innovate. motivate. integrate

PHILIPPINE PORTS AUTHORITY - PORT MANAGEMENT OFFICE OF SURIGAO A N N U A L R E P O R T 2 0 1 5

innovate. motivate. integrate.

PORT MANAGEMENT OFFICE OF SURIGAO


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Our Cover

The Minimalist Concept and Design Principle informs the PMO Surigao 2015 Annual Report Cover Design. Utilizing the bar-

est essentials without compromising function, minimalism leaves plenty of room for improvement in keeping with the

PMO’s adherence to the concept of “continuous improvement”.

An oversized rectangular block and a color strip at the header – all done in dark blue – are the only design accents used to

emphasize a block collage of images of the Port of Surigao and the Terminal Management Offices of Siargao, Lipata, Tandag

and Dinagat Islands.

Finally, the minimalist approach was chosen to express the PMO’s contention that there is beauty in efficiency and econo-

my. For at the end of the day, three essential things still do wonders for humanity’s continued progress: the constant pur-

suit of INNOVATION, by a MOTIVATED individual/organization in an INTEGRATED community of people.

Innovate. Motivate. Integrate.

contents Message of the Port Manager

Shipping and Trade Performance

Physical Infrastructure Development and Maintenance

Security, Sustainability and People Development

Financial Performance

Income Statement

Notes to Financial Statement

Executive Officers

Jurisdictional Map

Terminal Management Offices 35

Message of the Port Manager

Shipping and Trade Performance

Physical Infrastructure Development and Maintenance

Security, Sustainability and People Development

Financial Performance

Income Statement

Notes to Financial Statement

Executive Officers

Jurisdictional Map

Terminal Management Offices

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“By 2020, PPA shall have provided port services of global standards”

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am pleased to report that in

2015, the Port Management

Office of Surigao remained on

top of its target and goals and

sustained a steady performance

despite the many challenges

caused by the then prevailing global eco-

nomic environment, particularly the slow-

down in China’s industrial sector in the 3rd

quarter which pushed down prices of nickel

and other industrial (mineral) commodities.

Notwithstanding the impact of China’s lukewarm

economy and its effect on the local mining industry’s

exportation of mineral products, the PMO still man-

aged to meet, and even modestly surpass, its 2015

target income of PhP450 million by 6% as total reve-

nue amounted to PhP477 million.

Yet in the face of the challenges posed by a sluggish

global economy, the PMO still managed to gain posi-

tive results in key operational indices and continued

to enjoy modest growths in the volume of business

activities at ports under its jurisdiction and at the

same time, consistently served and satisfied its clien-

tele’s requirements.

And so in celebration of its 38th year on August 01,

2015, the PMO has adopted the theme “PMO

SUG@38: Innovate. Motivate. Integrate.” It

proved to be an inspired choice for it went on to de-

fine our steadfast resolve to do better for the rest of

the year and even beyond.


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n 2015, the PMO put in

place an Automatic Iden-

tification System (AIS)

shore-based station at the

Port of Surigao. Primarily ac-

quired and installed as Aid to

Navigation (AtoN), the PMO how-

ever found another “innovative”

use of the system which proved

to be a boon to collection effi-

ciency.

By connecting the AIS station to a web-

based global AIS network such as the

marinetraffic.com, it gained access to a

variety of services such as keeping a

“voyage history” of all vessels tracked

by (a registered AIS Station) for a speci-

fied number of days (in our case, we

have a PRO plan and entitled to 60

days). This meant that an AIS-equipped

vessel can be tracked by the Surigao

IN

NO

VATE

station through its “movements”

from the date of its arrival (or the

day it was first tracked) up to its

last (tracked) position in the area

within the station’s coverage. The

“movement” (tracked positions)

data of a particular ship is kept and

accessible for 60 days.

Such feature proved to be a game-

changer, particularly in the assess-

ment of port charges due to the

Authority. With the “voyage histo-

ry” data, reliable information as to

the vessel’s exact date and time of

departure can be availed online.

Where before the PMO has no re-

course but to accept the agent’s

word as to the actual port stay, a

few clicks on the website of an AIS

global network (ie. marinetra-

fic.com) are all it takes to verify

claims made by the shipping agent.

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The PMO in 2015 undertook

its first “e-commerce” ven-

ture with the launching of

the Electronic Permits Man-

agement System (e-PMS), an

online business process ap-

plication developed in-house

by the Information and Com-

munications Technology De-

partment (ICTD).

The e-PMS is a web-based system that facilitates the application, approval, and issuance of permits to operate (PTO) Port Ancillary Services (PANSER) and Vehicle/Port Users’ Pass.

