| ** Compulsory Tug assistance at the South Harbor, Manila -- PPA Administrative Order No. 06-98 1. Scope : This order shall cover all foreign and domestic vessels with 500 gross registered tonnage and above which dock/undock at the South Harbor, Manila 2. Objective : To protect government port facilities and to ensure the safe maneuvering of vessels at the South Harbor through the use of tugs. 3. Guidelines : a. The Authority (PPA) shall provide tug assistance service by authorizing shipping companies or private entities to provide such service on a non-exclusive basis. Only tug operators with a valid Permit to Operate (PTO) issued by the Port Management Office of South Harbor shall be allowed to render tug assistance service. Tug operator applicants shall only be issued a PTO after submission of the following requirements: a. A valid tug certificate of inspection issued by MARINA for every tugboat; b. Result of Bollard Pull (BP) test, if available, which shall not be less than 35/40 BP for 2,400/3,200 Brake Horsepower (BHP); c. Proof that the tug operator can field, when needed, at least four (4) tugboats from its available fleet with a minimum capacity each of 2 x 1,000 BHP and 2 x 2,400/3,200 BHP. b. Tugboats towing barges/lighters are exempted from the above required annual permit when utilized solely for their own barges/lighters. Otherwise, the above permit is required when servicing other vessels for purpose of this regulation. c. Table of Tug Requirements : under normal weather conditions, the mandatory tug requirements for docking/undocking of vessels shall be as follows: 500 - below 3,000 GRT �� 1 tug �� 1,000 (BHP/tugs) 3,000 - 7,000 GRT �� 2 tugs ��. 2 x 1,000 7,001 - 12,000 GRT �� 2 tugs �� 1 x 1,000 + 1 x 2,400 12,001 - 20,000 GRT �� 2 tugs �� 2 x 2,400 20,001 - 30,000 GRT �� 2 tugs �� 1 x 2,4000 + 1 x 3,000 above 30,001 GRT �� 3 tugs ��. 3 x 2,600 - 3,000 d. Provided, that the Master of a vessel may, in consultation with the Harbor Pilot, require additional tugs depending on the prevailing weather and port condition. e. In the absence or insufficiency of tugboats, a combination of motor launches to comprise a combined HP capacity equivalent to the required tugs may be allowed. Provided, further, that vessels with both functional bow and stern side thrusters of sufficient capacity are exempted from the above tug requirements. However, the Master may still avail of the assistance of tugs for the protection of the vessel. f. Provided furthermore, that a vessel which has only either a functional bow or stern side thruster shall still be required to have fifty (50%) percent of the above tug horsepower requirements. g. Provided finally, that non-propelled vessels such as barges and lighters are exempted from the above requirement. However, they are still required to maintain their own tugboats while at berth in accordance with PPA Memo Circular No. 22-86. h. Consistent with existing applicable law, the Authority shall prescribe fees and rates for tug assistance in consultation with port users concerned. In the absence of applicable fees, the rates chargeable shall be those that are agreed upon between the shipping company and the tugboat operator. In case of disagreement between them, the Authority shall determine the rates. i. Any damage caused to port facilities by vessels under tug assistance service shall be the liability of the party/parties declared at fault, as determined under existing applicable laws and regulations. 4. Power of the Port manager : In accordance with shipping lines, tug assistance operators and the Manila Pilot's Association, the Port Manager shall have the power to issue such specific guidelines which are necessary to ensure a more practicable and effective implementation of this Order. ** Tug Docking/Undocking Tariff at South Harbor, Manila - Malayan Towage April 01, 2005 (2,300 HP - 3,800 HP, Regular Time : 0660h-1800h, Overtime : 1800h-0600h, Sundays, Holidays) 1. Harbor Docking/Undocking, 1 1/2 hours/tug/service ... RT. P14,884.70 / OT. P18,662.94 2. Harbor Docking/Undocking, excess of 1 1/2 hours, per tug/hour ... RT. P11,348.49 / OT. P12,863.19 3. Standby Ordered but not used per tug/hour ... RT. P12,523.26 / OT. 14,381.24 4. Service in Harbor and Outer Anchorage area, per tug/hour ... RT. P11,348.49/ OT. P12,863.19 5. Outside of Q'tine Anchorage to points within Manila Bay, per tug/hour ... RT. P12,523.26 / OT. P14,381.24 FRESH WATER - IBW : P150.00/ton (min. 100tons) / OBW/MICP : P300.00/ton (min. 100tons) Navotas Harbour Center - P350.00/ton (min. delivery of 100 tons) Batangas Ferry Service - P12,723.28 per hour Poro-Point, San Fernando/SBMA - US$481.79 per hour Note: Above rates are subject for Fuel Price Adjustment ***For Foreign Trade Tug Assist/Special Services Effective August,2004*** SHIP GROSS TONNAGE: 400 TO 2,000 GRT.................................................P50,000.00 2,001 TO 5,000 GRT...............................................P60,000.00 5,001 TO 8,000 GRT...............................................P70,000.00 8,001 TO 11,000 GRT.............................................P100,000.00 11,001 TO 15,000 GRT...........................................P120,000.00 15,001 TO 20,000 GRT...........................................P130,000.00 20,001 TO 25,000 GRT...........................................P150,000.00 25,001 TO 30,000 GRT...........................................P160,000.00 30,001 TO 35,000 GRT...........................................P170,000.00 35,001 TO 40,000 GRT...........................................P185,000.00 40,001 TO 45,OOO GRT..........................................P195,000.00 45,001 TO 50,000 GRT...........................................P215,000.00 50,001 TO 55,000 GRT...........................................P230,000.00 55,001 TO 60,000 GRT...........................................P245,000.00 60,001 TO 65,000 GRT...........................................P260,000.00 65,001 TO 70,000 GRT...........................................P275,000.00 *Pilot Launch Service To Sea To Sea To Meet Vessel.................3,000.00 Tugs Services For Tendering Mooring Lines From Ship To Shore For Docking (Bacolod Bredco/Pulupandan/Salvacion/Maricalum)...................13,000.00 *Tug Services For Casting Off Lines From Shore Piles For Undocking (Bacolod/Pulupandan/Salvacion/Maricalum)..............................13,000.00 *Pilot Launch Service To Sea and Back ...................................3,000.00 *Tug Services From Shore To Ship and back .............................3,000.00 (1 Hour. Round Trip) NOTE: ADD 50% if O.T. (From 1800 hrs. 0600 hrs. Sundays & Holidays) ** Court Rule over Pilot's Overtime Premium Charges -- Civil Case No. 96-78400 Ordered January 26, 1998 (parts and decision only) against the foregoing backdrop, it is clear that, in providing that the rate for docking and undocking, anchorage, conduction and shifting and other related services is equal to 100% of the rate fixed for pilotage services based on tonnage. Executive Order No. 1088 merely standardized or made uniform the rates for the totality of pilotage services rendered. Respondent PPA is thus without jurisdiction to impose separate charges for each of the services emntioned. WHEREFORE, judgement is hereby rendered granting the petition herein and it is hereby declared that (1) respondent PPA is bereft of authority to impose and respondent United Harbor Pilots Association in the Philippines (UHPAP) is not authorized to collect any overtime or night shift differential for pilotage services rendered; and (2) the rates of fees for pilotage services rendered and respondent UHPAP can not legally charge separate fees for each pilotage service rendered. All billings inconsistent with this decision are declared null and void and petitioners are not liable therefor. SO ORDERED. ** Supreme Court Decision (G.R.No.133763), November 13, 2002 Our pronouncement is clearly in consonance with the provisions of Presidential Decree 857 which vests upon the PPA the power and authority (1)"to supervise, control, regulate... such services as are necessary in the ports vested in, or belonging to the Authority;" (2) "to control, regulate and supervise pilotage and the conduct of pilots in any Port District;" and (3) "to impose, fix, prescrible, increase or decrease such rates, charges or fees ... for the services rendered by it or by any private organization within a Port District." WHEREFORE, the petition is GRANTED. The appealed Decision dated january 26,1998 of the Regional Trial Court, Branch 36, Manila is REVERSED and SET ASIDE. No costs. SO ORDERED. -------------------------------------------------- Gentlemen : Quoted hereunder, for your information, is a resolution of the Court En Banc dated 28 January 2003 " G.R.No133763 (The United Harbor