PPA separates its regulatory and operational functions through Port Terminal Management Regulatory Framework

Through the Port Terminal Management Regulatory Framework (PTMRF), the Philippine Ports Authority (PPA) implemented the separation of its regulatory and operational functions by privatizing port operations.

PPA has so far privatized 19 ports that are major gateways and is in the process of privatizing more ports.

The measure seeks to separate the regulatory and commercial functions of PPA by converting the agency into a Philippine Ports Corporation (Philports) and transferring its regulatory functions to the Maritime Industry Authority (MARINA).

In accordance with PPA Administrative Order 03-2016, the initiative aims to (1) ensure the provision of efficient port management and other related port services through better coordination and realization of economies of scope in all ports to the satisfaction of port users in particular and the public in general, (2) encourage private sector participation in port operations in order to provide higher quality services, (3) promote consistency in the determination of contract requirements and contracting procedures in the award of port management contracts through competitive bidding, (4) reduce compliance, transport, and transaction costs for agricultural and other products and related inputs that can result in a more efficient and competitive trade and transport environment, (5) provide a greater opportunity to build stronger and more sophisticated private sector port operators and/or contractors, (6) allow costs, including a reasonable return on port investments, to be recovered through port tariffs, while taking into consideration the affordability of port services for all port users; and, (7) improve the environmental and social impact of port operations.

For more updates and information, visit PPA’s website at https://www.ppa.com.phPKC

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