WATER TRANSPORTATION

Prepared by:
Katrina Nicolas

Christopher Gringo S. Vasquez

Kimberly Shayne A. Arriola

Donna Queen C. Arriola

Daimler John C. Casten

Maria Luz B. Lite

Ralph Lorenz N. Deiparine

MIkhail Isiah Dela Cruz

Submitted to

ATTY. CHARLTON JULES ROMERO

 Table of Contents

I. Introduction - 4

II. Major Regulating Bodies - 5

A) Maritime Industry Authority (MARINA) - 5

B) Philippine Coast Guard (PCG) - 6

C) Philippine Merchant Marine Academy (PMMA) - 8

D) Philippine Ports Authority (PPA) - 9

E) Cebu Port Authority (CPA) - 9

III. Maritime Law - 9

A) Maritime Law, definition - 9

B) Rules on Liability - 10

C) Admiralty Jurisdiction - 11

IV. Water Transportation as Common Carriers - 11

V. Vessels/Ships - 13

A) Nationality of Vessels - 13

B) Registration - 13

C) Registration Requirements - 14

D) Safety and Protection of Passengers - 16

E) Minimum Safe Manning - 16

F) Passenger Vessels/Ships - 16

G) Fast Ferries or High Speed Crafts - 17

H) Cargo Ships - 19

I) Cruise Ships - 22

J) Roll-On Roll-Off or RORO - 23

K) Fishing Vessels - 26

L) Motorized Banca - 31

Vi. River Ferries - 32

VII. Vessel for Recreation and Tourism - 36

A) White Water Rafting - 36

B) Water Sports Vehicles - 39

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C) Speed Boats - 42

D) Submersible Passenger Craft (SPCraft) - 44

E) Amphibious Vehicle - 45

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 I. INTRODUCTION

Approximately 71 percent of the Earth's surface is water-covered. Thus,

throughout history sailing has been instrumental in the development of civilization,
affording humanity greater mobility than travel over land, whether for trade,
transport or warfare, and the capacity for fishing. Water transport, including rowed
and sailed vessels, dates back to time immemorial, and was the only efficient way to
transport large quantities or over large distances prior to the Industrial Revolution.

Transport by water is significantly less costly than air transport for

transcontinental shipping; short sea shipping and ferries remain viable in coastal
areas. Water transport is commonly used by the maritime industry, which includes
several sub-categories. Freight and cargo transportation, passenger boats such as
charters and ferries, and commercial fishing are all categories within the maritime
industry, and rely on watercraft for water transportation. Some are used for
recreational purposes, such as jet-skis.

In the Philippines, water transport is a key sector in the economy, linking

population and economic centers across the islands. Water transport plays an
important role due to the archipelagic nature of the country, but road transport is by
far the dominant sub-sector accounting for 98% of passenger traffic and 58% of
cargo traffic. While the transport infrastructure has been developed and spread
across the country, the level of service has not been sufficient due to the lack of
sustainable financing.1

Inter-island water transport is a very important sub-sector of the national

transport system. There are about 1,300 ports, of which about 1,000 are
government-owned and the rest are privately owned and managed. Of the
government-owned ports, about 140 fall under the jurisdiction of the Philippine
Ports Authority (PPA) and the Cebu Ports Authority; the remainder are the
responsibility of other government agencies or local government units.
International cargo and container track has grown steadily in recent years,
supported by significant investments in the port of Batangas by the PPA and in the
port of Subic by the Subic Bay Metropolitan Authority.
Despite the physical barriers that can hamper overall transport development
in the country, the Philippines has found ways to create and integrate an extensive
transportation system that connects the over 7,000 islands that surround the
archipelago, and it has shown that through the Filipinos' ingenuity and creativity,
they have created several transport forms that are unique to the country.

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 II. MAJOR REGULATING BODIES
With the growing industry for water transport, there is a need for governing bodies.
In the Philippines the major governing bodies include the Maritime Industry
Authority (MARINA), Philippine Coast Guard (PCG), Philippine Merchant Marine
Academy (PMMA), Philippine Ports authority (PPA), And Cebu Port Authority (CPA).

A. MARITIME INDUSTRY AUTHORITY (MARINA)

The Philippines' Maritime Industry Authority (MARINA) is an agency of the
Philippine government under the Department of Transportation responsible for
integrating the development, promotion and regulation of the maritime industry in
the Philippines. It was created on June 1, 1974 with the issuance of Presidential
Decree No. 474 to integrate the development, promotion and regulation of the
maritime industry in the country. The regulatory function of the MARINA was
increased with issuance of EO No. 1011 which abolished the Board of
Transportation and transferred the quasi-judicial functions pertaining to water
transportation to the MARINA.

MARINA has jurisdiction over the development, promotion and regulation of

all enterprises engaged in the business of designing, constructing, manufacturing,
acquiring, operating, supplying, repairing, and/or maintaining vessels, or
component parts thereof, of managing and/or operating shipping lines, shipyards,
dry-docks, marine railways, marine repair ships, shipping and freight forwarding
agencies and similar enterprises.

By virtue of Republic Act No. 9295, MARINA is mandated to:

1. Register vessels;
2. Issue certificate of public convenience, or any extensions or amendments
thereto, authorizing the operation of all kinds, classes and types of vessels in
domestic shipping: Provided, that no such certificate shall be valid for a
period or more than twenty-five (25) years;
3. Modify, suspend or revoke at any time, upon notice and hearing, any
certificate, license or accreditation it may have issued to any domestic ship
operator;
4. Establish and prescribe routes, zones or areas of operations of domestic ship
operators;
5. Require any domestic ship operator to provide shipping services to any
coastal area, island or region in the country where such services are
necessary for the development of the area, to meet emergency sealift
requirements, or when the public interest so requires;
6. Set safety standards for vessels in accordance with applicable conventions
and regulations;
7. Require all domestic ship operators to comply with operational and safety
standards for vessels set by applicable conventions and regulations, maintain
its vessels in safe and serviceable condition, meet the standards of safety of
life at sea and safe manning requirements, and furnish safe, adequate,
reliable and proper service at all times;
8. Inspect all vessels to ensure and enforce compliance with safety standards
and other regulations;

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 9. Ensure that all domestic ship operators shall have the financial capacity to
provide and sustain safe, reliable, efficient and economic passenger or cargo
service, or both;
10. Determine the impact which any new service shall have to the locality it will
serve;
11. Adopt and enforce such rules and regulations which will ensure compliance
by every domestic ship operator with required safety standards and other
rules and regulations on vessel safety;
12. Adopt such rules and regulations which will ensure the reasonable stability
of passengers and freight rates and, if necessary, to intervene in order to
protect public interest;
13. Hear and adjudicate any complaint made in writing involving any violation of
this law or the rules and regulations of the Authority;
14. Impose such fines and penalties on, including the revocation of licenses of,
any domestic ship operator who shall fail to maintain its vessels in safe and
serviceable condition, or who shall violate or fail to comply with safety
regulations;
15. Investigate any complaint made in writing against any domestic ship
operator, or any shipper, or any group of shippers regarding any matter
involving violations of the provisions of this Act; and
16. Upon notice and hearing, impose such fines, suspend or revoke certificates of
public convenience or other license issued, or otherwise penalize any ship
operator, shipper or group of shippers found violating the provisions of this
Act.
17. Determine the impact which any new service shall have to the locality it will
serve;

B. PHILIPPINE COAST GUARD (PCG)

The Philippine Coast Guard (PCG) is an armed and uniformed service tasked
primarily with enforcing laws within Philippine waters, conducting maritime
security operations, safeguarding life and property at sea, and protecting marine
environment and resources. The PCG used to be with the Armed Forces of the
Philippines under the Philippine Navy before it was transferred to the Department
of Transportation and Communication or the DOTC. It is considered as the third
armed and uniformed service of the country primarily tasked with enforcing all
applicable laws within the Philippine waters

It is an agency attached to the Department of Transportation of the

Philippines2. It currently maintains a presence throughout the archipelago, with
twelve Coast Guard Districts, fifty-four CG Stations and over one hundred ninety
Coast Guard Sub-Stations, from Basco, Batanes to Bongao, Tawi-Tawi.

With enactment of Republic Act 9993, also known as the Coast Guard Law of
2009, as well as its implementing rules and regulations, the PCG has been vested
with the necessary authority and responsibility to perform preventive measures in
ensuring the safety of merchant vessels.

Pursuant to Sec 3, of RA 9993, the PCG has the following powers and
functions:

2Republic Act 9993, also known as the Coast Guard Law of 2009

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 (a) To enforce regulations in accordance with all relevant maritime
international conventions, treaties or instruments and national laws for the
promotion of safety of life property at sea within the maritime jurisdiction of the
Philippines and conduct port state control implementation;

(b) To inspections on all merchant ships and vessels, including but shall not
be limited to inspections prior to departure, to ensure and enforce compliance with
safety standards, rules and regulations;

(c) To detain, stop or prevent a ship or vessel which does not comply with
safety standards, rules and regulations from sailing or leaving port;

(d) To conduct emergency readiness evaluation on merchant marine vessels;

(e) Subject to the approval of the Secretary of the DOTC, to issue and enforce
rules and regulation for the promotion of safety and life and property at sea on all
maritime-related activities;

(f) To coordinate, develop, establish, maintain and operate aids to navigation,

vessel traffic system, maritime communications and search and rescue facilities
within the maritime jurisdiction of the Philippines;

(g) To remove, destroy or low to port, sunken or floating hazards to

navigation, including illegal fish and vessels, at or close to sea lanes which may
cause hazards to the marine environment;

(h) To issue permits for the salvage of vessels and to supervise all marine
salvage operations, as well as prescribe and enforce rules and regulations governing
the same;

(i) To render aid to persons and vessels in distress and conduct search
rescue in marine accidents within the maritime jurisdiction of the Philippines,
including the high seas, in accordance with applicable international conventions. In
the performance of this function, the PCG may enlist the services of other
government agencies and the merchant marine fleet;

(j) To investigate the inquire into the causes of all maritime accidents
involving death, casualties and damage to properties;

(l) To assist in the enforcement of laws on fisheries, immigration, tariff and

customs, forestry, firearms and explosives, human trafficking, dangerous drugs and
controlled chemicals, transnational crimes and other applicable laws within the
maritime jurisdiction of the Philippines;

(m) To board and inspect all types of merchant ships and watercrafts in the
performance of this functions;

(n) To enforce laws and promulgated and administer rules and regulations
for the protection of marine environment and resources from offshore sources or
pollution within the maritime jurisdiction of the Philippines;

(o) To develop oil spill response, containment and recovery capabilities

against ship-based pollution;

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 (p) To grant, within the capabilities and consistent with its mandate,
requests for assistance of other government agencies in the performance of their
functions;
(q) To organize, train and supervise the PCG Auxiliary (PCGA) for the
purpose of assisting the PCG in carrying out its mandated functions; and

(r) To perform such other functions that may be necessary in the attainment
of the objectives of this Act.

