MILESTONE FOR THE YEARS OF INVOLVEMENT WITH THE...

MILESTONES FOR THE 30 YEARS OF INVOLVEMENT WITH THE MARITIME INDUSTY

The Maritime Industry Authority (MARINA) marks its 30th Anniversary since its establishment on June 1, 1974 through the issuance of Presidential Decree No. 474.

The creation of MARINA is a recognition of the importance accorded by the Government to the archipelagic nature of the country and the willingness to harness the resources and opportunities being offered by the sea to the Filipino. The establishment of MARINA was the first real attempt to put under one government agency maritime related functions as can be drawn from the mandate so given to the Authority. MARINA under PD 474 is to pursue the integrated development of the maritime industry through, among others, the effective supervision and regulation of the different players in the industry.

While the exercise of governmental supervision and the conduct of the varied facets of maritime activities remain fragmented, the roadmap towards attaining the vision of an integrated maritime development consistent with the objectives of PD 474 had been laid down by the MARINA. Four major sectors have so far been considered as within the specific concern of the Authority and these are: overseas (international) shipping; domestic (interisland) shipping; maritime manpower; and shipbuilding/shiprepair. All the attendant functions relative to aforesaid sectors are deemed to be part of the mandate of the MARINA such as but not limited to ship registration, maritime safety regulatory functions and expansion/generation of employment opportunities for maritime manpower including seafarers, shipyard and shiprepair manpower, shipmanagers and all other maritime workers.

The MARINA therefore, as part of its 30 th anniversary celebration, has undertaken the preparation of the Milestones for the 30 years of Involvement with the Maritime Industry to highlight the accomplishments not only of the Authority but to include that of the maritime industry as a whole.

DOMESTIC SHIPPING SECTOR

The significant role of the Domestic Shipping Sector in furthering the growth and development of the country is underscored as follows:

· A vital component to agricultural and regional development providing needed transport links for the country’s island economies;

· A significant source of employment opportunities;· A major contributor to economic growth through investments;· A considerable source of government revenues through taxes, licenses and fees

paid; and· Fosters economic, social and political integration of the various parts of the

archipelago.

For the past 30 years, MARINA’s accomplishments involving the Domestic Shipping Sector can be summarized as follows:

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A. FOSTERED A FAVORABLE INVESTMENT CLIMATE TO ENCOURAGE FLEET REPLACEMENT/ MODERNIZATION

1. Implementation of the bareboat chartering program which provides domestic shipowners/ operators and would be investors with a less expensive alternative for vessel acquisition other than outright importation in order to operate a vessel to meet increasing demand or introduce a new shipping service.

2. Provision of financial assistance and incentives through the following programs/ projects:

2.1 Public Utilities Priorities Plan (PUPP) – grants exemptions to domestic shipowners/ operators from import duties and taxes on vessels, machinery and parts, as well as income tax deductions.

2.2 Development Bank of the Philippines (DBP) – led IBRD Loan Facility of $ 20.0 Million – provides financial assistance for the replacement and repair of vessels in the interisland fleet.

2.3 World Bank – assisted Industrial Restructuring Project – a DBP-led Project implemented in 1991 which covered four (4) critical industries including domestic shipping involving a loan facility made available in local or foreign currency to accredited financial institutions for re-lending to domestic shipping companies for purposes of financing their long-term requirements.

2.4 Investment Priorities Plan (IPP) – as contained in the Omnibus Investment Code of 1987, the plan provides tax and duty exemptions to Board of Investment (BOI)- registered imports of vessels to be used in domestic trade and to include spare parts and equipment. R.A. No. 7918, however, limited the availments for the program until 31 December 1997, or until 31 December 1999 for those enterprises located outside the National Capital Region (NCR) and registered on or before 31 December 1999.

2.5 Domestic Shipping Modernization Program (DSMP) – this program, likewise being administered by the DBP, which formally commenced on 15

May 1995 involved a Y 15 Billion credit facility under the 19th Yen Loan Package of the Overseas Economic Cooperation Fund (OECF) aimed to promote the efficiency and safety of the domestic shipping industry. This program is a policy-based lending project to support the modernization of the country’s domestic shipping fleet and shipping-related industries particularly shipbuilding, ship repair, cargo handling and terminal operations.

3. Liberalization/ Deregulation of domestic shipping operations

3.1 Department of Transportation and Communications (DOTC) Department Order No. 92-87 issued on 30 March 1992 defines the policy framework on the regulation of transport services. Accordingly, MARINA Memorandum Circular (MC) Nos. 71 and 80 were issued in October 1992 and November 1993, respectively, providing the policies and guidelines to implement the liberalized/ deregulated environment for domestic shipping operations.

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3.2 Executive Order (EO) Nos. 185 and 213 were issued on 28 June 1994 and 28 November 1995, respectively, which served to sustain and support the deregulation policies of the MARINA under MC No. 80. Implementing rules and regulations were issued by MARINA through MC Nos. 106 (E.O. No. 185) and 117 (E.O. No. 213). On rates deregulation, the Domestic Shipping Consultative Councils (DOSCCONs) composed of shippers, NGOs, LGUs and media were institutionalized in Cebu, Zamboanga and Davao. The Councils shall serve as form for discussing proposed rate increase/s and negotiating rates.

3.3 MARINA MC No. 104 issued on 12 May 1995 provided the omnibus guidelines for the acquisition of vessels for domestic operations and fishing vessels/ boats.

3.4 MARINA MC No. 153 issued on 16 December 1999 provided the revised rules and regulations implementing deregulation of domestic shipping rates.

3.5 MARINA MC No. 161 issued on 16 November 2000 provided the revised rules and regulations to implement EO 185 on opening the domestic water transport industry to new operators and investors.

3.6 MARINA MC No. 195 issued on 15 December 2003 amended MC No. 153 which revised further the rules and regulations implementing deregulation of domestic shipping rates.

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4. Issuance of Republic Act 9295

The government and private sector partnership in promoting the development of the domestic shipping is best exemplified with the enactment into law of Republic Act No. 9295, otherwise known as “Domestic Shipping Development Act of 2004” on 03 May 2004 which aims to empower the development of Philippine Domestic Shipping, Shipbuilding, Shiprepair and Shipbreaking through investment incentives, deregulation of the rates/operation, enhancement of safety standards, compulsory insurance coverage for passengers and cargoes, reasonable fines and penalties and other constructive measures for a strong and competitive domestic merchant fleet.

B. PROMOTED PUBLIC INTEREST, WELFARE AND SAFETY

1. Rationalization and improvement in the efficiency of domestic shipping operations

1.1 Implementation of MARINA Memorandum Circular Nos. 16 and 26 issued in September 1978 and September 1982, respectively, to develop the inter-island shipping and rationalize its operations.

