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(NAR) VOL. 7 NO. 4 / October-December 1996

[ PPA ADMINISTRATIVE ORDER NO. 05-95, November 20, 1995 ]

REGULATIONS ON DOMESTIC ROLL-ON ROLL-OFF (RO-RO) TRANSPORT OPERATIONS AND RATES/CHARGES



Pursuant to Board Resolution No. 1492 and to Section 20 of P.D. 857 as amended, and in order to rationalize the operations and imposition of cargo handling charges in domestic RO-RO Transport System throughout the country, the following guidelines are hereby issued:

1

Scope

This Administrative Order shall cover all domestic cargoes loaded/discharged to/from RO-RO vessels that call at all ports covered by existing cargo handling contracts within the jurisdiction of the Philippine Ports Authority.

2

Definition of Terms

2.1 Roll-On-Roll-Off (RO-RO) Transport — A mode of marine transport in which the cargo compromises a series of units, each capable of being loaded into and unloaded from the ship by essentially horizontal movements through the use of a ship or shore-based ramp, every unit being moved on its own wheels, or by a temporary mobile system, which may or may not be carried with the unit on the ship for use at both ends of the voyage.

2.2 RO-RO Vessel — A vessel having the capacity to permit the horizontal mode of transferring cargoes from the pier/wharf to the vessel or vice-versa, through the use of a ship or shore-based ramps over the side, at the bow or at the stern of the ship.

2.3 RO-RO Cargo — A unitized cargo capable of being loaded into or unloaded from a RO-RO vessel, using its own wheels and motive power, or being towed or drawn by a temporary handling equipment.

3

Policy Statements

The Authority shall adopt the following policy guidelines in RO-RO transport operations:

3.1 The principle of "No Work, No Pay" in cargo handling operations. Towards this end, in ports that cater purely to RO-RO operation, there shall be no cargo handling interplay and all charges shall accrue to the Authority, except when the management of such ports catering purely to RO-RO traffic is given to a port operator;

3.2 The improvement of productivity and efficiency in the transport of goods by tapping the full potential benefits of RO-RO as an economic means of transportation in the country;

3.3. The minimization of delays and the elimination of unnecessary activities on the flow of RO-RO traffic by making RO-RO transport an integral part of the road system;

3.4. The development of a system for the nationwide adoption of RO-RO services thru PPA's short-term port improvement program; and

3.5 In ports where there are mixed RO-RO and conventional handling operations, pure RO-RO transport should be covered separately in the contract with CH companies, unless the Authority directly handles the task.

4

Types of RO-RO Cargoes

For purposes of this regulation RO-RO cargoes are classified as follows:

4.1 RO-RO Self-Propelled or Pure RO-RO — vehicles of any type (private, cargo or passenger), empty or loaded, are driven on their own power into or out of the RO-RO vessel without rehandling at the pier/wharf or grounding on board the vessel;

4.2 CHA-RO — chassis or trailers, empty or loaded with cargo, whether breakbulk, unitized, palletized or containers, are towed or wheeled into or out of the RO-RO vessel by means of a prime mover, tractor or tow-motor, without cargo rehandling, shifting, or grounding on vessel and where no other cargo handling is rendered except lashing or unlashing;

4.3 STO-RO — conventional, unitized, palletized cargoes or containers which are carried from the apron and stowed into RO-RO vessel or out of the RO-RO vessel to apron or waiting truck, by means of a forklift or similar wheeled equipment. The forklift provides the temporary mobile system for such cargo; and

4.4 Others — All other cargoes loaded/discharged from RO-RO vessel not in accordance with the above described services and which require rehandling on the wharf or dock shall be considered conventional.

5

Major Areas of Operations

RO-RO operations involve three major areas of operations, these are:

5.1 Delineate the Marshalling Area — This means allocating and making queuing lanes, setting-up proper signs concerning information and instructions, and establishing adequate access lanes for other vehicular traffic. This may involve setting up a public address system to cover a marshalling area operations. It may further involve coordination with local government authorities for interim roadside parking if port area is limited.

5.2 Segregate RO-RO Traffic — This concerns the establishment of sequence of activities to be covered in RO-RO operations. Thus:

5.2.1 First, allow all passengers to disembark;

5.2.2 Second, inbound vehicles and cargoes to be unloaded;

5.2.3 Third, outbound passengers to board; and

5.2.4 Fourth and last, vehicles to be loaded.

5.3 Clarify Loading Sequence — It is the obligation of the shipping company to book outbound vehicles and indicate the loading sequence for the cargo handler to implement. As an alternative, an explicit written procedures using the "first-come first-served" principle with the desired mix of vehicle types and load configurations may be followed.

6

Services in RO-RO Operations

Since not all terminals have available purpose-built RO-RO facilities, the following services are necessary in RO-RO operations.

6.1 Designation of a marshalling area in ports with RO-RO traffic by the PMO;

6.2 Receipt of cargo from the shipping/cargo owner and directing the driver to the proper parking space in the designated marshalling area by the cargo handling operator;

6.3 Supervision of the parking of outbound RO-RO cargo in the marshalling area by the cargo handling operator;

6.4 Security of the RO-RO cargo while under the custody of the operator;

6.5 Ship's stowage planning by the vessel officer concerned;

6.6 Supervision of loading/unloading sequence implementation of RO-RO cargo and directing traffic in the process by the cargo handling operator;

6.7 Maneuvering of RO-RO vehicle on and off the vessel by the vehicle driver;

6.8 Securing RO-RO cargo onto vessel deck by the vessel crew or cargo handler at option of vessel; and

6.9 Provision of equipment such as prime mover and forklift (with operator/driver) in case of RO-RO chassis of forklift operations by the cargo handler/shipping lines.

