The Philippine Ports Authority (PPA) has revised in a newly issued administrative order the terms for the holdover period for expiring cargo-handling contracts.
PPA Administrative Order (AO) No. 03-2017 said all cargo-handling operators with expired or expiring cargo-handling contracts will be granted a holdover authority for one year or until the agreement is awarded under AO No. 03-2016, whichever comes first.
AO No. 03-2017, which takes effect on February 2, amends Section VII (transitory provision) of AO No. 03-2016, or the Port Terminal Management Regulatory Framework (PTMRF), issued in 2016 and outlines the guidelines for the awarding of terminal contracts.
Previously, Section VII of CAO No. 03-2016 stated that existing holders of cargo-handling contracts and operators with an authority to cooperate shall be provided with a holdover authority until the awarding of the agreement under AO No. 03-2016.
PPA said the amendment was pursuant to PPA Board Resolution No. 2586 subsequent to its 444th regular board meeting held last January 23.
“Expiring contracts shall be construed to mean only those contracts that will expire within this one-year period,” PPA added.
Last December 2016, PPA held public hearings on the draft memorandum circular (MC) that provides the implementing guidelines for the new PTMRF under AO No. 03-2016.
PPA port operations and management manager Roberto Aquino, during a public consultation on December 22, said the new PTMRF aims to enhance PPA’s rules for awarding of terminal management contracts in order to reduce the administrative burden of the agency.
Since under the proposed new port terminal framework, concessions will be performance- or outcome-based, instead of investment-based or based on the number of equipment or facilities to be provided by the concessionaire, PPA hopes “to be able to reduce transport and transaction costs,” especially on agricultural products. – Roumina Pablo
