Manila: State run think tank Philippine Institute for Development Studies (PIDS) has urged that the Philippine Ports Authority (PPA) be split up.
“PPA, as both operator and regulator of ports, has little incentive to promote competition, using its regulatory powers, instead, to protect its ports and approve rate hikes for port services, from which it earns its revenue,” PIDS noted.
The think tank also reckoned that the Maritime Industry Authority (Marina), which is responsible for the development, promotion and regulation of the maritime industry in the Philippines, is not independent enough as it relies on congressional approval for its operational budget.
PIDS said PPA should be split up, with one body focusing on regulatory issues and the other on operational matters.
The think tank has also called for greater foreign involvement in the nation’s ports, relaxing the current 60:40 ownership ratio, which favours domestic firms. [15/10/13]
