PHILIPPINE PORTS AUTHORITY

YEAREND ACCOMPLISHMENT REPORT

CY 2017

I. AGENCY MANDATE AND FUNCTIONS

A. Mandate

PPA was created through Presidential Decree (P.D.) No. 505, otherwise
known as the “Philippine Port Authority Decree of 1974”, issued on July
11, 1974.  Under the said Decree, PPA is given general jurisdiction and
control over all persons, groups, and entities that are already existing or
are still being proposed to be established within the different port districts

Recognizing the need to integrate and coordinate port planning,

development, control and operations at the national level while at the
same time promoting the growth of regional port bodies which may be
more familiar with the peculiarities and potentials of their respective
localities, P.D. No. 857, or the “Revised Charter of the Philippine Ports
Authority”, was issued on November 16, 1978.

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.

In 1978, PPA’s charter was further amended by Executive Order (E.O.)

No. 513, granting police authority to the PPA; creating a National Ports
Advisory Council (NPAC) to strengthen cooperation between the
government and the private sector; and empowering the PPA to exact
reasonable administrative fines for specific violations of its rules and
regulations.  Other amendments were also introduced to further define the
role of PPA.

B. Functions

Pursuant to Article IV Section 6 of the PPA Charter, the following are the
corporate duties of the Authority:

a. To formulate in coordination with the National Economic and

Development Authority a comprehensive and practicable Port
Development for the State and to program its implementation, renew
and update the same annually in coordination with other national
agencies;
b. To supervise, control, regulate, construct, maintain, operate, and
provide such facilities or services as are necessary in the ports
vested in, or belonging to PPA;
c. To prescribe rules and regulation, procedures, and guidelines
governing the establishment, construction, maintenance, and
operations of all other ports, including private ports in the country;

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 d. To license, control, regulate, supervise any construction or structure
within any Port District; 
e. To provide services (whether on its own, by contract, or otherwise)
within the Port District and the approaches thereof, including but not
limited to berthing, towing, mooring, moving, slipping, or docking any
vessel; loading or discharging any vessel; and, sorting, weighing,
measuring, warehousing, or otherwise, handling goods;
f. To exercise control of or administer any foreshore rights or leases
which may be vested in PPA from time to time;
g. To coordinate with the Bureau of Lands or any other government
agency or corporation, in the development of any foreshore area;
h. To control, regulate and supervise pilotage and the conduct of pilots
in any Port District;
i. To provide or assist in the provision of training programs and training
facilities for its staff of port operators and users for the efficient
discharge of its functions, duties, and responsibilities; and,
j. To perform such acts or provide such services as may be deemed
proper or necessary to carry out and implement the provisions of the
PD, including the adoption of necessary measures to remedy
congestion in any government port, and in coordination with the
Bureau of Customs in the case of ports of entry (as amplified by E.O.
No. 513).

II. KEY POLICY ISSUANCES

In view of the regulatory function of PPA, new rules and regulations and/or
updates on existing policies were issued to keep its operation aligned with the
thrusts of the national government and current business trends and best
practices in the water transport industry. Among the major port operations
policies issued during the year 2017 are as follows:
TYPE/No. SUBJECT DESCRIPTION
Administrative Order (AO)
006-2017 Philippine Ports Authority (PPA) This is in compliance with Governance Commission
Whistleblowing Policy for GOCCs (GCG) Memorandum Circular (MC) No.
2016-02.
005-2017 Amendments in the Prescription Uniform basis and provides a real-time foreign
and Application of Foreign currency exchange rate in computing foreign
Currency Exchange Rates FCER denominated port charges.
to Dollar Denominated PPA Port
Charges
004-2017 Supplemental Guidelines to PPA For clarity and uniformity in the issuance of Holdover
Administrative Order No. 003- Authorities (HOAs)
2017 Entitled " Amendment to
PPA Administrative Order No.
03-2016 Entitled Port Terminal
Management Regulatory
Framework "
003-2017 Amendment to PPA The policy aims to foster higher efficiency and
Administrative Order No. 023- productivity in port operations through, among others,
2016 Entitled “Port Terminal greater private sector participation and consistency in

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 Management Regulatory the procedures and requirements for award of port
Framework” terminal management contracts under the different
identified modalities of private sector involvement.

002-2017 Increase in the Number of Increasing the number of pilots (from 7 to 8) at the
Harbor Pilot Positions at the pilotage district of Cagayan de Oro
Cagayan de Oro Pilotage District

001-2017 Guidelines on the Management Set of guidelines governing the smooth transfer of
of Berth Assignments at the Port authority to approve and issue berth assignments
of Batangas, Phase 1 from PMO Batangas to ATIB/ATI as the authorized
Terminal Operator at the Port of Batangas, Phase I.

Memorandum Circular (MC)

008-2017 Approved Increase in Cargo Increasing the cargo handling rate by 9% for foreign
Handling Charges for Foreign containerized cargoes handled at the Batangas
Containerized Cargoes at the Container Terminal Phase II
Batangas Container Terminal,
Phase II

007-2017 Update on Major RORO Routes The update on Major Ro-Ro Routes aimed to address
the confusion of the port users, stakeholders, LGUs,
and other government agencies between the “Central
Ro-Ro Route” and “Central Spine Ro-Ro Route” being
used by PPA and DOTr, respectively, by having a
single point of reference.