With the able assistance of tech-

nical personnel from the ICTD,

port clients with active PTOs were

given hands-on training and

briefing on using e-PMS. To date,

ninety six (96) PTO applications

were successfully issued and

granted under the e-PMS.


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I M

OTIVATE

t has been said that “if you fulfill the wishes of

your employees, your employees will fulfill your vi-

sions.”

In 2015, eleven (11) employees

of PMO Surigao were promoted

to higher positions, six (6) of

which are long-overdue ap-

pointments to management po-

sitions given to those personnel

after years of serving in acting

capacity.

The PMO Surigao Program on

Awards and Incentives for Ser-

vice Excellence (PRAISE) also saw

it fit to recognize PMO personnel

who reached milestones for

years given in service to PPA. On the occasion of PMO Surigao’s 38th Anni-

versary last 01 August 2015, a total of eight (8) personnel were given incen-

tives in the form of cash corresponding to the number of years in service,

and a plaque of recognition.

To foster harmonious relation-

ship and camaraderie among its

personnel, the PMO ensured

that “Family Day” is conducted

every quarter. The 1st Quarter

Family Day was a two-in-one

event for it also served as

“Pagpupugay” for the retirement

of then RMD Manager, Teresita

S. Maquiling. The 2nd and 3rd

Quarter fellowships were held

respectively in Siargao islands,

and the windswept Sayagbanog

Island, a bird sanctuary tucked in between Nonoc and Dinagat Islands . Both

of these quarterly gatherings featured an island-hopping adventure at

various sites . The 4th quarter shindig featured a full, two-day island ex-

ploring of the best that the Dinagat group of islands offered .

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o promote healthy be-

havior at the workplace

and encourage PMO Surigao

personnel to be physically fit,

Wellness programs are put in

place at PMO Surigao.

Hence, to afford employees the op-

portunity to take a break and visit oth-

er places, the annual wellness semi-

nars are held in out-of-town sites (like

“educational tours”) with PMO per-

sonnel organized into two batches

The first batch did the seminar in

Legazpi City in Albay while the second

batch opted to visit Davao City.

The PMO also actively participated in

the 2015 Northern Mindanao Cluster

Sports Fest held at Tangub City in

Misamis Occidental. An annual gath-

ering of personnel from the five (5)

PMOs in Northern Mindanao, the

sports fest aims to make new and re-

kindle old friendships through fellow-

ship and to re-learn the importance of

teamwork forged through healthy

athletic competition. TEAM PMO Suri-

gao came in as 3rd runner up in the

overall results of the 2015 NoMin

Cluster games.

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IN

TEG

RATE

On the other hand, for ports under the

Terminal Management Office of Tandag,

the year 2015 saw the completion of

development projects and improvement

of port facilities, particularly at the Port

of Aras-asan, among others. With a con-

crete highway network linking the prov-

inces of Surigao del Norte, Surigao del

Sur and Davao Oriental in Mindanao’s

Pacific Rim already in place, the upgrad-

ing and improvement of PPA ports in the

Pacific seaboard goes in tandem with

the development of the Port of Davao

(under a Public-Private Partnership de-

velopment scheme) in preparation for

integration under the ASEAN Economic

Cooperation (AEC).

Port of Lawigan, Bislig City

Newly-paved Back-up Area, Port of Aras-asan

n today’s inter-connected

global maritime logistics

industry, the ability of

ports to insert or “integrate” to

global supply chains is imperative

and a crucial factor to stay in busi-

ness. It is no longer enough to pos-

sess the facilities and infrastruc-

ture; the competitive position of a

port is now increasingly deter-

mined by its links in a given supply

chain.

For ports under the PMO, the thrust to

“integrate” is given an extra “push” in

2015. For starters, the development of

port facilities at the Lipata Ferry Termi-

nal further enhanced its role as “hub”

to two “spoke” ports, namely the Port

of Liloan and the Port of San Ricardo in

Southern Leyte. Passenger traffic and

frequency of trips increased accord-

ingly.

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New Roro Ramp, Lipata Ferry Terminal

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T

he year 2015 also saw the com-

pletion and operationalization

of two passenger terminal

buildings (PTBs) at the port of

Del Carmen in Siargao Islands

and at the Port of San Jose in

the province of Dinagat Islands.

Both facilities are equipped with

standard fixtures such as air-

conditioning system, security detec-

tion devices and CCTV systems and

other amenities. Both PTBs have pre-

departure areas that can accommo-

date (and comfortably sit) 100 pas-

sengers. A terminal fee in the amount

of PhP10.00 per passenger is collected

at the two PTBs to cover maintenance

and operating cost.

