Inland and Coastal Water Transportation Development Act

Sentate Olfip of the Secretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session 26 APR -8 P1:25 SENATE S. No. 2031 Introduced by Senator Robinhood Padilla PROMOTING THE DEVELOPMENT, MODERNIZATION, AND REGULATION OF INLAND AND COASTAL WATER TRANSPORTATION IN THE PHILIPPINES, INCLUDING ECO-FRIENDLY FERRY SERVICES, AND FOR OTHER PURPOSES EXPLANATORY NOTE The Philippines, as an archipelagic country with numerous rivers, lakes, and coastal areas, has immense potential for inland and coastal water transportation. However, development has been limited due to fragmented regulation, inadequate infrastructure, and insufficient incentives for private operators. Recognizing these challenges, this Act seeks to establish a comprehensive legal and policy framework that will encourage the development and modernization of safe, reliable, and environmentally sustainable water transport systems, including the promotion of eco-friendly ferry services. In doing so, it supports economic growth, social development, and broader access to transportation services across all regions of the country, thereby strengthening the Philippines' position as a nation that fully utilizes its waterways for sustainable development. In light of the ongoing challenges in the transportation sector, the volatility of oil prices, and the country's broader economic conditions, there is a compelling need to pursue sustainable and environmentally responsible alternatives. Ferry services present a practical solution to road congestion by maximizing the use of the country's natural waterways for the efficient transport of both passengers and goods. Moreover, when operated in accordance with stringent environmental standards; such as the use

of cleaner fuels and the implementation of effective waste management systems, ferry transport can significantly contribute to the reduction of greenhouse gas emissions. In view of the foregoing, the approval of this bill is earnestly sought. ROBINHOE PADILA Senator

Senate Bffier of the Secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) 26 APR -8 P1:25 First Regular Session ) SENATE RECEIVED BY. S. No. 2031 Introduced by Senator Robinhood Padilla AN ACT PROMOTING THE DEVELOPMENT, MODERNIZATION, AND REGULATION OF INLAND AND COASTAL WATER TRANSPORTATION IN THE PHILIPPINES, INCLUDING ECO-FRIENDLY FERRY SERVICES, AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Inland and Coastal

2 Water Transportation Development Act"

SEC 2. Declaration of Policy. - The State shall promote the safe, efficient,

4 accessible, and environmentally sustainable use of inland and coastal waterways for 5 the transport of passengers and cargo, while encouraging private sector participation and investment in modern and eco-friendly water transportation systems. It shall empower Local Government Units (LGUs) to establish, operate, and regulate local water transport services in coordination with national agencies, ensure intermodal 9 connectivity and integration with other forms of transport, and provide equal access 10 to water transportation, thereby supporting local economic development, 11 environmental protection, and enhanced mobility for all.

SEC 3. Definition of Terms. - For purposes of this Act, the following terms shall

13 be defined accordingly: 1. Water transportation - refers to the conveyance of passengers or cargo via rivers, lakes, lagoons, estuaries, or coastal waters;

2. Ferry service - refers to a scheduled passenger or cargo service operating across inland or coastal waterways, including eco-friendly vessels designed to reduce emissions and environmental impact; 3. Inland waterways - include rivers, lakes, streams, and other bodies of water suitable for commercial navigation; 4. Coastal waterways - refer to seas, bays, and estuaries connecting ports or municipalities; 5. Local water transport system - refers to water transport operated or regulated by a Local Government Unit (LGU) for local passenger or cargo service; 6. Operator - refers to any individual or entity providing water transportation services, whether public or private.

SEC 4. Coverage. - This Act shall apply to all inland and coastal waterways

14 suitable for passenger or cargo transport, to all operators of ferries, riverboats, and 15 coastal vessels, whether public or private, including eco-friendly ferry services, to LGUS establishing or operating water transport services, and to all supporting infrastructure, including river ports, docks, ferry terminals, and navigation aids.

SEC 5. Role of the National Government - The Department of Transportation

(DOTr), in coordination with the Maritime Industry Authority (MARINA), the Philippine Ports Authority (PPA), the Philippine Coast Guard (PCG), and the Department of Environment and Natural Resources (DENR), shall formulate policies, provide technical assistance, and oversee the development of inland and coastal water transport systems. MARINA shall regulate vessel safety, registration, and operations; PPA shall develop and maintain river and coastal ports; PCG shall enforce safety and navigational regulations; and DENR shall ensure environmental compliance in all waterway operations.

SEC 6. Role of Local Government Units. - LGUs may establish, operate, and

regulate local ferry and river transport systems consistent with Republic Act No. 7160 or the Local Government Code and national regulations. LGUs may enter into public- 30 private partnerships to develop or operate ferry services, river ports, or terminals, and

may issue permits, schedules, and local safety rules for vessels operating within their 2 jurisdiction.

SEC. 7. Incentives and Promotion of Eco-Friendly Ferry Services. - Operators

4 of inland and coastal water transport shall be entitled to financial and regulatory 5 incentives, including tax benefits for investments in eco-friendly, modern, or energy- 6 efficient vessels, access to low-interest loans or grants for infrastructure and vessel acquisition, priority consideration for operating in government-designated Waterway 8 Development Zones, and streamlined permit and registration processes in coordination with MARINA, PCG, and LGUS. In line with the State's policy to ensure sustainable, safe, and accessible water transportation, the government shall promote ferry services that adopt 12 environmentally sustainable practices and technologies while maintaining high 13 standards of safety and accessibility. Operators shall comply with applicable national 14 regulations on vessel safety, passenger protection, accessibility, and environmental 15 protection.

SEC 8. Infrastructure Development. - The DOTr, in coordination with PPA and

17 LGUs, shall develop river ports, docks, ferry terminals, navigation aids, signaling 18 systems, and safety equipment. Intermodal hubs linking road, rail, and water transport 19 shall be encouraged to maximize connectivity. LGUs shall maintain and operate local 20 docking facilities and river terminals for passenger and cargo services. SECT 9. Safety and Environmental Compliance. - All operators shall comply with MARINA and PCG regulations on vessel safety, crew certification, and passenger protection. Environmental protection measures, including waste management, water pollution control, and habitat preservation, shall be strictly enforced. Non-compliance may result in suspension, fines, or revocation of permits.

SEC 10. Funding. - Funds for the implementation of this Act shall be sourced

27 from current year's allocations of DOTr, MARINA, and PPA; LGU budgets for local

water transport systems; and resources obtained through public-private partnership 2 agreements.

SEC 11. Implementing Rules and Regulations.- The Department of

4 Transportation (DOTr), in coordination with the appropriate government agencies, 5 shall promulgate the implementing rules and regulations of this Act within ninety (90) 6 days from its effectivity.

SEC. 12. Separability Clause. - If any provision of this Act is declared

unconstitutional, the remainder hereof not otherwise affected shall remain in full force and effect.

SEC. 13. Repealing Clause. - All other laws, presidential decrees, executive

orders, letters of instruction, proclamations, administrative orders, rules or regulations that are inconsistent with this Act are hereby repealed, amended, or modified accordingly.

SEC. 14. Effectivity Clause. - This Act shall take effect after fifteen (15) days

following its publication in the Official Gazette or in a newspaper of general circulation. Approved,