006-2017 Implementation of PPA Adoption of IMS Policy Statement as required by ISO

Integrated Management System 001:2015, ISO 114001:2015 and BS OHSAS
on the Facilitation of Vessel 18001:2001 Standards
Entrance and Clearance VEC
Processes and Supervision of
Withdrawal and Entry of Cargo
WEC at the Marine and Terminal
Services MTS at PMO Ozamiz

005-2017 Implementation of PPA Adoption of IMS Policy Statement as required by ISO

Integrated Management System 001:2015, ISO 114001:2015 and BS OHSAS
on the Facilitation of Vessel 18001:2001 Standards
Entrance and Clearance VEC
Processes and Supervision of
Withdrawal and Entry of Cargo
WEC at the Marine and Terminal
Services MTS at PMO
Zamboanga

004-2017 Approved 24% Increase in cargo Increase in Cargo Handling Trariff at North Harbor in
Handling Tariff at the Manila three (3) tranches
North Harbor

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003-2017 Approved Increase in Cargo Cargo andling rate increase of 11% in addition to the
Handling Charges to Phase I 10% provisional increase granted in 2013
Port of Batangas

002-2017 Revised Manual on Port This aims to establish a uniform set of procedures for
Statistics and Port Performance the collection, processing and reporting of port
Indicators statistical data as well as generating port performance
indicators that can be adopted to assess the
performance level of each port and facilitate
comparison of performance among similarly situated
ports

Memorandum Order (MO)

021-2017 Creating the PPA-Surigao Port This intends to ensure the continuous and
Services (PPA-SPS) uninterrupted delivery of vital cargo handling and
other related services at the port

Operations Memorandum Order (OMO)

002-2017 Continuing Preparations for the Provision of necessary assistance to the delegates
Philippines Hosting and upon arrival as well as coordination with other
Chairmanship of ASEAN 2017 concerned government agencies involve in this event.

001-2017 Creation of the PMO-NCR North This intends to identify and address the concerns of
Port Operations Consultative Manila North Harbor stakeholders, and recommend
Committee workable solutions, systems or procedures to ensure
the fast and efficient movement of goods passing
through Manila North Harbor.

Operations Memorandum Circular (OMC)

005-2017 Revised Schedules of Cargo Revised schedule of the implementation of the 9%
Handling Tariff at Phase II, Port increase of cargo handling tariff per PPA MC No. 08-
of Batangas 2017

004-2017 2017 National Maritime Week Observance of the National Maritime Week
Celebration Celebration from Sept. 24-29, 2017

003-2017 Schedule of Cargo Handling Official schedule of cargo handling tariff effective
Tariff at the Manila Harbour March 23, 2016
Center

002-2017 Revised Schedules of Cargo Revised schedule of the 24% increase cargo handling
Handling Tariff at the Manila rate to be implemented in three (3) tranches from
North Harbor 2017-2019

001-2017 Revised Schedules of Cargo Revised schedule of the implementation of the 11%
Handling Tariff at Phase I, Port of increase of cargo handling tariff per PPA MC No. 03-
Batangas 2017

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III. OPERATIONAL HIGHLIGHTS

A. Key Operational Data

Port Statistics Summary

As of 31 December 2017 and 2016

Inc/(Dec)
2017 2016
Volume %
Cargo (MT) 254,069,317 243,757,529 10,311,788 4.23
Domestic 102,533,512 94,364,460 8,169,052 8.66
Foreign 151,535,805 149,393,069 2,142,736 1.43
Import 89,029,196 85,031,591 3,997,605 4.70
Export 62,506,609 64,361,478 (1,854,869) (2.88)
Container (in TEUs) 7,060,253 6,520,264 539,989 8.28
Domestic 2,865,312 2,636,882 228,430 8.66
Foreign 4,194,941 3,883,382 311,559 8.02
Import 2,127,410 1,976,050 151,360 7.66
Export 2,067,531 1,907,332 160,199 8.40
Passenger 72,102,670 68,951,205 3,151,465 4.57
Disembarked 37,141,020 35,634,255 1,506,765 4.23
Embarked 34,961,651 33,316,950 1,644,701 4.94
Ship Calls 446,263 433,580 12,683 2.93
Domestic 434,380 421,265 13,115 3.11
Foreign 11,883 12,315 (432) (3.51)
Note on the Table: 2017 Statistics is still under validation with Port Management Offices nationwide. Passenger
traffic includes cruise passengers totaling 50,725, both for disembarked and embarked.

The following observations on the data above are highlighted:

Cargo

Sustained increase in cargo traffic was observed in 2017 as evident with

the 4.23% (10.312 MMTs) improvement from the recorded volume during
the previous year.

In particular, domestic cargo improved by 8.66% (8.169 MMTs) with

notable cargo performance registered at PMOs NCR North,
Panay/Guimaras, Davao, Negros Occidental/Bacolod/Banago/ BREDCO,
Misamis Oriental/Cagayan de Oro, and NCR South.

Growth in foreign trade volume likewise improved, albeit nominal, with

1.43% (2.143 MMTs), owing primarily to the upturn in imports (4.70%,
3.998 MMTs) which negated the effect of the recorded shortfall in export
goods (2.88%, 1.855 MMTs).

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 Container (TEUs)

Volume of containerized cargoes handled at the ports as of the review

period surpassed the last year’s performance by 8.28% (539,989 TEUs).
Domestic container traffic rose by 6.10% (160,847 TEUs) while foreign
container volume expanded 7.38% (286,424 TEUs).

Passenger

Passenger traffic continues to post growth with 4.57% (3,151,465) uptick

during the year, driven by the strong reliance by sea-travelling public on
Ro-Ro vessels, fast crafts, and motorized bancas as primary mode of
transportation for domestic inter-island travel.