New Passenger Terminal Bldg. (PTB) , Port of San Jose

PTB Pre-Departure Area, Port of Del Carmen

The year 2015 also saw the PMO enhancing

its role as the Surigao Port Community’s

main “integrator” through the regular con-

duct of Port Management Advisory Council

(PMAC) quarterly meetings. As such, the

PMO Surigao PMAC is fully functional, serv-

ing as the principal forum to discuss and

settle port-related issues, as well as a medi-

um for public hearings and consultation

meetings with port stakeholders.

PMAC meetings/consultations in 2015 re-

solved many port related issues and the

approval of policy proposals such as the

Proposed Regulations on Compulsory Tug

Assistance at ports under PMO Surigao.

Presented and discussed during the 2nd

Quarter PMAC Meeting, the PMAC’s favora-

ble endorsement led to the issuance of PPA

Administrative Order No. 08-2015 or the

Regulations on Compulsory Tug Assistance

at the Baseport and at other government

ports under the jurisdiction of PMO Suri-

gao effective 14 January 2016


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The modest gains achieved amidst

the challenges and constraints in the

year 2015 only served to demon-

strate the resilient character of the

PMO: a mature organization made

up of people who can be relied, if

the situation warrants, to serve

above and beyond the call of duty

with the highest degree of profes-

sionalism and work ethic.

We shall strive to work harder than

before, take pride in knowing that

the PMO has again made it, sur-

passed targets in many areas and

ably met key performance goals. We

shall remain true to our corporate

values, ideals and positive work eth-

ic; constantly pursue continuous im-

provement in both our personal and

professional lives.

The relentless resolve to INNOVATE,

MOTIVATE and INTEGRATE shall

continue to define PMO Surigao.

MILDRED J. PADILLA Port Manager

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CARGO, VESSEL & PASSENGER TRAFFIC

he year 2015 saw a

drop in foreign vessel

calls, particularly at

private mining ports

under the PMO’s juris-

diction. A total of 677 foreign-flagged

vessels made calls in 2015, repre-

senting an 11% drop from last year’s

752 foreign shipcalls.

On the other hand, the country’s strong and

positive economic climate in 2015, along with

an improved business confidence, led to a

steady stream of cargos handled at govern-

ment ports under the PMO’s jurisdiction.

A total of 1,629,297 metric tons (m.t.) of do-

mestic cargo were handled in 2015, repre-

senting a 55% increase against the total cargo

throughput of 1,053,288 m.t. for 2014.

Likewise, vessel traffic improved with a 12%

increase in domestic ship calls as 10,004 inter

-island vessels made calls at ports under the

PMO in 2015 as against 8,924 shipcalls for the

previous year. Passenger traffic for 2015 like-

wise went up by 24% as 1,701,425 passengers

embarked and disembarked at various ports

under the PMO as against 1,373,374 passen-

gers recorded for 2014.

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“A total of 1,629,297 metric tons of domestic cargo were handled in

2015, representing a 35% increase against the total

cargo throughput of 1,053,288 metric tons

for 2014. “

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“Vessel traffic improved with a 12% increase in domestic ship calls as

10,004 inter-island vessels made calls at ports under

the PMO in 2015, as against 8,924 shipcalls for

the previous year.”


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“Passenger traffic for 2015 went up by 24% as

1,701,425 passengers embarked and

disembarked at various ports under the PMO as

against 1,373,314 passengers recorded for

2014.”

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DEVELOPMENT AND MAINTENANCE

he Engineering Services Division had its hands full for most of the year 2015 and completed two major repair and maintenance projects namely, Phase One of the Repair and Match Elevation of Marginal

Wharf at Berth no. 6, Port of Surigao; and the Repair of Damaged Concrete Pavement and Rock Bulkhead at the Port of Cantilan, among others. Other projects of note completed in 2015 include the Construction of a Passenger Terminal Building at the Port of San Jose in Dinagat Islands (a locally-funded project); and the Aras-asan Port Improvement Project at the Port of Aras-asan in Cagwait, Surigao del Sur (a capital outlay under-taking supervised and implemented by the Port Construction and Maintenance Department). On the other hand, Carry-over Repair and Maintenance projects man-aged to get completed in the first semester of 2015 such as the Repair of Dilapidated Roof, Ceiling and Floors and Repainting of Passenger Ter-minal Building; Repair of Damaged Concrete Pavement (phase II) and Repair of Fender and and Mooring System, all at the Port of Lipata. The Repair of Damaged Concrete Pavement and the Repair of Reinforced

(RC) Wharf at Berths 1, 2, and 3 are among the maintenance projects completed in 2015 at the Base Port of Surigao.

