Shipping industry backs bill seeking devolution of PPA’s regulatory functions - BusinessWorld Online

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THE PHILIPPINE Liner Shipping Association (PLSA) has expressed support for a proposed measure that seeks to strip the Philippine Ports Authority (PPA) of its regulatory functions. READ

“In principle, we support the devolution of the regulatory functions of PPA,” PLSA President Mark Matthew F. Parco toldThe current setup of PPA, an attached agency of the Department of Transportation , allows it to function as a “for-pro“It makes sense that the regulatory power is not with the port corporation,” he added.led a bill seeking to reorganize the PPA by separating its regulatory and commercial functions.

“Through the years, the port users, including domestic shippers, exporters, and importers, have complained of low service levels, inefficient port operations and ever-increasing port charges,” Ms. Herrera-Dy said in the bill’s explanatory note.cient barrier to increased trade and undermines the country’s competitiveness,” she added.

Under the bill, PPA will be converted into Philports to handle development, management and operation of public ports. Philports will collect port fees and dues approved by MARINA, which will fund port development, modernization, and expansion, among others. The OECD said the Philippines should enact a measure to “ensure the separation of PPA’s functions, avoid conflicts of interest, and ensure that PPA is incentivized to develop, modernize and expand its ports.”

 

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