Veronica Uy
The Philippine Interisland Shipping Association (PISA) has formally requested the Department of Transportation (DOTr) to revoke the Philippine Ports Authority (PPA) Administrative Order No. 12-2019, which mandates the creation of a Centralized Ticketing System (CTS) for domestic roll-on/roll-Off (roro) and passenger ships.
In a letter to DOTr Secretary Vince Dizon, PISA, representing the country’s leading domestic shipping companies, argues that the order not only exceeds the legal scope of the PPA’s powers but also introduces economic and operational risks to the maritime sector.
The implementation of the CTS, PISA claims, would create unnecessary costs, disrupt operations, and inject uncertainty into an already challenging business environment.
“By centralizing ticketing under the government’s control, the PPA will severely disrupt an already functioning system and force companies to abandon their investments in their own booking platforms, which will certainly result in additional costs, inefficiencies, and business uncertainty,” according to the letter signed by PISA president, Mark Matthew F. Parco, and its executive director, Atty. Pedro G. Aguilar.
The association argues that the centralized ticketing system is redundant, given that many shipping companies already have efficient online ticketing platforms in place. PISA highlights systems such as Barkota, which are well-established and serve the needs of the sector without the interference of a government-mandated system.
PISA pointed out the financial burden associated with the CTS, which is expected to cost nearly P500 million. The funding for the project, PISA suggests, could be better utilized for improving port infrastructure, which would have a more direct impact on the quality of service provided to passengers and the efficiency of the industry.
The shipowners said the centralization of ticketing through a government-run system raises concerns about undue interference in the private sector.
They said that unlike land and air transport, where private entities manage their own ticketing operations, the maritime industry would face unprecedented levels of government control. This could lead to inefficiencies, particularly in times of technical failure or cyberattacks, as the system would become a single point of failure, affecting the entire shipping industry.
Moreover, PISA has expressed concerns over the lack of clear safeguards for data privacy under the CTS, exposing sensitive passenger information to the risk of breaches or misuse.
PISA also argues that the CTS would undermine the autonomy of shipping companies, forcing them to bear the operational costs and responsibilities, such as handling refunds, while the PPA would collect all fares and fees. This creates what PISA deems an “unfair” and “confiscatory” financial arrangement, adding to the economic strain on shipping operators.
Additionally, PISA warns that the CTS does not address key operational issues such as scalping or overloading. These matters, the association contends, are better handled through security measures and vessel inspections, not a centralized ticketing system.
PISA asserts that the PPA’s mandate to regulate ticketing and fare collection falls outside the authority granted to it by its charter, Presidential Decree No. 857.
“Its Charter does not empower the PPA to regulate the processing, booking, or collection of payments from passengers in as much as the PPA’s corporate authority is strictly limited to port operations and logistics, such as berthing, mooring, towing, docking, cargo handling, and warehousing. There is no mention of ticketing, fare collection, or any authority over the financial transactions between shipping operators and passengers,” the domestic shipowners said.
According to PISA, the PPA’s powers are limited to port operations and do not extend to regulating private business transactions like ticketing.
The order, PISA contends, violates the constitutional protection against laws that impair contractual obligations, particularly impacting the existing agreements between shipping companies and their ticketing providers.
In light of these concerns, PISA is calling for the immediate abrogation, annulment, or recall of PPA AO No. 12-2019. The association emphasizes the importance of focusing government efforts on enhancing port infrastructure and addressing the genuine needs of the maritime industry instead of imposing unnecessary, costly, and intrusive measures.
PISA represents major shipping companies involved in inter-island passenger and cargo services.
As the Philippines is an archipelago of over 7,600 islands, domestic shipping is the backbone of inter-island connectivity for people and goods. Government records show that domestic shipping carries over 90% of the country’s inter-island cargo volume, with passenger volume reaching tens of millions annually (over 30 million passengers per year pre-pandemic).
The domestic shipping industry contributes roughly 1.5% to 2% of the Philippines’ GDP. The sector supports direct employment of over 100,000 workers, including seafarers, port workers, and support staff. Indirectly, it supports millions more through logistics, trade, tourism, and MSMEs dependent on shipping.