C. PHILIPPINE MERCHANT MARINE ACADEMY (PMMA)

The Philippine Merchant Marine Academy (PMMA) is the Premiere Merchant

Marine academy in the Philippines. Operated by the Filipino government under the
supervision of the Commission on Higher Education (CHED), the academy is located
in San Narciso, in the province of Zambales.

Students are called midshipmen but are often also referred to as cadets. Upon
graduation students are commissioned as Ensigns (2nd Lieutenants) in the
Philippine Navy Reserve. They have the option to start a career in the maritime
industry or sign up for active military duty either in the Philippine Navy or the
Philippine Coast Guard.

Originally known as Escuela Nautica de Manila, the PMMA was created by virtue of a
Royal Decree issued on January 1, 1820 through the recommendation of the Spanish
Consulate of Commerce. It was later renamed to Philippine Nautical School (PNS)
In 1963, Republic Act 3680 converted the PNS into the Philippine Merchant Marine
Academy (PMMA), conferring the degree of Bachelor of Science in Marine
Transportation (BSMT) Major in Navigation and Seamanship or Major in Steam
Engineering and Electricity.3

The main purpose of the Philippine Merchant Marine Academy is to produce

efficient and well trained merchant marine officers who can favorably compare with
marine officers of progressive maritime countries sufficient to carry the expanding
international trade in times of peace and capable of serving as a naval and military
auxiliary in times of war and national emergency. The secondary purpose is to
produce young men well trained in other fields of the merchant marine service, like
marine surveyors, port supervisors, shipping office personnel, shipping
management and others.4

D. PHILIPPINE PORTS AUTHORITY (PPA)

The Philippine Ports Authority is a government-owned corporation under

the Department of Transportation and Communications as an attached agency. It
was created under P.D. No. 505 in July 11, 1974. Its charter was subsequently
revised under P.D. 857 issued on Dec. 23, 1975. It is responsible for financing,
management and operations of public port throughout the Philippines, except the
port of Cebu, which is under the Cebu Ports Authority. 5

3R.A. 3680

4Section 2, R.A. 3680

5Executive Order No. 159, in 1987

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 Among the various functions6 of the PPA is to submit to the President,
through the National Economic and Development Authority (NEDA), applications
for the declaration of specific areas as Port District and to formulate a
comprehensive and practicable Port Development plan for the State and to program
its implementation.7

The PPA is also tasked to supervise, control, regulate, construct, maintain,

operate facilities or services as are necessary in the ports, including private ports in
the country. It encompasses all activities in the Ports including pilotage and the
conduct of pilots.

Pursuant to such functions, any construction of any structures with the Port
District shall be licensed by the PPA. The Authority may also provide services
(whether on its own, by contract, or otherwise) within the Port Districts and the
approaches thereof, including but not limited to berthing, towing, mooring, moving,
slipping, or docking any vessel; loading or discharging any vessel; sorting, weighing,
measuring, storing, warehousing, or otherwise handling goods.

It is responsible for financing, management and operations of public port

throughout the Philippines, except the port of Cebu, which is under the Cebu Ports
Authority. The Philippine Ports Authority was created to coordinate, streamline,
improve and optimize the planning, development, financing and operation of ports
or port system for the entire country

E. CEBU PORT AUTHORITY (CPA)

The Cebu Port Authority (CPA) was created through the enactment of
Republic Act No. 7621 signed on June 26, 1992 to specifically administer all ports
located in Cebu Province, thus, effectively separating these ports from the Philippine
Ports Authority (PPA) system. CPA began operations and officially took over all
Cebu ports on January 1, 1996.

The Cebu Port Commission (CPC) is the governing body of the Cebu Port
Authority. It is tasked to manage, administer, operate, maintain, improve and
develop, coordinate and otherwise govern the activities of all the ports within the
Port of Cebu. The Port of Cebu is a seaport located in Cebu City, Philippines. It is the
port that serves the Metro Cebu Area, the largest domestic port in the Philippines,
mostly serving routes in the Visayas and Mindanao.

III. MARITIME LAW

A. MARTIME LAW

Maritime Law is the system of laws which particularly relates to the affairs
and business of the sea, to ships, their crews and navigation and to marine
conveyance of persons and property.8 The terms Maritime Law and AAdmiralty
Law are sometimes used synonymously.
6Section 5, P.D. 857

7Section 5, P.D. 857

8Francisco, The Law on Transportaion, as quoted from Essentials of Transportation and Public Utilities
Law by Aquino and Hernando.

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 1. This system of laws includes Book III of the Code of Commerce
entitled “Maritime Commerce”, Act No. 2616 otherwise known as the
“Salvage Law”, Commonwealth Act No. 65, otherwise known as
“Carriage of Goods by Sea Act”, P.D. 1521 known as the “Ship
Mortgage Decree of 1978”, the recently added R.A. No. 10668 or An
Act Allowing Foreign Vessels To Transport And Co-Load Foreign
Cargoes For Domestic Transshipment And For Other Purposes signed
by Pres. Aquino in 2015.

2. The primary law on Maritime Commerce is the New Civil Code on

common carriers. The Code of Commerce and special laws apply
suppletorily.

3. Under the Constitution, the Philippines adopts generally accepted

principles of international law as part of the law of the land. 9
Consistently, maritime treaties and conventions are also deemed part
of Maritime Law, and adhered to by the authorities. For, example, the
Philippines adopted the United Nations Convention on the Law of the
Sea (UNCLOS), the International Maritime Organization, both the
International Conventions for the Safety of Life at Sea (SOLAS 1974)
and the Tonnage Convention 1969, which was acceded to by the
Philippines in 1982

B. RULES ON LIABILITY

1. Limited Liability Rule: No Vessel, No Liability 10

The Shipowner’s or agent’s liability is co-extensive with his interest in

the vessel, such that the total loss thereof results in the extinction of the
liability. The total destruction of the vessel extinguishes maritime liens
because there is no longer any res to which it can attach. The liability of the
owner and agent were confined to the vessel itself, its equipment, freight and
insurance.

The rule developed by reason of the conditions and risks attending

maritime trade in its earliest years when such trade was replete with
innumerable and unknown hazards since vessels had to go through largely
unchartered waters. It was designed to encourage entities to venture into
maritime trade despite the risks and prohibitive cost of shipbuilding.

The rule on limited liability applies to liabilities to third persons, acts

of the captain and collisions. 11Only the shipowner can invoke the rule and not
the charterer.

2. Exceptions to the Limited Liability Rule12

9Section 2, Article II, 1987 Constitution

10Articles 587(liability on third persons), 643 and 837 (collision cases), Code of Commerce

11Aboitiz Shipping Corp. vs General Accident , Fire, and Life Assusance Corporation Ltd.

12Abueg vs. San Diego

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 In the following, the carrier is liable for damages to the full extent and
not up to the value of the vessel:

a. Where the injury or death of the passenger is due either to the fault ,
or concurring negligence of the shipowner and the captain;

b. Where the vessel is insured;

c. In workmen’s compensation claims

The carrier or shipowner has the burden of showing that it exercised

extraordinary diligence in the transport of the goods, and that the
unseaworthiness of its vessel was not due to its fault or negligence.
Where the shipowner fails to overcome the presumption of
negligence, the doctrine of limited liability cannot be applied.

C. ADMIRALTY JURISDICTION

Section 19 (3) of B.P. 129 (as amended by R.A. 7691), otherwise

known as the “Judiciary Act of 1980” which took effect on August 14, 1981
provides that the Regional Trial Court (RTC) has jurisdiction:

(3) In all actions in admiralty and maritime jurisdiction where the

demand or claim exceeds Three hundred thousand pesos (P300, 000) or, in
Metro Manila where such demand or claim exceeds Four hundred thousand
pesos (P400, 000).

All other cases where the amount of the demand or claim is less than
the jusrisdictional amount in the RTC, the jurisdiction of maritime cases with
the Municipal Trial Court.

IV. WATER TRANSPORTATION AS COMMON CARRIERS

Article 1732 of the Civil Code defines common carriers as persons,

corporations, firms or associations engaged in the business of carrying or
transporting passengers or goods or both, by land, water, or air, for
compensation, offering their services to the public.

In as much as The Civil Code makes no distinction as to the means of

transporting, as long as by land, water or air and does not provide that the
transportation should be by motor vehicle 13, water transport systems may be a
classified as common carrier depending on the use to which they are devoted.

The true test for a common carrier is not the quantity or extent of the
business actually transacted, or the number and character of the conveyances
used in the activity, but whether the undertaking ia a part of the activity engaged
in by the carrier that he has held out to the general public as his business or

13 First Philippine Industrial Corporation vs Court of Appeals 300 SCRA 661, December 29, 1998

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 occupation. If the undertaking is a single transaction, not part of the general
business or occupation engaged in, as advertised and held out to the general
public, the individual or entity rendering such service is a private, not common
carrier.14

The concept of common carriers contemplated under Article 1732 of the Civil
Code and the fact that the said concept corresponds to the concept of Public
Service under the Public Service Act, results in the application of the following
rules of principles:

a. A person or entity may be a common carrier even if he has no fixed

and publicly known route, maintains no terminals and issues no
tickets.15

b. A person need not be engaged in the business of a public

transportation for the provisions of the Civil Code on common
carriers to apply to them.16

c. The carrier can also be a common carrier even if the operator does
not own the vehicle or vessel that he or she operates.17

d. A person or entity is a common carrier and has the obligations of a

common carrier under the Civil Code even if he did not secure a
Certificate of Public Convenience.18

Foreign vessels engaging in carriage conducted in accordance with Section 7

of RA 1066819 shall not be considered common carriers under the Civil Code. They
are also not offering a public service and thus shall fall outside the coverage of RA
9295 or the Domestic Shipping Development Act of 2004. RA 10668 aims to assist
importers and exporters in enhancing their competitiveness in light of intensifying
international trade; and to lower the cost of shipping export cargoes from Philippine
ports to international ports and import cargoes from international ports for the
benefit of the consumers. This Act shall apply exclusively to foreign vessels carrying
foreign container vans or foreign cargoes.

In towage, where one vessel is hired to bring another vessel to another place, the
vessel, by towing another is not considered a common carrier in maritime law.
However, if towing becomes the main business, then it may be classified as common
carrier.