1.2 Conducted the following studies and special projects in coordination with other relevant government agencies and private sector concerned through the assistance of other foreign government/ institutions:

· Project to Improve Efficiency of Philippine Coastal Fleet Operations under the assistance of the Norwegian Agency for Development Cooperation (NORAD);

· Inter-island Liner Shipping Route Rationalization Study with the assistance of the United States Agency for International Development (USAID);

· Nationwide Roll-on/ Roll-off (Ro/Ro) System Development Study with the DOTC as the lead implementing agency and under the assistance of the Japan International Cooperation Agency (JICA); and

· National Riverine Transport Development Study which was initiated and coordinated by the DOTC.

1.3 Implementation of the revised policy on accreditation/ registration of domestic shipping enterprises with the issuance of MC No. 79 in November 1993 to insure management competence and financial capability for those companies who will be allowed to engage in domestic shipping operations.

1.4 In line with this program thrust, the following Memorandum Circulars were issued:

· MC Nos. 51, 79/79A and 142 provided guidelines on the accreditation of domestic shipping enterprises/ entities.

· MC No. 90 provided implementing guidelines for vessel registration and documentation.

· MC No. 94 and 108 provided guidelines for accreditation of maritime surveying companies/ entities for purposes of vessel registration.

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· MC No. 142 issued on 17 September 1999 amended MC No. 79 by deleting the exclusivity requirement for domestic shipping business.

· MC No. 166 issued on 13 June 2001 provided Rules on the Utilization of Domestic Ships in the Overseas Trade/Operation.

· MC No. 177 issued on 07 October 2002 provided regulations amending Chapter XV of the 1997 PMMRR on the Registration, Documentation And Licensing of Ships.

· MC No. 186 issued on 09 July 2003 provided rules on the accreditation of maritime enterprises.

· MC No.198 issued on 23 February 2004 provided rules on updating the Philippine Domestic Ship Registry.

2. Insuring the provision of adequate and improved quality of shipping services

2.1 Conduct of periodic market surveys and studies was enhanced further with MARINA’s assumption of the function to grant franchises/ authorities to domestic vessels prior to their operation in the domestic trade. While such surveys were no longer required for franchise issuances with the implementation of a deregulated environment, the same is to be undertaken as part of the Domestic Shipping Service Monitoring System (DOSSMONS) to be institutionalized.

2.2 As part of MARINA’s regulatory efforts, the temporary operation of foreign- registered vessels in the domestic waters was allowed to be responsive to certain transport needs of critical commodities such as oil, perishable goods, construction materials, etc. on situations where Philippine-registered vessels are not available. Implementation of said policy was made possible with the issuance of the following MCs: 68/68-A, 75/75-A, 78, 105/105-A.

2.3 In line with this program thrust, MARINA issued the following Memorandum Circulars, to wit:

· MC No. 65/65-A established minimum service standards for Philippine-registered inter-island passenger vessels.

· MC No. 98 provided guidelines for compliance with RA No. 7277 and BP Blg. 344, otherwise known as Accessibility Law.

· MC No. 121 defined the policy guidelines in the regulation of high-speed craft.

· MC No. 125 adopted the Passenger Service Rating System (PSRS) and general provisions for implementation to monitor/ assess and rate the standard services being offered to passengers by liner and ferry vessels, 100 GRT and above operating in the domestic trade.

· MC No. 134 established minimum service standards for motorbancas below 20 GRT.

· MC No. 150 issued on 10 August 1999 introduced a second class, non-air-conditioned passenger accommodation and prescribing minimum service standards.

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· MC No. 158 issued on 06 September 2000 adopted the Cargo Service Rating System.

· MC No. 196 issued on 22 December 2003 provided Rules on the Introduction of Reclining Seat Accommodation on Passenger-Carrying Ships in the Interisland Trade.

2.4 Implementation of the Strong Republic Nautical Highway (SRNH Project/Road)/Roll-On Roll-Off Terminal System (RRTS)

As part of the vision of PGMA to bring the islands closer to each other and lower the cost of transporting goods and commodities, particularly from the rich food baskets of Mindanao to the consumer markets in Luzon, the Administration took a bold move to implement the Strong Republic Nautical Highway (SRNH) Project /Road Roll-On Roll-Off Terminal System (RRTS).

Executive Order Nos. 170 “Promoting Private Sector Participation and Investment in the Development and Operation of the Road Roll-On/Roll-Off Terminal System (RRTS)” was issued on 22 January 2003. On 03 March 2003, DOTC Department Order NO 2003-16 was issued providing therein the Implementing Rules and Regulations (IRR) of Executive Order No. 170.

As an implementation of the RRTS, the Administration launched its flagship Project, the Strong Republic Nautical Highway (SRNH), The SRNH-TWG, created under the leadership of Sec. Marita M. Jimenez, Official Development Assistance Affairs Office (ODAAO) and composed of the DOTC, MARINA, PPA, DPWH, DA, DTI, DOT, DILG/LGUs and the DBP is tasked to:

· reduce the cost of inter-island transportation through the establishment of a safe, efficient and cost-effective RRTS;

· enhance tourism, transportation and commerce throughout the country;· facilitate agro-fisheries modernization and food security program; · promote private sector participation in the establishment, construction

and operation of RRTS facilities; and· establish a new policy to promote the development of RRTS.

To expand the coverage of the RRTS, Executive Order No. 170-A was issued on 09 June 2003 and its IRR was issued by vitrtue of DOTC Department Order No. 2003-39 on 31 Julay 2003.

This flagship Project is proud for having successfully launched and operationalized the following major SRNH-RRTS routes currently being served by the following operators:

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ROUTES/LINKS NAME OF COMPANY/OPERATOR

· Batangas-Calapan · Starlite Ferry, Inc.· Montenegro Shipping Lines, Inc.· Ship Shape Ferry, Inc.· Alexis Shipping Lines · Manila Ace Shipping

· Roxas (Oriental Mindoro)-Caticlan

· St. Bernard Services, Inc.· Starlite Ferry, Inc.· St. Christopher Shipping

· Iloilo-Bacolod · Millenium Shipping· Montenegro Shipping Lines, Inc.· Aleson Shipping Lines

· Dumaguete-Dapitan Link

· Cokaliong Shipping Lines, Inc.· George & Peter Lines, Inc.

· Roxas (Oriental Mindoro)-Odiongan (Romblon) and vice-versa and Roxas (Oriental Mindoro)-Odiongan, Romblon-Caticlan (Aklan)

· St. Christopher Shipping

NEW LINKS STATUS

· Isabela (Cagayan), Aurora and Quezon

· To construct first the Dingalan Port.

· Cagayan de Oro-Dumaguete

· To import a RORO ship to operate in the link.

· Lupon-Samal Island · To still establish RORO services in the link

· Manila-Orion · There is no RORO ship operating yet in the route

· Cagayan de Oro-Dumaguete-Batangas-Manila

· Service was temporarily discontinued as businessmen prefer to ship their cargoes from Cagayan de Oro to Dumaguete and directly proceed to Manila rather than pass through Batangas.

