Rules and Regulations to Implement Executive Order No. 170

March 3, 2003

DOTC DEPARTMENT ORDER NO. 16-03

SUBJECT : Rules and Regulations to Implement Executive Order No. 170 Promoting Private Sector Participation and Investment in the Development and Operation of the Road Roll-On/Roll-Off Terminal System

Pursuant to Section 8 of Executive Order No. 170 and Executive Order No. 125, as amended, the following rules and regulations are hereby adopted:

RULE I

Objectives

1. To reduce the cost of inter-island transportation through the establishment of a safe, efficient and cost-effective Road Roll-On/Roll-Off Terminal System (RRTS);

2. To enhance tourism, transportation and commerce throughout the country;

3. To facilitate agro-fisheries modernization and food security programs;

4. To promote private sector participation in the establishment, construction and operation of RRTS facilities; and

5. To establish a new policy to promote the development of RRTS.

RULE II

Coverage

This Department Order shall apply to all persons, partnerships, corporations, firms and entities, including the Philippine Ports Authority (PPA), Cebu Port Authority (CPA) and the Local Government Units (LGUs) engaged in or who wish to engage in providing the type of service defined and prescribed by the RRTS.

RULE III

Definition of Terms

1. Road RO-RO Ferry Terminal System (RRTS) shall refer to the network of RO-RO ferry terminals all over the country, separated by a distance of not more than fifty (50) nautical miles and linked by RO-RO ferry ships.

2. RO-RO Operations shall refer to the method of loading and discharging of rolling cargoes such as cars, road haulage units, lorries, trailers and other vehicles moved on their own wheels by their owners or shippers or by the owners' or shippers' authorized driver between the ship and shore via a ramp, and where the physical possession and control of the rolling cargo or vehicle is not transferred to a cargo handler or to the shipping company or its agents.

3. RO-RO Ship, also called RO-RO, shall refer to a design of ship provided with watertight ramp openings in the ship's side, aft and/or in the bow, for carrying passengers with or without cars, vehicles driven by the owner or shipper or by the owner's or shipper's authorized driver.

4. RRTS Water Transport Provider shall refer to an operator that is issued either a CPC, PA or SP to operate a RO-RO ship linking the RRTS.

5. RRTS Service Provider shall refer to an integrated operations of RO-RO ships and/or terminal facilities in an RRTS link.

6. RRTS Terminal Operator shall refer to RO-RO terminal and land-based facilities.

7. Certificate of Public Convenience (CPC) shall refer to an authority embodied in a Decision, issued by the Maritime Industry Authority (MARINA) to a RRTS water transport provider, allowing it to operate a RO-RO ship for commercial/public use.

8. Provisional Authority (PA) shall refer to a temporary authority, embodied in an Order, issued by the MARINA to a RRTS water transport provider, allowing it to operate a RO-RO ship, pending final determination of its application for issuance of a CPC.

9. Special Permit (SP) shall refer to a temporary authority, other than a PA, embodied in an Order, issued by the MARINA to a RRTS water transport provider, allowing it to operate a RO-RO ship under prescribed instances.

10. RRTS Toll shall refer to the Terminal Fee charged on the vehicles and passengers by the Road RO-RO Terminal Operator for the use of the terminal; Freight or Rolling Cargo Fee charged on the self-powered vehicles by the RRTS water transport provider based on lane meter; Passage Fee charged on the passengers by the RRTS water transport provider; and, Berthing Fee charged on the RO-RO ship by the Road RO-RO Terminal Operator for mooring and berthing at the RO-RO terminal.

11. Sustainable Logistics Development Program shall refer to the loan/financing facility of the Development Bank of the Philippines to establish common infrastructure facilities for the following components a) Grains Highway; b) Road RO-RO Terminal System (RRTS); c) Cold Chain.

12. Self-Powered Vehicles shall refer to any vehicle provided with its own motive power.

13. Private Commercial Terminals shall refer to terminals constructed and operated through private sector investments or those eventually privatized by the port authorities.

14. Way Bill shall refer to a formal list of items or cargo declared by the shipper and entrusted to the vehicle operator or driver for transport to a specific destination.

15. Lane Meter (l.m.) shall refer to a unit by means of which the deck/s on a RO-RO ship are measured where one (1) meter of deck with a width of 2.5 to 3.0 meters shall constitute one lane meter, a fraction thereof considered as 1 meter.

The meaning of other terms used herein is as defined in relevant Memo Circulars, Rules and Regulations or Guidelines of the appropriate agencies, or as generally understood in the maritime industry practice.