14 Sps Perena vs Sps Nicolas, G.R. No. 157917, 29 August 2012

15 Asia Lighterage and Shipping Inc. vs Court of Appeals, G.R. No. 147246, Aug. 19, 2003

16 Fabre J. vs CA 259 SCRA 426, July 26, 1996

17Cebu Salvage Corporation v Philippine Home Assurance Corp, G.R. No. 150403, January 25, 2007

18De Guzman v. CA 16 SCRA 612, 617-618, Dec. 22, 1988

19AN ACT ALLOWING FOREIGN VESSELS TO TRANSPORT AND CO-LOAD FOREIGN CARGOES FOR
DOMESTIC TRANSSHIPMENT AND FOR OTHER PURPOSES, July 28, 2014

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 V. VESSELS/SHIPS

A vessel/ship or watercraft is defined under P.D. 474 as any barge, lighter,

bulk carrier, passenger ship freighter, tanker, container ship, fishing boats or other
artificial contrivance utilizing any source of motive power, designed, used or
capable of being used as a means of transportation operating as a common contract
carrier, including fishing vessels covered under P.D. 43, except: (a) those owned by
the Armed Forces of the Philippines and foreign governments for military purposes
and (b) bancas, sailboat, and other waterborne contrivance of less than three gross
tons capacity and not motorized. The Domestic Shipping Development Act of 2004
provides that ship or vessel may be used interchangeably.

The construction, equipment and manning of vessels are subject to the rules
of the MARINA and Coast Guard and pertinent conventions like SOLAS 1974.

Ships or vessels may be given different classifications depending on their

uses, size, and other criteria. For example, SOLAS 1974 provides for the following
classification of ships: a) passenger ships, b) cargo ship, c) tanker, d) fishing vessel,
e) nuclear ship.

Note that the classification presented by our group is not in accordance with
any law, but only a matter of preference based on the degree of interest and
popularity.

3.1. Nationality of Vessels.

Vessels that are duly registered in the Philippines are considered Philippine
Flag vessels. These ships are deemed to possess Philippine Nationality within
the contemplation of the UNCLOS. 20 There must be a genuine likn between
the State and the ship in order to confer nationality over the ship. There are
instances when countries may allow registration of vessels belonging to
nationals of other countries. The registration is only a matter of convenience,
hence the term Flags of Convenience. The Philippines is not a “Flag of
Convenience” country.

3.2. Registration.

MARINA Memorandum Circular No. 2013-02 dated January 18, 2013

provides for the Revised Rules for Registration, Documentation and Deletion of
Ships Operating in the Philippine Waters. The rules apply to all types of ships
operating in the Philippine Waters regardless of size, utilization, whether with or
without power, including ships below three gross tonnage, motorized or non-
motorized.

Every ship used in Philippine waters, not being a transient of foreign registry,
shall be registered with the MARINA. Ships owned by Philippine nationals to be
used in international waters shall likewise be registered.

The following ships shall not be covered by the Registration Rules:

20Sections 91-94 of Part VII of UNCLOS

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 a. Warships and naval ships
b. Ships of the Philippine Coastguard
c. All ships of foreign registry temporarily used in the Philippine waters
d. Inflatable Boats used for rescue made of either a single or more rubber
tubing.

3. Registration Requirements.

For Overseas:

To secure registration of a ship, the owner, master or agent shall file with the
Administration at the port of registry of such ship and present the documents
required of him by the MARINA for acquisition of the ship to be registered
(including imported Pleasure Yacht for personal use).

According to Section 5 of RA 7471, Philippine shipping enterprises may likewise

acquire oceangoing vessels for Philippine overseas shipping upon approval by the
MARINA, subject to the guidelines prescribed in the regulations: Provided, that:

a) The funds utilized in the acquisition of the vessel are financed from
sources other than the Philippine banking system;

b) No guaranty of the monetary authority or of any Philippine government

or private financial institution is granted or extended for the purpose;

c) The vessel serves as sole collateral for the financing of the vessel and no
other asset of the Philippine shipping enterprise is pledge, mortgaged, or
used as security in case of default;

For Domestic: Upon arrival of the ship in the Philippines, the company shall file a
request for inspection of the ship with the Administration, prior to release from the
custody of the Bureau of Customs.

After the ship's release from the custody of the Bureau of Customs, the
owner/charterer or agent shall apply with the Administration for the' issuance of
Certificate of Philippine Registry together with the submission of the following
requirements:

 Copy of MARINA letter/approval to acquire ship (if applicable);

 Protocol of Delivery and Acceptance;

 Deletion of Certificate (if applicable);

 Proof of payment of customs, duties and taxes;

 Copy of Certification relative to the inspection 'of the ship by a

MARINA surveyor upon arrival at any Philippine port prior to
Customs release;

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  Original copy of duly notarized Builder's Certificate for newly
constructed ship; .

 Copy of plans approval issued by MARINA;

 Copy of Certificate of Tonnage Measurement approved by MARINA;

and

 Duly notarized Affidavit of Ownership and/or Affidavit of Corporate

Owners

The Administration shall grant a Certificate of Philippine Registry (CPR) as evidence

of registration, provided that such ships which are not entered in the Philippine
register of ships shall be required to secure a ship identity certificate (Certificate of
Number).

Every registered ship shall be assigned an official number. The official number shall
consist of 10 (ten) characters, where the first two (2) characters refer to the Central
Office or MRO (MARINA Regional Office) where the ship is registered and the last
seven (7) characters refers to the ascending number for ships registered.

The registration of a ship for coastwise trade shall be effected at the original
homeport or at the nearest office of the Administration, if the homeport has no
registrar. For ships engaged in international trade, registration shall be effected in
Manila or any port as may be designated by the Administration. This original
homeport shall be referred to as the Port of Registry

Ships registered under the Philippine Flag may be deleted from the Register of
Philippine Ships under any of the following circumstances:

d) exportation of ship due to sale to foreign entity; or,

e) expiration of CPR of bareboat chartered ship; or,

f) ship breaking/ scrapping/ decommissioning of ship; or,

g) total loss as stipulated in a Marine Protest/Report; or,

h) non-operational for a period of five (5) years for WHS, PWC, submarines,
amphibians and similar type of ships under the class of miscellaneous
ships

i) when the Administration revokes approval of the charter/lease contract

for a cause and after due process; or,

j) when the Administration, after due process, orders the deletion from the
Philippine Registry of any ship found to have violated the government
rules and regulation.

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 4. Safety and Protection of Passengers21

On February 23, 2000, the Maritime Industry Authority directed all domestic
shipowners and operators under Memorandum Circular No. 154 to strictly comply
with existing Safety-Related Policies, Guidelines, Rules and Regulations.

The MARINA Memoradum Circular No. 43 provides that all vessel

owners/operators are to make sure that all their vessels are being operated in
compliance with the 1997 Philippine Merchant Marine Rules and Regulations.

Monitoring of compliances shall be undertaken by the Authority and its

Maritime Regional Offices together with the Philippine Coastguard.

5. Minimum Safe Manning

Article 648 0f the Code of Commerce provides that the complement of a vessel shall
be understood as all persons on board, from the captain to the cabin boy, necessary
for the management, manoeuvres and service. It shall include the crew, the sailing
mates, engineers, stokers and other employees on board. But it shall not include
passengers or the persons whom the vessel is transporting. In R.A. 10635, they are
referred to as “seafarer”.

The Law declares that it is the policy of the State to promote and insure the safety
and of life and property at sea, protect and preserve the marine environment and
ecology, and prevent marine pollution and accident at sea by complying with the
Standards of Training, Certification and Watchkeeping for Seafarers 1978, as
amended, to which the Philippines is signatory. 22

The practice of marine profession is governed by special laws and pertinent rules
issued by the MARINA and the Board of Marine Deck Officers and Board of Marine
Engineers Act of 1998. The MARINA issues a) Certificate of Competency to masters,
officers, radio operators, b) Certificate of Endorsement as attestation of authenticity
and validity of the certificates, and c) Certificate of Proficiency issued to a seafarer
stating that relevant requirements of training competencies or seagoing service
under the STCW Convention have been met.

It is not enough that the officers manning the vessel have all the qualifications
imposed by law. It is also required that there is a sufficient number of officers and
crew that are serving in the vessel.

A. PASSENGER VESSELS/SHIPS

A passenger ship is any ship authorized by the MARINA to carry

passengers. It belongs to Class A of the Classes of Ships and may either be engaged
on an international (Category 1) or a coastwise (Category 2) voyage 23. According to

21Any person while embarking on, on board, or disembarking from a ship. It shall include those who are
ticketed, unticketed, manifested, unmanifested, minor, paying, non-paying, holding discounted or
complimentary tckets and/or accommodated passengers, including those accompanying cargoes, vehicle
or animals, covered by a contract of carriage.”

22R.A. 8544

23Philippine Merchants Rules and Regulations (PMMRR)1997

16
the International Maritime Organization, passenger ships are usually defined as
ships carrying more than 12 passengers 24. The definition of passenger ships
excludes those ships classified to be cargo ships. However, they may include
different types of ships that transport both passengers and freight, with the former
being of a more substantial number than the latter.

Passenger ships were first introduced in the islands of the Philippines

around 2500 BC when the Proto-Malays, a Mongol-Asiatic race, arrived using
oceanic vessels called balangays. These vessels have been used as means for
transporting people from one place to another.

Development in the transportation sector prominently flourished during

the Spanish colonization period. For water transport, the Spanish introduced the
sailboats, bancas, cascos and praut for inter-island transfer.

In the present period, water transport remains to be one of the mosti

important means of moving people and goods within and outside the country.

Different types of passenger ships include the traditional ocean liners

(which are engaged in long distance maritime routes), ferries (which are engaged in
comparatively shorter distance maritime routes compared to ocean liners), and
cruise ships (ships wherein the experience of the voyage itself and not the
transportation is the prime purpose)25.

Passenger ships and all types thereof are regulated globally through
international maritime treaties primarily for the purpose of ensuring passenger
safety. One of these treaties is the The International Convention for the Safety of Life
at Sea (SOLAS), generally regarded as the most important of all international treaties
concerning the safety of merchant ships. The Philippines is a signatory of this treaty
which seeks to ensure that ships flagged by the Convention comply with minimum
safety standards in construction, equipment, and operation of merchant ships.

B. FAST FERRIES or HIGH SPEED CRAFTS

According to the Philippine Merchants Rules and Regulations 1997, a high

speed craft or a fast ferry is a ship capable of maximum speed, in 69.3 meters per
second. It belongs to Class G of the Classes of Ships and may either be engaged on an
international or a coastwise voyage. 26 Fast ferries are usually distinguished as a type
of passenger ships that are meant for day-to-day or for overnight short sea trips.

Policy Guidelines in the Regulation of High Speed Crafts (HSCs) (MARINA MC

No. 121)

All persons, corporations, firms and entities engaged in the operation of high speed
craft in the domestic marine transportation, for compensation, commercial or public
use, involving the carriage of passengers and cargoes between various ports and
places in the Philippines are regulated by the MARINA Memorandum Circular
abovementioned.