Pilots'Association of the Philippines vs. Association of International Shipping Lines,Inc. et al). Acting on the Motion for Reconsideration of the decision of 13 November 2002 as well as the Opposition thereto filed by counsel for petitioner, the Court Resolved to DENY WITH FINALITY said motion for reconsideration as the basic issues raised therein have been passed upon by this Court and no substantial arguments were presented to warrant the reversal of the questioned decision" Very truly yours, LUZVIMINDA D PUNO Clerk of Court ** Pilotage Rage (Executive Order No. 1088, February 1986) : Rates for docking and undocking anchorage, conduction and shifting other related special services is equal to 100%. Pilotage services shall be compulsory in government and private wharves or piers. 500 GRT or less --------- $30.00 500 - 2,500 GRT ------- $43.33 2,500 - 5,000 GRT ------ $71.33 5,000 - 10,000 GRT ----- $133.67 10,000 - 15,000 GRT ------ $181.67 15,000 - 20,000 GRT ------ $247.00 20,000 - 30,000 GRT ------ $300.00 30,000 - 40,000 GRT ------ $416.67 40,000 - 60,000 GRT ------ $483.33 60,000 - 70,00 GRT--------$550.00 70,000 - 100,000 GRT------$616.67 100,000 - 120,000 GRT-----$666.67 120,000 - 130,000 GRT-----$716.67 130,000 - 140,000 GRT-----$766.67 ** Business Case Law - Harbor Pilot : - by Judge Artemio S. Tipon The Port of Manila is under compulsory pilotage pursuant to Sec.8, Art.III of the Philippine Port Authority Administrative Order No. 03-85. This means that for entering the harbor, as well as docking and undocking at any pier or wharf, or shifting from one berth to another, every vessel shal be under compulsory pilotage. The harbor pilot providing the service to a vessel shall be responsible for the damage caused to a vessel or to life and property at ports due to his negligence or fault. He can be absolved from liability if the accident is caused by force majeure or natural calamities provided he has exercised prudence and extra diligence to prevent or minimize damage. On the other hand, the master of the vessel retains overall command of the vessel even on pilotage grounds whereby he can countermand or overrule the order or command of the harbor pilot on board. In such events, any damage caused to a vessel or to life and property at ports by reason of the fault or negligence of the master shall be the responsibility and liability of the registered owner of the vessel concerned without prejudice to recourse against said master. While attempting to dock in the port of Manila, the MV PAVLODAR bumped the pier causing damage worth over P1 million. The pilot had stationed himself in the bridge with the master of the vessel beside him. When the vessel was about one-half mile from the pier, the pilot ordered the engine stopped. When the vessel was about 2,000 feet from the pier the pilot ordered the anchor dropped but did not take hold as expected nor did the vessel slacken its speed. The master noticed the impending disaster but did not intervene. It was held that in exercising his functions, a pilot is in sole command of the ship and supersedes the master for the time being in the command and navigation of a ship and that he becomes master pro hac vice of a vessel piloted by him (Guy V. Donald, 157 F 527). However, there is overwhelming authority to the effect that the master does not surrender his vessel to the pilot and the pilot is not the master. The master is still in command of the vessel notwithstanding the presence of a pilot. There are occasions when the master may and should interfere and even displace the pilot, as when the pilot is obviously incompetent or intoxicated and the circumstances may require the master to displace a compulsory pilot because of incompetence or physical incapacity. If, however, the master does not observe that a compulsory pilot is incompetent or physically incapacitated, the master is justified in relying on the pilot but not blindly (70 DJS, Pilots, Sec.14;48 CJ, Pilots, Sec.64, 1199; 80 CJS Shipping, Sec. 64, 782) The master is not wholly absolved from his duties while a pilot is on board his vessel, and may advise with or offer suggestions to him. He is still in command of the vessel, except so far as her navigation is concerned., and must cause the ordinary work of the vessel to be properly carried on and the usual precaution taken. Thus, in particular, he is bound to see that there is sufficient watch on