Acceleration of the Rationalization and Integration of All Cargo-Handling Activities and Port-Related Services in Major Ports

April 11, 1980

LETTER OF INSTRUCTIONS NO. 1005-A

TO : The General Manager

WHEREAS, it is a declared national policy to support and accelerate the development of government port facilities as well as vital port development projects and services; CTAIHc

WHEREAS, the Philippine Ports Authority is required by its Charter and by its international commitments to various foreign lending institution to maintain an adequate return on its assets;

WHEREAS, it is a prime concern of government to protect the interests of legitimate port workers and port users in the country;

WHEREAS, the Government, through the PPA must provide the cargo-handling and other port-related services, whether on its own, by contract or otherwise, within the Port Districts and the approaches thereof;

WHEREAS, there is need to rationalize and integrate cargo-handling and other port-related services as may have been contracted out or authorized by the PPA in the various ports of the country;

WHEREAS, the procedures of voluntary merger, consolidation and/or bidding for the awarding or contracting of cargo-handling and other port-related services have heretofore proven ineffective and resulted in prolonged and unproductive wrangling, all to the detriment of efficient port operations and development; and

WHEREAS, it now becomes necessary to revitalize and streamline the PPA to carry out its functions and duties as a vital link in the governmental machinery and the thrust for national economic development;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby direct you:

1. To submit a program for the further acceleration of the rationalization and integration of all cargo-handling activities and port-related services in major ports where such has not yet been effected.

2. To expeditiously evaluate all recognized cargo-handling contractors and port-related service operators doing business in all Port Districts in the country under such criteria as PPA may set and to determine the qualified contractor or operator under said criteria in order to ensure effective utilization of port facilities prevent pilferage and/or pinpoint responsibility for it, and provide optimum services to major ports vital to the country's trade and economy.

3. To intensify the collection of all port charges including the government share from all cargo-handling contractors and port-related service operators, all back accounts, in order for them to share the burden of the accelerated development, construction and maintenance of the government facilities they utilize. The government share for all cargo-handling contractors and port-related service operators shall be at a rate not less than 10% taken from their gross income earned from such services. aEAcHI

4. In order to ensure the collection of said government share, to conduct sport audit either on its own or in coordination with such other government agencies under the visitorial power of the state.

5. To ensure the protection of labor and their legitimate rights under the law by such measures as will include, among others, the absorption of displaced port workers in the integrated scheme.

6. To streamline the procedure for processing and selecting the awardees of special permits, memoranda of agreement and management contracts under the franchise-granting power of PPA.

7. To effectively implement these instructions, to restructure the organizational set-up and re-organize the PPA and to take any other measure within such limitations as may be required by law.I

DONE in the City of Manila, this 11th day of April, in the year of Our Lord, Nineteen Hundred and Eighty.