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The fiber of PPA-PMO CDO’s port in public service is all about the clients - where
they can get an efficient, productive, and hassle-free enterprise from their cargoes. In
essence it is all about time, cost and quality of service - how quickly the clients can do
their business with a port, what it will cost, how well-informed they are about each step
in the process, how accurate is the information associated with their billing and how
safe and secure are their products and their transactions. All of this revolves around
ABCO, which clearly is getting most of the demands in cargo transactions and serving
the public.
The paper first cites PPA’s early computerization phases, how its implementation
began, and the regressive impacts it made, forcing the GOCC to create procedures in
UNISYS to continue the project. From this, it is expressed how ABCO officers usually
operate in sync with the harbour department and with each other using the
ABCO personnel; (b) lack of personnel training, seminars and workshops; (c) slow
online intranet connection and; (d) poor duty schedule management. Each one is cited
interests within the processes, which sometimes, at some point, overlap and create
conflicting mechanisms.
resolution to the problems: (a) a web-based, streamlined terminal operations policy; (b)
improving or upgrading the available internet services; (c) PPA-PMO CDO mass hiring
personnel capacity-building.
Introduction
Ports are the link between maritime and land-based trade. Traditionally ports
were located where the geography was favourable. In some cases this meant that the
coastline at that point provided a sheltered anchorage, Sydney and Freetown in Sierra
Leone are examples. Other ports were located near the mouths of rivers, enabling river
and sea traffic to meet. The one in Cagayan de Oro is an example. Others are to be found
on straits between landmasses like Istanbul or where major trade routes pass such as
Singapore. These advantages resulted in many ports becoming major cities. The
convergence of land and sea trade encouraged the growth of industrial and commercial
activities in the area, so that many ports became major economic and industrial centers.
During the last few decades, however, ports have changed. As trade and industry
grew, so did the traditional city-center ports became too small and congested to cope
with demand. The Cagayan de Oro port in Macajalar Bay eventually became alive and
busy, becoming the largest in terms of revenue, facilities and serviced clients in
Northern Mindanao. This supports and encourages commercial activities in the region
and the surrounding areas. Ships and their corresponding cargoes grew in size and
number. Services should meet this increasing demand. In this regard, a 150-meter wharf
is currently being constructed. When completed, the total berth length would be
from a broad spectrum of business owners and port users. This is the trend slowly
happening in the Port of Cagayan. But experience showed that in addition to physical
changes, we need to reconsider the approach to the regulations and paperwork involved
in trade. For there is little doubt that in some cases trade is being held back by practices
that are no longer suited for modern conditions. Most regulations are essential - but
sometimes they come to be not only unnecessary but as a positive burden on the
As the main forum for business transaction in Port of Cagayan, the ABCO
Prior to the creation of PPA, port administration in the Philippines was merged
with the traditional function of revenue collection of the Bureau of Customs (BOC). Port
and harbor maintenance was the responsibility of the Bureau of Public Works (BPW). In
the early 1970's, there were already 591 national and municipal ports plus 200 private
ports scattered all over the country necessitating the need for long-range planning and
development, operations and regulation at the national level. Around this time, the
Bureau of Customs had proposed to the Reorganization Committee and to Congress the
cargo handling and port development and maintenance to enable the Bureau to
concentrate on tax and customs duties collection. Moreover, the World Bank, as a
condition for the grant of a port development loan in 1973, stipulated the creation of a
countries led to improved port operations, it was felt that the same benefits could be
derived with a national port authority to administer and manage the country's ports.
Hence, the Philippine Ports Authority was created under Presidential Decree No. 505
which was subsequently amended by P.D. No. 857 in December 1975. The latter decree
broadened the scope and functions of the PPA to facilitate the implementation of an
maintenance of ports or port districts for the entire country. In 1978, the charter was
further amended by Executive Order No. 513 the salient features of which were the
granting of police authority to the PPA, the creation of a National Ports Advisory
Council (NPAC) to strengthen cooperation between the government and the private
sector, and the empowering of the Authority to exact reasonable administrative fines for
specific violations of its rules and regulations. By virtue of its charter, the PPA was
attached to what was then the Ministry of Public Works and Highways (MPWH) which
also served as the executing agency for all port construction projects. Under this set-up,
PPA prepared the general plans, programs and project priorities while the MPWH was
construction projects.
The PPA was subsequently removed from under the jurisdiction of the MPWH
of Executive Order No. 159, which was issued in 1987, the PPA is now vested with the
function of undertaking all port construction projects under its port system, relieving
DPWH of this responsibility. The executive order also granted PPA financial autonomy.