Solar lights at the Port of Sta. Monica,


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provision of adequate and modern

Port of Aras-asan in Cagwait, Surigao del Sur

Port of Sta. Monica, Siargao Is., Surigao del Norte

PhP

PhP

PhP

PhP

PhP

PhP

PhP

PhP

PhP

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preservation and maintenance of

Port of Cantilan, Brgy. Consuelo, Cantilan, Surigao del Sur

Base Port of Surigao

PhP

PhP

PhP

PhP

PhP

PhP

PhP

PhP

PhP


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and PEOPLE DEVELOPMENT

To say that the year 2015 was a chal-lenging year for the PMO’s Port Police Division is an understatement.

Just weeks after the New Year revelry, a ma-jor global event took place right in its own backyard: the visit of His Holiness Pope Fran-cis to Tacloban City and other adjacent parts. With the Lipata Ferry Terminal serving as main transport point for millions of devotees from Mindanao, the PPD initiated the crea-tion of a Security Task Force for Mindanao. It has been widely known, perhaps due to the convenience it offers, that terror groups based in Mindanao (or those who use Min-danao as jump-off point to Visayas and Lu-zon) would often use the Lipata RoRo port for transport and other logistical require-ments.

Heightened security measures were put in place and implemented despite challenges brought about by the presence of thousands of outbound passengers (mostly made of the faithful) while hundreds of rolling cargoes crowded the port. Nevertheless, the PPD ably kept the facility safe and secured and ensured that no prohibited items/contrabands would pass undetected and/or would be transported.

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OPLAN “Bakal” at the Port.

To ensure prevention of the shipment and/or entry of bladed, deadly weap-ons and prohibited items to/from the port, the PPD, in coordination with the different TMOs, implemented the Oplan “Bakal”. Despite the unavailabil-ity of baggage scanning machines at the Ports of Surigao and Lipata, strin-gent security measures were imple-mented by means of manual inspec-tions conducted at the gates and PTBs, except at the Port of Dapa wherein its scanning machine was fully functional which resulted to the interceptions/confiscations of various types of pro-hibited items.

Port Site Quantity Make /Description of Confiscated Items

Port of Surigao 90 pcs. Bladed weapons/other prohibited items Port of Lipata 30 pcs. Bladed weapons/other prohibited items Port of Dapa 85 pcs Bladed weapons/other prohibited items

One (1) unit Abandoned 45 cal. Pistol with magazine and 8 ammos. One (1) unit Abandoned 9mm custom-built revolver with 8 ammos. One (1) unit Abandoned air pistol replica of 45 cal. pistol

Vessel Traffic and Surveillance Control Center

In 2015, The PPD initiated the establishment of

VTSCC at the Port of Surigao for enhancement of

security monitoring / video recording of the

movements of passengers/port users, cargoes,

vehicles, vessels and other activities at the Ports

of Surigao, Lipata, Dapa, Del Carmen and San

Jose. CCTV cameras with video recording capa-

bility were installed in the said ports, while an

Automatic Identification System (AIS) equip-

ment was installed at the Ports of Tandag and

Surigao which could be monitored also through

the VTSCC.

Automatic Identification System (AIS) Stations were

established at the Ports of Surigao and Tandag for

vessel monitoring in the area. Through these, the

PMO would be capable in determining the name of

vessels and its particulars, their cargoes, last port of

calls, speed, exact time of movements and location,

including other important information. Said equip-

ment were not only useful in safety and security as-

pects but also in the assessment of PPA dues of ves-

sels calling at PMO-Surigao controlled ports or areas.


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Land PEOPLE DEVELOPMENT

A As of December 31, 2015, the Port Management Office of Suri-gao is manned by a total of fifty three (53) personnel or 49% of the 109 plantilla positions. With the implementation of the Ra-tionalization Plan (RATPLAN) in the first quarter, one (1) employ-ee from the Port District Office was added to the PMO’s person-nel complement with permanent appointment.

Corollary to the implementation of the GCG-Approved RATPLAN, PMO Surigao commenced with the process of filling-up fifteen (15) plantil-la positions duly approved by the General Man-ager in the 2nd quarter.

Of the 15 plantilla positions filled-up in 2015, four (4) were Original Appointments as new entrants to the PPA, while eleven (11) positions were promotions applied and granted to ex-isting PMO permanent employees.

On the other hand, then PMO Surigao Acting Port Manager Mildred J. Padilla became full-fledged Port Manager in the 3rd quarter of the year when she got her appointment as Port Manager A effective 29 September 2015.