24 International Maritime Organization website,.

http://www.imo.org/en/OurWork/Safety/Regulations/Pages/PassengerShips.aspx

25 Cunard, Chris. Ocean Liner versus Cruise Ship. http://chriscunard.com/transatlantic_liner.php

26Philippine Merchants Rules and Regulations (PMMRR)1997

17
The policy guidelines provided by the MC include manning requirements and
qualification of crew, minimum service standards, acquisition of high speed crafts,
and issuance of certificates of public convenience.

For the acquisition of high speed crafts, guidelines provided for in the MARINA MC
No. 104 (Omnibus Guidelines for the Acquisition of Vessels for Domestic Operations
and Fishing Vessel/Boat) are adopted. Additionally, the following requirements
apply:

1. Wooden hulled high speed crafts may not be acquired.

2. For imported or chartered vessels, the following maximum ages apply with
respect to the period in which they had been imported or chartered:
◦ For the year 1997, maximum age of 10
◦ For the year 1998, maximum age of 9
◦ For the year 1999, maximum age of 8
◦ For the year 2000, maximum age of 7
◦ For the year 2001, maximum age of 6, and
◦ For those beyond 2001, maximum age of 5

With respect to classification of high speed crafts, all acquired HSCs must be classed
by a recognized International Association of Classification Societies (IACS). The
purpose of classification is to promote the safety of life, property and the
environment primarily through the establishment and verification of compliance
with technical and engineering standards for the design, construction, and life-cycle
maintenance of ships27.

Acquisition of HSCs are also prescribed documentary requirements which serve as

post-approval requirements for the operation of HSCs. Some of these documents
include:

1. Letter of intent/application
2. Duly signed Memorandum of Agreement /
3. Deed of Sale/Bareboat Charter Contract
4. Valid Certificate of Vessel’s Registry
5. General Arrangement Plan
6. Class Certificate/Certificate of Compliance with
7. Annual//Special Survey
8. Receipt of Payment of Processing Fee – P20,000.00/vessel

In the issuance of Certificates of Public Convenience (CSC) for HSCs, the relevant
provisions of Memorandum Circular Nos. 80, 106 and 117, in implementation of EO
185 and 213, respectively, providing consolidated policy guidelines intended to
promote a more liberal/deregulated atmosphere for liner operations in the
domestic shipping industry, except as provided by MC No. 121, shall apply.
Certificates of Public Convenience for HSCs shall contain the following matters:

1. Prescription of Sailing Schedules

◦ As a rule, the proposed sailing schedules and frequencies of new
entrants will be favorably considered; provided, no conflict in sailing
schedules with other affected HSC operators in the applied route/link
shall result therefrom, and; provided further, that the minimum
interval between arrival/departures of HSC shall be thirty(30)

27 IACS Website. http://www.iacs.org.uk/

18
 minutes; otherwise, the MARINA shall prescribe, motu proprio, sailing
schedules that will best serve the public interest and convenience

2. Substitution of Vessels
◦ In case of emergency repairs/drydocking or mechanical/engine
trouble, authorized HSC operators may be allowed to make automatic
substitution of their other HSC, provided that:
▪ No route/link shall be left unserved; and,
▪ There must be notice in writing to the MARINA within 24 hours of
such substitution and reason/s therefor.

3. Operational Limitations
◦ As a rule, HSCs are allowed to operate during daytime only, HSC may
be allowed to navigate during nighttime provided the required aids to
navigation and collision avoidance on the craft are complied with, to
the satisfaction of the MARINA.
◦ The operation of a HSC may be restricted in terms of routes, as
follows: i.) Coastwise voyage ii.) Partly Protected voyage iii.)
Protected waters iv.) Short sea waters
◦ The above restrictions/limitations shall be reflected in the craft’s
Certificate of Inspection(CI).
◦ The craft’s operational speed shall be limited to ninety percent(90%)
of its maximum speed, as defined by the circular.
◦ The craft’s service speed shall in no case be less than 25 knots.
◦ The number of passenger for maximum loading shall be based on the
number of permanent seats on board.
◦ Only seats approved by the MARINA in accordance with the
requirements of The Code shall be allowed.
◦ As required in the Code, several manuals, including detail of their
contents, must be carried on board. These are the
▪ Craft Operating Manual,
▪ Route Operational Manual,
▪ Training Manual
▪ Maintenance and Servicing Manual.
◦ These manuals must be submitted to the MARINA for approval.

4. Period of CPC Validity

◦ The vessel's age upon the issuance of a CPC shall determine the CPC
period of validity.
▪ If the vessel was 5 years old and below upon issuance, the CPC
shall be valid for 10 years.
▪ If the vessel was above 5 years old upon issuance, the CPC shall be
valid for 5 years.

C. CARGO SHIPS

A cargo ship is any ship that is not a passenger ship. Particularly it is a vessel
utilized for the primary purpose of transporting cargo, either merchandise or
goods,28.
Domestic cargo ships comprise 28% of the Philippine domestic merchant
fleet. The country’s domestic marine or shipping transport is composed of three
sectors: liner, tramp and industrial carriage. Liner shipping refers to the
28Philippine Merchants Rules and Regulations (PMMRR)1997

19
operation of domestic water transportation that offers their services to the public
without discrimination to any user, have regular ports of call and have fixed sailing
schedules and frequency. Tramp shipping, on the other hand, refers to the
operation of freight vessels that are not plying a regular route but are hired on a
contractual basis by shippers under mutually agreed terms and usually carry
cargoes of bulky commodities. Industrial carriage refers to the shipping operations
of companies arising from the necessity to cater to the needs of their own
enterprises. Of the three sectors, only liner shipping is regulated by the
government29.

Major commodities transported by general cargo vessels are cement, iron

and steel, fertilizer, transport equipment, logs and lumber, agricultural products
such as sugar, paddy and rice, wheat, and other general cargos which are not
suitable to contain in containers30.

Domestic Shipping of Cargo: Marina Circular No. 2015-10

MC No. 2015-10, which is based on the Code of Safe Practice for Cargo
Stowage and Securing adopted by the International Maritime Organization, provides
implementing rules and regulations to ensure the safety of Philippine-registered
ships/motor boats transporting cargo and engaged in domestic trade.

The Circular primarily focuses on companies preparation and submission of

the appropriate Cargo Securing Manual (CSM), a cargo securing arrangement for the
safe stowage and securing of cargoes onboard including packing or loading in road
vehicle and freight container where applicable.

It provides that companies (the owner of the ship or any organization or

person such as the manager, or the bareboat charterer, who has assumed
responsibility for operation of the ship from the ship owner and who, on assuming
such responsibility, has agreed to take overall the duties and responsibilities imposed
by the Code of Safe Practice for Cargo Stowage and Securing) of different types of
cargo ships submit a CSM appropriate for the type of ship owned by them or for
which they are responsible.

Type of Ship Manual/Plan Required

500 gross tonnage (GT) and above and CSM consistent with rules and
carrying cargo units regulations provided by the Circular, the
Code, Trim and Stability Calculation of
the ship — to be submitted to and
approved by MARINA

Below 500 GT and carrying cargo units CSM appropriate to the characteristics of
their ship and its intended/approved
type of service, taking into consideration

29 Austria, Myrna. Philippine Domestic Shipping Transport Industry: State of Competition and Market
Structure. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.509.3501&rep=rep1&type=pdf

30 JICA MARINA.. The Study on Domestic Shipping Development Plan in the Philippines (DSDP).
http://open_jicareport.jica.go.jp/pdf/11809522_05.pdf

20
 the ship's dimensions, hydrostatic
properties, and the weather and sea
condition expected in the ship's
approved tradind area/s including the
cargo composition — to be submitted to
and approved by MARINA

Motorboats without outriggers and CSM suitable and appropriate to the

carrying cargo units characteristics of their motorboats and
their intended/approved type of service
— to be submitted to and approved by
MARINA

Motorboats with outriggers A MARINA-prescribed Cargo Stowage

and Securing Plan (CSSP) suitable and
appropriate for non-standardized
cargoes — to be submitted to and
approved by MARINA

If approved, MARINA shall issue CSM/CSSP Compliance Certificates, valid for a

period not exceeding five (5) years from the date of issue. It shall be endorsed
annually by the Administration during the annual survey relative to issuance of ship
safety certificates, and ceases to be valid if no endorsement has been made.

The CSM/CSSP shall be a requirement for the issuance/extension/renewal of the

ship's or the motorboat's Certificate of Public Convenience (CPC)/Provisional
Authority (PA)/Special Permit (SP).

Cargo, cargo units and cargo transport units, shall be loaded, stowed and secured
prior to ship's departure and throughout the voyage in accordance with the CSM
and CSSP approved by MARINA.

The ships/motorboats covered in this circular shall be equipped with the required
cargo securing facilities/devices such as pad eyes, turnbuckles, web-lashing, Manila
ropes, lashing wires, etc. that meet acceptable functional and strength criteria
applicable to the ships/motorboats particulars and their cargo.

International Shipping of Cargo: Carriage of Goods by Sea Act (COGSA)

The New Civil Code is the primary law governing goods that are being
transported from a foreign port to the Philippines. Nevertheless, the COGSA remains
to be a suppletory law for such type of transportation (international shipping). The
COGSA was originally passed by the Congress of the United States on Aprill 16, 1936
as Public Act No. 521. The said law was later adopted in the Philippines on October
22, 1936, through Commonwealth Act No. 65.

The COGSA is applicable to all contracts for the carriage of goods by sea to
and from Philippine ports in foreign trade. Its provisions focused on the following 31:

1. Parties to a contract of carriage

31 Aquino, Timoteo. Essentials of Transportation and Public Utilities Law. p. 544

21
 ◦ The carrier and the shipper are given their respective rights and
obligations under the COGSA. The concept of a carrier is not limited to
te shipowner, but includes the charterer, a person who charters a
vessel to conduct his business for his own account.

2. Duties of a carrier
◦ Section 2 of the COGSA expressly covers the carrier's obligation and
liabilities in relation to the loading, handlingm stowage, carriage,
custody, care, and discharge of goods. Section 3 enumerates the
responsibilities of the carrier under COGSA subject to provisions of
the Civil Code which serves as the primary law.

3. Document of title required

◦ The contracts of carriage of goods covered by COGSA are evidenced by
Bills of Lading or any similar documents of tile, insofar as such
document relates to the carriage of goods by sea.

4. Notice of claim and prescriptive period

◦ COGSA also provides for periods within which the liabilities of the
carrier may be enforced

5. Defenses and immunities of the common carrier

◦ Section 4 of COGSA provides the common carrier with defenses and
immunities. However, these defenses are subject to the amendatory
provisions of the Civil Code.
▪ For instance, Section4 (1) provides, as a rule, that the carrier shall
not be liable for loss or damage arising from unseaworthiness.
Under the Civil Code, the carrier will not be liable only if it can
present proof that the unseaworthiness was caused exclusively by
any of the circumstances specified in Article 1734.

