of boxes for containerized cargo received
or discharged by such vessel
 Wharfage charges are applicable to ports whether
government or private; however the rates or charges
are different .
 Difference on wharfage charges between
private, mid stream and
government ports

 Cargoes loaded/unloaded at anchorage areas

(also called mid stream), are charged 50%
less than the prescribed wharfage rates in
pier or wharf berthing areas
 Cargoes loaded/unloaded at private ports,
whether at berth or anchorage, is charged
50% less of the applicable rates of
government port.
 Wharfage Charges Non-Containerized
Cargo

 Non-Containerized foreign cargo (import or

export or transhipped) is charged a wharfage fee for
the use of port facilities based on total metric tons
or revenue tonnage whichever is applicable rounded
off to nearest ton
 The import and export wharfage fee is in terms of
Philippine currency
 Foreign transhipment is charged in US dollars
 The minimum charge is P10.00
 CHARGES OF STORAGE

 Storage shall be charged on cargoes that remain in

any PPA-owned port beyond the “Free Storage
Period” (FSP).
 Storage fees on cargo not loaded as scheduled shall
be borne by whoever is found at fault
 Storage for non-containerized cargo is based on
the number of calendar days that cargo stays in port
after the FSP and the total revenue tonnage of
cargo, per revenue ton per day or fraction thereof.
 Free Storage Period-Foreign
cargoes
 Imported cargoes = 5 calendar days after the
day that the last item of cargo is discharged
from the carrying vessel
 Export cargoes = 4 calendar days from the
day that the cargo is received at the port
 Foreign Transhipment = total of 15 calendar
days from the day of arrival to the day of
departure
 Free Storage Period Domestic
Cargoes
 Domestic cargoes entering any port = 2 calendar
days prior to the day that carrying vessel is
scheduled to arrive as announced and approved by
the PPA Port Manager
 Domestic cargo discharged at any port = 2
calender days after the day that the last item of
cargo is unloaded from the carrying vessel
 Domestic cargoes that are “shutout” (not loaded
on their scheduled vessel = 2 calendar days after
vessel’s departure
 EXEMPTIONS FROM STORAGE
FEES

 Cargoes of BOI registered firsms

 Those granted special exemptions by law or
decree after January 1, 1976
 CH TARIFF

 Cargo Handling Tariff is not the same in PPA-

owned ports
 It depends on the economic situation obtaining in
the region,where the port is located
 The CH rate is also dependent on type of
commodity and its applicable measurement (per
box,per revenue ton, per metric ton)
 Stevedoring charges are normally lower than
dockwork or arrastre charges
 Containerized CH Tariff

 Components of CH Charges (Stevedoring)

- Non Self Sustaining Vessel and sustaining vessel
1. CY/FCL (loaded vans and empty vans)
per box basis; 20’ and 40’
2. CFS/LCL(Inbound-Outbound) for 20’
and 40’ . Usually higher than CY/FCL
3. Shifting on board
4. Shifting via dock/barge(higher price than
shifting on board)
5. Foreign transshipment (with or without rework)
 Cargo Charges(Arrastre or
dockwork)
 FCL –Import
- 20 footer and 40-footer : basis per box
 FCL –export
- 20 footer and 40 footer; rates of handling
are much lower than import
 Shut Out export – there is additional charge on top of
arrastre export charge both for full/loaded and empty vans.
 CFS/LCL for import and export, but not on box rate but on
weight measurement of cargoes.
 CH Tariff for Non-Containerized
Cargo
 Stevedoring = rates depend on commodity
classification such as : general cargo, heavy lift,
steel products, logs, lumber and bulk
 General cargo= rates depend if palletized or non
palletized but basis is revenue ton
 Logs and lumber basis is board feet
 Bulk, heavy lift and steel products are based on
metric tons
 There are also shifting charges (shifting of cargo
from one hold to another)
 CH Charges for Arrastre

 CH charges for imports depend on

commodity classification (general cargo,
steel products, logs, lumber, heavy lifts,
bulk)
 Rates depend if cargoes are palletized or not
palletized for general and steel cargoes.
 Heavy lifts charges depend on
measurements.
 Ro-Ro charges

 Stevedoring rates for handling ro-ro cargoes

is the lowest compared to other types of CH
rates
 Arrastre rates for handling ro-ro cargoes is
double the rates of the stevedoring charges.
 Other CH charges

 Containerized :
-(lifting and closing of hatch covers and supporting beams);
-making fast and letting go lines
- pier lighting during nighttime operations,
- reefer charges;
- bad order survey,
- stripping LCL;
- equipment rentals(hire of crane and transfer equipment)
 Penalty Charges (Standby charges)

 A minimum stevedoring pay on a per hour

basis is prescribed when manpower is
engaged to work in a vessel but cannot work
due to vessel’s fault
 Conditions: inclement weather, waiting for
vessel to dock, breakdown of vessel gear,
waiting for cargo truck, men engaged but not
put to work.
 Computation for Stevedoring
Charges at SH
 The principle is the same as that of arrastre
 Generally stevedoring charges is much lower than
that of the arrastre
 Foreign Transhipments follow the same
computation,
 Except that the foreign transhipment is charged in
US Dollars; thus,
 Needing conversion of charges into pesos
 When Rates Payable and Lien

 Charges or rates with respect to goods are payable

immediately upon landing such goods
 If goods are to be shipped , rates are payable before
goods are loaded to the ships
 If goods are to be removed from port premises,
rates or charges are paid on demand
 PPA has a right to exercise lien on such good and
right to detain them until amount of rates is fully
paid.
 Recovery of Lien