On Human Resources Development, 68 person-nel underwent and attended Trainings and Seminars. Among these is the Train for Trade Program of the United Nations Conference on Trade and Development (UNCTAD) for English-speaking Port Communities in Africa and Asia. PMO Surigao Port Manager Mildred J. Padilla was among those chosen from the PPA for the eight (8) module course on Modern Port Man-agement which culminated in November 2015. PM Mildred Padilla finished the course with distinction for her Dissertation on “Implementing Port Performance Measures in Private Sector Participation Initiatives of the Philippine Ports Authority”.

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L

PARTICULARS

SUPPLIES and MATERIALS

1,273,999.63 1,191,805.61 -7% 1,273,999.63 1,521,761.00 16%

POWER 2,774,911.83 2,755,352.30 -1% 2,774,911.83 3,946,500.00 30%

WATER 3,952,049.44 1,785,658.35 -121% 3,952,049.44 3,572,327.00 -11%

FUEL 614,894.43 728,049.41 16% 614,894.43 1,090,616.00 44%

Like a good corporate citizen, the PMO ex-erted extra effort in 2015 and got involved in various activities of the Local Government Unit, both City and Province, and the Suri-gaonon Community through active participa-tion in community-wide activities such as Independence Day Celebration, Charter Day Celebration, Fiesta nightly affair, month-long Celebration of the CSC, Maritime coastal clean-up; and the Rizal Day Celebration, Fire Prevention Month and Quarterly Provincial Council Meetings and Commemoration of the Battle of Surigao Strait, among others.

The PMO in 2015, again saw it fit to give due recognition when it is due. For this year, a total of eight (8) personnel received their loyalty award in the form of cash corresponding to the number of years, not to mention the plaque of recognition given during the PMO Anniversary last August 1, 2015. Likewise, (3) personnel re-ceived their salary adjustments for the Step In-crements for 2015.

In line with the continued implementation of austerity measures, the PMO again met its com-mitment to generate savings in 2015.

The savings, as reflected in 2015 (Budget vs Utili-zation), were made possible due to the regular monitoring done by the Admin personnel with the support and cooperation of the concerned RCs. This year’s office supplies, power, fuel and water expenses are pegged as follows:


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“In 2015, PMO Surigao remained on top of its target and goals and

sustained a steady performance despite the

many challenges caused by the then prevailing global

economic environment, which slowed down in

the 3rd quarter.

Yet despite its impact on the local mining industry’s

exportation of mineral products, the PMO still

managed to meet, and even modestly surpass, its 2015 target income of PhP450

million by 6% as total revenue amounted to

PhP477 million “

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2015 financial

Gross Earnings at PhP477 Million, representing 6% positive variance against target.

B U D G E T U T I L I Z AT I O N

Operational Expense 2015 Allocation Utilization Savings

Personal Services 40,763,226.00 30,470,622.57 34%

MOOE 167,364,577.00 151,896,805.37 10%

Net Income Ratio is at 49% (Net Income/Gross Revenue) while Collection Efficiency and Liquidation of Cash

Advances are both at 100%.

Taxes and Licenses (100%) Fully Paid.

Full (100%) Utilization of AFMS Applications.


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INCOME

Port Management Office of Surigao

STATEMENT OF COMPREHENSIVE INCOME For the Year Ended 31 December 2015

income

CY 2015 CY 2014

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CY 2015 CY 2014


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MILDRED J. PADILLA Port Manager

FROILAN U. CATURLA Manager, Port Police Division

RAFFY M. LAFUENTE Manager, Finance Division

ROLANDO C. BUCTON Manager, Engineering Services Division

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YOLANDA FRANCISCA A. TAN Manager, Administrative Division

VIRGINIA M. CAMPOS Acting Manager, Port Services Division

JERK E. COMPARATIVO Manager, Terminal Management Office of Dinagat

FRANCISCO M. SURIAGA JR. Manager, Terminal Management Office of Siargao

DEBS G. CONSUEGRA Manager, Terminal Management Office of Tandag

ALLAN P. YAP Manager, Terminal Management Office of Lipata


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PPA Administration Bldg., Borromeo St., Port Area, Surigao City 8400 PHILIPPINES Tel. Nos. (086) 826-2015 ● 826-5233 ● 231-7742 ● Fax No.: (086)826-5589

Email: [email protected] ● URL: www.ppasurigao.weebly.com

Produced By: THE MARKETING and MEDIA

PRODUCTION UNIT Office of the Port Manager

PHILIPPINE PORTS AUTHORITY Port Management Office of Surigao

innovate. motivate. integrate

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