WHEREAS, it is the policy of the Government to reduce the cost of inter-island transportation through the establishment of an efficient and cost-effective Road Roll-on/Roll-off Terminal System (RRTS);

WHEREAS, the RRTS is a vital component of the Government ™s agri-fisheries modernization and food security programs the objectives of which are to raise the income of farmers and fisherfolk;

WHEREAS, the RRTS will also serve to enhance tourism, transportation and commerce throughout the country;

WHEREAS, there is a need to encourage the participation of the private sector in the establishment, construction and operation of RRTS facilities;

WHEREAS, the Philippine Ports Authority, the Cebu Ports Authority and the Maritime Industry Authority are the proper Government agencies mandated to reduce transport costs and improve the quality and efficiency of transport from the countryside to the urban markets;

WHEREAS, the Department of Environment and Natural Resources is responsible for the issuance of Environmental Compliance Certificates;

WHEREAS, the RRTS is a component of the Sustainable Logistics Development Program of the Development Bank of the Philippines;

WHEREAS, there is a need to establish a new policy that will promote the development of the RRTS.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, upon the recommendation of the Department of Transportation and Communications and the Development Bank of the Philippines and by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Definition of Terms. - As used in this Executive Order:

a. Roll-on/Roll-off or Ro-Ro Operations shall refer to the method of loading and discharging of self-powered vehicles, such as cars, and trucks, on their own wheels by their owners or drivers between vessel and shore via a ramp;

b. Ro-Ro vessel shall refer to a ship type or design duly approved for Ro-Ro operations;

c. Road Ro-Ro Terminal System (RRTS) shall refer to the network of terminals all over the country, separated by a distance of not more than fifty (50) nautical miles and linked by Ro-Ro vessels; and

d. Lane-meter shall refer to one (1) meter of deck with a width of 2.5 to 3.0 meters.

SEC. 2. Integration of the RRTS with the National Highway System. - To the extent permitted by law, the RRTS shall be considered as part of the national highways. Accordingly, vehicles that can be moved by their own power and passing through such links shall not be burdened by transport procedures and costs, unless otherwise provided by law. A Certificate of Public Convenience shall however be required for the operation of Ro-Ro vessels in accordance with law.

SEC. 3. RRTS Toll. - The RRTS toll shall consist of the following:

a. A terminal fee levied by the Ro-Ro terminal operator on vehicles and passengers for the use of the terminal;

b. A passage fee levied by the Ro-Ro vessel operator on self-powered vehicles based on lane-meter;

c. A passage fee levied by the Ro-Ro vessel operator on passengers; and

d. A berthing fee levied by the Ro-Ro terminal operator on the Ro-Ro vessel for mooring or berthing at the Ro-Ro terminal.

SEC. 4. RRTS Documentary Requirements. - To the extent permitted by law, the Maritime Industry Authority (MARINA), Philippine Ports Authority (PPA), Cebu Ports Authority (CPA) and other concerned Government agencies shall ensure that the RRTS shall be covered by reduced and simplified documentary requirements. No clearance shall be required of motor vehicles using the RRTS: Provided, however, That the owners or operators of Ro-Ro vessels shall comply with the reporting requirements under Section 11 of the Anti-Carnapping Act of 1972 (Republic Act No. 6539).

SEC. 5. Private Commercial Terminals. - The PPA and the CPA shall ensure that Ro-Ro terminals established and constructed through private investments shall be operated as private commercial terminals. The PPA and CPA shall likewise take concrete steps to privatize state-owned Ro-Ro terminals to attract investments in the RRTS.

SEC. 6. Environment and Business-Related Requirements of the RRTS. - Where all the legal requirements have been complied with, relative to the construction and operation of RRTS facilities, the Department of Environment and Natural Resources shall issue Environmental Compliance Certificates within a period of forty-five (45) days therefrom, and the proper Government agency shall enter into foreshore lease agreements within a period of ninety (90) days therefrom. Local government units are strongly encouraged to issue the necessary permits for the operation of RRTS facilities within three (3) days from date of application. Likewise, the PPA, CPA and MARINA shall issue the permits necessary for the construction and/or operation of RRTS facilities within thirty (30) days from date of application.

SEC. 7. Private Sector Financing for the RRTS. - The Development Bank of the Philippines shall make available long-term loan/financing to eligible projects and qualified borrowers under its Sustainable Logistics Development Program.

SEC. 8. Implementing Rules and Regulations. - Within thirty (30) days from the effectivity of this Executive Order, the Department of Transportation and Communications shall formulate and, after public hearing and consultation, issue the Implementing Rules and Regulations for this Executive Order.

SEC. 9. Effectivity. - This Executive Order shall take effect immediately upon approval.

City of Manila, January 22, 2003.

(SGD.) GLORIA MACAPAGAL-ARROYO
President of the Philippines

By the President:

(SGD.) ALBERTO G. ROMULO
Executive Secretary