Government Strategies to Boost Supply Chain Productivity · to Boost Supply Chain Productivity” ... Orders, Memorandum Circulars and Memorandum Orders ... CoCo p e ( C C)mplex (ICPC)

P tC ll C E i C f 2013PortCalls Cargo Economic Conference 201307 February 2013 Manila Diamond Hotel

Theme: “Logistics Industry Opportunities in a Resurgent Philippine Economy"

“Government Strategies to Boost Supply Chain Productivity”

Department of Transportation and CommunicationsDepartment of Transportation and Communications

DOTC MANDATEDOTC MANDATE

To develop, promote, implement and p, p , pmaintain an integrated and strategic transportation and communications

fsystems that will ensure safe, reliable, responsive and viable services to

accelerate economic development andaccelerate economic development and better serve the needs of the people.

Department of Transportation and Communications

one of the first government agencies established under theMalolos Constitution on January 21, 1899

plays a crucial role in accelerating the country's economicdevelopment

provides the backbone for growth

h th t ' titi d b idi enhances the country's competitive edge by providingeffective and efficient transportation and communicationsinfrastructure systems

connecting the country, its islands, and its people to therest of the world


VISIONVISION

To be a world class organization, providing integrated transport, connecting people, islands, families, communities and the nation with the rest of the world; andnation with the rest of the world; and

Constantly responding for environmentallyConstantly responding for environmentally sustainable and globally competitive

transport and communications system.


MISSIONMISSION

To provide the country with efficient, effective and secured transportation t l b ll titi li tsystems - globally competitive, compliant with international standards and responsive to the changing timeresponsive to the changing time.


CORE FUNCTIONSCORE FUNCTIONS

Policy formulation Industry/services regulationy g Infrastructure development International cooperation International cooperation


Sectoral & Attached AgenciesSectoral & Attached Agencies

Has three (3) Sectoral Offices – one of which isthe Philippine Coast Guard for maritimethe Philippine Coast Guard for maritime

• armed and uniformed service• primarily tasked with enforcing all applicable

laws within the Philippine waterslaws within the Philippine waters • conducting maritime security operations • safeguarding of life and property at sea • protecting the marine environment and• protecting the marine environment and

resources


Attached AgenciesAttached Agencies

Has fifteen (15) attached Agencies – four (4) offor maritime:for maritime:

PHILIPPINE PORTS AUTHORITY (PPA)

MARITIME INDUSTRY AUTHORITY (MARINA)

CEBU PORTS AUTHORITY (CPA)

PHILIPPINE MERCHANT MARINE ACADEMY (PMMA)


Attached AgencyAttached Agency

PHILIPPINE PORTS AUTHORITY (PPA)

• Established in 1974

• Primary government agency concerned with the planning and development of the country’s seaports including the integration and p g gcoordination of ports nationwide


Attached AgencyAttached AgencyMARITIME INDUSTRY AUTHORITY (MARINA)

• Established in June 1994• Promotes and develops maritime industry• Promotes and develops maritime industry

and regulates shipping enterprises • Issues permits, registration of vessels and

issuance of licenses • addresses safety concerns pertaining to

vessel construction and enforcement ofvessel construction and enforcement of maritime law


Attached AgencyAttached Agency

CEBU PORTS AUTHORITY (CPA)

• Created through the enactment of Republic Act No. 7621, signed on June 26, 1992

• Effectively separating these ports from the Philippine Ports Authority (PPA) system

• Began operations and officially took over all Cebu g p yports on January 1, 1996

• Administers all ports located in Cebu province• Administers all ports located in Cebu province


Attached AgencyAttached AgencyPHILIPPINE MERCHANT MARINE ACADEMY

(PMMA)

• created in January 1963 via Republic Act 3680 (formerly known as the Philippine Nautical School)

• Center for training merchant marine officers • PMMA graduates spearhead Philippine efforts in

i t ti l t d d l bl finternational trade, and are also capable of serving as auxiliary naval officers during times of conflict


Attached AgenciesAttached Agencies

The Office for Transportation Security (OTS) in charge of transportation security for

all sectoral offices and attached agenciesagencies

Establishes guidelines, protocols and undertake safety audit


Philippine Ports Authority’s inputs on pp y p

“Government Strategies to BoostGovernment Strategies to Boost Supply Chain Productivity”

PortCalls Cargo Economic Conference 2013


Philippine Ports Authority InputsPhilippine Ports Authority Inputs

Reduction of cost of doing business in the country

2005-2010 SRNH-RRTS, PPA implemented some 85 RoRo & RoRo-related projects in 77 ports throughout the country