7

Supplemental Provisions

7.1 The responsibility of the CH Contractor over the loading of RO-RO cargo shall commence when cargo is received and directed to the marshalling area and shall end once the rolling cargo is loaded unto the vessel and properly receipted by the ship's checker. For RO-RO cargo driven by owner's driver, the responsibility of the CH Contractor shall end once RO-RO cargo leaves the marshalling area and is directed by the CH Contractor to the ship's ramp.

7.2 The responsibility of the CH Contractor during vessel unloading operations shall commence when RO-RO cargo is unlashed, when necessary, by the CH Contractor on board the vessel and shall end once RO-RO cargo is properly received by cargo owner. For RO-RO cargo is driven by owner's driver, CH Contractor's responsibility shall end once cargo is unlashed. Any RO-RO cargo damage or loss while in the custody of the CH Contractor shall become his responsibility.

7.3 In case the RO-RO vessel cannot load/unload RO-RO cargoes through its ramp due to force majeure, tidal conditions and/or port constraints, the shipping line/vessel owner may enter into an agreement with the cargo handling contractor to provide the appropriate supplemental shore-based ramp with rates/charges mutually agreeable to both parties, with PPA as final arbiter in case of disagreements. The same arrangement shall also be followed when the shipping line/vessel owner provides the prime mover or forklift for RO-RO chassis or STO-RO operations.

8

Handling Fee

RO-RO Handling- Fees which are ceiling rates, shall be as follows:

8.1 RO-RO Self-Propelled
    Rate/Vehicle  
       
8.1.1 Private Vehicle (non-cargo/non-passenger) P12.00  
   
 
8.1.2 Cargo/Passenger Jeep
 
  (Loaded or Empty)
 
   
 
  4 wheeler 31.00  
  6 wheeler 62.00  
   
 
8.1.3 Cargo Truck/Passenger Bus
 
  (Loaded or Empty)
 
   
 
  6 wheeler 116.00  
  10 wheeler 233.00  
  14 wheeler 271.00  
  16 wheeler and above 310.00  
  Heavy equipment 358.00  
8.2 CHA-RO
    Arrastre  
       
  Loaded Empty  
       
Below 10 footer P56.00/box 17.00/box  
       
10 footer 112.00 34.00  
       
Over 10 to 20 footer 224.00 90.00  
       
Over 20 to 35 footer 392.00 157.00  
       
Over 35 to 40 footer 449.00 180.00  
8.2.2 Conventional Cargo (breakbulk, palletized or unitized, live animals, iron and steel products, etc.) loaded on trailers and towed in/out of the RO-RO vessel.

Shall be charged seventy-five percent (75%) of the rate for non-palletized cargo in the existing tariff for conventional cargo based on the gross weight.

8.2.3 Empty Chassis/Trailer:

Shall be charged fifty percent (50%) of the rate in the existing tariff for conventional cargo.

8.3 STO-RO

8.3.1 Container/s mounted on chassis or trailer:
    Arrastre  
       
  Loaded Empty  
       
Below 10 footer P56.00/box 17.00/box  
       
10 footer 112.00 34.00  
       
Over 10 to 20 footer 224.00 90.00  
       
Over 20 to 35 footer 392.00 157.00  
       
Over 35 to 40 footer 449.00 180.00  
8.3.2 Conventional Cargo (palletized or unitized) discharged from trailer and stowed on the wharf, or vice versa:

Shall be charged 75% of the rate for palletized cargo in the existing tariff for conventional cargo.

9

One-Time Charge

The above rates shall be on account of the vehicle/cargo owner. Whenever implementable (where RO-RO vessels ply only one regular route such as Batangas-Calapan, Matnog-Allen, Liloan-Lipata routes), the handling fees for self-propelled RO-RO, CHA-RO and STO-RO cargoes for both the loading and unloading services shall be double of the above rates which shall be collected at the port of loading.

Port Managers with ports following this one time charge scheme shall provide the Commercial Services Department with the list of such ports or subports as the case may be.

The above system, notwithstanding, the RO-RO shipping operators shall not be prevented from entering into agreements with the cargo owners and cargo handlers for them (RO-RO shipping operators) to collect all RO-RO fees for remittance to the cargo handlers, provided, such remittance shall be made on time. And provided, further, that shipping documents, specifically official receipts, shall show a breakdown of shipping freight and RO-RO charges collected.

10

Transition Clause

10.1 As far as practicable, the Authority shall continue to work for the improvement of the RO-RO handling system. To this objective, PPA shall devise a means by which a gradual phase-out of the interaction from the cargo handling operator on RO-RO self-propelled operation may be achieved;

10.2 In preparing for the take-over of RO-RO self-propelled cargo handling operation, PPA shall take into consideration the existing operations procedures, future development plans and regulations, administrative feasibility, and all such costs that may be incurred in the provision of works/services in self-propelled RO-RO operations;

10.3 In the full take-over of the specified RO-RO operations, it shall be understood that the Authority shall collect all cargo handling charges appurtenant thereto, except that, in case of lack of personnel, the PMO may, subject to approval of the General Manager, contract out the same to a designated contractor who may retain 10% of the collection; and

10.4 Whenever an existing contract in a RO-RO capable port expires, the RO-RO aspect of the cargo handling operations shall be separated in consonance with this policy.

11

Saving Clause

Any provision or portion of this Order declared invalid by competent authority, shall not affect the other parts to which such declaration does not relate or apply.

12

Repealing Clause

All PPA issuances, or parts thereof, inconsistent herewith are hereby repealed or amended

13

Effectivity

This order shall take effect fifteen days after its second publication in a newspaper of general circulation.

Adopted: 20 Nov. 1995

(SGD.) CARLOS L. AGUSTIN
General Manager
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