Regulation of the Transportation Industry IN THE

Regulation of the Transportation Industry

IN THE BEGINNING… PUBLIC SERVICE COMMISSION AIR LAND WATER

• History • Enabling Law • Mandate • Powers and Functions Prepared by: Vann Allen P. dela Cruz I 2007 -78161 I Transpo Class 1 st Sem, SY 09 -10 I Evening Section

DEPARTMENT of TRANSPORTATION and COMMUNICATION Ministry of Public Works, Transportation and Communications (MPWTC) EO 546 (1979) Ministry of Transportation and Communications (MOTC) Ministry of Public Works and Highways (MPWH)

DEPARTMENT of TRANSPORTATION AND COMMUNICATION Ministry of Transportation and Communications (MOTC) EO 125 Sec. 25. In the event of adoption of a new Constitution… the Ministry shall be called…

DEPARTMENT of TRANSPORTATION and COMMUNICATION The Department of Transportation and Communications (DOTC) is the biggest among the executive departments. It covers road, rail, air, water and communications sectors. To carry out its mandate, it has 14 attached agencies/corporations and 4 line/sectoral offices. The 4 line/sectoral offices are LTO, LTFRB, PCG and TELOF and the 14 attached agencies are TRB, OTC, MRT 3, LRTA, PNR, PPA, CPA, MARINA, MIAA, MCIAA, PADC, CAB, NTC and the newly created CAAP.

DEPARTMENT of TRANSPORTATION AND COMMUNICATION EXECUTIVE ORDER NOS. 125 and 125 -A Reorganizing the Ministry of Transportation and Communications Defining Its Powers and Functions and for Other Purposes

DEPARTMENT of TRANSPORTATION AND COMMUNICATION Sec. 4. Mandate. The DOTC shall be the primary policy, planning, programming, coordinating, implementing, regulating, and administrative entity of the Executive Branch of the govt. in the promotion, devt. and regulation of dependable and coordinated networks of transportation and communication systems, as well as in the fast, safe, efficient, and reliable postal, transportation and communication services. xxx

DEPARTMENT of TRANSPORTATION AND COMMUNICATION (EO 125 -A) Sec. 5. Powers and Functions. (a) formulate and recommend national policies and guidelines for the preparation and implementation of integrated and comprehensive transportation and communications systems at the national, regional and local levels; (b) establish and administer comprehensive and integrated programs for transportation and communications, xxx call on any agency, corp. , or organization xxx to participate and assist in the preparation and implementation of such program; xxx (d) administer and enforce all laws xxx in the field of transportation and communication; xxx (g) issue certificates of public convenience for the operation of public land rail transportation utilities and services; xxx (l) establish and prescribe rules xxx issuance of CPCs for public land transportation utilities, such as motor vehicles, trimobiles, and railways; (m) establish and prescribe rules xxx inspection and registration of air and land transportation facilities, such as motor vehicles, trimobiles, and aircrafts; (n) establish and prescribe rules xxx issuance of licenses xxx; (o) establish and prescribe rules xxx enforcement of laws governing transportation xxx; (p) determine, fix and/or prescribe charges and/or rates pertinent to the operation of public air and land transportation utility facilities and services xxx; xxx

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AIR LAND WATER Prepared by: Vann Allen P. dela Cruz I 2007 -78161 I Transpo Class 1 st Sem, SY 09 -10 I Evening Section

AIR: CAAP and CAB Air Transportation Office Civil Aviation Authority of the (ATO) Philippines (CAAP) EO 125, as. RA 9497 (2008) 125 -A amended by EO Civil Aeronautics Board (CAB) RA 776

Civil Aviation Authority of the Philippines Ruben F. Ciron, Ph. D. Director General

Civil Aviation Authority of the Philippines REPUBLIC ACT NO. 9497 AN ACT CREATING THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES, AUTHORIZING THE APPROPRIATION OF FUNDS THEREFOR, AND FOR OTHER PURPOSES

Civil Aviation Authority of the Philippines Section 4. There is hereby created an independent regulatory body with quasi-judicial and quasi-legislative powers and possessing corporate attributes to be known as the Civil Aviation Authority of the Philippines (CAAP) xxx attached to the Department of Transportation and Communications (DOTC) for the purpose of policy coordination. For this purpose, the existing Air Transportation Office xxx is hereby abolished.