The positive stream in passenger traffic serviced during the year have
also been the result of favourable response of the public to the
government’s domestic eco-tourism programs encouraging leisure inter-
island Ro-Ro travel to tourist destinations such as Siargao, Puerto Galera,
Bohol, El Nido, and other emerging tourism sites. Cruise tourism
promotions by the government likewise cushioned the growth in traffic as
cruise ships routed to the country’s cruise tourism hubs such as Manila,
Boracay, Coron, among others.

Ship Calls

A total of 446,263 vessels was registered nationwide with a significant

increase of 2.93% (12,683) over the 2016 figures attributed mainly to
surge in inter-island vessel movements which grew by 3.11% (13,115
vessels). Foreign ship calls, on the other hand, declined by 3.51% (432
vessels). Overall, the increased vessel traffic is attributed to the stream in
domestic consumption as well as the continuous reliance on water-borne
transport modes.

B. Productivity Data of Manila Ports (NCR North, NCR South, and MICT)

Port performance indicators, i.e. Berth Occupancy Rate, Yard Utilization

Rate, and Quay Crane Productivity, established to gauge the efficiency of
operations at Manila ports are continuously being monitored by PPA to
ensure that the ports remain free from congestion and, in effect, provide
seamless and uninterrupted services to port stakeholders.

Even at the height of port activities ushered in by the Christmas season,

Berth Occupancy Rate (BOR) for MICT, South Harbor and North Harbor is
within 41%-65%, Yard Utilization Rate within 43%-75% and Quay Crane
Productivity sustained at 23 – 29 moves per hour.

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 C. Financial Performance

Revenue/Expenditures/Net Income

PPA ended the year with an exceptional revenue performance which

accounted a total Php15.358 billion, posting a year-on-year (YOY)
expansion of 7.24%. Driven by the robust shipping and trade on account
of the strong domestic consumption and accelerated public sector
investment, revenue performance continued to sustain high rate of
growth. Corporate expenditures, consisting of both Operating and Non-
Operating Expenditures, were also higher with 9.17% increase. The
intensified corporate spending was effected to support the requirements
of effectively delivering services at the ports as well as the government’s
Build, Build, Build program.

On the whole, Net Income After Tax for this year is 5.69% (Php267.18
million) higher than last year’s recorded in the immediately preceding
year.

Revenue and Expense Summary

For the Year Ended 31 December 2017
(With comparative figures as of 31 December 2016)
(In Thousand Pesos)

Inc./(Dec.)
Particulars 2017 2016
Amount %
Income
Service and Business Income 15,330,533.53 14,300,416.24 1,030,117.30 7.20
Gains 189.176 1342.301 (1,153.13) (85.91)
Other Non-Operating Income 27,537.02 19,706.25 7,830.77 39.74
Total Income 15,358,259.73 14,321,464.79 1,036,794.94 7.24

Expenses
Personnel Services 1,333,978.62 1,093,707.28 240,271.34 21.97
Maintenance and Other Operating Expenses 3,558,540.44 3,789,183.12 (230,642.68) (6.09)
Financial Expenses 131,769.68 142,512.59 (10,742.91) (7.54)
Non-Cash Expenses 3,686,945.58 2,953,760.38 733,185.21 24.82
Total Expenses 8,711,234.33 7,979,163.36 732,070.96 9.17
Profit/(Loss) Before Tax 6,647,025.40 6,342,301.43 304,723.97 4.80
Income Tax Expenses/(Benefit) 1,681,143.48 1,643,604.50 37,538.98 2.28
Profit/(Loss After Tax 4,965,881.92 4,698,696.93 267,185.00 5.69
Net Assistance/Subsidy/(Financial Assistance
Subsidy/Contribution) - - - -
Net Income/(Loss) 4,965,881.92 4,698,696.93 267,184.99 5.69

Dividend Remittance

Pursuant to R.A. 7656 which requires all Government Owned and

Controlled Corporations (GOCC) to remit to the National Treasury at least
50% of their annual net earnings as either cash, stock or property

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 dividends, the Authority handed over during the year a sum amount of
Php1.956 billion as cash dividend based on 2016 Net Income. Dividend
based on 2017 operations, which may be slightly higher, will be remitted
in 2018.

D. Financial Position

Statement of Financial Position

For the Year Ended 31 December 2017
(With comparative figures as of 31 December 2016)
(In Thousand Pesos)

As of December % of As of December Inc./(Dec.)

