ERMITA, Manila — Pointing to potential risks to the maritime sector triggered by the creation of a Centralized Ticketing System (CTS) for domestic roll-on/roll-Off (roro) and passenger ships, the Philippine Inter-island Shipping Association (PISA) has formally requested the Department of Transportation (DoTr) to revoke Philippine Ports Authority (PPA) Administrative Order No. 12-2019, which mandates the new ticketing system.

In a letter to transportation secretary Vivencio 'Vince' Dizon, PISA argued that the PPA order not only exceeds the legal scope of the agency’s powers but also introduces economic and operational risks that could adversely impact the maritime sector.

Representing the country’s leading domestic shipping companies, PISA, claimed that the implementation of the CTS 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 Parco and the association's executive director Atty. Pedro Aguilar.

Parco and Aguilar both asserted that the centralized ticketing system is redundant, given that many shipping companies already have efficient online ticketing platforms in place even as they focused on systems, such as Barkota, which are well-established and serve the needs of the sector without the interference of a government-mandated system.

Additionally, they likewise cited the financial burden associated with the CTS, which is expected to cost nearly ₱500 million, which 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 centralization of ticketing through a government-run system raises concerns about undue interference in the private sector. 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," Parco pointed out.

"Moreover, (we have already) 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," he added while stressing 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, according to Aguilar, what PISA deems is an “unfair” and “confiscatory” financial arrangement that will add to the economic strain on shipping operators.

He warned that PPA's CTS does not address key operational issues, such as scalping or overloading, which the association contends are better handled through security measures and vessel inspections and not a centralized ticketing system.
Instinctively, he noted 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,” Parco interjected to clarify.

"The PPA’s powers are limited to port operations and do not extend to regulating private business transactions like ticketing. (Thus) the order violates the constitutional protection against laws that impair contractual obligations, particularly impacting the existing agreements between shipping companies and their ticketing providers," he contended.

In light of these concerns, PISA is now calling for the immediate abrogation, annulment or recall of PPA AO No. 12-2019 even as it emphasized 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.

"As the Philippines is an archipelago of over 7,600 islands, domestic shipping is the backbone of inter-island connectivity for people and goods," PISA reminded. Government records show that domestic shipping carries over 90 percent of the country’s inter-island cargo volume, with passenger volume reaching tens of millions annually (over 30 million passengers per year pre-pandemic). Based on latest statistics, the domestic shipping industry contributes roughly 1.5 to 2 pervent of the country’s gross domestic product (GDP) and supports direct employment of over 100,000 workers, including seafarers, port workers and auxilliary staff and indirectly millions more through logistics, trade, tourism and micro, small and medium enterprises (MSMEs) dependent on shipping.