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3. Improved maritime safety and protection of life, property and environment

3.1 Implemented the mandatory vessel classification requirement on all acquired vessels for operation in the domestic trade through the following MARINA Circulars;

· MC No. 25-D covered all passenger-carrying vessels beyond 15 years of age at the time of acquisitions which was later on repealed with the issuance of MC 81;

· MC No. 56/56-A provided the mandatory classification, compulsory oil pollution cover and minimum paid-up capital requirements for operators/ owners of tankers and barges hauling oil and/ or petroleum products.

· MC No. 81 imposed the mandatory classification of all vessels as qualified therein.

· MC No. 89 provided implementing guidelines to ensure that concerned entities comply with safety regulations prior to vessel registration under Philippine laws, and the maintenance of safety qualifications.

3.2 Conducted periodic and continuous vessel surveys and inspections in coordination with the Philippine Coast Guard (PCG).

3.3 Pursuant to DOTC Department Order No. 98-1180 dated 09 October 1998, MARINA issued MC No. 139 to address the clamor for a clearer and more detailed delineation and deputization of safety-related functions. The Circular formalized the deputization of the PCG to undertake the enforcement of laws, rules, and regulations affecting maritime safety and issuance of certain/ specified vessel safety documents.

3.4 Implemented the following maritime safety-related activities, studies, programs and projects:

· Master Plan on Maritime Safety Study (JICA);· Maritime Safety Improvement Project, Phase I (OECF Loan);· Project to Improve Maritime Safety of Philippine-Registered Ships in

the Domestic Trade (NORAD);· National Maritime Safety Coordinating Council (NMSCC);· PMMRR of 1997;· Vessel Safety Inspection System (VSIS); · Promotion of Ship Inspection System and Technique in the Philippines

(JICA); and· Enhancement of Ship Inspection and Administration in the Philippines

(JICA).

3.5 To further underscore the government’s commitment to foster a new dimension of maritime safety culture in the country, the International Management Code for the Safe Operation of Ships and for Pollution Prevention (ISM Code) has been officially adopted for implementation to domestic vessels required to be classed and for certain sizes, through the issuance of Flag State Administration Advisory No. 8 on 06 October 1998.

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3.6 Issued the following maritime safety and security-related MARINA Memorandum Circulars (MCs):

· MC No. 40 required all passenger-carrying vessels in the domestic trade to provide insurance coverage of P 20,000 per passenger and was increased to P 50,000 with the issuance of MC No. 40-A on 20 January 1988;

· MC Nos. 72, 135, and 136 provided guidelines on the implementation of at least 10-minute film/ voice tape on safety features of each specific passenger/ passenger cargo vessels;

· MC No. 101 provided guidelines, in the issuance of a special permit to carry dangerous/ hazardous cargoes or goods in packaged form;

· MC No. 114 provided guidelines for preventive safety measures onboard inter-island vessels and underscoring the joint responsibility of the Master and the operator to ensure strict adherence to the provision of the Circular;

· MC No. 123 required the wearing of lifejackets during boarding and/ or prior to departure by all passenger vessels with open-deck accommodation;

· MC No. 143 issued on 03 June 1999 provided Rules and Regulations to Implement the International Safety Management (ISM) Code in Domestic Shipping;

· MC No. 145 issued on 11 June 1999 provided Rules in the Implementation of Reg. 1/6 of the Philippine Merchant Marine Rules And Regulations (PMMRR) 1997 and in the Conduct of Underwater Surveys for Classed Passenger and Cargo or Combination Cargo-Passenger Vessels and Non-Classed Passenger and Cargo Vessels;

· MC No. 148 issued on 03 June 1999 amended Chapter XVIII of the Philippine Merchant Marine Rules and Regulations (PMMRR) 1997 on Minimum Safe Manning for Ships in the Domestic Trade;

· MC No. 149 issued on 03 June 1999 amended MC 40/40A increasing the Compulsory Passenger Insurance Coverage to P100,000 per passenger;

· MC No. 152 issued on 16 December 1999 amended Chapter 1, Reg. 1/6 of the Philippine Merchant Marine Rules and Regulations (PMMRR) 1997 on Inspection, Drydocking and Statutory Certificates

· MC No. 154 issued on 16 December 1999 was a reiteration of Safety-Related Policies/Guidelines/Rules and Regulation for guidance and strict compliance;

· MC No. 155 issued on 16 December 1999 provided Guidelines on the Recognition of Organizations Acting on Behalf of the Administration in the Implementation Of The ISM Code for Philippine Shipping Companies and Their Ships;

· MC No. 159 was issued on 16 November 2000 requiring the Adoption of a National Safety Management Code and providing Rules and Regulations for its Implementation in the domestic shipping;

· MC 165 issued on 15 March 2001 provided Rules on the Accreditation of Classification Societies and Entities for the Purpose of Classification Of Ships In the Domestic Trade;

· MC No. 178 issued on 07 October 2002 amended Memorandum Circular 152 on the Mandatory Drydocking of Ship;

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· MC No. 179 issued on 07 October 2002 provided Rules on the Issuance of Safe Manning Certificate for Philippine Registered Ships/Fishing Vessels Operating in Philippine Waters or Temporarily Utilized In Overseas Trade/ International Waters;

· MC No. 180 issued on 07 October 2002 provided Rules to Govern Passenger Manifests Onboard Philippine Registered Passenger Ships;

· MC No. 184 issued on 21 February 2003 provided the Revised Rules Governing Mandatory Cover Against Civil Liability for Oil Pollution Damage;

· MC No. 193 issued on 11 August 2003 provided Rules on the Implementation of Maritime Security Measures for Philippine-Registered Ships Engaged in International Voyages;

· MC No. 194 issued on 11 August 2003 provided Rules on the Provision/Installation of Ship Security Equipment;

· MC No. 197 issued on 23 February 2004 provided the Revised Rules to Rationalize Life Saving Appliances Requirements under Chapter IX of the PMMRR 1997.

3.7 The implementation of the International Safety Management (ISM) Code and the National Safety Management (NSM) Code in domestic trade resulted in the following:

TYPES OF CERTIFICATES ISM NSMCompany Certification

Full-Term DOC 58 42Short-Term DOC 5 1Interim DOC 25 61Total 88 104

Vessel CertificationFull-Term SMC 242 92Short-Term SMC 5 1Interim SMC 83 105Total 330 198

* Source: MSO Report as of 31 March 2004.

3.8 In compliance with the directive of the Secretary of the Department of Transportation and Communications (DOTC), MARINA actively participated in the implementation of DOTC OPLAN KALAKBAY, which includes OPLAN Kaluluwa, OPLAN Kapaskuhan and OPLAN Holy Week. OPLAN KALAKBAY, is aimed to assist the passengers of sea, air and land transportation during peak season. Under the DOTC OPLAN KALAKBAY, the mobile monitoring teams, with MARINA as member, were tasked to man a 24-hour Operations Center to ensure the safety and security of commuters.