PPA-PMO CDO
The development of the port of Cagayan de Oro came in two packages. In 1977,
the construction of Phase I commenced and was completed in 1980. The port
construction was worth P52.31 million. Operations experience the easing of both
The new port is a major takeoff from the old wooden port. The combined spaces
of th whole wharf (Phase I and Phase II yield a total area of 18.66 hectares. The
infrastructure has completely changed the features of the port from a very limited
The PROMPT
In 2002, the PPA started its program called PROMPT (Providing Reliable
Operations and Management of Ports Thru Technology) that covers the automation of
the PPA’s business processes across functions. These processes and functions include
the Port District offices to Port Management offices, and the head office operations in
Manila. One of its components is the accounting and financial management system,
ventured beyond PROMPT to look for better, more sustainable options. The technology
firm, UNISYS Philippines, was contracted to modernize the state ports’ operations and
collect more money. The PPA has earmarked about P141 million in 2006 to establish its
project in all over more than a hundred ports in the country that it owns and operates.
A report by the Commission on Audit (COA), however, showed that some reports
using the computerized system in 2006 from North Harbor and PPA’s port management
office in Davao were “inaccurate” and caused an unrecorded PPA income of P5.35
million.“Management [PPA] explained that the facility for the ageing schedule of
and correctness of the reports generated in the system cannot be ensured with several
and the Accounting and Financial Management System [AFMS].”1 COA advised PPA
management should require the Unisys, the contractor for PPA’s computerization
project, to enhance the POMS and AFMS modules in order that the Statements of
Accounts of clients are reconciled with the balances of debtor’s accounts appearing in
1
COA PPA Financial Report, 2006
2
VG Cabuag, BusinessMirror, 2007
ABCO is where you have your cargoes transacted, assessed and billed 3. Located
inside the PPA-PMO building, it is open twenty-four hours, three hundred and sixty five
days a year. More often than not the transaction process is smooth. Although during
peak hours, about 10:00 a.m. to 4:00 p.m., things could really get crowded4.
Transactions are generally processed through the PPA online computerized system
(Appendix). However in cases wherein the internet provider or the UNISYS systems
event of a power failure, then the ABCO assessment and billing processes can be
Harbor Factor
determines the start of the assessment of cargoes in the PPA. Each docking vessel
submits a final manifest report5 and a filled-up Notice of Arrival and Application for
Berth/Anchorage form to the Harbor Department supposedly two days prior its actual
dockage (at berth or anchorage). The latter carries with it the vessel’s relevant
information (Appendix), which the Harbor Master then encodes into the Port
Operations Management System (POMS). This generates the Ship Call Number (SCN)
and serves as the base information used in assessing the cargoes for further assessment
use appropriate rates and computations for varying transactions (Appendix). From
millions of pesos worth of 40-footer foreign containers to just the current minimum
charge of Php22.85, they are able to adjust instantly and constantly. The multi-tasking
After the twelve-digit SCN is generated into the system by the Harbor Master, the
TOO on duty can then encode the given data from the port user’s Bill of Lading into the
POMS. This records the computed cargo assessment into the system and allows for the
issuance of a Cash Invoice to the said cargo. This, along with the Bill of Lading, Arrastre
Cash Invoice, and Withdrawal Slip (for withdrawing cargoes), is passed on to the
Cashier/Collector.
Collection
Using the recorded data in the system and the issued Port Operations Cash
Invoice by the TOO, the Collector can then determine the amount to be paid by the port
user for his/her cargo. After the payment is done, the Collector hands over to the
customer his/her copy of the PPA Official Receipt and Port Operations Cash Invoice.
These papers, along with his/her copy of the Withdrawal Slip (if withdrawing cargoes),
Bill of Lading, and Arrastre Cash Invoice are checked by the security guards and
To those who do not have gatepass stickers on their vehicles and need to access
the port by means of a vehicle, they would have to buy their Vehicle Passes from the
Gatepass Collector at Window 7. Without it, they cannot enter the gate. Each type of
entering vehicle has its own corresponding rate and charge (Appendix).
Aside from cargoes, they also collect charges from PPA’s services to the shipping
vessel itself (Appendix). Dues from violations, access to the photocopying machine,
dangerous cargoes, excess storage use, and the like are also collected.