2017 Total 2016 Amount %

ASSETS
Current Assets 17,646,627.89 13.41 15,973,710.15 1,672,917.74 10.47
Cash & Cash Equivalents 6,290,800.51 4.78 5,519,815.82 770,984.69 13.97
Financial Assets 1,103,986.89 0.84 300,363.19 803,623.70 267.55
Other Investments 6,008,815.74 4.57 5,413,964.32 594,851.42 10.99
Receivables 2,272,543.05 1.73 1,946,909.95 325,633.10 16.73
Inventories 65,751.71 0.05 75,577.13 (9,825.43) (13.00)
Other Current Assets 1,904,730.00 1.45 2,717,079.74 (812,349.74) (29.90)
Non-Current Assets 113,950,780.52 86.59 105,771,857.66 8,178,922.87 7.73
Property, Plant & Equipment 112,988,999.88 85.86 105,066,158.55 7,922,841.32 7.54
Intangible Assets 141,126.35 0.11 282,252.70 (141,126.35) (50.00)
Other Non-Current Assets 820,654.30 0.62 423,446.40 397,207.90 93.80
Total Assets 131,597,408.41 100.00 121,745,567.81 9,851,840.60 8.09
LIABILITIES
Current Liabilities 6,178,775.33 4.70 5,788,049.54 390,725.78 6.75
Financial Liabilities 3,652,634.98 2.78 3,259,949.83 392,685.15 12.05
Inter-Agency Payables 404,747.90 0.31 1,007,414.63 (602,666.73) (59.82)
Trust Liabilities 1,050,453.74 0.80 682,914.33 367,539.40 53.82
Deferred Credits/Unearned Income 857,490.21 0.65 663,712.38 193,777.82 29.20
Provisions 132,047.49 0.10 109,813.68 22,233.81 20.25
Other Payables 81,401.02 0.06 64,244.70 17,156.32 26.70
Non-Current Liabilities 3,837,434.00 2.92 4,090,378.43 (252,944.42) (6.18)
Financial Liabilities 3,549,825.94 2.70 3,828,178.54 (278,352.60) (7.27)
Deferred Credits/Unearned Income 10,054.26 0.01 7,370.59 2,683.66 36.41
Provisions 270,220.94 0.21 250,825.21 19,395.73 7.73
Deferred Tax Liabilities 7,332.87 0.01 4,004.09 3,328.80 83.13
Total Liabilities 10,016,209.33 7.61 9,878,427.97 137,781.37 1.39
EQUITY
Government Equity 6,446,573.67 4.90 6,378,988.35 67,585.32 1.06
Revaluation Surplus 78,786,879.45 59.87 72,547,651.74 6,239,227.70 8.60
Retained Earnings/(Deficit) 36,347,745.97 27.62 32,940,499.74 3,407,246.22 10.34
Total Equity 121,581,199.08 92.39 111,867,139.84 9,714,059.24 8.68
Total Liabilities & Equity 131,597,408.41 192.39 121,745,567.81 9,851,840.60 8.09

Overall, the Authority’s Financial Position indicated a healthy financial

condition with indications of strong ability to service obligations and long-
term financial security. Total Asset base improved by 8.09%, Liabilities
barely increased by 1.39%, and Equity progressed by 8.68%.

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IV. OTHER IMPORTANT ACCOMPLISHMENTS

A. Port Development

Considerable amounts are apportioned from the corporate budget to port

infrastructure facilities construction and repairs and maintenance
nationwide aimed at improving the capacity, service standards, and
efficiency of ports, consistent with the government’s development agenda
and strategic objectives as well as the Authority’s vision of providing
globally competitive services.

A.1. Locally-Funded Projects

Implemented Locally-Funded Projects (LFPs) as of end of December

2017 totalled 128 projects which cover carry-over and new projects
nationwide. Of this number, 43 projects are for Luzon ports, 34
projects for Visayas ports, and 51 for Mindanao ports. As of
December 2017, status of PPA LFPs is as follows:

Luzon Visayas Mindanao

Head Field Head Field Head Field Total
Total Total Total
Ofc Ofc Ofc Ofc Ofc Ofc
Completed 7 7 14 6 7 13 5 8 13 40
Ongoing 15 7 22 10 1 11 13 7 20 53
Terminated - - - - - - - - - -
Suspended 1 1 2 - 3 3 1 - 1 6
Under Procurement 2 3 5 4 3 7 6 11 17 29
(Under DE/POW/etc.)
Total 25 18 43 20 14 34 25 26 51
Note on the Table: Based on Monitoring, Evaluation, and Control Service (MECS) report for LFPs for December 2017.
128

The Authority allocated Php4.638 billion to finance its LFPs for the
year. As of December, budget utilized is placed at Php4.155 billion
equivalent to a percentage utilization of 89.59%.

A.2 Dredging Operations

PPA has programmed the removal of silts at various piers and

harbors under a privatized set-up to ensure that serviceable water
depths are maintained for the safe navigation of large vessels calling
at the ports. As of end of December, a total of 493,726.00 cu.m. of
silts have been removed at the following ports and harbors:

a. Tagbilaran;
b. Lamao (Bataan);
c. Roxas/Calapan (Oriental Mindoro);
d. Puerto Princesa;
e. Tubigon (Bohol); and,

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 f. Ormoc

CY 2017 revised budget for dredging projects, covering carry-over

and new projects, was Php707.93 million per PPA Board Resolution
No. 2645. Budget utilization as of end of December stood at
Php260.33 million equivalent to 36.77% budget utilization rate.
Moreover, the accomplishments of PPA in this area is affected by
the pending resolution of issues on dumping site with DENR and
PCG, and on contract-award with COA.

A.3 Repair and Maintenance Program

Routine and preventive maintenance of port facilities are being

carried out to ensure that port infrastructures are kept at serviceable
and safe condition.

As of end of December, 141 Repair and Maintenance (R&M)

projects have already been completed, 91 are on-going, and 62
have not yet been started. CY 2017 approved budget for Repairs &
Maintenance (R&M) Projects amounted to Php3.039 billion. Budget
utilized is placed at Php1.847 billion which is 60.79% of the total
amount dedicated for R&M for the year.

B. Port Operations and Services

B.1. Permits/Clearances to Develop

As of December 2017, PPA approved a total of eleven (11)

applications of Permit/Clearance to Develop private port facilities in
various locations nationwide.

B.2. Real Estate Management

To optimize the utilization of identified idle areas at the ports and

generate additional revenue, as well as to encourage the active
participation of private sectors in port services delivery, PPA issued
563 Permits to Occupy (PTOc) to various private port
owner/operator.