• Development of the Nautical Highway System & RoRo Transport System linking the entire country and development of tourism infrastructure

• A scheme was implemented for RoRo traffic w/ greatly reduced tariff for self-driven & self-propelled vehicles

• Only a nominal RoRo Terminal Fee is collected• No wharfage dues or cargo handling charges are imposed• Part of the country’s transport infrastructure which principally aims to a t o t e cou t y s t a spo t ast uctu e c p c pa y a s to

decentralize progress & development by providing opportunities for growth


ManilaQuezon

Bicol PeninsulaBatangas

Quezon

Nautical Samar Island

Masbate

MindoroNautical Highways

Masbate

Biliran

Cebu

Panay Island Leyte Island

SurigaoBoholCamiguin

Negros Island

Department of Transportation and Communications Cagayan de Oro

Camiguin

Zamboanga Del NorteMisamis Or.


Separation of regulatory and operational function of port authoritiesport authorities

GOCC GOVERNANCE ACT of 2011 (RA10149) 06 June 2011

“ An Act To Promote Financial Viability and Fiscal Discipline in Government-Owned or Controlled Corporations and to pStrengthen the Role of the State in its Governance &

Management to Make Them More Responsive to the Needs of Public Interest and for Other Purposes”



Separation of regulatory and operational function of port authorities

Sec 2. Declaration of Policy – The State recognizes the potential ofgovernment-owned or controlled corporations (GOCC) as significant toolsfor economic development. It is thus the policy of the State to activelyp p y yexercise its ownership rights in GOCCs and to promote growth byensuring that operations are consistent with national development policiesand programs.

Towards this end, the State shall ensure that:(g) There is a clear separation between the regulatory andproprietary activities of GOCCs, in order to achieve a level playing field

ith ti i th i t t f i i il i lwith corporations in the private sector performing similar commercialactivities for the public.



Separation of regulatory and operational function of port authorities

PPA, along with all other Government-Owned and Controlled Corporations (GOCC), is currently being evaluated and assessed by the Governanceevaluated and assessed by the Governance Commission for GOCCs (GCG)

Meantime, PPA continues to carry its mandate under its charter – Presidential Decree 857

P id ti l d 857 P idi f th i ti f tPresidential decree no. 857 - Providing for the reorganization of port administrative and operation functions in the Philippines, revising Presidential Decree no. 505 dated July 11, 1974, creating the Philippine Port Authority, by substitution, and for other purposes.



Computerization of applications of registration / certification / permits to minimize human intervention

• Currently has computerized system for processing of applications for lease of - or permits for available PPAapplications for lease of - or permits for available PPA areas (Areas are advertised on PPA’s website)

• Has developed a Real Estate Management System to facilitate the processing of application for leases or permits to operate



Clear Safety Management Framework

f f PPA has been diligent in the formulation of various policies, rules and regulations on environmental and safety management through various Administrative Orders, Memorandum Circulars and Memorandum Orders

PPA is recipient of technical assistance for EnvironmentalPPA is recipient of technical assistance for Environmental Management in the Seas of East Asia (PEMSEA) for the development of Port Safety, Health and Environmental Management System (PSHEMS)Management System (PSHEMS)



Clear Safety Management Framework

PEMSEA’s partners include the Global Environment Fund (GEF), United Nations Office for Project Services (UNOPS) and the United Nations Development Fund (UNDP)United Nations Development Fund (UNDP)

2 pilots were selected under this project: (1) Iloilo Commercial Complex (ICPC) - was awarded recognition in December 2012 (2) Co p e ( C C) as a a ded ecog t o ece be 0 ( )Cagayan de Oro Port - expected to obtain the same recognition this year (2013)


M iti I d t A th it ’ i t thMaritime Industry Authority’s inputs on the

“Government Strategies to Boost Supply Chain Productivity”

PortCalls Cargo Economic Conference 2013


g

MARINA InputsMARINA Inputs• Consistently supports the implementation of OP Administrative

Order No. 123 and OP Executive Order Nos. 170A/170B (a)the Road RORO Terminal System (RRTS); (b) Cold Chainthe Road RORO Terminal System (RRTS); (b) Cold Chainand (c) the Grains Highway

• stimulating demand for the provision of shipping servicesstimulating demand for the provision of shipping servicesunder the Road-RORO Terminal System (RRTS) project

• involves the use of the network of roads, terminals andferriesferries

• to establish seamless connections to the various islands inthe archipelago

• to reduce transport and handling cost• to reduce transport and handling cost• to ultimately raise the competitiveness of Philippine

products


MARINA InputsMARINA Inputs

MARINA collaborated with the DBP Maritime Leasing Corp (DMLC)Corp. (DMLC)