 PPA with concurrence of the BOC may

dispose any goods that are not removed from
the port premises within a prescribed period
of time, after a legal permit for their
withdrawal has been release by the BOC
 Proceeds of the sale are applied in
accordance to the following priority order:
 Use of Lien Proceeds

 1. Payment of duties and taxes due to govt.

 2. Payment of expenses of the sale
 3. Payment of rates, charges and fees due to PPA in
respect of goods
 4. Payment of freignt, ligtherage or general average
on voyage of importation and payment of domestic
freight lighterage and cartage.
 5. Any surplus can be rendered to any person
legally entitled thereto upon demand.
 SALIENT REGULATIONS
OF AO 10-81
 General Conditions on All Contracts/permit
for the Management and Operations of CH
Services
 Contractor/operator- person or entity
awarded the management and operations of
CH services in a PPA-owned port
 Services – refers to CH services such as
arrastre and stevedoring and porterage
 Arrastre Services components

 Receiving and loading of cargoes to and from ship’s tackle

using port labor on docks and CH equipment
 Checking marks and numbers, signing tally sheets
 Sorting and piling of cargo in sheds or open storage areas
 Delivering and transferring cargo to and receiving from
transportation or ship’s tackle
 Providing mechanical equipment for receiving, storing,
delivery, transfer, shifting of cargo
 Checking the cargo when unloading or loading
 Components of Stevedoring
Services
 All work performed on board vessel such as process
or act of loading and unloading cargo, stowing
inside hatches, compartments on deck or open
cargo spaces on board ships
 Related services such as rigging ship’s gear,
opening and closing hatches, securing cargo stored
on board by lashing, shoring and trimming
 Porterage Services

 Carriage /handling of passenger, baggage,

luggage and personal belongings from the
passenger’s ship accomodation to the
passenger’s vehicle or means of land
transportation, or vice versa
 These are covered by Port Ancillary Services
Regulations or PANSER (AO 08-96)
 Termination of Contract or
Permit
 30 days before the contract expires, the PPA
notifies the operator about expiration and provides
procedures on what to do with operations based on
existing policy
 Many changes in the policy relative cargo handling
contract systems have taken place since 1981.
 Today, public bidding and comparative selection
processes are done to select operator in the the port.
 Article III: PPA Control and
Supervision Over Operations
 PPA exercises direct control and supervision
over operations of CH operators of CH
services
 Any violations of rules and regulations of
PPA by CH operator will be subjected to
investigation, review and evaluation
 Article IV: Arrastre Operations
and Procedures
 Detailed checking of cargo
 Providing registry marks and tags
 Issuance of cargo receipts (tally sheets as
immediate receipts) indicating in details the types
and numbers of cargo received from ships
 Issuance of Tally Vans Receipt to ship master or
agent for receipt of vans with details indicated
 Arrastre Opns.

 Providing out-turn reports to BOC and PPA about

goods not landed but indicated in cargo manifests
 Survey bad order cargoes- segregate cargoes landed
in bad orders and conduct a survey inspection of
these cargoes upon request of shipping company
 If requested , survey should be within 24 hours
 If not,within 72 hours after discharge of cargo.
 Surveyed cargoes should be in custody of shipping
companies unless turned over to CH operator
 Unclaimed or Undelivered
Cargoes
 Make inventory of all unclaimed and
undelivered cargo which remain in port
beyond 30 days after last discharge
 Submit the report to PPA
 Follow orders from PPA with regards to
place where subject cargo should be stored
 Cargo Location System

 CH operators should devise a system of

locating the cargo
 Properly and systematically pile and
segregate cargoes within 24 hours after
discharge from the ships, according to
marks, numbers, registries, etc.
 Should be able to locate the cargo within one
hour from demand or cargo owners
 Production Rates

 Ship to shore productivity rates should be at

least 14 metric tons per net gang hour during
night time
 At least 12 metric tons per net gang hour
during day time
 This minimum standards have changed by
the the PVOER that was required in 1992
 Article VI (Claims and Liability for
Losses and Damages

 CHO are liable for losses and damages to

cargoes or non-delivery thereof
 Amount of liability is dependent on invoice
value of each package (P3,000 for foreign
and P1,000 for domestic)
 Unless the value is declared, specified and
supported by declared bill of lading and
packing list
 Payments for claims; disputes
and resources
 All claims for payments, once resolved to be within
the liabilities of the CHO should be promptly paid by
the CHO
 It should be within 15 days from date of filing the
claims
 Pilferage should be controlled by CHO. It should not
exceed one-tenth of the percentum (1/10 of 1%) of
the landed value and/or the total volume in metric
tons of all cargoes received and handled per month.
 Article VII : Labor
Management Relations
 CHO should maintain peace and order in the port.
 It can enter into CBA with portworkers or
employees union
 Ensure that port is manned sufficiently at all times
(24- hour work schedule) three shift basis
 Maximum working hours is 12 per day except
during emergencies
 Promptly pay workers wages, overtime, benefits,
etc.
 Take-Over by PPA

 PPA can take over from CHO the provision

of CH services in the port in case of any
emergency such as strike, lockout, work
stoppage , violation by CH operator of
conditions in the contrct, termination or
cancellation of the contract and any other
causes deemed necessary for protection of
public interest.
 Summary of the Lecture

 Terminologies
 Background of PPA’s Creation
 Salient features of PD 857
 Port Tariff
 Salient features of AO 10-81
 QUESTIONS and ANSWERS
 END

 THANK YOU
Ro-R0 Facility
Transtainers
Overhead Travelling Crane
Crane Spreaders