D. CRUISE SHIP

A cruise ship or a cruise liner is a passenger ship which usually is a foreign-

registered vessel. It is a luxury vessel that carries passengers, not to bring them
from point A to point B anywhere in the world, as opposed to an ocean liner. The
journey of a cruise ship begins and ends where it started. The ship takes the people
on board to a round trip which could last a day or even a week. The trip onboard is
part of the experience as the different destinations on the way. There are two main
elements when defining the nature of the whole cruise experience: the onboard
services and facilities, and the cruise itinerary. Cruise ships provide luxurious
facilities for its passengers. Some of these facilities are swimming pools, hot tubs,
lounges, libraries, gyms, restaurants and rooms similar to hotels. 32 The cruise
itinerary, which forms an integral part of the overall cruise experience, includes the
activities for passengers that may embark or disembark the cruise during the
route.33

Currently, there are no Philippine-registered cruise ships. However, major

cruise ships have been making port of calls in the country. In the year 2014, the

32Marine Insight News Network, 2016

33Wind Rose Network, n.d

22
Philippines attracted 44 port of calls and in the year 2015, there was a total of 52
port of calls. Last year, MV Prestige Cruises-Insignia with around 1,000 passengers
onboard was one of the cruise vessels that made a port of call in the country. Just
recently, Hong Kong-based Star Cruises made news that its Superstar Virgo cruise
ship will make Manila its home port; sailing from Manila and taking its passengers
to Laoag, Ilocos Norte, Taiwan and Hong Kong for a 6-day trip. 34

Being a foreign vessel, it is required to submit to the Port Management Office (PMO)
or Terminal Management Office (TMO) personnel upon application for arrival and
departure clearance the following: Inward Foreign Manifest, Dangerous Cargo
Manifest (when applicable), Passenger Manifest (when applicable), and Application
for Berth/Anchorage—for arrival clearance; Outward Foreign Manifest, Passenger
Manifest (when applicable), and Official Receipt/s of Payment of Port Charges—for
departure clearance. In addition to said requirements, foreign vessels on maiden
class are required to submit for such first call only the following: Vessel Information
Sheet; and International Tonnage Certificate.35

E. ROLL-ON ROLL-OFF OR RORO

Roll-on Roll- Off Transport is a mode of marine transport in which the cargo
comprises 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
voyage36.

It is designed with a multi-deck hull especially for the Roll-On/Roll-Off

cargoes handling to and from the intended decks by way of door/ ramp situated
below the weather deck.37

RoRo Operations may take on passengers or cargoes. 38 It refers to the method

of loading and discharging of vehicles between vessel and shore via a ramp,
whether:

1. Self-powered (such as cars, trucks, containers on chassis attached to a

prime mover, buses, motorcycles) and/or

34 Tantuco, V. (2017). Asia-Pacific Cruise Superstar Virgo Makes Manila its Home Port,
http://www.rappler.com/life-and-style/travel/158268-asia-pacific-cruise-superstar-virgo-homeports-
manila

35PPA Memorandum Circular No.13-2002

36PPA AO 05-95

37MARINA Circular No. 2009-23

38 Administrative Order 005-1995 of PPA

23
 2. Containers on chassis loaded unto the Ro-Ro ship by prime mover (or
tractor head) at the port of origin and unloaded from the Ro-Ro by a different prime
mover (tractor head) at the port of destination.39

There are different types of RoRo vessels based on the cargoes it carries:
pure RoRo (where vehicles of any type are driven on their own into or out of the
vessel), chassis roro (or Cha-ro where chassis or trailers are towed into or out of the
vessels), and Sto-Ro (where cargoes or container are carried from the apron and
stowed into or out of the vessel to a waiting truck by means of a wheeled equipment
such as a forklift).40

Strong Republic Nautical Highway (SRNH) or Philippine Nautical Highway

System or RoRo System

Former President Gloria Macapagal-Arroyo issued EO 170, series of 2003

which established the Road Roll-On/Roll-Off Terminal System (RRTS). The RRTS the
network of terminals all over the country, separated by a distance of not more than
fifty (50) nautical miles and linked by Ro-Ro vessels.

Originally, the RRTS is a concession to large shipping companies. When the

50 nautical miles limit was lifted, the RoRo policy is now applicable to any point in
the country. Other additional policy changes included the creation of dedicated
lanes for Ro-Ro Ferry Terminal System (RRTS) shipping service providers to ensure
efficiency at the terminals, covered passenger terminal and waiting areas provided
in the port area for the safety and comfort of passengers.

The RoRo System network is composed of three major routes:

a. Western Nautical Highway linking Manila and Dipolog connecting to

the Central Nautical Highway in Cebu City.

b. Central Nautical Highway then links Pilar, Sorsogon and Balingoan.

c. Eastern Nautical Highway, which is a link between the province of

Biliran and Surigao City, connected to the Central Nautical Highway
via Cataingan.

Its route covers the provinces and cities of Oriental Mindoro, Tagaytay City
(Cavite), Marinduque, Romblon, and Batangas City in Luzon; Aklan, Antique, Iloilo,
Capiz, Negros Oriental, Negros Occidental, Bohol, Cebu, Guimaras, and Siquijor, in

39 Executive Order No. 204, s. 2016 Expanding the Coverage of Executive Order No. 170 (S.2003) and EO
No. 170-A (S.2003) to Include Container-Chassis Roll-on-Roll-Off (Cha-ro)

40 PPA AO 005-1995

24
the Visayas; and Misamis Occidental, Misamis Oriental, Lanao del Norte, and Dapitan
City in Mindanao.

Regulating Agency

The majority of regulations defining Ro-Ro operations are issued by PPA and
MARINA. The PPA and Cebu Port Authority provide for issuances for documentary
requirements while the DENR is for the issuance of Environmental Compliance
Certificate.41

Based on a Memorandum of Agreement between Philippine Coast Guard and

MARINA, with respect to ro-ro operations, it is given the tasks to:

1. Perform ship safety inspection services prior to the issuance of ship safety
certificates by MARINA

2. Authorized to issue-Special Permit to carry dangerous cargoes/goods;

3. Assist the MARINA to perform enforcement activities; and

4. Provide administrative proceeding for marine casualty or incident

Accreditation Requirements42

1. The applicant must be a citizen and permanent resident of the Philippines, or

a corporation or co-partnership, association or joint-stock company
constituted and organized under the laws of the Philippines, with at least
60% of the subscribed capital belonging entirely to citizens of the
Philippines. Or a single proprietorship duly registered with the DTI

2. The primary purpose must be to engage in domestic shipping

business/operation.

Must submit:

3. A letter of intent addressed to MARINA;

4. List of vessels owned/chartered (if applicable) indicating vessel(s)

specifications(as supported by corresponding certificate of ownership issued
by the (PCG) and routing patterns and schedules;

5. Latest audited financial statement (if company is already in

existence/operation);

6. List of incorporators, directors and principal officers and their bio-data with
particular emphasis on shipping or shipping – related experience or
expertise duly supported by documents acceptable to MARINA.

41E.O. 170

42MARINA. MC No. 03 Series of 2006

25
 7. For corporations and partnerships – The latest Articles of Incorporation/Co-
partnership and By-Laws approved and registered by the Securities and
Exchange Commission (SEC), reflecting that the primary purpose of the
corporation/partnership is to engage exclusively in domestic shipping
business/operation. For single proprietorships – The Registration of
Business Name/Business License with the DTI.

8. Proof of payment of the prescribed fee to be attached to the application for

accreditation.

9. Must meet the capitalization requirements set by MARINA.

10. The Certificate is valid for a period of 3 years and is renewable.

Authority to Operate

A Certificate of Public Convenience (CPC) is required. 43 The Operator must be

a MARINA-accredited entity and must financially capable to sustain its operations
and meet claims arising from maritime accidents. Feasibility study or any study or
document that will show probable economic/beneficial effect to the port, province
or region it proposes to serve is also required

Registration

Registration must be in accordance with MARINA MC 2013-02 through a

Letter of Application. The approval of a ship name must be first secured before its
registration.

F. FISHING VESSELS

A fishing vessel - any boat, ship or other watercraft equipped to be used for
taking of fishery species or aiding or assisting one or more vessels in the
performance of any activity relating to fishing, including, but not limited to,
preservation, supply, storage, refrigeration, transportation and/or processing. 44

Fishing is engaged largely for Commercial Fishing the primary purpose of

which are for business & profit beyond subsistence or sports fishing In fishing for
subsistence not for profit and for sports fishing, such does not require any
registration for a fisherman’s license.

Commercial fishing may be classified as:

1. Small scale commercial fishing - fishing with passive or active gear

utilizing fishing vessels of 3.1 gross tons (GT) up to twenty (20) GT;

2. Medium scale commercial fishing - fishing utilizing active gears and

vessels of 20.1 GT up to one hundred fifty (150) GT; and

432014 IRR of RA 9295

44RA 10654 as amended, The Philippine Fisheries Code of 1998

26
 3. Large commercial fishing - fishing utilizing active gears and vessels of
more than one hundred fifty (150) GT. (RA 10654)

Registration

Registration of the Vessel

For purposes of commercial fishing, fishing vessels owned by citizens of the

Philippines, partnerships, corporations, cooperatives or associations qualified under
this section shall secure Certificates of Philippine Registry and such other
documents as are necessary for fishing operations from the concerned agencies. 45

Before a commercial fishing vessel holding a commercial fishing vessel

license may begin fishing operations in Philippine waters, the fishing gear it will
utilize in fishing shall be registered and a license granted therefor.

Under Executive Order 305 otherwise known as Devolution to Local

Government Units the Municipal/City Government shall undertake the registration
of fishing vessels three (3) gross tonnage and below.

The MARINA and PCG shall extend technical assistance and support to the
local government units with respect to registration of fishing vessels and maintain a
separate data bank of the list of registered fishing vessels registered.

The registration is limited to the conferment of identity to the fishing vessel

and does not serve as an authorization or license to fish in municipal waters, which
shall be the subject of a separate application with LGU in accordance with its fishery
ordinance and RA 8550. A permanent number shall be assigned to each registered
fishing vessel, a registry of which is kept at the municipal office.

Registration Requirements/Process46:

1. Only Filipino citizens, single proprietorships, partnerships and/or

corporations and duly registered or accredited fisherfolk associations and
cooperatives, are eligible to apply for registration.

2. File an application under oath using a standard application form (Annex A),
which shall contain the following information: name of owner, nationality,
residence, type and make of fishing vessel and propulsion, and other
pertinent information that the LGU may require.

3. Clearance from the PNP Maritime Office in the LGU or in its absence, the local
PNP, certifying that the fishing vessel is not involved in any criminal offense.

