Opening the Domestic Water Transport Industry To New Operators and Investors
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Opening the Domestic Water Transport Industry To New Operators and Investors
Executive Order No. 185
June 28, 1994
Case Overview and Summary
EXECUTIVE ORDER NO. 185Opening the Domestic Water Transport Industry to New Operators and Investors
- Declares the policy to accelerate the integrated development of the maritime industry to increase production and productivity, provide economical and efficient shipment, enhance competitiveness of Philippine vessels, strengthen balance of payments, and generate jobs. (Whereas clauses)
- Liberalizes the entry of new operators into the domestic water transport industry to enhance competition and bring about reasonable rates and improved services. (Section 1)
Provisions:
• Opening-up of All Routes (Section 1.1)
- All routes/links shall have a minimum of two (2) operators. (Section 1.1.1)
- Routes/links serviced by only one operator or monopolized/cartelized shall be open for additional operators. (Section 1.1.1)
- Routes/links serviced by any operator for at least five (5) years shall be open for additional operators without limit. (Section 1.1.2)
• Encouraging Entry Into Developmental Routes (Section 1.2)
- Entry of operators in developmental routes shall be encouraged. (Section 1.2)
- Operators pioneering certain technological level/type of service in a developmental route shall be authorized to charge market-accepted rates, subject to MARINA approval. (Section 1.2)
- After five (5) years, continued authorization of such rates shall depend on MARINA evaluation. (Section 1.2)
• Deregulating Entry of Newly-Acquired Vessels Into Routes Already Served (Section 1.3)
- Existing or new operators acquiring vessels through importation, bareboat charter, lease-purchase, or local construction shall be granted Certificate of Public Convenience (CPC)/Provisional Authority (PA) and allowed to operate in any route, even if already served for less than five (5) years, including developmental routes, subject to prescribed application and basic requisites. (Section 1.3.1)
- Presumption of public need shall be accorded to applicants, especially if introducing innovative/technologically-advanced services, improving quality of service, deploying better vessels, fostering cost-effective service, serving priority tourist links, or responding to public clamor for additional services. (Section 1.3.1.1 - 1.3.1.7)
- Vessels shall continuously serve franchised route for at least one (1) year upon issuance of CPC. (Section 1.3.1)
• Vessel Rerouting Or Amendment Of Authorized Route And Change In Sailing Schedules And Frequency (Section 1.4)
- Approval shall be granted for changes or amendments to authorized routing pattern by existing franchised liner vessels, subject to conditions. (Section 1.4.1)
- No conflict in sailing schedules with other affected operators shall result, otherwise MARINA shall prescribe schedules. (Section 1.4.1.1)
- No route/link shall be left unserviced by rerouting/amendment, unless substitute vessel is deployed or other operators are serving. (Section 1.4.1.2)
- Shipping service in previous route/link must have been continuously rendered for at least one (1) year from issuance of CPC. (Section 1.4.1.3)
- If rerouting/amendment is caused by deployment of newly acquired vessel, policy of liberalized entry under Section 1.3 shall apply. (Section 1.4.2)
- If no newly-acquired vessel is involved and an entirely new route/link will be served, a new CPC application shall be filed, subject to conditions in Section 1.3. Priority shall be given to newly-acquired vessels. (Section 1.4.3)
- For temporary authorities pending CPC resolution, amended authority shall be subject to one (1) year maximum period cumulatively reckoned from first issuance. (Section 1.4.4)
• Directs all government agencies to assist and coordinate with MARINA in implementation. (Section 2)
• Revokes or amends inconsistent issuances and directs MARINA to issue implementing rules and regulations. (Section 3)
• Takes effect fifteen (15) days after publication in a newspaper of general circulation. (Section 4)
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Executive Issuances
Executive Orders
water transport industry
new operators
investors
competition
routes
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certificates of public convenience
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vessel deployment
route amendments
sailing schedules
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Law
Opening the Domestic Water Transport Industry To New Operators and Investors
Executive Order No. 185
•June 28, 1994
EXECUTIVE ORDER NO. 185 June 28, 1994
OPENING THE DOMESTIC WATER TRANSPORT INDUSTRY TO NEW OPERATORS AND INVESTORS
WHEREAS, Section 19, Article XII of the Constitution declares that "[t]he State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint of trade or unfair competition shall be allowed;"
WHEREAS, Presidential Decree No. 474, otherwise known as the Maritime Industry Decree of 1974, provides that:
"It is hereby declared the policy of the State to accelerate the integrated development of the maritime industry of the Philippines to attain the following objectives: (a) To increase production and productivity in the various islands and regions of the archipelago through the provision of effective sea linkage; (b) To provide for the economical, safe, adequate and efficient shipment of raw materials, products, commodities and people; (c) To enhance the competitive position of Philippine flag vessel in the carriage of foreign trade; (d) To strengthen the balance of payments position by minimizing the outflow of foreign exchange and increasing dollar earnings; (e) To generate new and...
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