Civil Aviation Authority of the Philippines FUNCTIONS: Establish and prescribe rules and regulations for the inspection and registration of all aircraft owned and operated in the Philippines and all air facilities; Establish and prescribe the corresponding rules and regulations for the enforcement of laws governing air transportation; Determine, fix and/or prescribe charges and/or rates pertinent to the operation of public air utility facilities and services; Administer and operate the Civil Aviation Training Center (CATC); Operate and maintain national airports, air navigation and other similar facilities in compliance to ICAO; Perform such other powers and functions as may be prescribed by law. 16

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Civil Aeronautics Board REPUBLIC ACT NO. 776 An Act To Reorganize The Civil Aeronautics Board And The Civil Aeronautics Administration, To Provide For The Regulation of Civil Aeronautics In The Philippines And Authorizing The Appropriation Of Funds Thereof 18

Civil Aeronautics Board The Civil Aeronautics Board is the agency charged with the power to regulate the economic aspect of air transportation in the Philippines and shall have the general supervision and regulation of, and jurisdiction and control over, air carriers as well as their property, property rights, equipment, facilities, and franchise, insofar as may be necessary for the purpose of carrying out the provisions of Republic Act 776. 19

Civil Aeronautics Board FUNCTIONS 1. Licensing of domestic and international airlines, the latter with the approval of the President (CPCN and TOP) 2. Regulation of fares and rates for the carriage of persons and property; 3. Enforcement of the economic provisions of R. A. 776; 4. Authorization of navigation of foreign aircraft in the Philippines; 5. Participation in the negotiation of air agreements covering exchange of air rights; 6. Approval or disapproval of mergers, consolidations, interlocking relationship and inter-airline agreements; 7. Regulation of air accounting practices and development of air carrier reporting system; 8. Maintenance of public records of tariffs, schedules and other materials required to be filed by air carriers; 9. Assure protection of the public by requiring the performance of safe and adequate air service, eliminating rate discrimination, unfair competition and deceptive practices in air transportation; 10. Suggest corrective measures to improve safety in air commerce; and 11. Adjudication of appeal from safety enforcement decision of the Civil Aeronautics Board. 20

Civil Aeronautics Board Section 11. A CPCN is a permit issued by the Board authorizing a person to engage in air commerce and/or air transportation, foreign and/or domestic. Any permit may be altered, amended, modified, suspended, canceled and revoked by the Board xxx whenever the Board finds such action to be in the public interest. There shall be attached to the exercise of the privileges xxx such reasonable terms, conditions, or limitations as, in the judgment of the Board, the public interest may require. 21

LAND: LTO and LTFRB Land Transportation Commission EO 125 and 125 -A (1987) EO 202 (1987) Land Transportation Office (LTO) Land Transportation Franchising and Regulatory Board (LTFRB)

Land Transportation Office Assistant Secretary Arturo C. Lomibao 23

Land Transportation Office MAIN FUNCTIONS 1. Inspection and Registration of Motor Vehicles 2. Issuance of Licenses and Permits 3. Enforcement of Land Transportation Rules and Regulations 4. Adjudication of Traffic Cases 5. Collection of Revenues for the Government 24

Land Transportation Franchising and Regulatory Board • Evolution of LTFRB Land Transportation Franchising & Regulatory Board (1987) Land Transportation Comm. (1985) Board of Transportation (1979) Specialized Regulatory Boards (1972) Coastwise Rate Comm. (1906) Public Service Commission (1926) Supervising Railway Office (1907) Public Utilities Commission (1914) Board of Public Utility Commissioner (1913) Land Transportation Franchising & Regulatory Board (2005) 25

Land Transportation Franchising and Regulatory Board The Land Transportation Franchising and Regulatory Board (LTFRB) is the agency created by virtue of Exec. Order No. 202, series of 1987, under the Department of Transportation and Communications (DOTC), which handles the issuance of authority to any entity (corporate or individual) wishing to engage in public land-based transportation service. Prepared by: Vann Allen P. dela Cruz I 2007 -78161 I Transpo Class 1 st Sem, SY 09 -10 I Evening Section

Land Transportation Franchising and Regulatory Board q LTFRB MISSION Ensure that the commuting public has adequate, safe, convenient, environment-friendly and dependable public land transportation services at reasonable rates through the implementation of land-based transportation policies, programs, and projects responsive to an investment-led and demand-driven industry. q LTFRB MANDATE To promulgate, administer, enforce, and monitor compliance of policies, laws, and regulations of public land transportation services. 27