45RA 8550

46E.O. No. 305

27
 4. The LGUs shall issue a Certificate of Number once all the documentary
requirements are fully complied with and upon payment of the registration
fee

5. Payment of pertinent fees.

6. The LGUs shall assign an official number to a registered fishing vessel, which
shall correspond to a code specifying the Province, and LGU, which shall be
painted, permanently marked or plated on both sides of the forward portion
of the fishing vessel

7. The LGU, upon request of the owner/operator, may assign a name to the
fishing vessel. A name shall be assigned to only one (1) fishing vessel
regardless of type of fishing gear. If the proposed name has already been
assigned to another registered boat, the owner or operator has the option of
adding letters of the alphabet, any Arabic number or Roman numeral which
can be represented by words or its numeric equivalent, to the proposed
name.

8. The name of the fishing vessel shall be painted on both sides of the mid
portion of the fishing vessel.

9. The LGU may institute a vessel-marking or color coding system within its
municipality.

Change of Homeport

The LGU shall issue a new Certificate of Number in case the fishing vessel
changes its homeport. This may occur in case the owner/operator decides to change
residence or principal office, or sells or transfers ownership of the fishing vessel to a
person or entity with domicile in another LGU. The LGU, upon application for a
change of homeport, issue a certificate of clearance and shall delete the registration
of such fishing vessel from its register.

The new homeport shall issue a new CN upon filing of an application for issuance
of a new CN supported by the following documents:

1. The original copy of the CN; and

2. Clearance to change homeport issued by the current homeport

Upon approval of the change of homeport, all records pertaining to the boat shall
be transmitted by the previous homeport to the new homeport.

In Case of Change of Engine

An application for the issuance of new CN shall be filed with the current
homeport accompanied by the following documents:

1. The original copy of the CN;

28
 2. Official Receipt of Purchase of Engine; and

3. Police Clearance that the engine purchased is not from a carnapped/stolen

vehicle.

When an owner or operator desires to change the name of his boat, he must
submit an application filed with the LGU of the current homeport, stating the reason
for such. An application for change of name will not be approved if the boat is
involved in civil case regarding question of ownership or in a criminal or civil case
for violation of a fishery law or ordinance. The original copy of the CN shall be
attached to the application.

Deletion or Cancellation of Registration

The owners/operators under E.O. 305 are required in case of loss or decay of the
fishing vessel, or its involvement in a marine/maritime incident, to immediately
inform the LGU. The latter shall delete of cancel the fishing vessel’s registration. The
LGU may also cancel or delete the registration of the fishing vessel after due
notification

The MARINA and PCG shall continue to exercise visitorial functions to enforce
compliance with the Revised Philippine Merchant Marine Rules and Regulations and
all other existing laws, rules and regulations on maritime safety. Said offices shall
also assist the LGUs to qualify and issue appropriate documents to the fisher folk to
operate a motorized fishing vessels.

Registration of the Fisherman

No person shall be engaged or seek employment as fish worker on board a

commercial fishing vessel without a Fisherman License from DABFAR. The
Commercial Fishing Vessel License (CFVL) owners or operators shall ensure that all
their fish workers are duly licensed by DA-BFAR to work in commercial fishing
vessels.47 The Fisherman’s License shall be in the form of a Fisherman’s
Identification Card to be issued upon compliance with the following requirements:

1. Completed application form;

2. 2 copies of 1" by 1" ID picture;

3. Valid government-issued ID or Barangay Clearance; and,

4. Payment of license fee in the amount of One Hundred Pesos (Php 100).

The license number, official receipt number, as well as the date and place of
payment, shall be indicated in the Fisherman’s Identification Card. (RA 10654)

47RA 10654

29
Fishing in International Waters

Under R.A 8550 otherwise known as the Philippine Fisheries Code of 1998,
fishing vessels of Philippine registry may operate in international waters or waters
of other countries which allow such fishing operations. Provided that:

1. They comply with the safety, manning and other requirements of the PCG,
MARINA and other agencies concerned

2. They secure an international fishing permit and certificate of clearance from

the Department.

3. The fish caught by such vessels shall be considered as caught in Philippine

waters and therefore not subject to all import duties and taxes only when the
same is landed in duly designated fish landings and fish ports in the
Philippines

4. Landing ports established by canneries, seafood processors and all fish

landing sites shall be considered authorized landing sites:

5. Fish workers on board Philippine registered fishing vessels conducting

fishing activities beyond the Philippine Exclusive Economic Zone are not
considered as overseas Filipino workers.

Regulations

Memorandum Circular no 179 pursuant to EO 474 Requires that:

1. All Philippine-registered ships/fishing vessels operating in Philippine waters,

or temporarily utilized in overseas trade/ international waters, are required
to secure a Minimum Safe Manning Certificate.

2. A letter-application for the issuance of Minimum Safe Manning Certificate for

each ship shall be filed with the Maritime Industry Authority (MARINA) by
the concerned shipowner/ operator/ manager, indicating therein such
needed information as ship’s name, owner/operator, ship and rig type,
tonnage and break horsepower, port of registry, IMO and Official Number,
crew list, etc.

30
 3. Every commercial fishing vessel of Philippine registry when actually
operated shall be manned in accordance with the requirements of the
Philippine Merchant Marine rules and regulations.48

4. All fishing vessels shall be provided with adequate medical supplies and life-
saving devices to be determined by the Occupational Safety and Health
Center: Provided, That a fishing vessel of twenty (20) GT or more shall have
as a member of its crew a person qualified as a first aider duly certified by
the Philippine National Red Cross.49

5. Each commercial fishing vessel shall keep a daily record of fish catch and
spoilage, landing points, and quantity and value of fish caught, and off-loaded
for transshipment, sale and/or other disposal. Detailed information shall be
duly certified by the vessel's captain and transmitted monthly to the officer
or representative of the Department, at the nearest designated landing
point.50

6. The operation of radio communication facilities on board fishing vessels and

the assignment of radio frequencies specific and distinct to area of operation
shall be in coordination with the National Telecommunications
Commission.51

7. The number and wattage of superlights used in commercial fishing vessels

shall be regulated by the Department: Provided, that the use of superlights is
banned within municipal waters and bays. 52

G. MOTORIZED BANCA

All bancas whether motored or non - motored regardless of their size and
utilization (whether for tourist or fishing or any other purpose) shall be required to
register. As for motored bancas utilized for transporting passengers or goods, a
Certificate of Public Convenience must be had first before beginning to operate. On
the other hand, non-motorized bancas, regardless of size and utilization are

48Section 36 R.A. 8550

49Section 37 R.A. 8550

50Section 38, R.A. 8550

51Section 43, R.A. 10654

52Section 44, RA. 10654

31
exempted from securing a Certificate of Public Convenience as expressly provided
for by law under CA No. 146 Sec 14(b).

In addition, motorized banca engaged in tourism activities and services shall

be accredited by the Department of Tourism, pursuant to Executive Order 120,
dated January 30, 1987.

Existing motor-bancas shall comply with the following documentary

requirements for registration53:

1. Side view picture with the name of the motor-banca (size: 5”x7”);

2. Affidavit of Ownership or Deed of Sale; (see Annex 1, as attached);

3. Affidavit of Admission; (see Annex 2, as attached);

4. Post Construction Plans or Sketch, as applicable; and,

5. Stencil of vessel’s engine and information on the kind of

transmission/propeller.

6. New building motor-bancas shall initially submit the required

Construction Plans or Sketch, as applicable and acquire the necessary
permit from this Authority prior to commencing the boat building.

7. Aforementioned documents must be submitted to the MARINA

8. The Certificate of Philippine Registry of the motor-bancas shall have a

maximum validity of five (5) years reckoned from the year of
registration.

VI. RIVER FERRIES

A. PASIG RIVER FERRY

The Pasig River Ferry Service is the only water-based transportation in Metro
Manila, Philippines that cruises the Pasig River .

On February 14, 2007, then President Gloria Macapagal Arroyo inaugurated the
Pasig River Ferry System with five operating stations. However, the operation was
stopped in 2011 following complaints from passengers of the long waiting hours,
among others.

Currently, the system is owned and operated by a private company, Nautical

Transport Services Incorporated. It is the government’s response to curb the
worsening traffic situation in Metro Manila. There are now a total of 14 operational
ferries in its fleet that services passengers along Pasig River, from Pinagbuhatan in
Pasig City to Plaza Mexico in Manila. Each unit has a capacity of 150 passengers,
fully air-conditioned and equipped with television. There are 12 operating stations
located in Pinagbuhatan, San Joaquin, and Maybunga in Pasig City; Guadalupe and

53Marina circular no. 05 series of 2009

32
Valenzuela in Makati City; Hulo in Mandaluyong City; and Lambingan, Sta. Ana, PUP,
Lawton, Escolta and Plaza Mexico in Manila. (Anna Liza Villas-Alavaren). This
system is part of the Phase 1 of the government’s plan to fully rehabilitate the Pasig
River. The Agencies concerned aims to build at least 30 terminals in the eastern part
of Metro Manila and the provinces of Rizal and Laguna. Seven terminals will be built
around the Laguna Lake and in the city of Calamba.

According to the data released by MMDA on January 7, 2017, the ridership

significantly rose 17.5% in 2016 partly due to the Free Shuttle Service provided by
the MMDA and sponsored by Megaworld Corporation.

The Pasig River Transport System Operation Center

Prior to the reopening, the Pasig River Transport System Operation Center
(PRTSOC) was created to perform all other administrative functions to ensure the
smooth operation of the Pasig River Transport System. It is composed of members
from the DOTC, MMDA, and PRRC (Pasig River Rehabilitation Commission).

Operational Guidelines/Requirements

Based on the Terms of Reference created by the PRTSOC, the following are the
processes and requirements and guidelines necessary to operate the Pasig River
Ferry System:

1. The operation of the Passenger Ferry Service (Regular and Express) shall be
awarded to one (1) operator only, The selected operator shall have the
exclusive operation of the transport service for at least five (5) years

2. Interested parties shall undergo an Eligibility Screening, where the Inter-

Agency Technical Working Group (IA-TWG) shall act as the Evaluating
Committee and shall be responsible for the evaluation and verification of
documents submitted by prospective operators, while the Project Team for
the Pasig River Ferry Service Project shall act as the Approving Committee

3. Prospective operators shall submit

Legal Documents:

a) Letter of Application

b) General Information of the Company

c) DTI / SEC Registration

d) Mayor’s Business Permit

33
 e) VAT Registration

f) Tax Identification Number

g) Accreditation from MARINA as a Shipping Company/Ferry

Operator)

h) Joint Venture/Consortium Agreement (if applicable)

Financial Documents:

a) List of current financial obligations

b) If an old company, Audited Financial Statement for the last three

(3) years,

If a new company, projected Income Statement and Balance Sheet

c) BIR Certification of VAT Remittance

Corporate Structure:

a) Organizational Chart of the Company

b) Key Personnel of the Company with respective Resumes and

Records of Experience

Business Experience Documents:

Summary of Completed, On-going and Awarded Contracts for the past three
years

4. Prospective operators who pass the Eligibility Screening shall undergo the
Proposal Evaluation Phase consisting of the following:

Technical Proposal (First Envelope), which shall include:

a.) Authority of Signing Official

b.) Proposal Security in the amount of PHP500,000.00

c.) Ship Construction/Acquisition Schedule pursuant to MARINA MC95

d.) Proposed Project Organizational Chart

e.) List of Prospective Operator's Project Personnel with Qualification

and Experience Data

f.) Commitment from a Reputable Financing Institution (Credit Line)

34
 g.) Safety and Health Program

h.) Certificate of Compliance with Labor Laws

i.) Affidavit of Compliance with the Disclosure Provision

j.) Details of Operation which shall include:

 Vessel plans/design which shall be pre-approved by MARINA

and the Number of Vessels

*Initially, the winning operator shall be required to have a

minimum of ten (10) vessels.

