The Philippine Ports Authority (PPA) has clarified that they are not the agency that initiated the looming implementation of a Centralized Ticketing System (CTS) once the Electronic Terminal Management System (ETMS) rolls out this year, but rather the Anti-Red Tape Authority (ARTA).

PPA General Manager Atty. Jay Daniel Santiago on Wednesday aired the clarification after the Philippine Inter-Island Shipping Association (PISA) wrote to Transportation Secretary Vince Dizon requesting the abrogation of Administrative Order (AO) No. 12-2019 or the CTS issued by the PPA on 18 November 2019, as well as the removal of the CTS from the ETMS.

The PISA letter addressed to Sec. Dizon, signed by its president, Mark Mathew Parco, and Executive Director, Atty. Pedro Aguilar, on 11 April, states that their request is based on their position that AO No. 12-2019 is without legal basis, unconstitutional, and detrimental to the shipping industry, passengers, and the economy as a whole, highlighting that the order is an unnecessary and intrusive measure that disregards existing private-sector solutions, disrupts business operations, and raises serious concerns about government overreach, data privacy, and economic inefficiencies.

Reacting to this, Santiago said, “No less than ARTA required the adoption by PPA of an online ticketing system.”

Further, Santiago hit the statement of PISA, stating that no less than two Transportation Secretaries, namely Secretary Arthur Tugade and Secretary Jaime Bautista, have deemed such PPA policy unnecessary and redundant and held the same in abeyance.

“It’s not true that Sec. Tugade deemed the PPA policy unnecessary. In fact, it was during his term as PPA Chairman when that policy was adopted. And it was Sec. Tugade, who gave the directive to adopt such a policy. On the other hand, Sec. Bautista signed off on the JMC (Joint Memorandum Circular) initiated by ARTA requiring the adoption by PPA of an online ticketing system for Matnog,” Santiago told the DAILY TRIBUNE.

This paper is yet to receive comments from ARTA as of this posting.

Section 5 (Streamlining and Automation of Processes through a One-Stop Shop) of the Joint Memorandum Circular titled “Implementation of Measures to Address the Congestion In and Around the Vicinity of the Port of Matnog,” states that “To alleviate the problem of long queues and congestion, the PPA, in collaboration with the concerned agencies, shall develop an online portal wherein truckers and other rolling cargoes, vehicle owners, passengers, and other stakeholders who avail themselves of services at the Port of Matnog may reserve and pay for a ticket in advance of their arrival at the port. Payment shall be made through the online portal. Only those with confirmed online bookings, with relevant fees fully paid, will be allowed entry to the Port of Matnog.”

PISA arguments

Based on the letter of PISA to Secretary Dizon, it argued that AO 12-2019 is an ultra vires act of PPA, stating that the PPA “is bereft of any authority to issue the questioned administrative order requiring a centralized ticketing system for domestic RoRo/passenger ships calling at ports under the jurisdiction of the PPA and their riding passengers.”

“Clearly, its Charter does not empower the PPA to regulate the processing, booking, or collection of payments from passengers inasmuch as the PPA’s corporate authority is strictly limited to port operations and logistics, such as berthing, mooring, towing, docking, cargo handling, and warehousing. There is no mention of ticketing, fare collection, or any authority over the financial transactions between shipping operators and passengers,” the PISA executive said, noting that Section 6(a)(v) of Presidential Decree No. 857 (PD No. 857), (PPA Charter) “does not grant the PPA the power to regulate, impose, or mandate the adoption of a centralized booking and payment system for shipping lines.”

Further, the PISA disclosed, quoting Section 26 of PD No. 857, which pertains to the PPA’s rule-making authority, that likewise does not extend to private business transactions, thus: “Section 26. Power to Make Port Regulations (a) The Authority may, after consultation with relevant government agencies, make rules or regulations for the planning, development, construction, maintenance, control, supervision, and management of any Port or Port District and the services to be provided therein, and for the maintenance of good order therein, and generally for carrying out the purposes of this Decree.”

PISA said that while the provision grants the PPA the power to regulate port operations, it does not extend to the commercial decisions of shipping lines, including how they manage ticketing and payment collection.

“Certainly, the booking and fare collection process is a fundamental aspect of business operations that falls within the management prerogative and discretion of shipping companies. The PPA, therefore, has no authority to interfere in these private commercial transactions, most especially in the absence of any legal mandate,” the PISA official said.

The group maintained that most shipping companies already have working online ticketing systems that efficiently manage bookings, payments, and passenger data.

“Barkota, for instance, is already successfully integrated into major ferry operators, which makes PPA’s intervention redundant and unnecessary. By centralizing ticketing under the government’s control, the PPA will severely disrupt an already functioning system and force companies to abandon their investments in their booking platforms, which will certainly result in additional costs, inefficiencies, and business uncertainty,” the PISA official stressed, among other arguments.

In his inspection at the Batangas Port before Holy Week, DoTr Secretary Dizon ordered the PPA to relaunch the ETMS at the Port of Batangas to avoid overloading and long lines of passengers securing vessel tickets.