modernization of PPA’s ports. It should help the GOCC in meeting international port
standards (Appendix). Because it is so new and the scale is so huge, it literally changes
the working environment of the PMO. The underlying potential of the project is clearly
there and employees understand that. What is most concerning is that the turn-over
UNISYS enables the ports owned and operated by PPA to have computerized
online connectivity. This means all PPA-processed transactions with the port users
should be generated through the online system – at least that is the idea. The Cagayan
de Oro PMO is currently using at least 30 online working computers. Its intranet and
internet capabilities are serviced by Globe and Philcom. The 128 kbps. package is not
enough, especially when shared with that much computer units. Naturally transaction
proceedings slow down. This is a concrete contributor to why ABCO’s online affairs just
take too long. This may weaken customers’ logistics and businesses. Some of them have
tight schedules to comply; others are just not fond of waiting an hour for their cargoes or
Developing Alternatives
Quoting Process
After reservations are made through the PPA-PMO CDO’s website traffic center,
the quoting process can give customers or port users an estimate of costs long before
they enter the port. An entry in the reservation request turns it into an estimate where
more detailed needed calculations can be applied. Each ship call is treated like a project
in itself. Based on the services needed and/or requested and accurate information on the
vessel, cargo and activity involved, ABCO can generate the proper issuance procedure
and send by email, fax, or just leave on line instant messages the estimated amount that
Billing Process
When a vessel arrives in a port, a single click by the port operations manager
turns their estimate (or their reservation request if they did not request an estimate)
into a Sales Order. Every item of billable service can be recorded using the tariff
schedule built into the database manager, and customized calculations for discounts,
mark-ups, and rates based on all types of units of measure this port uses to do business.
As items in the sales order are complete, invoices can be issued on the completed items
long before the vessel departs the port. Harbor fees, berthage, and utilities services may
Collections Process
mail invoices. Customers can pay by credit card on-line, wire transfer, ACH or check.
Clients of the seaport experience a real ROI since they can now manage 24/7 their own vessels
reservations, monitor the movement and activity while in the port. For instance if the port has web-cams
they can click on the berth where loading and unloading is in progress and view the activity. Clients can
also view estimates of expense before they enter the port and pay their deposits and fees due on-line to the
port.
Your Seaport ROI is greatly increased with no hardware or software to install or maintain and
happy satisfied, informed customers. The seaports real-time reporting system keeps them totally
on top of their financial condition and audit ready at all times. Setting up the chart of accounts,
fiscal year, tariff schedule, bank reconciliation interface, and reporting services essential to a
clean internal and external auditing process are easy in i-Seaports.
Real IT ROI
Satisfied Clients Online 24/7
The competition among ports for business is all about the clients - where they can get the best
ROI. ROI is all about time, cost and quality of service—how quickly the client can do their
business with a port, what it will cost, how well-informed they are about each step in the process,
how accurate is the information associated with their billing and how safe and secure are their
products and their transactions. i-Seaports provides this ROI to your clients 24/7 in its Software
Oriented Architecture.
Seaport Reduced IT Costs and Worry
Building your annual Seaport IT budget just became simple - just leave off upgrade costs, web-
servers, backup service, and website hosting. These are all integral to i-Seaports. One budget line
gets them all. You only have to determine the number of "employee" users. Furthermore, i-
Seaports charges your customers nothing so if you have 1000 clients you want to charge for
using this service you can recover your own costs or even profit from this IT investment.
Strong Support & IT Security
i-Seaports is an Oracle database engine hosted by Level 3 Communications (L3) behind a secure
fire-wall with an unprecedented performance record.
Streamlined Billing & Collections Processes
The Quoting Process
After reservations are made through the traffic center, the quoting process can give a customer an
estimate of costs long before they enter the port. A single click of the reservation request turns it
into an estimate where more detailed calculations can be applied. Each vessel call is treated like
a project in itself. Based on the services requested and accurate information on the vessel, cargo
and activity involved, i-Seaports can generate and send by email, fax, or just leave available on
line an estimate of costs that the client may expect
The Billing Process
When a vessel arrives in a port, a single click by the port operations manager turns their estimate
(or their reservation request if they did not request an estimate) into a Sales Order. Every item of
billable service can be recorded using the tariff schedule built into the inventory manager, and
customized calculations for discounts, mark-ups, and rates based on all types of units of measure
this port uses to do business. As items in the sales order are complete, invoices can be issued on
the completed items long before the vessel departs the port. Harbour fees, berthage, and utilities
services may be billed in advance of completing the processing of wharfage of manifests billing.
The Collections Process
The invoices may be delivered as email, PDF attached files, faxes (using built in telephony), or
traditional mail invoices. Customers can pay by credit card on-line, wire transfer, ACH or check
and i-Seaports handles all of these transactions.
Ecommerce Marketing Center
i-Seaports offers extensive marketing advantages for building your port’s business. In addition to
a complete Customer Relations Management (CRM) integration, built-in Ecommerce, web-store
and web-marketing with their reporting and statistical analysis capabilities give you a
competitive edge over other IT solutions.
-Seaports begins and ends with winning, and retaining customer loyalty. Over time your seaport
builds an incredible source of knowledge about every aspect of its business activity and
international trade relations collected in one centrally integrated database. This centralized data
store is a goldmine for internal analysis for planning the future of your business, and external
marketing campaigns and presentations of performance and capabilities in marketing your port’s
services.