B.3. Operation and Development of Private Ports

The estimated total number of applications for Certificate of

Registration/Permit to Operate and Temporary Permit to Operate in
various ports as of 31 December 2017 is twenty-nine (29).

B.4. Cargo Handling Operations

PPA, as a matter of policy, continuously delegates the provision of

cargo handling services to private partners.

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 Bidding for cargo handling operators (CHOs) has been deferred in
2016 in view of the study and pending implementation of the new
terminal management operation policy. Thus, all CHOs with expired
or expiring cargo handling contracts were granted Holdover
Authority.

B.5. Harbor Pilot Appointments

In 2017, a total of ten (10) probationary appointments and five (5)

regular appointments for harbour pilots at various pilotage districts
was issued by PPA from 01 January to 21 November 2017. Per
Administrative Order (A.O.) No. 01-95, the total number of
authorized harbour pilot position is 182, of which 116 positions have
already been filled-up, six (6) posts are under probation, and the
rest, that is 66, are still vacant.

Harbor pilot selection and appointment is expected to be rationalized

upon the issuance of the Omnibus Pilotage regulations which aims
to address issues and concerns hounding the sector for quite some
time.

B.6. Privatization of Existing Passenger Terminal Buildings (PTBs)

In relation to Administrative Order (A.O.) No. 03-2016 or the Port

Terminal Management Regulatory Framework, bidding for
Passenger Terminal Building (PTB) operators has likewise been
deferred in 2016.

C. Support to Operations

C.1. Shore Reception Facility (SRF)

The MARPOL 73/78 is the main international marine environmental

convention covering the prevention of pollution from ships including,
but not limited to, dumping, oil, and exhaust pollution or accidental
causes. In compliance with the Convention and Presidential Decree
(P.D.) No. 1152 or the Philippine Environment Code, PPA has
issued Administrative Order No.02-2003 entitled Implementing
Guidelines on MARPOL 73/78 requirements for Shore Reception
Facilities (SRF) as well as the authorized provider/private operator,
that is Golden Dragon International Terminal Services (GDITI), which
shall establish and operate Shore Reception and Treatment
Facilities in different ports. GDITI was awarded with a 15-year
contract which shall expire in August 2018.

The operational status of SRF in PPA Ports is as follows:

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 PMOs with Inactive PMOs with No SRF PMOs not
PMOs with Active SRF
SRF (Covered in covered in SRF
(Covered in Contract)
(Covered in Contract) Contract) Contract
1. NCR South 1. Bicol 1. Mindoro 1. MarQuez*
2. NCR North (including 2. Misamis Occ./Ozamiz 2. Cotabato 2. Masbate
MICT) 3. Lanao del Norte/ Iligan 3. Zamboanga del
3. Bataan/Aurora Norte
4. Batangas
5. Palawan
6. Negros Or./Siquijor
7. Panay/Guimaras
8. Western Leyte/ Biliran
9. Negros Occ./
Banago/BREDCO
10. Eastern Leyte Samar
11. Misamis Or./CDO
12. Agusan
13. Surigao
14. Davao
15. SOCSARGEN
16. Zamboanga
17. Bohol
18. Northern Luzon (San
Fernando)
*PMO MarQuez, a newly established PMO, has an existing contract with Azulrem Construction & Engineering Services
(Azulrem) for the collection and disposal of solid wastes from the PTB, offices, passengers, buses, private vehicles
including vessel-generated wastes at base port Lucena.

Moreover, PPA submits to the Supreme Court Quarterly Monitoring

and Progress Report of the activities undertaken relative to the
Cleaning-Up of Manila Bay pursuant to Sections 2 and 6c of E.O.
513 and the International Convention for the Prevention of Pollution
from Ships.

C.2. Terminal Management Operation and Service Policy

In 2016, PPA issued Administrative Order (A.O.) No. 03-2016,

entitled “Port Terminal Management Regulatory Framework”, which
aims to foster higher efficiency and productivity in port operations
through, among others, greater private sector participation and
consistency in the procedures and requirements for award of port
terminal management contracts under the different identified
modalities of private sector involvement.

Based on the approved Terminal Management Operation Policy, Tier

Mapping/Classification of ports in relation to the new policy has been
completed in October 2016. PPA initially classified its ports
according to investment requirements and potential arrangements
between PPA and the prospective terminal operator.

By end of 2017, the PPA Board-approved guidelines for the

selection and award of Port Terminal Management Contract under
the Port Terminal Management Regulatory Framework, including all

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 the bid forms and contract template (Terms of Reference) are
expected to be issued for implementation at the start of 2018.

C.3. E-Payment System

Pilot roll-out of the system was completed on 22-26 May 2017 at

three (3) Port Management Offices (PMO), namely: Cagayan de
Oro, Bohol, and NCR South. PPA targeted the complete roll-out of
the system in twenty-two (22) PMOs (base ports) by end of
December. E-Payment will provide port users with options to settle
their bills anywhere without carrying cash. It also reduces person-to-
person transaction and the opportunity for graft and corrupt
practices.

C.4. Internet-based Port Operations Receipting for Terminals (iPorts)

The system design and development for Internet-based Port

Operations Receipting for Terminals (iPorts) was completed on 28
June 2017. System integration, testing, and documentation
immediately followed the completion of the system development
phase of the Project. Pilot implementation of the system was
conducted in December 2017 at two (2) Port Management Offices
(PMOs), i.e. PMOs NCR North and NCR South.

