RP eases shipping regulations

RP eases shipping regulations

MANILA (AFP): President Fidel Ramos yesterday announced
measures to further deregulate the Philippines' maritime
industries, including ending exclusive port-handling contracts
and loosening controls on passenger fares.

Ramos said existing exclusive port service contracts would no
longer be renewed and that non-exclusive contracts would be
awarded through bidding instead.

He said a full deregulation of first- and second-class
passenger rates had been ordered, although ships would still have
to devote at least 50 percent of their capacity to third-class
passengers, whose fares would still be regulated.

Ramos said special "tourism-oriented vessels," would be
exempted from the third-class quota in order to maintain higher
revenues.

This will allow them to charge even higher than other ships
(since third-class fares are still regulated) and will spare
tourists from having to rub shoulders with Filipino plebeians.

Critics of the previous system say that the exclusive port
contracts have led to inefficient, high-priced monopolies in
small ports while the controls on passenger fares have caused a
drop in standards with ships being jampacked beyond their
capacities.