• to provide loan facilities to interested and qualified ship-owners/operators in the acquisition of RORO ships

• either thru importation or local constructioneither thru importation or local construction

• to be deployed in the nautical highway routes



E i f N ti l Hi hExpansion of Nautical Highways

as of 2012, 8 out of the 12 identified routes in the Western, , ,Central and Eastern Nautical Highways under the RRTS have been provided with shipping services

• vessel service were provided by 24 shipping• vessel service were provided by 24 shipping companies

• a combined fleet of 53 vessels



to complement the existing RRTS Project is the Local Central Spine Nautical Highway Project

• involves the construction and operation of an integrated transportation system

• combining a RORO port network and services with new toll roads

• linking Manila to Panay, Negros, Cebu, Bohol and Northern Mindanao

• to effectively pursue the implementation of the said undertaking, DOTC Special Order No. 2011-191 was issued on 20 September 2011 creating a Task Force on Project Central Spine RORO (Nautical Inter-Island Super Highway)

• MARINA had been included as a member



International Cooperation Expanding RORO servicesservices

Undertaken the following initial activities in pursuit of the Philippine -Indonesia RORO connectivity: The ASEAN RORO connectivityIndonesia RORO connectivity: The ASEAN RORO connectivity

• shorten transport time between and among ASEAN member nationsnations

• will open investment opportunities• integrate the ASEAN economies by 2015 • will be on the Top 6 ASEAN priority projects along the BIMP-p p y p j g

EAGA that will be connected to the ongoing RORO service between China and Japan



Promote development of Philippine Domestic shipping, Shipbuilding, Ship Repair and Ship Breaking

Including reforms in government policies towards the industryi t d RA 9295improvement under RA 9295

- VAT exemption on the importation and local purchase ofpassenger and/or cargo vessels of 150 GRT and abovepassenger and/or cargo vessels of 150 GRT and above,including engine and spare parts of said vessels, among otherincentives



Creation of a single maritime administration to achieve unity of purpose and to insure coherence of policy

• Initially, Executive Order No. 75 was issued on 30 April 2012 by the Office of the President

• designating the DOTC through the MARINA as the Single Maritime Administrationdesignating the DOTC through the MARINA as the Single Maritime Administration in the Philippines

• responsible for oversight in the implementation of the 1978 STCW Convention, as amendedamended

• Consequently, MARINA assumed the functions of the Maritime Training Council (MTC) on 01 July 2012

• Other plans to consolidate all human element functions under MARINA shall be discussed during the Philippine Maritime Industry Planning Workshop to be held from 29 January to 01 February 2015.



Implementation of the Maritime Labor Code (ratified last year)

• MARINA had issued Flag State Administration Advisory No. 2012-21 dated 05 November 2012

• providing notice that the Permanent Mission of the Philippines to the United Nations Office and other International Organizations in Geneva representing the GRP has deposited its instrument of ratification on Maritime Labor Convention 2006 (MLC 2006) on 20 August 2012

• The Philippines being the 30th Member-State of the International Labor Organization (ILO) to have ratified the MLC, have made a mark in the history of international shipping

• its ratification signaled the start of the countdown for the MLC 2006 to enter into force as a binding international law 12 months from the date of ratification or on 20 August 2013

• Plans on the implementation of the MLC 2006 shall be discussed during the Philippine Maritime Industry Planning Workshop to be held from 29 January to 01 February 2015


MARINA InputsMARINA InputsPass the Philippine Merchant Shipping Bill pending in Congress for the last five years

C fThe Philippine Maritime Code of 2012”

• the latest legislative proposal by the House of Representatives • this Maritime Code had already passed the House Committee level and is nowthis Maritime Code had already passed the House Committee level and is now endorsed to the plenary for approval

• proposed legislation seeks to provide a strong legislative framework for a Phili i iti i d t th t i i d d t t i bl l b ll titiPhilippine maritime industry that is independent, sustainable, globally competitive, gender-sensitive, environmentally-friendly and economically beneficial for the state and its people

• the position of the MARINA on this shall be fully discussed during the Philippine Maritime Industry Planning Workshop to be held from 29 January to 01 February 2013


MARINA InputsMARINA Inputs1. Reduction of cost of doing business in the country (Filipino ship

owners pay all kinds of taxes).2. Reduction on the bureaucratic burden on ship owners through

harmonization of ship inspection and certifications.3. Revision of Philippine Merchant Marine Rules and Regulations4. Computerization of applications for registrations/certification to

minimize human interventionminimize human intervention5. Clear safety management framework6. Continuance of imposing the Cabotage Rule in order not to dampen

the already low appetite for investment.