RULE IV

Integration of the RRTS with the National Highway System

1. Vehicles moved by their own power by its owner or shipper or by the owner's or shipper's authorized driver and passing through the RRTS shall not be burdened by transport procedures and costs, except as herein provided.

2. A RRTS water transport provider shall however, secure from the MARINA a Certificate of Public Convenience (CPC) for the operation of RO-RO ships.

3. Without prejudice to privileges granted under existing CPC/PA/SP or Permit to Operate granted by the MARINA or the PA and CPA to domestic water transport service providers or terminal operators, the conversion of operations to the RRTS concept as defined under this Department Order shall be encouraged and promoted.

4. The MARINA, in coordination with the PPA, CPA, and the Department of Public Works and Highways (DPWH) shall assist to promote the RRTS by identifying viable links/routes covered under the RRTS, without excluding other links/routes that the private sector may prefer to serve.

RULE V

RRTS Toll

1. A RRTS toll shall consist of four (4) components to be collected separately by each service provider with the view to consolidate all fees in one in the future, namely:

a. Terminal Fee (TF) charged on the self-powered vehicles and passengers by the Road RO-RO Terminal Operator for the use of the terminal;

b. Freight of Rolling Cargo Fee charged on the self-powered vehicles by the RRTS water transport provider based on lane meter as herein defined;

c. Passage Fee (PF) charged on the passengers by the RRTS water transport provider; and,

d. Berthing Fee charged on the RO-RO ship by the Road RO-RO Terminal Operator for mooring and berthing at the RO-RO terminal.

2. The RRTS toll shall apply to all self-driven rolling cargoes.

3. The Freight or Rolling Cargo Fee based on lane meter and the Passage Fee, except for Third Class Accommodation, shall be deregulated. The MARINA shall intervene under the instances enumerated in Rule IX.1 and IX.2 of MARINA Memorandum Circular No. 153 on the Revised Rules and Regulations Implementing Deregulation of Domestic Shipping Rates.

4. The Berthing Fee levied on the RO-RO ship for mooring and berthing at the RO-RO terminals shall be deregulated.

5. The Terminal Fee charged on the RO-RO ship and the passengers for the use of the terminal shall be deregulated.

6. Waiver of Port Authorities' Share of Revenues from the Road RO-RO Terminal Operator. Having been declared as part of the national highway system and the possession, control and responsibility over the self driven vehicle/cargo having been retained by the owner thereof, no extraneous charges such as arrastre, or other cargo handling costs shall be levied against the self driven vehicle/cargo being transported.

7. The PPA, CPA and LGUs shall not collect fees other than that prescribed under Sec. 1 of this Rule.

RULE VI

Annual Supervision Fees

1. Annual Supervision Fee. — The RRTS water transport provider shall pay the MARINA the corresponding annual supervision fee as provided for in MARINA Memorandum Circular No. 77 and its subsequent amendments. The RO-RO Terminal Operator shall pay the PPA a fixed annual supervision fee of P20,000.00 as provided for in PPA Administrative Order No. 06-95 or its subsequent amendments.

RULE VII

RRTS Documentary Requirements

1. CERTIFICATE OF PUBLIC CONVENIENCE (CPC):

1.1 A RRTS water transport provider must satisfy the basic requisites for the grant of a CPC, pursuant to Rule V.1.a of MARINA Memo Circular No. 161.

1.2 In the interest of maritime safety, public comfort and convenience, the valid and streamlined documentary requirements as prescribed under MARINA Memo Circular No. 169, and its subsequent amendments must be submitted prior to acceptance of applications for issuance of CPC for RO-RO ships passing through the RRTS.

1.3 The publication of the Notice of Hearing (NOH) once in a newspaper of general or regional/local circular as required under Part I, Rule 5, Secs. 3–6 of MARINA Memo Circular No. 74-A is hereby reduced to at least five (5) days prior to initial hearing. Further, the period of service by the Applicant of a copy of the NOH and the application by personal delivery, or courier service or registered mail when permitted by the MARINA, to affected parties is likewise reduced to at least three (3) days before the initial hearing.

1.4 RO-RO ships shall comply with the pertinent provisions of Chapter 2 of SOLAS 1974, as amended, the 1997 PMMRR and the pertinent provisions of MARINA Memo Circulars, and their subsequent amendments, are hereby deemed incorporated by reference.

1.5 All RO-RO ships in the RRTS shall comply with the minimum service standards under MARINA Memo Circular Nos. 65/65A and 150 and their subsequent amendments.

1.6 The rules governing passenger manifesting under MARINA Memo Circular No. 180 shall apply.

1.7 RRTS water transport providers shall comply with the reporting requirements under Section 11 of the Anti-Carnapping Act of 1972 (R.A. 6539).