D. General Administration and Support

D.1 Local and Foreign Engagements

PPA is an active member of a number of international maritime

associations such as the International Association of Ports and
Harbors (IAPH), International Maritime Organization (IMO), Asia-
Pacific Economic Cooperation (APEC), ASEAN Port Authorities
(APA), APEC Port Services Network (APSN), Organization for
Economic Cooperation and Development (OECD), Permanent
International Association of Navigation Congresses (PIANC), and the
Brunei-Indonesia-Malaysia-Philippines East Asia Growth Association
(BIMP-EAGA).

For this year, PPA officials in their capacity as authorized

representatives of the Authority, attended various meetings and
conferences which included, among others, the following:

a. Inter-Agency Task Force on ASEAN RO-RO and Conduct of

Inspection at Port of Bitung;
b. 77th PIANC Council Meeting;
c. 17th Regional Comprehensive Economic Partnership (RCEP)
Trade Negotiating Committee (TNC) and Related Meetings;
d. 104th Session on Legal Committee (LEG) and International Oil
Pollution Compensation (IOPC) Funds Meeting of the IMO;
e. 44th APEC Transportation Working Group Meeting;

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 f. 43rd ASEAN Senior Transport Officials Meeting (STOM) Leaders
Conference;
g. 15th ASEAN-Japan Senior Transport Officials Meeting (STOM)
Leaders Conference;
h. 1st Meeting of International Organizing Committee (IOC)/ Local
Organizing Committee (LOC) on Conference on Coastal and Port
Engineering in Developing Countries (COPEDEC) X;
i. ASEAN World Maritime Day Parallel Event;
j. 20th Regional Comprehensive Economic Partnership (RCEP)
Trade Negotiating Committee (TNC) and Related Meetings;
k. 5th BIMP-EAGA Transport Cluster Meeting and Senior Transport
Officials Meeting (STOM);
l. IMO Regional Conference on Women in Maritime Asia;
m. UNCTAD Port Management Program English-Speaking Network;
n. 2nd Round of the Philippine-European Union (EU) FTA
Negotiation;
o. 33rd ASEAN Maritime Transport Working Group (MTWG)
Meeting;
p. 2017 Philippine Extractive Industries Transparency Initiative (PH-
EITI) National Conference.
q. Strategic Port Administration and Management;
r. IMO 30th Regular Session of the Assembly and 119 th Council
Meeting; and,
s. ASEAN Regional Forum Workshop on Ferry Safety.

D.2 Human Resource

As of yearend, personnel count stood at 1,829. Out of the said

figure, 395 personnel are assigned at the Head Office while the
remaining 1,434 are at the Field Offices. Meanwhile, outsourced
personnel of PPA for technical and administrative positions as of
December totalled 1,224 where 278 are assigned at the Head
Office while 946 are designated at Field Offices. Hereunder is the
detailed inventory of PPA personnel as of December 2017:
No. of
New Plantilla Outsourced
Personnel
Responsibility Center
Positions Vacant GCG Approved
Filled Positions Approved SP ATO

Head Office 395 252 647 278

Manila/Northern Luzon Cluster 213 146 359 189
Southern Luzon Cluster 327 270 597 216
Visayas Cluster 377 267 644 243
Northern Mindanao Cluster 303 227 530 191
Southern Mindanao Cluster 214 160 374 107
GRAND TOTAL 1,829 1,322 3,151 1,224

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 The Authority has completed the third tranche of the filling-up of
vacant positions nationwide based on the GCG-approved
Rationalization Plan and has implemented SSL4-Tranche 2.

Moreover, a total of 3,502 graduates benefited from various

scholarships/training programs successfully undertaken by PPA and
in cooperation with various sponsoring institutions. Shown below is
the schedule of human resource development programs for CY 2017
(for updating):

No. of Participants/Scholars
Human Resource Programs
Male Female TOTAL

In-House Training Programs

(to include Management Systems Training 1,211 1,556 2,767
Program)
Foreign Scholarship 30 14 44
Local Scholarship 15 4 19
Local Training Programs 309 363 672
TOTAL 1,565 1,937 3,502

D.3 Manpower Development and Port Workers’ Training

The PPA Training Institute continues to develop and implement

training programs to improve port efficiency. In 2017, it conducted
29 courses which benefited 648 non-organic and 18 organic
employees. Courses conducted are on safety, environment,
management, operation, and maintenance.

V. STATUS OF PLANS/PROGRAMS/ACTIVITIES/STRATEGIES ENROLLED

WITH GCG FOR CY 2017

For 2017, the Authority programmed various strategic initiatives based on

PPA’s Vision, Mission and Strategy Map, and aligned with the government
thrusts, which were enrolled with the Governance Commission for GOCCs
(GCG). The projects, programs, and activities implemented this year and their
status as of yearend are as follows:

A. Future Proofing of Gateway Ports (Wharf for Rail-Mounted Gantry

Crane Project)

The port modernization project, which is included in the Authority’s

Locally-Funded Projects (LFPs), aimed for the construction of Wharf for
Rail-Mounted Gantry Crane at the Ports of Iloilo, Makar (General Santos),
Cagayan de Oro, and Zamboanga. PPA committed to complete civil
works for two ports.

As of yearend, PPA has completed the remaining portion of the civil

works for two ports, i.e. Makar (General Santos) and Zamboanga. For the

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 other two ports, i.e. Iloilo Commercial Port Complex (ICPC) in Lapaz,
Iloilo City and Cagayan de Oro, the physical accomplishment is already
more than 80.00%.