• above cited issues were all discussed with the private and government sector’s representatives at the Philippine Maritime Industry Planning Workshop on 29 January to 01 February 2013Industry Planning Workshop on 29 January to 01 February 2013

• output of which shall be finalized for presentation / conveyance to concerned entities


Medium Term Plans / Strategic Plans & FocusMedium Term Plans / Strategic Plans & Focus

DOTC Medium Term Plan

The objective of the MTP is to ensure an integrated and coordinated transportation network for the Filipino peoplenetwork for the Filipino people.



To Ensure an Integrated and Coordinated Transport Network

STRATEGY Activity / Project

1. Adopt a comprehensive long-term National Transport Policy

Policy-Executive Order (interim)-Legislative Enactment (medium term)term)




STRATEGY Activity / Project2 Develop strategic transport2. Develop strategic transport infrastructure and maintain / manage transport infrastructure assetsassetsa. Prioritize asset privatizationUser-pays principle must be appliedapplied

- Upgrading the quality and capacity of existing ports

Manila Bay – Pasig River –Laguna Lake (MAPALLA) Ferry System


y



STRATEGY Activity / ProjectIncentive based reform agenda Development of Public Transport- Incentive-based reform agenda

for LGU to improve their performance

Development of Public Transport Strategic Plan for Regional Areas: Regions I, II, III, IV, V, VI, VIII IX X XII CAR CARAGAVIII, IX, X, XII, CAR, CARAGA




STRATEGY Activity / Projectb. Provide access to major and strategic t i d ti ti

Improvement & execution of the following:-Port infrastructure by PPA amounting to Php624M in CY

tourism destinations and production areas

2013-Port infrastructure by DOTC amounting to Php142.5M in CY 2013-Inspection and franchising of motor bancas by MARINA-Repair of damaged facilities at Sta. Fe, BantayanIsland, Cebu (CPA)- Renovation of Cebu Baseport Terminal 1 (CPA)-Passenger terminal at Port of Punta Engano, Lapu-Lapu (CPA)




STRATEGY Activity / ProjectSTRATEGY Activity / Project

3. Develop an integrated multi-modal logistic and transportation system

a. Identify and develop strategic logistics corridors based on the National Logistic Plan:

-Procurement ofLogistic master plan should be completed: economic corridor where development benefits not only large cities but also smaller towns and

l l th id E t i f

Procurement of Consultancy Services for the Feasibility Study for

rural areas along the corridor; Extension of SCMB logistics corridor farther to the north and to the south

y yCentral Spine RoRo


Proposed Maritime Transport Feasibility Proposed Maritime Transport Feasibility Studies for 2013Studies for 2013

Master Planning/Feasibility Study and Detailed Engineering Design for the Development of PCGEngineering Design for the Development of PCG Maritime Incident Response Base Project in Northern Mindanao (Laguindingan)

Development support systems to Coast Guard operations through Bases & Infrastructure developmentoperations through Bases & Infrastructure development in identified critical maritime areas in Mindanao


Proposed Maritime Transport Feasibility Studies for 2013Proposed Maritime Transport Feasibility Studies for 2013

M t Pl i /F ibilit St d f th Master Planning/Feasibility Study for the Development of Philippine Coast Guard Support Base in the Visayas Regiony g

Development of support systems to Coast Guard operations through Bases & Infrastructure development in identified critical maritime areas in the Visayas Region g



Development of Social Reform Support Ports inDevelopment of Social Reform Support Ports in Isolated Areas

Improvement of accessibility & support the production activities such as agriculture & fishery in the remote islands & other isolated areas w/o port facilities therebyislands & other isolated areas w/o port facilities thereby reducing regional development gaps & contribute to poverty reduction



RoRo Ports for Remote Islands DevelopmentRoRo Ports for Remote Islands Development

Development of basic transportation access facilities to t i l l i ti iti ti l l i ttrigger local economic activities particularly in remote areas/islands through construction of priority RoRo ports with corresponding deployment of needed RoRo hiships



Development of Cruise Shipping Industry in theDevelopment of Cruise Shipping Industry in the Philippines

Greater Capital Region/Subic-Clark-Manila-B t T t d L i ti C id St dBatangas Transport and Logistics Corridor Study

National Ports Infrastructure Development PlanSt d th D l t f I t t d Study on the Development of an Integrated Multimodal Logistics & Transport System

Development of the Priority Corridor/Areas/Ports e e op e t o t e o ty Co do / eas/ o tsfor the Central Spine RoRo Project


end of presentation



(o p t i o n a l)


