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The business groups said industry stakeholders have blamed the steady rise in cargo-handling rates on the PPA, which currently functions as a regulatory body and a public port developer and operator. The high rates have “eroded the country’s competitiveness,” they said. Under the bill, the Philports will be turned into a government-owned and -controlled corporation under the Department of Transportation. It will be tasked to own, develop, manage, and operate public ports within the old PPA system, as well as collect the port fees and dues approved by MARINA.
“This policy reform will address not only the conflict of interest, but more importantly, the competitive neutrality issue hounding the port authority. Competitive neutrality recognizes that significant government business activities in competition with the private sector should not have a competitive advantage or disadvantage simply by virtue of government ownership and control,” they said.