3.9 As an aftermath of the sea accident involving the wooden-hulled ship “MV San Nicholas” and in compliance with the Six-Point Directive of PGMA on Maritime Safety to prevent similar accidents to happen in the future, MARINA, among others, created a Technical Working Group within MARINA primarily tasked to review and reformulate policies relative to the

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operations of wooden-hulled ships (WHS) in the domestic trade. To date, the following proposed MARINA Memorandum Circulars (MCs) are being finalized for subsequent submission to the MARINA Board for consideration/approval:

· Revised Rules in the Conduct of Examination and Issuance of License to Hometrade Master 1, 2, 3, 4 and 5 and Hometrade Engineer 1 (Proposed Amendment to MC 170);

· Rules on the Issuance of a Seafarer’s Identification and Record Book (SIRB) (Proposed Amendment of MC 163);

· Revised Rules on the Issuance of Qualification Document Certificate (QDC) (Proposed Amendment of MC 164);

· Amendments to Chapter XVIII of the Philippine Merchant Marine Rules and Regulations (PMMRR) of 1997 on the Minimum Safe Manning for Ships in the Domestic Trade (Proposed Amendment of MC 148);

· Revised Class Requirement for Philippine-Registered Ships; and

· Revised Rules on the Progressive/Gradual Phase-out of Wooden-Hulled Ships in the Domestic Trade (Proposed Amendment of MC 190).

In addition, MARINA issued Flag State Administration Advisory (FSAA) No. 53 dated 08 January 2004 to implement the National Registration of Officers for Ships of 3GT to 500GT operating in the Domestic Trade with the following objectives: 1) to prescribe the rules in the national registration of officers for ship of 3GT to 500GT; 2) to establish and generate a database of licensed officers for ships 3GT to 500GT; and 3) to enhance and upgrade the skills and competency of officers for ships 3GT to 500GT using such database in the formulation of policies relative to their additional qualification requirements, training needs and competency assessment.

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OVERSEAS SHIPPING SECTOR

The Overseas Shipping Sector plays a vital role in the country’s economic development in view of the following considerations:

· Philippine-registered oceangoing vessels help in the carriage of the country’s foreign trade, thereby minimizing foreign exchange outflow and improving our balance of payments position;

· The sector generates foreign exchange earnings and contributes to the strengthening of the balance of payments position of the country;

· Overseas shipping provides substantial and attractive employment opportunities for the country’s labor force;

· It contributes to government revenues through the taxes and fees paid on bareboat chartered vessels;

· Philippine flag vessels operating in international trades enhance national integrity; and

· The sector facilitates the transfer of technology from shipping operations to ship management.

The initial policies and programs instituted by the MARINA for the sector focused on further building up the country’s oceangoing fleet which stood at 131 in 1975, and modernizing the same in view of the considerable number of vessels beyond ten (10) years old. The inception of MARINA in 1974 initiated the government’s process of providing a directed and concerted program of development for the overseas shipping sector, taking into account its business dimension and its potential role in the country’s development. In subsequent years, MARINA’s efforts to perform its mandated tasks for the sector focused on providing incentives for vessel acquisitions and ownership, further enhancing the competitive position of Philippine-flag vessels in the carriage of world trade, increasing the sector’s participation in the carriage of our own exports and imports, and strengthening maritime administration as well as protecting the integrity of the Philippine Registry.

In reviewing MARINA’s records for the past thirty (30) years, the following major accomplishments for the Overseas Shipping Sector may be cited:

A. ENCOURAGED THE DEVELOPMENT AND MODERNIZATION OF A VIABLE OVERSEAS FLEET

Promotional efforts were undertaken by the MARINA to achieve the above objective through the following major activities:

1. Implementation and Review/ Assessment of the Bareboat Chartering Program and Encouraged Further Investments in the Overseas Shipping Sector

1.1Executive Order No. 226 (Omnibus/Investment Code of 1989)- granting of income tax holiday for a period of four (4) years if classified non-pioneer and six (6) years if it is classified under pioneer.

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1.2Executive Order No. 470- rationalized and simplified tariff structure and reduced to ten percent (10%) or lower the tariff duties on equipment.

1.3 Investment Priorities Plan (IPP) – Overseas Shipping has been identified as priority investment until 1992 and allowed tax and duty exemptions in the import of vessels for use in the overseas trade

1.4 Republic Act No. 7471, “An Act to Promote the Development of Philippine Overseas Shipping” – provides companies engaged in overseas shipping exemptions from income taxes and import duties and taxes on ships and spare parts, as well as machinery, equipment and materials to be used for shipbuilding, ship repair or alteration of ships owned and/ or operated by them.

1.6 Moves to amend R.A. 7471 – to expand the definition of the term “Philippine Overseas Shipping” and the grant of a fifteen (15) duration for income tax exemption which expired last May 2002.

1.7With a common goal to promote the development of the Philippine Overseas Shipping, the government and the private sector is collaboratively working for the passage of the amendatory bill to RA 7471, Senate Bill No. 370 entitled “Philippine Overseas Shipping (Amendments)”. The Bill already passed the 3rd reading on 06 February 2004.

1.8MC No. 160 issued on 16 November 2000 amended MC No. 42, Sec. A.6, Par. 3 granting companies who sell or dispose of its owned tonnage to acquire or reinvest the proceeds thereof in the acquisition of a new ship within one (1) year from its sale and during the period shall enjoy the privilege granted under PD 760 as amended.

2. Amendment of MARINA Memorandum Circular Nos. 9, 27, 33-A, 42 and 42-A – to further encourage investments in the Overseas Shipping Sector as well as protect the integrity of the Philippine Ship Registry the following circulars have been issued.

2.1MC No. 181 issued On 22 January 2003 provided Rules on the Accreditation of Shipping Companies for Purposes of Acquiring/Operating Philippine-Registered Ships for International Voyages Under Regulation Xv of the 1997 PMMRR

2.2MC No. 182 issued on 22 January 2003 provided Rules on the Acquisition of Ships under PD 760, as amended, and Providing Herewith the Implementing Rules under Chapter XV of the 1997 PMMRR on Registration, Document And Licensing Of Ships For International Voyages

3. Initiatives to amend Presidential Decree No. 1521 or the Ship Mortgage Decree of 1978 – in order to increase access to financing institutions by Filipino ship operators thereby increasing the country’s owned tonnage.

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B. ENCOURAGED/ ENHANCED THE COMPETITIVE POSITION OF PHILIPPINE FLAG VESSELS IN THE CARRIAGE OF FOREIGN TRADE

MARINA’s efforts to enhance the competitiveness of Philippine flag vessels vis-à-vis foreign flag have been directed to the following:

1. Pursuance and active participation in the negotiations for bilateral shipping agreements with other countries

The RP-Cyprus Merchant Shipping Agreement which was signed in 1984 was the subject of review by the Parties last December 1998. Cypriots Govt. due to its membership and the European Union has proposed for the signing of the protocol amending the RP – Cyprus Merchant Shipping Agreement. Likewise, the initial negotiations for the RP-Norway Agreement was held in March 1999 signed on in 22 October 1999 and ratified by the President of the Philippines on 15 February 2000. The Agreement entered with force on 06 March 2000.