Overview of Some of the Overview of Some of the 2014 Plans and Programs2014 Plans and Programs


Overview of some of the 2014 Plans and ProgramsOverview of some of the 2014 Plans and Programs

1. Objective: To ensure an integrated & coordinated transport network

b d ti h i l t ti l- by adopting a comprehensive long-term national transport policy

- by developing strategic transport infrastructure and by de e op g s a eg c a spo as uc u e a dmaintain / manage transport infrastructure assets

- by developing an integrated multi-modal logistics d t t tand transport system



2. To ensure transportation safety and security.- by complying with safety and security standards

3. To promote development of conflict-affected and highly impoverished areas.

- by providing linkages to bring communities into the- by providing linkages to bring communities into the mainstream of progress and development



Identified problems that need to be addressed:

1. Long travel time2. Insufficient accessibility/logistics support3. Inadequate linkages/facilities in tourism destination

areasareas4. Safety, security, quality, health and environment5. High transport costs (shipping, freight costs)g p ( pp g, g )



Problem: Missing links resulting to longer travel time along the existing

Nautical Highway network

Specific Objective:Specific Objective: To reduce travel time in four nautical highway routes To reduce travel time in two lateral RRTS routes

Projects/Policies: Provide Ro Ro ships to serve/link the SRNH routes Provide Ro-Ro ships to serve/link the SRNH routes Develop/construct new Ro-Ro port facilities in Balud, Masbate

and Siaton Negros, Oriental



Problem: Inadequate infrastructure limiting access to isolated

areas/communities

Specific Objective:Specific Objective: Provide access/linkages to identified areas/municipalities

Projects/Policies: Develop/construct basic port facilities in identified -

isolated/island municipalitiesisolated/island municipalities



Problem: Inadequate infrastructure limiting access to tourism destination

areasSpecific Objective: Improvement of existing ports serving cruise traffic to support Improvement of existing ports serving cruise traffic to support

tourism developmentProjects/Policies: Seaport Cruise Development (PPA) (Ports of Currimao, Puerto Princesa, Catagbacan, Iloilo,

General Santos, Zamboanga,etc.), g , ) Improvement/ Rehabilitation of Ivana Port (Batanes)



Problem: Inadequate infrastructure posing safety / environmental risks to

maritime transportation

Specific Objective:Specific Objective: Provide Aids to Navigation facilities Projects/Policies

Projects/Policies: Construct/ rehabilitate various lighthouses at identified priority

areasareas



Problem: Inadequate infrastructure posing safety / environmental risks to maritime

transportation p

Specific Objective: Provide Aids to Navigation facilities Projects/Policiesg j Provide Maritime Incident Response/ Support Base Enhance the PCG Search and Rescue Capability

Projects/Policies: Construct/ rehabilitate various lighthouses at identified priority areas Develop/construct PCG Support Base in Visayas Region and NorthernDevelop/construct PCG Support Base in Visayas Region and Northern

Mindanao (Laguindingan) Acquisition of two- 92-meter Multi-Role Response Vessels



Problem: Inadequate infrastructure posing safety / health/

i t l/ Cli t Ch i k t itienvironmental/ Climate Change risks to maritime transportation

Specific Objective: Promote safety, health and better environment at the portsProjects/Policies:

C l t l i tit ti li th SHE M t S t t Completely institutionalize the SHE Management System at the Ports of Cagayan de Oro and Iloilo

Replicate/adopt SHEMS in other major PPA ports & Cebu Create an Interagency Committee for the PSHEMS

spearheaded by DOTC (to include MARINA, PPA, CPA and PCG)


PCG)


Problem: Very high logistics costs

Specific Objective: Reduce transportation costs by providing quality transportReduce transportation costs by providing quality transport

infrastructure

Projects/Policies: Formulate the National Logistics Master Plan Put links between road development and port developmentPut links between road development and port development Replacement of outmoded/ageing fleet through use of modern

shipping technology



(Continuation)Problem:

Ver high logistics costs Very high logistics costs Specific Objective: Reduce transportation costs by providing quality transport

infrastructureProjects/Policies: Policy to shift foreign container traffic from Manila to Batangas and

Subic Ports Promote Batangas Port for CALABARZON destined shipments Policy on Chassis-RoRo as part of RRTS in support of ASEAN o cy o C ass s o o as pa t o S suppo t o S

Connectivity Development/Improvement of major PPA ports in Visayas and

Mindanao


End of presentation End of presentation


Documents

Government Strategies to Boost Supply Chain Productivity · to Boost Supply Chain Productivity” ... Orders, Memorandum Circulars and Memorandum Orders ... CoCo p e ( C C)mplex (ICPC)