Recalling The Franchise Granted To The Manila International Port Terminals, Inc. (Mipti) To Operate And Manage The International Port Complex At North Harbor, Manila.

Case Overview and Summary

Recalling the Franchise Granted to the Manila International Port Terminals, Inc. (MIPTI) to Operate and Manage the International Port Complex at North Harbor, Manila

- The Manila International Port Complex (MIPC) at North Harbor, Manila was constructed and developed pursuant to P.D. No. 1284 promulgated on January 16, 1978, in response to the increasing need for international container trade. (Whereas clause 1)
- MIPTI was granted a franchise for twenty-five (25) years, effective from January 16, 1978, to operate and manage all facilities, container terminals, warehouses, transit sheds, cargo handling equipment, and other structures at MIPC and to render cargo handling services to shipping lines and other requiring the use of said facilities, by virtue of P.D. No. 634 promulgated on January 7, 1975, as amended by P.D. No. 1284. (Whereas clause 2)
- MIPTI entered into a Memorandum of Agreement with the Philippine Ports Authority (PPA) on April 1, 1980, which spelled out the terms and conditions under which MIPTI shall render efficient services and violations of which will warrant the suspension or revocation of its franchise. (Whereas clause 3)
- Under Section 4(c) of P.D. No. 1284 and Section 14.01 of the aforesaid agreement, PPA can, upon investigation or showing of violation thereof by MIPTI, recommend the suspension or revocation of its franchise to the President. (Whereas clause 4)
- Review of MIPTI's compliance to its contract shows that it has committed substantial violations thereof, and its services have consequently deteriorated to the prejudice of the international shipping, other port users, and the general public. (Whereas clause 5)
- It is imperative that the operations and management of the Manila International Port Complex (MIPC) and the provisions of the cargo handling and related services thereat should be improved. (Whereas clause 6)
- PPA can undertake on its own, the management, and operations of the MIPC and the cargo handling services thereat pursuant to Section 6a(v) (x) of P.D. No. 857 promulgated on December 23, 1975. (Whereas clause 7)
- The franchise granted to the Manila International Port Terminals, Inc. (MIPTI) is immediately recalled, and the Philippine Ports Authority (PPA) is authorized to take over, manage and operate the Manila International Port Complex at North Harbor, Manila and undertake the provision of cargo handling and port related services thereat, in accordance with P.D. No. 857 and other applicable laws and regulations. (Operative clause)