To date, the following additional bilateral shipping agreements were forged:

· RP-Vietnam· RP-Netherlands· RP-Brunei

Only four bilateral shipping agreements are still under negotiation to wit:

· RP-Cyprus· RP-Romania· RP-Iran· RP-Germany

The following bilateral shipping agreements are being tabled for discussion at the NEDA TRM sub committee on shipping.

· RP-India· RP-Saudi· RP-Panama· RP-Spain· RP-France· RP-Bangladesh· RP-Cuba· RP-Italy

2. Active Participation in International Cooperation Initiatives on Trade Opportunities (BIMP-EAGA, ASEAN, GATS, GATT, AFTA, APEC)

The Philippines, as Lead Shepherd (Chair) for two (2) years of the Asia-Pacific Economic Cooperation (APEC) in January 2002, MARINA was specifically designated to perform the role of the Lead Shepherd. The MARINA was commended for the successful hosting of the 20th APEC Transportation Working Group (TPT-WG) held in Manila on 04-06 March 2002.

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Also, the Philippines hosted the APEC High Level Meeting on Maritime Security Cooperation held in Manila from 8-9 September 2003. The APEC Transportation Working Group (TPT-WG) endorsed favorably this Philippine initiative to respond to the Counter-Terrorism Statement of APEC Economic Leaders. The meeting gathered heads and senior officials of various maritime authorities of the APEC Region as well as President/Chief Executive Officers of various multinational companies with interest in maritime security.

3. Promotion of Multimodal Transport Operations (MTO) in the Country to Enhance Foreign Trade – Participated in the ASEAN Framework on the Development of the Multimodal Transport Agreement. A national workshop on Multimodal Transport was held in June/July 1999. Another two day workshop was held on 5-6 March 2002 at the Westin Plaza. Mla. During the 20 th APEC Transportation Working Group Meeting.

4. Adoption/Implementation of Maritime-Related International Conventions/ Laws/Rules and Regulations/Measures to encourage Flag State Compliance.

4.1 MC No. 122 issued on 29 July 1997 was adopted to ensure compliance by July 1998 of Overseas Shipping, Overseas Operators and their ships to the International Management Code for the Safe Operation of ships and for Pollution Prevention (ISM) Code

4.2 MC No. 168 issued on 13 December 2001 adopted the Mandatory Ship Reporting Systems.

4.3 MC No. 185 issued on 8 May 2003 governing rules on the accreditation of training centers/institutes which will offer concern on maritime security.

4.4 MC No. 193 issued on 11 August 2003 provided Rules on the Implementation of Maritime Security Measures for Philippine-Registered Ships Engaged in International Voyages which will become mandatory by 1 July 2004.

4.5 MC No. 194 issued on 11 August 2003 provided Rules on the Provision/Installation of Ship Security Equipment

C. ENSURE THE AVAILABILITY OF SHIPPING SERVICES TO TRANSPORT THE COUNTRY’S EXPORT AND IMPORT TRADE

In a span of two (2) years, important developments in the shipping sector such as the following have been noted:

1. Establishment of regional shipping lines in the Zamboanga-Sandakan (Malaysia), General Santos City-Bitung (Indonesia) and Davao – Muara (Brunei) shipping routes.

2. Issuance of a Port Tariff Policy under Resolution No. 1470 which declared that ships trading in the BIMP-EAGA will be treated as domestic ships and will pay

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the equivalent of a domestic usage fee when they call the country’s southern ports.

3. Issuance of Memorandum Order No. 237 which provides exemption from payment of travel tax to all passengers by sea originating from all international ports in Mindanao.

4. Adoption of the ASEAN Port Authorities Associations (APAA) FAL Forms (for ship and cargo clearance): and

5. Harmonization of customs and immigration rules and procedures.6. Highlights of Accomplishments under the BIMP-EAGA:

· Establishment of ferry service between Palawan-Sabah, Sarawak, FED territory of Labuan and Brunei Darussalam

· Creation of the BIMP-EAGA Customs, Immigration, Quarantine-Security Conference (CIQS)

· Implementation of the Memorandum of Agreement on Uniform Port Tariff (UPT)—Philippines and Indonesia and Philippines and Brunei Darussalam;.

· Establishment of BIMP-EAGA Shipping Association· Identification of EAGA Shipping Services (Cotabato-Labuan, Malaysia & vv;

Cagayan-Labuan, Malaysia & vv; Cagayan-Kota Kinabalu, Malaysia & vv; Cagayan-Sandakan & vv; Cagayan-Lahad Datu, Kunak & vv; Cagayan-Miri & vv; Cagayan-Bintulo, Indonesia & vv; Cagayan-Tanjung Manis & vv; Cagayan-Kuching & vv; Davao-Bitung, Indonesia & vv; Gen. Santos-Bitung, Indonesia & vv; Zamboanga-Bitung, Indonesia &vv; Zamboanga-Labuan, Malaysia & vv; Zamboanga-Manado, Indonesia & vv; Zamboanga-Sandakan, Malaysia & vv.

· Identification of eight (8) hub centers in Mindanao, viz., Bongao, Cagayan de Oro City, Cotabato City, Davao City, Gen. Santos City, Iligan City, Puerto Princesa and Zamboanga City.

D. STRENGTHENING OF THE MARITIME ADMINISTRATION AND PROMOTION OF THE INTEGRITY OF THE PHILIPPINE REGISTRY

The MARINA has embarked on several institutionalized reforms in order to strengthen the Authority as to respond to the requirements of the industry. Foremost in this initiative is the conduct of training seminars & various workshops relating to safety and maritime security for both the technical and the administrative staff. In the same manner, linkages with government and non-government agencies and organizations as well as international and regional maritime institutions and organizations are being strengthened and pursued.

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SHIPBUILDING AND SHIP REPAIR SECTOR

The Ship Building and Ship Repair Sector is considered a vital component of the maritime industry and one of the priority sectors to be developed by MARINA. The Authority’s major thrust under this sector involve the improvement of local shipbilding, ship repair and vessel design capability; development/ modernization of shipyard facilities and to optimize the utilization of present resources; and the promotion/ development of shipbreaking industry.

For the past thirty (30) years, the following are the major accomplishments under the Ship Building and Ship Repair Sector:

A. FOSTERED A FAVORABLE CLIMATE FOR SHIPBUILDING AND SHIP REPAIR ACTIVITIES

1. Policies/ Programs Regulating and Promoting the Shipbuilding and Ship Repair Industry

· Issuance of Presidential Decree No. 666 providing tax and duty exemptions to all MARINA registered shipyards as well as exemption from the 3% contractor’s percentage tax, payment of which is converted into the Shipyard Development Fund (SDF) where withdrawal made by registered shipyards for their modernization/ expansion projects.

· Issuance of Presidential Decree No. 1059 regulating the operation of the shipbuilding and ship repair yards.

