Processing of Private Port Permits is primarily governed by CPA Administrative Order 02-2010 or the Omnibus Policy on the Development, Construction, and Operation of Private Ports under the Jurisdiction of Cebu Port Authority. This Policy is effective as of August 2010.

Nature of Operations

Private Ports are classified according to its nature of operations. A port may operate either commercially or non-commercially or both. A commercial port is a port facility which offers its port and services to the general public. A non-commercial port is a facility constructed, owned and operated by a private person or entity as a component of or accessory to its own business or principal economic activity and which does not offer its facilities and services to the general public. Its use by third party is only incidental to its operation of the port in view of the availability of specialized and dedicated cargo handling gears and equipment used to handle, usually homogenous cargo, unique to the private port facility, and conducted on a limited and non-commercial basis.

Parameters and Guidelines for Private Commercial Ports

In considering an application for a Permit to Develop, Construct and Operate a private commercial port, the following parameters must be observed:

• That it is not intended to operate as a general cargo port;
• That it does not duplicate an equally functional facility or service adequately provided by the nearest government port or existing private port authorized by the Authority to operate, but that it provides for a facility and/or service which the government port is incapable of providing, when deemed necessary by the Authority;
• That it should be obligated to accommodate spill-over demands from government ports when deemed necessary by the Authority;
• That in totality, its sole purpose is to supplement the market demand for berths, storage, and/or services.

Procedure for Application and Applicable Fees

As a general rule, all applications for the development, construction and operation of private ports shall be granted subject to compliance with this Order and other government laws and regulations.

PERMIT TO CONSTRUCT PORT

Application for a Permit to Construct shall be submitted to the Office of the General Manager for evaluation and approval of the Cebu Port Commission.

For reference purposes, the requirements for application of Permit to Construct shall include the following:

1.       Letter of Intent

2.       Site / Location / Distance / Accessibility of applied foreshore area from other ports / public utilities and infrastructure

3.       Project scope, description and technical specification

4.       General port lay-out plan and development plan

5.       Construction and building plans

a.       Plan and working drawings duly signed and sealed by a licensed Civil Engineer

b.      Technical Specifications

c.       Detailed Estimates

d.      Design Analysis of the structure duly signed and sealed by a licensed Civil / Structural Engineer

6.       Company profile, to include a brief of its owner s/stockholders

7.       For private port facilities constructed on foreshore lease area, 2 copies of DENR Environmental Compliance Certificate (ECC)

8.       Photocopy of award of DENR Foreshore Lease Agreement (FLA)

9.       A copy of CPA certification that the area applied for is not a part of the CPA development plans, to be issued by the Engineering Services Department (ESD) of CPA

10.   For private port facilities constructed along river banks or reclaimed lands, two (2) certified true copies of land titles

11.   One (1) photocopy of SEC Registration

12.   One (1) photocopy of Articles of Incorporation and by-laws

13.   Business Plan (Format attached as Annex “B”)

Permit to Construct Fee – upon approval, the applicant shall pay the corresponding fee:

PERMIT TO OPERATE PORT

Private port investors who have satisfactorily established new port infrastructures as well as port owners/operators who have developed and operated their facilities prior to the Authority’s creation shall register with the Cebu Port Authority.

A Certificate of Registration/Permit to Operate (COR/PTO) shall be issued to newly constructed ports, existing private ports without any valid permit, existing ports with Temporary Certificate of Registration and those applying for Renewal of Permit to Operate upon compliance with the following requirements:

The application for Permit to Operate a newly constructed port, whose Permit to Develop and Construct has been earlier approved by the Authority, shall include the following:

1.       Permit to Develop/Construct

2.       Project Completion Report as inspected by the Authority

3.       As built Plans

The application for Permit to Operate an existing port without any valid permit with CPA shall include the following:

1.       Letter of Intent addressed to the General Manager

2.       Site / Location / Distance / Accessibility of applied foreshore area from other ports / public utilities and infrastructure

3.       General Port Layout Plan and Development Plan

4.       Company Profile, to include a brief of its owners / stockholders

5.       As-built Plans and Accomplished Project Completion Report and Actual Cost of the Project

6.       For private port facilities constructed on foreshore lease area, a copy of DENR Environmental Compliance Certificate (ECC)

7.       Photocopy of award of DENR Foreshore Lease Agreement (FLA)

8.       A copy of CPA certificate that the area applied for is not a part of the CPA development plans, to be issued by the Engineering Services Department (ESD) of CPA

9.       For private port facilities constructed along river banks or reclaimed lands, two (2) certified true copies of land titles

10.   One (1) photocopy of SEC Registration

11.   One (1) photocopy of Articles of Incorporation and by-laws

12.   Business Plan (See Format below for reference)

13.   Upon approval, the applicant shall pay the corresponding fee:

              a.  Project Cost below Php 10 Million = 200% of the applicable Permit to Construct Fee + VAT

              b. Project Cost is Php 10 Million and above = 200% of the applicable Permit to Construct Fee plus 1/10 of  1% of the excess of Php 10 Million, but not to exceed Php 100,000.00 + VAT. Provided, that in case the actual cost is more than the project cost, the permittee shall be liable to pay the difference.

The application for a Permit to Operate an existing port with temporary certificate of registration or for Renewal of Permit to Operate with the Authority shall include the following:

1.       Letter of Intent addressed to the General Manager

2.       Site / Location / Distance / Accessibility of applied foreshore area from the ports / public utilities and infrastructure

3.       General Port Layout Plan and Development Plan

4.       Company Profile, to include a brief of its owner / stockholders

5.       As-Built Plans and Accomplished Project Completion Report and the Actual Cost of the Project

6.       For private port facilities constructed on foreshore lease area, a copy of DENR Environmental Compliance Certificate (ECC)

7.       Photocopy of award of DENR Foreshore Lease Agreement (FLA)

8.       A copy of CPA certificate that the area applied for is not a part of the CPA development plans, to be issued by the Engineering Services Department (ESD) of CPA

9.       For private port facilities constructed along river banks or reclaimed lands, two (2) certified true copies of land titles

10.   One (1) photocopy of SEC Registration

11.   One (1) photocopy of Articles of Incorporation and by-laws

12.   Business Plan (See Format below for reference)

Business Plan Format for application of Permit to Construct / Permit to Operate Private Port

I. Introduction

A.      Project Background

B.      Company Ownership

C.      Company Mission

D.      Company Vision

II. Existing Marketing Situation

A.      Marketing Strategy

B.      Market Research and Profile of the Target Market

III. Operations / Technical Plan

A.      Organization Plan

B.      Operations Strategy and Structures

C.      Operations Capacity

D.      Procedures for Operations

E.       Systems Control and Mechanics / Processes

IV. Financial Projections

A.      Projected Revenue / Demand

B.      Costing

C.      Operating Expenses

D.      Projected Gross Margin

PERMIT TO OPERATE FEE

Upon approval of Permit to Operate, there shall be a Privilege fee to be paid to the Authority every first quarter of every year during the effectivity of the COR/PTO, as specified below:

Note: All private ports that handle both non-commercial and commercial cargoes shall be considered as private commercial ports.

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