2. The provisions of MARINA Memo Circular No. 161 on the issuance of Provisional Authority (PA), pending final determination of an application for CPC, are hereby deemed incorporated by reference except the period for setting the hearing of a Motion for Issuance of PA in Contested Applications (Rule V.2.d.2 thereof) which is hereby reduced to a period of five (5) days from the initial hearing. In case of uncontested applications, especially in pioneering routes/links, the PA may be issued upon application, even prior to hearing, provided all documentary requirements as aforestated are complied with.

 

3. All other provisions of MARINA Memo Circular Nos. 74-A, 161 and 169 and their subsequent amendments, not inconsistent herewith, are hereby deemed incorporated by reference.

RULE VIII

Documentary Requirements for RRTS Users

1. Way Bill.— For commercial cargoes only, a copy of the regular Way Bill declaring the contents of the vehicle shall be submitted to the vessel operator in lieu of the preparation and submission of a Bill of Lading required of traditional shipping operations.

RULE IX

Privatization of Public Ports

1. The PPA. or the CPA for RRTS facilities in Cebu, shall ensure that Road RO-RO terminals established and constructed through private investments shall be operated as private commercial terminals.

2. The PPA and the CPA shall likewise take concrete steps to privatize state-owned Road RO-RO terminals to attract investments in the RRTS.

RULE X

Environment and Business-Related Requirements of the RRTS

1. The Department of Environment and Natural Resources (DENR) shall issue Environmental Compliance Certificates to RRTS shore facilities, within a period of forty-five (45) days, after submission of requirement, and the proper Government Agency shall enter into a foreshore lease agreement within a period of ninety (90) days therefrom.

2. The LGUs are strongly encouraged to issue the necessary permits for the operation of RRTS shore facilities within three (3) days from date of application.

3. The PPA, the CPA and the MARINA shall issue the permits necessary for the construction and/or operation of RRTS facilities within thirty (30) days from date of application.

RULE XI

Participation of LGUs in the RRTS

1. Joint-ventures between the LGUs and the private investors shall be encouraged.

RULE XII

Financing for the RRTS

1. The Development Bank of the Philippines (DBP) shall make available long-term loan/financing to eligible projects and qualified borrowers under its Sustainable Logistics Development Program (SLDP). Other financial institutions shall be encouraged to participate. To the extent possible, the DBP shall implement streamlined procedures in the processing of loan applications under the RRTS.

2. The participation of the private sector in the RRTS shall be encouraged.

3. Loan availments for RO-RO ships or terminal facilities under the RRTS shall be at the discretion of the creditor and borrower-risk-taker. However, in certain cases, the DBP may seek the prior endorsement and/or evaluation by the MARINA or the PPA/CPA, as appropriate.

RULE XIII

Sanctions and Penalties

1. The sanctions and penalties as prescribed under the applicable MARINA, PPA and CPA Memo Circulars or rules and regulations are hereby deemed incorporated by reference.

2. In addition, the failure of a RRTS domestic water transport provider to comply with the terms and conditions for the operation of RO-RO ships or to deliver services to the prescribed level or standards under relevant MARINA Memo Circulars, or its subsequent amendments, shall be a ground for the suspension/withdrawal/revocation of the CPC/PA/SP and/or dismissal of its application for CPC. DTSaHI

RULE XIV

Transitory Provisions

1. Upon the effectivity of this Department Order, all RRTS operators shall be governed by the rules provided herein.

2. All subsisting CPC/PA/SP or Permit to Operate granted to existing domestic water transport providers or terminal operators within identified RRTS links/routes shall continue to be effective until their expiration unless sooner modified, revoked or cancelled by the MARINA or the PPA/CPA, as appropriate.

3. An interested existing domestic water transport provider or terminal operator may be eligible to operate under the RRTS subject to its satisfaction/compliance with the requirements under this Department Order.

RULE XV

Repealing Clause

The provisions of relevant MARINA, PPA and CPA Memo Circulars, rules and regulations and all other issuances inconsistent with this Department Order are hereby amended/modified accordingly.

RULE XVI

Separability Clause

Should any provision or part of this Department Order be declared by a competent authority to be invalid and unconstitutional, the remaining provisions or parts thereof shall remain in full force and effect and shall continue to be valid and effective.

RULE XVII

Effectivity Clause

This Department Order shall take effect immediately after its publication once in a newspaper of general circulation in the Philippines.

City of Mandaluyong, Philippines, this 3rd March 2003.

 

(SGD.) LEANDRO R. MENDOZASecretary