deck, and that the men are attentive to their duties, also that engines are stopped, towlines cast off, and the anchors clear and ready to go at the pilot's order (48 Am Jur, Shipping, Sec.125,89) In this case, the evidence points to the master of MV PAVLODAR being remiss in the discharge of his duties as master of the ship, in leaving the entire docking procedure up to the pilot, instead of maintaining watchful vigilance over the risky maneuver. Both pilot and master of the vessel were held jointly and severally liable for the damage caused to the pier. -- Far Eastern Shipping Co. V. Court of Appeals, G.R. No. 130068, Oct 1, 1998 Buscas.193 ** Agents blame bureaucratic inertia on compulsory pilotage by :AD 7/27/00 Representing ship owners involves more than simply expediting ship calls for agents in the Philippines. Wrestling with the intractable procedures of customs is difficult enough but now the agents find themselves in the vanguard of a campaign against cumpulsory pilotage as well. No one else, it seems, is prepared to take up the cudgels on behalf of port efficiency against entrenched vested interests. Bureuacratic procedures have so far blunted the impact of the agencies' investments in IT. "Most of the companies transactions are on the import side so we cannot feel it now," Philippine Ship Agents association (PSAA) president Robert Yu admits. He feels that IT is necessary in cargo consolidation at a time when exports need to be on the rise. The 61-member PSAA is appealing for the streamlining of documents needed for submission once a ship calls at a Philippine port. Despite the country's accession to the IMO's FAL Convention, which reduces the number of required documents to eight, agents and international lines still have to submit 13 sets of papers. "We have been stuck up with the old problems in this business," one agent complains. The PSAA has also lobbied for the removal of compulsory pilotage, demanding that the Philippine Ports Authority (PPA) rationalize pilotage and prevent pilots from "harassing" agents and shipping lines over charges and requirements for pilotage services. PSAA members complain that pilots refuse to board a ship if payment is not remitted first. A presidential decree in 1986 made pilotage compulsory, sending rates skyrocketing. Since then agents and pilots have been caught in a tug-of-war, with the PPA as the mediator. The agents and the PPA are trying to persuade sympathetic lawmakers in Congress to sponsor a bill rationalising the pilotage law. They believe that pilotage should not be compulsory for such simple procedures as docking and undocking. letter from DIMO GOLDEN STAR PORT SERVICES March 21,2002 We wish to shed light to the rumors, wrong information and discredits that are being circulated among shipping agents against our company. Herewith are the facts of the matter. 1)Metro Cebu Harbor Pilot Co, Inc. has not acquired nor has chartered any tug for the use on docking and undocking maneuvers at the Port of Cebu. 2)HMU Port Services, Inc. which appears on the Billing Statement is a private company partially owned by a few harbor pilot members. 3)HMU Port Services does not own nor has Time Chartered any tugboats to conduct harbor assist. 4)HMU Port Services is only using Gothong Tugboat (GT2 & GT3) which is owned and operated by Gothong Lines. This means the tugs will only be made available during the time when it has fully satisfied it direct customers such as WG&A and many others. 5)HMU Port Services is using the name Metro Cebu Harbor Pilot Co,Inc. as a disguise to be able to market their services. When if fact, both companies are separate entities. 6)As per information that we have gathered,CPA did not give any directive nor Sanctioned Cebu Harbor Pilot Co,Inc. nor HMU Services to exclusively conduct harbor assist in the Ports of Cebu. 7)Our company, Dimo Golden Star Port Services have long chartered two (2) tugs-MT Feldan & MT Angkor IV and presently owns one (1) tug- MT Anros dedicated to fulfill the needs of our clients. 8)Our company believes in free enterprise and we believe that the decision on which tugboat to use relies on the Ship Agent. We are very sorry for the confusion that is happening in the industry. We hope after reading this letter, we have helped you see the full picture of the matter. Capt. Antonio M. Sulay President Dimo Golden Star Port Services Cebu Metro harbor Pilot-member--+ |