· Issuance of Presidential Decree No. 1221 requiring all Philippine registered ships to be drydocked and repaired in Philippine registered shipyards.

· Issuance of MC 35 on Additional Guidelines in the Implementation of P.D. 1221.

· Implementation of the Investment Priorities Plan (IPP) in coordination with the Board of Investment (BOI) granting a package of tax incentives to selected industries including shipbuilding, ship repair and shipbreaking.

· Issuance of Memorandum Circular No. 55 providing the guidelines for the legalization of “colorum” shipbuilders and ship repairers.

· Issuance of Memorandum Circular No. 95 providing the revised guidelines on the licensing of shipbuilders, ship repairers, afloat ship repairers, boatbuilders and shipbreakers.

· Issuance of Republic Act No. 9295, an act promoting the Development Philippine Domestic Shipping, Shipbuiliding, Ship Repair and Ship Breaking, ordaining reforms in government policies towards shipping in the Philippines and for other purposes. Approved on 04 May 2004.

2. Related Studies/ Research

· Under the JICA Technical Assistance, the Transnational Diversified Group (TDG) was contracted to undertake a study on the Economic Life of Wooden-Hulled Ships.

· Study on the Productivity of the Shipbuilding and Ship Repair Industry to assess the status and identify problems as well as possible solutions with respect to the operations of the country’s shipyards, this study was conducted in 1990 and 1991. The study recommends for the

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institutionalization of an apprenticeship training program for the shipyard workers, provision of incentives to the industry and technical assistance for the purpose of upgrading shipyard manpower skills.

B. ENHANCED DOMESTIC CAPABILITY FOR SHIPBUILDING AND SHIP REPAIR

1. Capability Building

· Conduct of shipbuilding, ship repair and boatbulding seminars in various parts of the country to disseminate current innovations, technologies and skills for shipbuilding, ship repair and boatbuilding.

· Establishment of a Manpower Development System in the Shipbuilding and Ship Repair Industry in the Philippine with the assistance of the Government of Singapore to formulate and institutionalize an integrated training system for shipyard manpower, in terms of the various skills required in shipyard trade areas.

2. Information Technology

· Implementation of the Information System for the Shipbuilding and Ship Repair Sector to update the list of all licensed SBSR enterprises and make an inventory of all information about the shipyard needed in the formulation of policies/ programs for the sector.

· Preparation of an Investment Folio for the Shipbuilding and Ship Repair Industry to assist foreign investors on possible investments for the shipbuilding, ship repair and shipbreaking industry and to encourage them to consider joint venture in the development of the industry.

C. STRENGTHENED COORDINATION WITH RELEVANT PRIVATE SECTOR ASSOCIATION FOR ACTIVE SUPPORT FOR THE SHIPBUILDING AND SHIP REPAIR

1. Institutional Linkages

· Organization of the Shipbuilding and Ship Repair Advisory Council to serve as MARINA’s source, feedback and information reserve. The Council is actively participated by the concerned private sector/ industry and government agencies. It identifies and resolves industry problems/ issues and review existing policies and programs.

· Organization of the MARINA SBSR Technical Working Group

2. Regional Cooperation Initiatives

· Hosted the Asian and Pacific Shipbuilding Experts’ Meeting (APSEM ‘98) in coordination with the Philippine Shipbuilders and Repairers Association (PHILSAR). The Meeting provides an insight on the shipbuilding and ship repair activities of participating countries. It also served as a forum for opening up the possibility of joint ventures between local and foreign shipbuilding companies.

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· 6th Asian and Pacific Shipbuilding Experts’ Meeting (APSEM) held in Manila on 06-07 December 1982 which was attended by the delegation from 10 participating countries from the Asia-Pacific region with 75 participants.

· 22nd Asian and Pacific Shipbuilding Experts’ Meeting held in Cebu on 16-17 November 1998 which was attended by the delegation from 10 participating countries from the Asia-Pacific region with 73 participants.

3. Establishment of the Maritime Industrial Park (MIP)

· On 05 January 2000, President Joseph Ejercito Estrada inaugurated the MIP situated in a 100-hectare site at the PHIVIDEC Industrial Estate in Cagayan de Oro City. The MIP was conceived to meet the market demands and services of the present and future requirements of the country’s maritime industry. The Park covers a facility for building new ships, an oil depot/petroleum tank farm, a spare parts depot and a regional research/ training center for maritime manpower.

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MARITIME MANPOWER SECTOR

While the Maritime Industry Authority has, in its initial years of operation, been involved primarily in the development and regulation of the interisland shipping industry, the last decade has seen the resurgence of its role in the development of trained and competent supply of seafarers to be deployed worldwide. Openly criticized for the absence of competent people due to the lack of experienced seafarers among its ranks, it has nevertheless aspired to provide its employees with training and seminars to make them more qualified and competent. It has likewise tapped the expertise of the private sector for the purpose of assessment and in the development of policies relative to the sector. All these efforts, which are further discussed in the following are geared towards the maintenance of the Philippine seafarers’ comparative advantage not only in terms of less expensive labor but most especially in terms of competence in serving the world fleet.

A. ENHANCED FILIPINO SEAFARERS’ COMPETITIVENESS

1. Implementation of the 1978 Convention on the Standards of Training, Certification and Watchkeeping for Seafarers (STCW)

The Philippines, as a Party to the 1978 Convention on the Standards of Training. Certification and Watchkeeping, as amended, has been implementing such through the coordinated efforts of the Maritime Industry Authority (MARINA), Professional Regulation Commission (PRC), Commission on Higher Education (CHED), Technical Education and Skills Development Authority (TESDA), Maritime Training Council (MTC), National Telecommunication (NATELCOM), Philippine Coast Guard (PCG) and the Department of Health (DOH). On 31 January 1997, then President Fidel V. Ramos issued Executive Order 396 designating MARINA as the Administration in the implementation of the Convention in the Philippines. The same Executive Order has been revised by virtue of the issuance of Executive Order No. 93 dated 12 April 1999 reiterating MARINA’s mandate as the Administration of the Convention.

Although MARINA issued Memorandum Circular No. 41 on 20 January 1988 following its accession to the Convention, such circular has been revised and modified in conformity with the provisions of the 1978 STCW Convention, as amended, following the issuance of Executive Order No. 396. Thus on 27 October 1997, MC No. 126 became effective providing guidelines for the issuance of Endorsements of Certificates and Ratings Certificates.

MARINA, under the Technical Assistance of the Royal Kingdom of Norway, implemented the MARINA-NMD Institutional Cooperation Scheme for full and complete compliance of the STCW 1995. This 2-year Project commenced in 1996 basically to strengthen MARINA’s institutional capability to improve the standards of maritime training, education and certification and to ensure that the Philippine Government can satisfactorily comply with the requirements of the revised Convention.

On 12 May 2000, the Office of the President issued Executive Order No. 242 strengthening the role of MARINA in policy making, as the Chair of the STCW Executive Committee. With this issuance, MARINA’s function of issuing

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Endorsement of Certificates was transferred to the Professional Regulation Commission (PRC) for Officers and to the Technical Education and Skills Development Authority (TESDA) for Ratings.