 Operation Schedule

 SOLAS (Safety of Life at Sea) Compliance. Each ship shall

comply with all applicable provisions of MARINA including the
requirements for nighttime navigation.

 MARPOL Compliance. Each ship shall comply with all

applicable provisions of PCG Memorandum Circular Nos. 01-
2001 and 09-2001 on marine pollution.

 Maintenance Program. The operator shall have a

Maintenance Yard and a Fleet Maintenance Program in
accordance with MARINA MC 178.

 Security Plan. A Ship Security Plan approved by the Pasig

River Transport System Operation Center shall be provided for
each ship.

Fare Proposal (Second Envelope)

5. The Evaluating Committee shall endorse the results of the Selection Process to
the Approving Committee. Upon approval, the AC shall issue a Notice of Selection to
the prospective operator and shall send an endorsement to MARINA, for the
issuance of Certificate of Public Convenience.

6. Each vessel to be put into service must have a CPC issued by MARINA. No CPC
application shall be entertained by MARINA without the endorsement from the AC.

7. The selected operator, after meeting the minimum number of vessels with valid
CPC’s as required in this TOR, shall commence its operation.

8. A Contract of Transport Service Operation shall be executed by and between the

Transport Service Operator and the DOTC, MMDA, and PRRC.

9. Operation and Maintenance of Ferry Stations. The ship operator selected shall be
initially given the privilege to operate and maintain the ferry stations, including the
security and ticketing station

a. operator may lease the commercial spaces to concessionaires subject

to the approval of the Pasig River Transport System Operation Center

35
 b. A Contract of Ferry Station Operation shall be executed by and
between the Ferry Station Operator and the DOTC, MMDA, and PRRC.
c. The Pasig River Transport System Operation Center shall exercise
advertising rights over the ferry stations, and may bid out such
advertising rights to interested parties.

10. Under Coast Guard Memorandum-Circular No. 05-07 Pasig River Safety,
Security, And The Governance Of Its Ecosystem, all ships/vessel, barges, ferry
boats, fish carriers, and other means of conveyance used for transporting people
and goods along the Pasig River and its tributaries shall be under the security
monitoring and inspection of the Coast Guard. Any violation to the provisions of
the circular may be penalized under the Circular.

VII. VESSELS FOR RECREATION AND TOURISM

Republic Act 9593 otherwise known as the Tourism Act 0f 2009, vested upon
the Department of Tourism to regulate all business enterprises and activities related
to the tourism industry. Section 39 thereof provides that — In order to encourage
global competitiveness, strengthen data gathering and research on tourism, and
facilitate the promotion of individual enterprises and the industry as a whole, the
Department shall prescribe and regulate standards for the operation of the tourism
industry. Primary tourism enterprises shall be periodically required to obtain
accreditation from the Department as to the quality of their facilities and standard
of services. Accreditation shall be voluntary for secondary tourism enterprises.

Among the services that must be regulated by the Department are the land,
air and sea transport services which caters to tourists.

A. WHITE WATER RAFTING

It is an outdoor recreational activity, considered as an extreme sport and can

be fatal. It is done on white water which means varying degrees of rough water.

White water rafting, as it exists today, really came about after World War 2,
borne out of the surplus of military rubber inflatables - similar in shape, size, and
design to the modern rafts - which found their way into the hands of private
adventurers around North America. Over time, river pioneers and explorers devoted
their time and energy to building safer, more responsive whitewater vehicles, with
state-of-the-art materials and designs. And, thus, what once was strictly an
adventurers’ activity, soon grew to be a multi-million dollar tourism industry across
the world, beyond America, in both first- and third-world nations.

Whitewater rafting in the Philippines is still relatively new, but it has been
gaining a lot of positive reviews and feedback from sports enthusiasts. It started in
Cagayan de Oro City and now it is already being offered other locations.

36
 Locations

Luzon: Chico River in Kalinga Province

Quezon Province River

Sagada in Mountain Province

Ibaloi River in Ifugao

Twin River in Apayao

Visayas Tibiao River in Antique

Calbiga River in Samar

Mindanao Cagayan de Oro City

Davao River

Kabula River in Baungon Bukidnon

Basics

Paddling season starts as the rainy season sets in, usually starting August to
February or March, depending on the amount of rainfall for the year. The rains fill
the rivers to make paddling fun and exciting. So while most people moan about the
torrential rains, rafters celebrate, because the rains usher in our fun-filled season of
rapids.

Equipment:

1. The Raft
A paddle raft- sizes are from an 8-foot “mini” for two or three people, to a
22-foot or longer barge. The smaller the raft, the swifter if flows.
Today’s paddle rafts are designed specifically for whitewater rafting, using
highly durable fabric material like PVC and Hypalon, where seams are fused
together using what they call “heat welding” to ensure that the seams
become a single piece and do not come apart. The operators source it abroad
and have to go through customs inspection.

2. The paddle designed to withstand the toughest conditions

3. The PFD Personal Flotation Device, otherwise called the PFD, or what is more
familiarly called the life vest or lifejacket54.

4. The Helmet. Helmets consist of a sturdy outer shell, a shock-absorbing inner

liner, and a chin harness to keep the helmet on your head. The outer shell is

54PCG MEMORANDUM CIRCULAR NO. 02-14

37
 made out of fiber-glass or plastic or some other strong, rigid material like
Kevlar.

5. Community Safety Equipment

a. The Throw Bag: which is used to retrieve paddlers who are in the water.

b. The Rescue Bag: which is very much like the throw bag but is much more
than just a rope in a bag as it contains a static rope, pulley, carabiners,
prussiks, web slings, 8-ring, harness, accessory cords, and repair kits.

c. Tie Down Straps or Cam Straps: to help secure stuff in the boat

d. Pump: always as a safety back-up

e. First Aid Kit: to treat minor cuts and bruises, broken bones, sprains,
common medicines, etc.

Terms

A whitewater Rafting Operator is called an OUTFITTER

A river guide is called a paddle captain

River Guide Skills Rquirement:

a. River guide training which includes basic equipment repair

b. Understanding the principles of water, able to assess the

movement and potential risk of the water

c. Swift water rescue principles and training

d. Basic first aid and CPR

e. Single Rope Technique (SRT) and basic hauling principles

f. If possible, basic Disaster Assistance and Rescue Training (DART)

River Boarding and White Water Kayaking are other sports Related to
White Water Rafting. These are relatively new in the Philippines at least. As of this
time, it is being offered by some and not all of the rafting companies in Cagayan de
Oro.

Regulation/Licensing:

There is a lack of formal guidelines and standard on whitewater rafting in the

country. The Department of Tourism (DOT) upon the proposal of the operators
is already in the process of drafting guidelines which shall govern the
Whitewater Rafting Industry. The initiatives taken by the Department so far are:

1. Preparation of Whitewater Rafting Product Manual

2. Drafted guidelines for accreditation of river guides and

outfitters

38
 3. Possible granting of tax holiday to outfitters subject to the guidelines to be
developed by DOT and Board of Investments (BOI)

These are all in its initial stages despite the industry’s existence for more than 10
years now. There is no accreditation and licensing system to monitor, improve,
and systematize the procedures by which whitewater operators and outfitters
run their trips, considering that the sport involve risks for clients.

Some Rafting Operators in their own initiative has endeavored to partner with
the DOT in an attempt to set up training modules for river guide training.

There is no standardized the safety gear and equipment used.In the US, for
instance, there is a Safety Code of the American Whitewater Affiliation which is
the bible by which whitewater operators adhere to.

So far, in order to operate a White Water Rafting Outfit, registration and

requirements are just like any other local business, and these are:

1. SEC Registration for corporations and partnerships or DTI Registration for

single proprietorships

2. Barangay Clearance

3. Mayor’s Permit

As to local initiatives, the Cagayan de Oro City Council passed City Ordinance
No. 11087-2008: Prescribing the rules and regulations in the conduct and
operation of whitewater rafting in the city. The ordinance was primarily aimed
to regulate the prices.

Following the death of a tourist in 2014, the City Council passed Ordinance No.
13131-2016, with a provision thereof requiring “all whitewater rafting river guides
shall be required to undergo City Disaster Risk Reduction and Management Office
(CDRRMO) training on First Aid for Sportsmen, CPR/Basic Life Support, Basic
Swimming and Water Safety and Rescue.” The training for the river guides is
generally organized by the Philippine Red Cross.

LAGUNA/PAGSANJAN SHOOTING THE RAPIDS AND BAMBOO RAFTING

The regulations in Laguna and other places is under the jurisdiction of the Municipal
Tourism Office of the Department of the Tourism, the activity being part of the local
ecotourism. What is necessary is for the boatmen to undergo accreditation with the
Municipal Tourism Office, guidelines of which varies from one municipality to
another.

39
 B. WATER SPORTS VEHICLES

These vessels are primarily used for recreation and sports. These vessels
include Jetskis, Banana Boats, Flyboards and Yachts. These vessels are regulated by
both the MARINA and by the PCG. Here are summarized descriptions of these
vessels:

1. Yacht – A recreational boat or ship. The most common construction

material for these vessels is fiberglass, followed by aluminum, steel, carbon
fiber, and Ferro cement. Motor yachts typically have one or two internal
combustion engines that burn diesel fuel or gasoline. Depending on engine
size, fuel costs may make motor yachts more expensive to operate than
sailing yachts. Yacht travel depends on suitable weather conditions, and this
requires the yacht user to follow a specific travel calendar in order to avoid
bad sailing weather.

2. Jetskis – These refer to a personal watercraft of small size. Jet skis typically
can carry 1-2 people seated in a configuration more like a typical bike or
motorcycle. Originally developed and named by Kawasaki, the name has
become synonymous with small personal watercraft.

3. Banana boat (or water sled) – These refer to an unpowered, inflatable

recreational boat meant for towing. Different models usually accommodate
three to ten riders sitting on a larger, main tube and resting their feet on two
laterally flanking tubes which stabilize the boat. The main tube is often
yellow and banana-shaped. Some models have two main tubes.