B. Enhanced Transport Connectivity

The Authority programmed the construction of Ro-Ro ramps at selected

ports aimed at improving trade movement and providing seamless inter-
island connectivity. As of end of December, project status per port is as
follows:

STATU
PORT REMARKS
S
Calapan, Oriental Mindoro 100.00% Completed on 25 Aug. 2017
Castilla Sorsogon 100.00% Completed on 25 Feb. 2017
Larena, Siquijor 100.00% Completed on 02 June 2017
Culasi, Culasi, Roxas City 100.00% Ro-Ro component is completed as of
yearend
Lipata, Culasi, Antique 100.00% Completed on 10 July 2017
Tubigon, Bohol 100.00% Completed on 15 May 2017
Catagbacan, Loon, Bohol 95.20%
Siaton, Negros Occidental 100.00% Completed on 25 Apr. 2017
Alegria, Buruanga, Aklan 90.00%
Dapa, Siargao Island, Surigao del Norte 100.00% Completed on 02 Jan. 2017
Banton, Romblon 100.00% Completed on 15 Feb. 2017
Matnog, Sorsogon (2 Roro Ramps) 49.33%
Ozamiz, Misamis Occidental 67.56% Partially Suspended with Request for
Time Extension. One Ro-Ro Ramp
completed.
Balatero, Puerto Galera, Oriental 91.64%
Mindoro
Tagbilaran, Bohol 100.00% Ro-Ro component is completed as of
yearend
Palompon Port, Leyte 0.00% Not yet Procured
Note on the Table: Ro-Ro ramps construction form part of Port Expansion/Improvement Project.

C. Port Infrastructure Database

PPA programmed the development of a database of port facilities

developed and repaired consisting of inventory of port facilities nationwide
which shall serve as basis in the preparation of master plan for port
development, repairs, and maintenance.

The Project was awarded to Skykomish, having the highest rated and
responsive proposal. In October, a coordination meeting was conducted
by the Consultant together with the representatives from the Engineering
Departments and Information and Communication Technology
Department to discuss the data requirements as well as the necessary
infrastructure and equipment for the system development.

Based on the detailed work plan of the project, the system is deemed
completed in December of this year; however, its roll-out implementation

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 is scheduled in 2018 following the conduct of the user training by ICTD.

D. Simplified Scheme for Processing Tariff Applications

Preparation of report based on the proceedings and agreements reached

during the conduct of public hearings has already been completed as of
end of the review period. Likewise, the draft policy on simplified
methodology and formulae for adjustment in port pricing was already
presented to and approved by the Executive Committee of the Board. The
Board proper, however, has directed PPA to introduce certain
enhancements.

The policy aimed to update the existing port tariff system management
and administration of the Authority in line with recent developments in
PPA’s port operations, services, and development programs as well as to
provide a new scheme or formula in evaluating and processing new tariff
applications.

E. Amended Policies on Private Ports

As of end of 2017, the PPA Board of Directors approved two major

policies involving private ports which have been turned-over to PPA under
the “lease-back agreements” with them. These policies provide for the
issuance of Permit to Operate by PPA and the imposition of 100.00% port
charges. The Implementing Rules and Regulations of these policies,
however, is still being prepared and have yet to be issued by PPA.

Through the compendium on private ports, the Authority intends to

address various issues and concerns relating to private port development
and operations to cater to the changing environment which is in line with
the PPA’s programs for the medium-term.

F. Quality Management System (QMS) pursuant to E.O. 605

Pursuant to Executive Order (E.O.) No. 605, PPA adopted the ISO
9001:2015 Quality Management System in order to improve the Agency’s
performance and service delivery, and promote efficient port operations.
Activities for the Quality Management System (QMS) certification of PPA
Head Office and of sixteen (16) ports have already started in November
2017. Assessment of the Authority’s Policy Manual has already been
conducted by Certification International, Phils. (CIP), the Certification
Body commissioned by PPA for the project. Only Stage 1 of the 2-stages
Certification Audits (Stages 1 and 2) scheduled in 2017 was undertaken in
December 2017.

The Authority has already published the QMS Manual in its website
pending the completion of the certification process for ISO 9001:2015
Quality Management System (QMS) on Core Processes for the Head
Office and on Vessel Entrance and Clearance (VEC) for the sixteen ports,
namely, North Harbor, South Harbor, Lamao, Tagbilaran, Lucena, San

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 Fernando, Tacloban, Dumaguete, Ormoc, Calapan, Nasipit, Surigao,
Cotabato, Dapitan, Pulupandan, and Iligan.

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 G. Integrated Management System (IMS)

Part of the CY 2017 strategic initiatives of PPA is the completion of the

certification process for the Ports of Zamboanga and Ozamiz on
Integrated Management System (IMS) with ISO 9001:2015 QMS, ISO
14001:2015 Environmental Management System (EMS), and ISO 18001
Occupational Health and Safety (OH&S).

As of the period in review, the preparation and submission of Internal

Audit Report by PMOs Zamboanga and Ozamiz were already undertaken.
The conduct of Quality Process Inspection was likewise completed as of
end of November 2017 including external audits, i.e. Stage 1 and 2, in
December 2017. Both PMO Zamboanga and Ozamiz were recommended
for certification.