The concerted efforts of MARINA and other government agencies involved in the implementation of the STCW Convention finally resulted in the inclusion of the Philippines in the IMO White List – a positive step that will effectively sustain the country’s position as the world’s leading supplier of shipboard labor.

2. Implementation of the National Marine Examination and Certification of Seafarers Project

The Project envisioned establishing a modern system of examination, including computerized services and question/ answer data bank for the examination and certification of marine officers and ratings, in accordance with the Convention. Both the MARINA and the PRC implemented the Project, with technical assistance from the IMO and funding support from the Norwegian government.

3. Institutionalization of Maritime Safety-Related Measures to Upgrade the Competency of Seafarers in the Domestic Shipping Trade

· MC No. 164 issued on 15 March 2001 provided Rules Governing the Adoption and Implementation of a Qualification Document Certification System In The Domestic Trade

· MC No. 170 issued on 13 December 2001 provided Rules on the Conduct of Examination and Issuance of License to Major Patrons, Minor Patrons, Boat Captains and Marine Diesel Mechanics

· MC No. 171 issued on 13 December 2001 provided Rules on the Implementation of the Recurrency Training on Safe Navigation (SAFENAV) and Collision Regulation (COLREG) for Masters And Chief Mates Navigating Ships for Domestic Voyages

· MC No. 173 issued on 28 June 2002 amended Memorandum Circular No. 171 on the implementation of recurrency training

· MC No. 174 issued on 02 August 2002 provided Rules on the Accreditation of Maritime Training Centers in the Conduct of Training Programs for Domestic Seafarers

· MC No. 185 issued on 16 May 2003 provided Rules On The Accreditation Of Training Centers/Entities Which Shall Offer Courses On Maritime Security

· MC No. 191 issued on 11 August 2003 provided Rules On The Conduct Of Drug And Alcohol Testing Of All Seafarers And Other Personnel Serving Onboard Ships Engaged In The Domestic Trade

· FSAA No. 30 issued on 13 November 2002 required domestic seafarers and service providers on passenger ships to undergo Crowd/ Crisis Management and Behavior Training

4. Preparatory Activities to the Implementation of the Seafarers’ Identity Document (SID)

With the forthcoming implementation of ILO Convention 185 in 2004, MARINA aggressively pursued necessary activities geared towards the country’s compliance with the requirements of the Convention. MARINA, under the US Technical Development Assistance (USTDA), embarked on the conduct of Feasibility Study on the Expedited Development of an Improved Seafarers’ Identity Document System (SIDS).

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B. INITIATED/ SUPPORTED THE CONDUCT OF TRAINING/ SCHOLARSHIP PROGRAMS TO COMPLEMENT THE DEVELOPMENT OF A RESERVOIR OF TRAINED MARITIME MANPOWER

1. Implementation of the Apprenticeship Training Program

The Project envisioned establishing a modern system of examination, including computerized services and question/ answer data bank for the examination and certification of marine officers and ratings, in accordance with Convention. Both the MARINA and the PRC implemented the Project, with technical assistance from the IMO and funding support from the Norwegian government.

2. Implementation of the Seafarers’ Training Scheme in Japan

Formally launched in 1990 with a Memorandum of Agreement between MARINA and the Maritime International Cooperation Center of Japan (now, the Seafarers Employment Center of Japan) on the implementation of an apprenticeship program for Filipino marine cadets on board Japanese merchant vessels providing Filipino marine cadets with shipboard training to enable them to earn their degrees and to qualify for the licensure examination being administered by the Professional Regulations Commission (PRC). To date, a total of 692 cadets have been trained under the scheme which involves two (2) months of Pre-sea Training at Marine Technical College, three (3) months on board a training vessel and nine (9) months training on board ships of Japanese shipping companies.

3. Assistance in the awarding of FILNOR-MARIS Scholarship Grants

The MARINA supported the formation of the Filipino Norwegian Maritime Scholarship (FILNOR-MARIS) Foundation, Inc. and actively participated in the Foundation’s undertakings. The Foundation, following its avowed objectives and purpose, has been awarding scholarship grants to deserving Filipino high school graduates to enable them to pursue maritime-related courses, with MARINA providing assistance through extensive dissemination of the program to its regional offices.

4. Implementation of the MARINA-NMD Shipboard Training Scheme

In May 2003, the Memorandum of Agreement between the PMI and MARINA was signed to implement the MARINA-NMD Shipboard Training Scheme with the following objectives: a) to provide deserving graduates of BSMT and BSMarE graduates with apprenticeship training on board a training ship of PMI for one (1) year to qualify them for the licensure examinations for marine officers; and b) to enhance the opportunity for employment of those who have completed the apprenticeship program onboard domestic and ocean-going vessels. Some 20 cadets were recipients of this training.

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C. PARTICIPATED IN MAINTAINING/ UPGRADING THE QUALITYOF MARITIME EDUCATION AND TRAINING IN THE PHILIPPINES

1. Hosting of the ESCAP-sponsored “Seminar on Seafarers’ Training and Education”

The five (5)–day seminar held on November 16-20, 1987 was attended by 22 high-ranking participants from 13 ESCAP member-countries. It provided a forum where latest trends, developments and issues on seafarers training and education were discussed, with the insights and perspectives gained there from benefiting the participants from the Philippines, and paving the way for such to be applied/ adopted for the improvement of the country’s maritime manpower sector.

2. Implementation of the Project to Improve Maritime Training for Interisland Shipping

A NORAD-assisted Project which aimed to upgrade the quality and level of competency of Filipino officers in the country’s domestic fleet, as well as the capability of maritime instructors. As an output of the Project, the ISFTC has been established wherein training, under IMO standards, conducted using modern training equipment.

3. Participation in the Inspection of Maritime Schools/ Training Centers

The MARINA, as part of the Technical Working Group of the Maritime Training Council (MTC) participates in the conduct of inspections of maritime schools and training centers. Its active participation in this activity has helped ensure that maritime institutions and training centers throughout the country conform to prescribed standards on instructional materials/ syllabi, faculty competence and required training equipment.

4. Membership in the Technical Expert Panel of the Technical Education and Skills Development Authority (TESDA)

MARINA’s role in the development of the maritime manpower sector is not solely confined to the degree courses but extends to those involving technical or special skills. As such it has actively participated in the inspection of training centers for purposes of accreditation as trade testing sites. As part of the Technical Panel, it has assisted in the formulation of the Seafarers Rating Course which was finalized in July of 1998.

5. Implementation of the MARINA-NMD Project on Competency-Based Professional Development Program for Filipino Seafarers via Distance Education

This MARINA-led interagency undertaking being implemented under the assistance of the Government of the Royal Kingdom of Norway thru the Norwegian Maritime Directorate (NMD) is a 2-year Project which aims to design

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and develop a modular and ladderized training program via distance mode to enable marine deck officers acquire the management level competencies required under the International Maritime Organization (IMO)- 1995 Standards of Training, Certification and Watchkeeping for Seafarers (STCW).