4. Fly board – Refers to a type of jetpack which supplies propulsion to drive

the Fly board through water to perform a sport known as fly boarding. A Fly
board rider stands on a board connected by a long hose to a watercraft.
Water is forced under pressure to a pair of boots with jet nozzles underneath
which provide thrust for the rider to fly up to 15 m (49 ft) in the air or to dive
headlong through the water down to 2.5 m (8 ft).

Registration:

The documentary requirements and procedure shall be the same as what was
previously provided for under the registration of ships.

PCG Inspection

Under Memorandum Circular No. 02-14, the owner/operator of recreational

watercraft shall submit a record of registration of their recreational watercraft at
the nearest PCG Station/Detachment for purposes of monitoring all watercrafts
operating in AOR.

The PCG may conduct safety inspection to PWC, human-powered pleasure

craft and motor boats used for recreational activities prior to departure or during

40
boating operation, as the case maybe.

In the course of conduct of safety inspection, where the PCG finds clear
ground to believe that the PWC, human-powered pleasure craft and motor boats or
its equipment or crew do not correspond substantially with the requirements of
applicable safety standards, it is authorized to impose detention or suspension of
operation of said recreational watercraft.

The PCG Station/Detachment shall designate the sailing routes in their

respective areas of responsibility where all recreational watercraft can only
navigate except during emergency situations.

Guidelines For Safety Operation Of Recreational Watercrafts

The PCG Memorandum Circular No. 02-14 further provides for guidelines for
safety operation of recreational watercrafts:

1. Vessels of 1,000 gross tons or below shall not sail, except to take shelter,
when PSWS (Public Storm Warning Signal) number 1 is hoisted within its
point of origin or route or point of destination. Vessels of any tonnage shall
not sail, except to take shelter, when PSWS number 2 or higher is hoisted
within its point of origin or route or point of destination.55

2. If every person on board a Personal Water Craft(PWC), Sailboard, Kite

board, Surf board and water rafting, Human Powered Pleasure Craft and
Motor boat is required to wear a personal flotation device or a lifejacket of an
appropriate size.

3. In addition, the PWC is required to carry on board only the following safety
equipment:

a. A sound-signaling device (i.e. whistle);

b. Any means of communications such as handheld radio or cellular

phone (must be packed in a watertight casing) capable to contact PCG
or any person at the nearest beachfront;

c. A watertight flashlight or three pyrotechnic distress signals other

than smoke signals; and

d. A magnetic compass, if the personal watercraft is navigated out of

sight of seamarks;

4. The sailboard or kite board is required to carry on board the

aforementioned equipment except the magnetic compass.

5. Human-powered pleasure crafts and motor boats shall also carry on board
the same safety equipment as that of the PWC, and in addition, a bailer; or
manual bilge pump.

55PCG MEMORANDUM CIRCULAR NO. 01-09

41
Responsibilities Of The Owner/Operator

Ensure that:

1. The safety equipment or paraphernalia required in a certain type of

watercraft is available onboard during boating operations;

2. The operator/driver of the watercraft including its passenger is not under

the influence of liquor;

Advice that:

1. The operator/driver of the watercraft including its passenger is wearing a

floatation device or lifejacket at all times

2. The operator/driver of the watercraft to navigate only in the designated

sailing routes duly established by the PCG; and Report boating accident/s to
the PCG in compliance to HPCG Memorandum 06-90 (Marine Protest) within
24 hours.

Responsibilities of The Operator/Driver

1. Navigate only in the designated sailing routes duly established by the PCG
Station/Detachment in their respective areas of responsibility except during
emergency situations;

2. Exercise due diligence in the operation of the water craft and responsible
for the safety of all the passengers including those passengers in towed
Banana Boat/s or floating platforms;

3. Ensure that all passengers/riders of boats must wear a personal floatation

device or life jackets at all times;

4. Ensure all safety equipment or paraphernalia required in the watercraft is

available onboard before boating operations;

5. Report boating accident/s to the PCG in compliance to HPCG Memorandum

06-90 (Marine Protest) within 24 hours; and

6. Ensure that no passenger/s is/are under the influence of liquor while

riding on the watercraft.

C. SPEED BOATS

Speed Boat is under the term High Speed Crafts (HSC) in Memorandum Circular
No. 131 issued by the MARINA. A Highspeed Craft is a craft capable of a maximum
speed, in meters per second (m/s), equal to or exceeding: 3.7 0.1667 where:  =
displacement corresponding to the design waterline (m3 ). The definition
notwithstanding the minimum service speed of the craft shall at least be 25 knots.

Operational Requirements

42
1. Policy guidelines for acquisition of vessels for domestic operations under
Memorandum Circular No. 10456 including the amendments thereto, shall be
adopted. Wooden hulled HSC shall not be allowed for acquisition

2. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE (CPC)

If used for public service, certificate of public convenience is necessary. The relevant
provisions of Memorandum Circular Nos. 80, 57 10658 and 11759, in implementation of
EO 185 and 213, respectively, providing consolidated policy guidelines intended to
promote a more liberal/deregulated atmosphere for liner operations in the
domestic shipping industry, except as herein provided, shall apply.

Operational Limitations:

As a rule, HSC are allowed to operate during daytime only, HSC may be allowed to
navigate during nighttime provided the required aids to navigation and collision
avoidance on the craft are complied with, to the satisfaction of the MARINA.

In cases where night vision equipment (NVE) is not provided, the craft’s operation
shall be restricted to daytime navigation only. Where NVE as provided is fitted,
proper crew training and bridge routine are necessary.

In addition, HSC should have special navigation lights similar to the hovercraft
flashing light for better identification. The above restrictions/limitations shall be
reflected in the craft’s Certificate of Inspection(CI).

The MARINA shall prescribe, motu proprio, sailing schedules that will best serve the
public interest and convenience.

The craft’s operational speed shall be limited to ninety percent t(90%) of its
maximum speed, as defined under this Circular. The craft’s service speed shall in no
case be less than 25 knots. The HSC shall observe maximum docking or berth impact
speeds to avoid causing nuisance in harbors or other confined areas and avoid
damage to the port and/or other vessels; provided, finally, that HSC’s shall not race
each other in any event, time, or place

Number of Passengers

56MARINA

57Policy guidelines in the regulation of domestic water transport service

58IRR for opening the domestic water transport industry to new operators and investors

59IRR deregulating domestic shipping rates

43
The number of passenger for maximum loading shall be based on the number of
permanent seats on board; and,

Only seats approved by the MARINA in accordance with the requirements of The
Code shall be allowed.

Craft Documentation

As required in the Code, several manuals, including detail of their contents, must be
carried on board. These are the Craft Operating Manual, Route Operational Manual,
Training Manual and the Maintenance and Servicing Manual. These manuals must
be submitted to the MARINA for approval.

Manning Requirements And Qualification Of Crew

1.1 HSC shall be completely manned by Filipino officers and ratings except as
authorized by the MARINA.

D. SUBMERSIBLE PASSENGER CRAFT (SPCRAFT)

Submersible Passenger Craft (SPCraft) is a passenger-carrying mobile vessel for

leisure and tourism purposes. It is classified as a miscellaneous ship under Marina
Circular No. 2013 – 02. It refers to all other ships not falling under any classes of
ship identified under Regulation I/5 paragraph 4.2 of the RPMMRR 1997, to include
wing-in-ground (WIG), amphibian, submarine, hydrofoil, hovercraft, floating
restaurants and tandem push boat. It primarily operates underwater and relies on
surface support, e.g a surface ship or shore-based facilities, for monitoring and for
one or more of the following: .

1 recharging of power supply; .

2 recharging high pressure air; and, .

3 recharging life-support.

Regulation of SPCraft is embodied in Memorandum Circular No. 2013-07, which

applies to all SPCraft in the domestic trade involved in the carriage of passengers.
Submersibles that would be used only for commercial transport of persons and
cargo are required to produce the same requirements as any other ship. When used
for tourism purposes, it shall also be accredited by the Department of Tourism.

Requirements Prior To Operation:

Submersibles that will be used either for commercial transport of persons are
required to produce the same requirements as any other ship, for the reason that it
still falls under the definition of a ship under RA. 9295 and its implementing rules.

44
 1. It shall be registered under the provisions of MARINA Memorandum
Circular No. 2013 – 02 and its subsequent amendments prior to its
operation.60

2. It should be issued a Submersible Passenger Craft Safety Certificate

(SPCSC) and

3. The SPCraft Pilot and Assistant Pilot should also be issued a Submersible
Passenger Craft Certificate of Competence following the required survey
of the craft.61

4. The Limiting Operational Conditions and the Limiting Environmental

Conditions shall be specified, among other requirements. A Minimum Safe
Manning Certificate shall also be issued under the provisions of MARINA
Memorandum Circular No. 2012 – 06 and its subsequent amendments.

5. Shall be required to secure Certificate of Public Convenience 62

Competence Of Pilot And Asst. Pilot

1. The minimum license of a SPCraft Pilot and Assistant Pilot shall be pursuant to the
requirements under MARINA Circular No. 2012 – 04 and its subsequent
amendments

2. Each SPCraft Pilot and Assistant Pilot should be trained in accordance with the
approved training program developed by the Craft Manufacturer and as determined
by the Company, in all aspects necessary to safely operate the SPCraft under normal
and emergency situations.

3. After having passed all the requirements of the Company, each SPCraft Pilot and
Assistant Pilot should be recommended for the issuance, by the Administration, of a
Certificate of Competence.

Domestic-Certificate of Competency (D-COC), previously referred as Qualification

Document Certificate (QDC)) in MC 164 series of 2001, refers to a certificate issued
by MARINA attesting to the qualification of the holder thereof to serve in a specified
capacity and the limitation/s, if any.

E. AMPHIBIOUS VEHICLE

An amphibious vehicle (or simply amphibian), is a vehicle or craft, that is a

means of transport, viable on land as well as on water

60REVISED RULES FOR THE REGISTRATION, DOCUMENTATION AND DELETION OF SHIPS OPERATING IN
PHILIPPINE WATERS, MARINA

61MARINA Circular No. 2012 – 04 and its subsequent amendments

62Pursuant to Republic Act No. 9295

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 Along with submersible crafts, it is also classified as “Miscellaneous Ship”. Such
vehicles necessarily require the same procedure of registration and under the
regulation of the same agencies as any ship.

Should the owner or operator of the amphibious vehicle choose to use it as a

commercial transport of cargo and/or passengers, he must also comply with the
requirements of obtaining a certificate of public convenience under Memorandum
Circular No.39 (Policy Guidelines on the Issuance Certificates of Public
Convenience).

If the owner or operator chooses to use the vehicle exclusively for tourist use, he
must comply with the additional requirements set forth under RA. 9593 (The
Tourism Act of 2009).

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