REGULATIONS ON COMPULSORY TUG ASSISTANCE AT PORT OF BATANGAS

1.1    Section 6 (a) (ii) (iii) (v) and 20 of P.D. 857
1.2    Section 12 of PPA AO No. 03-85

2.         SCOPE

This Order shall cover all foreign and domestic vessels with 500
GRT and above which dock/undock at the Baseport of Batangas and all
ports within the jurisdiction of the Port Management Office (PMO) of
Batangas.

3.         OBJECTIVE

To protect government port facilities and marine environment and
to ensure the safe maneuvering of vessels at the Baseport of Batangas
and all ports within the jurisdiction of PMO-Batangas through the use of
tugs.

4.         GUIDELINES

4.1    Responsibility for Ensuring Availability of Tug Assistance – The
Authority (PPA) shall provide tug assistance service by authorizing
shipping companies or private entities to provide such service on a
non-exclusive basis.

4.2    Permit to Operate Tug Assistance

4.2.1  Only tug operators with a valid Permit to Operate (PTO)
issued by PMO-Batangas shall be allowed to render tug assistance
service, subject to the requirements of other agencies. The tug operator
shall provide the equipment needed to render efficient service.

4.2.2  Tugboats towing barges/lighters are exempted from the
above required annual permit when utilized solely for their own
barges/lighters. Otherwise the above permit is required when servicing
other vessels for purposes of this regulation.

4.3    Table of Tug Requirement – Tug assistance requirements
shall be determined on the basis of the gross registered tonnage (GRT)
of the vessels and capacity (HP) of the tugs in accordance with the
following specifications:

4.3.1  Provided, that the Master of a vessel may opt to avail tug
assistance on vessel with less than 500 GRT depending on the prevailing
weather condition.

4.3.2  Provided, further, that vessels with both functional and
stern side thrusters of sufficient capacity are exempted from the above
requirement. Vessels with functional bow thrusters only are required to
have 50% of the above horsepower requirements.

4.3.3  Non-propelled vessels such as barges/lighters are likewise
exempted from the above requirement. However, they are still required to
maintain their own tugboats while at berth in accordance with PPA
Memorandum Circular No. 22-86.

4.3.4  In no case shall any vessel with 500 GRT and above be
allowed to dock/undock at the baseport of Batangas without the above
specified tug assistance. For other ports within the jurisdiction of
PMO-Batangas, the same tugboat horsepower requirements shall be followed
when any of the conditions provided for in Section 12(c) of PPA AO No.
03-85 necessitating compulsory tug assistance is present.

4.4    Rates for Tug Services- Consistent with existing
applicable laws, the Authority shall prescribe fees and rates for tug
assistance in consultation with port users concerned. In the absence of
applicable fees the rates chargeable shall be those that are agreed upon
between the shipping company and the tugboat operator. In case of
disagreement between them the Authority shall determine the rates.

4.5    Liability for Damages to Port Facilities – Any
damage caused to port facilities by vessels under tug assistance service
shall be the liability of the party/parties declared at fault, as
determined under existing applicable laws and regulations.

5.         SEPARABILITY CLAUSE – If for any reason
or part of this Order is declared unconstitutional or invalid by
competent Authority, the declared or invalid section or part thereof
shall not affect the other sections or parts to which such declaration
or nullity does not apply or relate.

6.         REPEALING CLAUSE – All PPA orders which are inconsistent herewith are hereby repealed or amended accordingly.

7.         EFFECTIVITY

This Order shall take effect fifteen (15) days after its publication in any newspaper of general circulation.

Adopted: 23 Oct. 2000

(SGD.) JUAN O. PEÑA
General Manager