Land Transportation Franchising and Regulatory Board EO 202 Sec. 5. Powers and functions: a. prescribe and regulate routes of service, xxx zones or areas of operation of public land transportation services provided by motorized vehicles xxx; b. issue, amend, revise, suspend or cancel CPCs or permits authorizing the operation of public land transportation services provided by motorized vehicles xxx; c. determine, prescribe, approve and periodically review and adjust reasonable fares, rates and other related charges, relative to the operation of public land transportation services provided by motorized vehicles; xxx k. formulate, promulgate, administer, implement and enforce rules and regulations on land transportation public utilities xxx 28

Land Transportation Franchising and Regulatory Board Administrative Code of 1987 Title XV Sec. 15. The quasi-judicial powers and functions with respect to land transportation shall be exercised through the Land Transportation and Regulatory Board. 29

Table of Organization LTFRB BOARD Exec. Director Admin Finance MID Legal Personnel Budget & Fin. DFES Records Mgt Hearing of Cases Gen. Svcs Accounting Svc Assessment Svc Computer Svcs Legal Researchers Equipment & Sup Receipt Custody Confirmation Svcs Adm. Legal Res. Issuance of SP Evaluation & Analysis Adm. Records Mgt. Budget Svc Planning Devt Adjudication & Lit. 30

ORGANIZATIONAL PROFILE LTFRB Information System and Its Environment

WATER: MARINA 32

Presidential Decree No. 474 Providing For The Reorganization Of Maritime Functions In The Philippines, Creating The Maritime Industry Authority, And For Other Purposes 33

PD 474 1. Adopt and implement a practicable and coordinated Maritime Industry Development Program (MIDP) which shall include among others: • The early replacement of obsolescent and uneconomic vessels; • Modernization and expansion of the Philippine merchant fleet; • Enhancement of domestic capability for shipbuilding, repair and maintenance; and • Development of a reservoir of trained manpower. 2. Provide and help provide the necessary: • Financial assistance to the industry thru public/private financial institutions and instrumentalities; • Technological assistance; and • Favorable climate for expansion of domestic and foreign investments in shipping enterprises. 3. Provide for the effective supervision, regulation and rationalization of the organizational management, ownership and operations of all water transport utilities and other maritime enterprises. 34

Promotional & Developmental Functions Formulates and adopt plans, programs, policies, rules and regulations for the promotion and development of the Philippine maritime industry; Promotes the competitiveness of the Philippine maritime industry in the local and global market; Promotes and facilitates investment opportunities in the maritime industry; Implements and enforces international conventions and national maritime laws, rules and regulations and standards on safety, security, training, service, among others; Provides effective transparent and efficient delivery of public service that includes, but not limited to, further streamlining of application procedures and requirements, rationalized standard processing time, and formulation, adoption and implementation of an information technology strategy pursuant to the e-commerce law. 35

Supervisory/Regulatory Functions Controls, regulates and supervises Philippine-registered overseas and domestic ships, maritime manpower, shipyards and other maritime entities through the evaluation/processing of applications covering the four (4) major maritime sectors, namely: (a) domestic shipping sector, including maritime safety, (b) overseas shipping sector, (c) maritime manpower sector and (d) shipbuilding ang ship repair sector. 36

MOA MARINA (First Party) and PCG (Second Party) Chapter 1 PURPOSE The purpose of the Agreement is: a. ) to authorize the Second Party to perform ship safety inspection services in behalf of the First Party; b. ) for both parties to define the coverage, terms, conditions and requirements of such authorization; c. ) to authorize the Second Party to issue-Special Permit to carry dangerous cargoes/goods; d. ) to assist the First Party to perform enforcement activities; and e. ) to provide administrative proceeding for marine casualty or incident. 37

SUMMARY AIR LAND WATER

SUMMARY AIR LAND WATER Regulate OPERATIONS Regulate ECONOMIC ASPECTS * With the PCG regulating some areas of operations as per MOA Prepared by: Vann Allen P. dela Cruz I 2007 -78161 I Transpo Class 1 st Sem, SY 09 -10 I Evening Section

Thank You Prepared by: Vann Allen P. dela Cruz I 2007 -78161 I Transpo Class 1 st Sem, SY 09 -10 I Evening Section