Market Driven Environment
Internal Market Focused Processes Empower
Everyone in the enterprise has some relationship with every customer - traffic, communications,
security and finance - and i-Seaports enables you to see and manage that effectively. i-Seaports
enables you to move from an environment of running processes in compartmented vacuums to
treating them as inter-related flows. It enables you to interact with people, processes and
technologies across the entire organization to get your job done, help them do theirs and maintain
high levels of customer satisfaction.
External Market Development Strategy
i-Seaports real-time data from all areas of the port enterprise are centralized in one database —
all transactions, entities, and reports. These can be customized into snapshots and graphs on key
performance indicators and provided through a secure, role based user access. This allows the
seaport enterprise to spend more time growing your business and less time analyzing and
gathering data from desperate sources. The net result is:
Global Trade
Seaport Trade Partnerships are Global
Every enterprise today must think globally to survive. Every enterprise is looking for that trading
partner advantage in other countries that will let them succeed. Capturing and retaining their
business for your seaport depends in large part on how well you can present the assets you
already have, and how well you plan and project your future development to retain their loyalty.
ERP and CRM are Key to Market Share
Global competition is driving enterprises to achieve new levels of efficiency and economies of
scale to gain market share. Enterprise Resource Planning (ERP) and management are
requirements to be in the game. i-Seaports Accounting platform with its Ecommerce focus is
built from this clear understanding. It serves everyone from the dockworker in their own
language, to central governments who require global currencies and removes those barriers to
global trade.
24/7 Operation is Mandatory
Morning here is evening and midnight is noon in your customer's location. The need for a trade
management environment that is available and visible to all 24/7 is no longer optional -- it is
mandatory. i-Seaports communications, instant notifications, remote management and online
24/7 user access meets the requirement. Remote surveillance by port personnel from wherever
they are and collaboration with security and intelligence, is implicit. Client ability to monitor
their own activity interactively with your seaport is the answer.
Acronyms
Definition of Terms
Anchorage - a place with sufficient depth of water where vessels anchor or may ride at anchor
within the harbor.
Berth - part of the pier/wharf that occupied by a vessel, or a place where a vessel may tie up.
Bill of Lading - the written contract of carriage of goods whereby the common carrier for a
consideration agrees to deliver on behalf of the consignor of goods to the consignee at a specified
time.
Container - means any structure so designed to hold and keep articles, materials and products
together inside a hold in a form of boxes, tanks, or the like for singular or unit handling and
transport.
Containerized Cargoes - cargoes packed in containers for easy handling or transportation of same
as a unit.
Domestic Cargoes - cargoes brought to a pier, wharf or bulkhead to and from a port within the
Philippine waters.
Export Cargoes - cargoes brought to a pier, wharf or bulkhead intended for shipment to a foreign
port.
Computerization - to control, perform, process, or store (a system, operation, or information) by
means of or in an electronic computer or computers.
Goods - includes animals, carcasses, baggage, and any movable property of any kind.
Harbor - protected part of a sea, lake, or other body of water used by vessels as a place of safety.
Intranet - A privately maintained computer network that can be accessed only by authorized
persons, especially members or employees of the organization that owns it.
Rates - means any rates or charges including any toll or rent under existing law or imposed by
the PPA for facilities used or services rendered.
Revenue Tonnage - means 1,000 kg’s. or 1.1326 cubic meters (40 cu. ft.) whichever yields the
greater amount of revenue.
Port District - It is a territorial jurisdiction under the control, supervision or ownership of the PPA
over an area (land or sea).
Cargo Manifest - a list of the cargo carried by a ship, made for the use of various agents and port
officials.
Minimum Charge - it is the least amount of payment due from port users based on prescribed
rate.
Outstanding Invoice - remaining unsettled or unpaid itemized bill for goods sold or services
provided, containing individual prices, the total charge, and the terms.
Port - a place where ships may anchor or tie up for the purpose of shelter, repair, loading or
discharge of cargo, or for other such activities connected with water-related commerce, and
including all the land and water areas and the structures, equipment and facilities related to these
functions.
Port User - a paying customer engaging with any of the products and services offered by PPA
and its constituents.
Vehicle Pass - a piece of ticket which allows rolling vehicles to enter the port premises.
Voyage - a course of travel or passage by a ship from one port to another.
Wharfage - is a charge on all cargoes on the basis of the total metric or revenue tonnage,
whichever is applicable.
Stevedoring - a firm or individual engaged in the loading or unloading of a vessel.
Stripping - means unloading goods from a container.
Stuffing - means loading goods into a container.
Appendices
Appendix
Vehicle Pass Rates
Wheels Amount with VAT
Four Php5.60
Six Php11.20
Appendix