H. Port Users’ Annual Satisfaction Survey (PASS)

Data gathering activities for this year’s round of Port Users’ Annual
Satisfaction Survey (PASS) was completed on 04 November 2017 which
covered a total of ten (10) ports, namely, Batangas, Legazpi, Tagbilaran,
North Harbor, Dumaguete, Ozamiz, Cagayan de Oro, Calapan, Iloilo, and
Dapitan. During the survey, the Development Academy of the Philippines
(DAP) Survey Team was complemented by PPA personnel to provide
them with technical and administrative assistance in the administration of
the survey as well as to monitor their compliance and adherence to
Contract and data gathering plan.

As of end of the year, the Draft Final Report, which details the survey
results and recommendations for process improvements, was delivered to
PPA with Service Quality Index (SQI) of 3.97 which is an improvement
from the SQI of 3.79 in 2016.

I. Other GCG Commitments

I.1. Increase in Cargo Throughput (in Million Metric Tons/Annum)

As of yearend, cargo throughput (in metric tonnage) have reached

254.069 MMTs) which is 17.069 MMTs higher than target for the
year of 237.00 MMTs.

I.2. Optimum Container Handling Rate (in Crane Moves Per Hour)

Average crane moves per hour as of December is 28.45, higher

than target crane moves per hour of 25.00 for 2017 for the Ports of
South Harbor, MICT, and Batangas.

I.3. Standard Design for Passenger Terminal Buildings (PTB)

Standard design for Passenger Terminal Buildings (PTBs) is

100.00% complete. The standard design for the new PTBs was

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 presented during the Port Visitation and Inspection held in May,
where the Port Managers agreed and concurred on a single design
for all PTBs nationwide.

I.4. Increase in Port Revenue

Port Revenue registered as of yearend is placed at Php15.233

billion which is higher by Php647.60 million from target of Php14.586
billion for the period.

I.5. Increase in Earnings Before Interest, Taxes, Depreciation and

Amortization (EBITDA)

EBITDA as of December 2017 totalled Php10.456 billion which is

relatively higher than target EBITDA for the year of Php3.370 billion.

I.6. Dividend Remittance to the National Government

On 15 May 2017, a sum of Php1.960 billion was remitted to the

Bureau of the Treasury as cash dividends for earnings generated in
2016. This is pursuant to Section 5 of Republic Act (RA) 7656,
requiring GOCCs to remit at least fifty percent (50%) of their annual
net earnings in either cash, stock, or property dividends. (See report
on Dividend Remittance).

I.7. Sustain Processing of Common Permits at maximum of 3 days

and 3 signatories

PPA reinforced implementation of guidelines aimed at streamlining

business processes and procedures particularly for permits issued
by the Authority which are commonly sought by port users. The
guidelines effectively reduced processing time by as much as 93%
and the number of signatories confined to a maximum of 3, resulting
in optimum utilization of port users' time.

I.8. Compliance with International Ship and Port Facility Security

(ISPS) Code

Compliance with International Ship and Port Facility Security (ISPS)

Code is 100.00%. Total number of ports committed with the GCG for
ISPS compliance is 88, composed of base ports and terminal ports.

I.9 No. of Graduates on Master of Science in Maritime Affairs at the

World Maritime University (WMU)

PPA had five (5) graduates on Master of Science in Maritime Affairs

at World Maritime University (WMU). The Program was completed in
October.

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 I.10. Modern Port Management Course (UNCTAD)

PPA has completed the UNCTAD TrainforTrade Port Training

Program Modern Port Management Course with nineteen (19)
graduates.

I.11. Completion of Memorandum of Agreement with Partners and

Launching of Training Facility for Crane Operation Training

In December, the Memorandum of Agreement between PPA and the

Asian Terminals, Inc. (ATI), also signifying the launching of the
training facility for Crane Operation Training.

VI. GENDER AND DEVELOPMENT ACCOMPLISHMENTS

Various programs and activities were undertaken by PPA which are directed
towards addressing various gender-related issues which included, among
others, the following:

a. Existence of violence against women and lesbian, gay, bisexual, and

transgender (LGBT), and among men in the port premises;
b. PTB and other port facilities and procedures not responsive or do not
address gender needs of women and men travellers particularly persons
with special needs (PWSN);
c. Rampant trafficking in persons (TIP) particularly of women and children in
ports which are used as transit points;
d. Lack of compliance with specifications for gender sensitive Passenger
Terminal Building (PTB) facilities by PTB operator;
e. Inadequate monitoring capacities and functions, particularly to ascertain
the gender sensitivity and responsiveness of PPA PAPs; and,
f. Lack of capacity among technical staff to design, implement, and monitor
gender-responsive PPA programs.

To address these issues, PPA, through its GAD Focal Points, accomplished the
following:

a. Conduct of various seminars and trainings on Anti-Bullying Act (R.A.

10627), Solo Parents Welfare Act (R.A. 8972), laws related to
handling/reporting of violence against women and children (VAWC)
incidents, positive work attitude, women economic empowerment, Magna
Carta of Disabled, women empowerment thru social entrepreneurship,
HIV/AIDS/STDs/STIs, trafficking in persons (TIP) detection and handling
using TIP protocols, among others;
b. Active participation in National Women’s Month Celebration, National
Disability Prevention and Rehabilitation (NDPR) Week and World Day
Against Trafficking in Person;
c. Dissemination of anti-VAWC information and campaign materials;
d. Provision of gender-responsive facilities and amenities in PTBs and port
premises;

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 e. Provision of area/room in the PTB dedicated for stranded passengers.
f. Maintained/improved/repaired PWSN ramps and railings, Halfway
Houses, and other PTB amenities;
g. Updated and maintained GAD library and GAD corner; and,
h. Standardized the structural and functional layout of PTBs.

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