The Project Team is comprised of representatives from MARINA (as the Chair), CHED, MTC, UP-Open University, Subject Matter Experts (SME), NMD and the Aalesund University College.

6. Implementation of Executive Order Nos. 125/125-A

Following the issuance of EO 125, as amended, the MARINA has taken over a number of functions previously undertaken by the Philippine Coast Guard (PCG). Among these functions is the issuance of the Seafarers Identification and Record Book (SIRB) started in November of 1994.

On 15 March 2001, MARINA Memorandum Circular No. 163 was issued providing the Revised Rules on the Issuance of the Seafarers’ Identification and Record Book (SIRB)

Another function is the conduct of the licensure examination for harbor pilots. In compliance to this mandate, the MARINA Board, in its 144 th meeting held last 17 December 1998, has approved MARINA M.C. No. 141 on the Guidelines for the Conduct of Harbor Pilots Examination and Issuance of License.

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SUPPORT TO OPERATIONS

The Maritime Industry Authority, as a responsive and responsible Maritime Administration, is committed to continuously improve, streamline and rationalize systems, procedures, standard processing time to achieve efficiency in the delivery of frontline services. For the past 30 years, MARINA instituted the following institutional reforms, measures to improve operational efficiency and increase productivity:

1. Devolution and Decentralization Measures

1.1 Operationalization of ten (10) Regional Offices located in Batangas, Legaspi, Cebu, Iloilo, Tacloban, Davao, Cagayan de Oro, Zamboanga, Cotabato, and La Union and eight (8) Extension Offices in Lucena, Palawan, Surigao, Tagbilaran, General Santos, Bacolod, Masbate, and Bongao de Tawi-Tawi primarily to increase MARINA’s geographical presence in order to bring its services closer to its clientele and the public.

1.2 Initiated the devolution and decentralization measures involving the local government units (LGUs), Autonomous Region in Muslim Mindanao (ARMM) and the regional offices.

1.3 Issued Administrative Order No. 06-95 on 16 November 1995 on the Delegation of Authority/Functions to Maritime Regional Office (MRO) Directors/Officers-in-Charge to bring economical and closer service to the public. This AO is currently being subjected to a review and to be amended to further expand the delegated functions to the MROs in the light of recent developments.

2. Rationalization of Systems and Procedures in the Processing of Applications

2.1 Streamlined the processing of all domestic shipping-related applications through reduction of processing time, rationalization of documentary requirements and procedures and computerization efforts.

2.2 Issued MC No. 169 on 13 December 2001 to further streamline the checklist of documentary requirements and rationalize the Standard Processing Time (SPT).

3. MARINA ISO 9002: 1994 Certification

MARINA obtained its ISO 9002: 1994 quality certification in October 2000 in line with the implementation of the 1978 STCW Convention, as Amended.

4. Implementation of the Document Tracking System (D-TRACKS)

To ensure compliance with the MARINA Memorandum Circular 169 on the Streamlined Documentary Requirements and Rationalized Standard Processing Time (SPT) of all applications processed by the MARINA, the Authority implemented the Document Tracking System (D-TRACKS) which aims to

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monitor status of all documents officially received by the MARINA requiring appropriate action with the end in view of delivering quality and timely service.

5. Adoption of the MARINA Revised Service Guide Manual

To serve as guide to all MARINA Officials and Employees in achieving efficiency, timeliness, quality and uniformity in the processing of all MARINA applications, the Authority adopted the MARINA Revised Service Guide Manual.

6. Institutionalization of the Philippine Seafarers’ One-Stop Shop Center (PSOC)

Pursuant to Administrative Order No. 6, series of 2003, issued by PGMA on the Institutionalization of the Philippine Seafarers’ One-Stop Shop Center (PSOC) to rationalize the documentation of seafarers’ employment papers and other requisites. MARINA participated in this undertaking by deploying personnel at the Philippine Overseas Employment Administration (POEA) to process/issue the Seafarers’ Identification and Record Books (SIRBs) and to attend to the needs of the seafarers.

7. Implementation of the “Bilis Release Project”

The MARINA implemented the “Bilis Release Project” wherein the processing time for the Application for the Issuance of SIRBs was reduced to one (1) day regular processing and four (4) hours expedite processing.

8. Implementation of the MARINA Information System Plan

Highlights of accomplishment for the implementation of the MARINA IS Plan are as follows:

8.1 Acquisition of computer systems, peripherals and softwares to enhance the electronic data processing capability of the Authority. During the implementation of the IS Plan from 1996-2001, the MARINA acquired more that 200 computer systems and peripherals which were installed at the Central Office and to the 10 Maritime Regional Office, nationwide.

8.2 Establishment of MARINA Local Area Network that connect all Central Offices to the Internet.

8.3 Development of various types of Application Systems to enhance the delivery of services to the public. These are the following:· SIRB Application System (SIRBAS)· STCW Application (STCWAS)· Vessel Information System (VIS)· Vessel Registration Application System (VERDAS)

8.4 Development and implementation of office application systems. These are the following:· Personnel Information System· Payroll System· Accounting System· Library Information System· Document Tracking System (DTRACKS)

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8.5 Training of MARINA Personnel on the use of different software and application systems.

8.6 Development and maintenance of MARINA Website (http://www.marina.gov.ph). The MARINA website was one of the first website under the Department of Transportation and Communication. It was first launch in June 1998, during the MARINA’s Anniversary Celebration

8.7 In late 2003, the MARINA launches I-TXT@MARINA, to give more access to information for users of cellular phone. Information that can be derived from i-TXT@MARINA are the following:· Directory of MARINA Offices· Documentary Requirements for SIRB Issuances· Vessel Information· Seafarer Information· Future expansion plan for i-TXT@MARINA will include documentary

requirements of all application filled in MARINA, Document Tracking, etc.

The I-TXT@MARINA which was formally launched on 15 January 2004 onboard MV Superferry 12 is a Project designed for instant access and information verification, suggestions, complaints and comments through text messaging.

9. Information Dissemination

9.1Philippine Ferry Guide Book

This Publication is a result of a collaborative effort of the MARINA and the JICA to provide a general indication of travel itineraries of passenger-carrying ships in the domestic trade. Also, this publication gives the public basic particulars of the ship and the general information pertaining to some tourist destinations in the country.

9.2Maritime Industry Factbook

The Maritime Industry Factbook, prepared by the different Maritime Regional Offices of MARINA, basically depicts the current situation/trend of the maritime industry in the different regions as well as investment opportunities/areas. The Factbook also provides basic information about the region which will cater to the requirements of local and foreign investors . The regions with available Maritime Industry Factbook are the following: a) Davao; b) Tacloban; c) Iloilo; d) Cotabato; e) Zamboanga; and f) Legaspi.

(Copy dated 24 May 2004)

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