Proposed port management model to modernize selected LGU-port enterprises towards the development of an efficient and financially viable transport network system / 6
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Ma. Lourdes Mora-Manatad.
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- xv, 363 pages 28 cm.
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Thesis (Ph.D.) -- Pamantasan ng Lungsod ng Maynila, 2007.;A dissertation presented to the faculty of the Graduate School of Management in partial fulfillment of the requirements for the degree Doctor of Business Administration.
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This study entitled Proposed Port Management Model to Modernize Selected LGU-Port Enterprises Towards the Development of an Efficient and Financially Viable Transport Network System assessed the current practices of LGUs, DOTC and PPA/CPA in the administration and management of ports, the problems encountered in the present LGU port management set-up as a result of the current practices, and the recommended measures to overcome problems encountered. The objective is to formulate a model to modernize selected LGU-Port Enterprises to encourage LGU and private sectors investment in port development and operation. The study is limited to three selected LGUs presently operating and managing public ports located in Pilar, Sorsogon, Cataingan, Masbate and Bogo, Cebu which are included in the Medium Term Philippine Development Plan (DSDP) as probable routes for the establishment of the Central Nautical Highway. It attempted to answer the following questions: 1.
What is the assessment and corresponding reasons for the rating made by the respondents on the current practices of LGUs in the administration and management of ports as to planning, organizing, staffing, leading, directing and controlling? 2.
What is the assessment and corresponding reasons for the rating made by the respondents on the current practices of DOTC and PPA/CPA in the administration and management of ports? 3.
What is the assessment and corresponding reasons for the rating made by the respondents on the recommended measures to overcome the problems encountered in the present LGU port management set-up? 5.
LGU officials and staff; (b)
Regional Development Council (RDC) secretariat or the National Economic and Development Authority (NEDA) regional officials and staff; (c)
PPA officials and staff; (f)
Provincial Development Council (PDC) secretariat or the Provincial Planning Development Office (PPDO) and Provincial Engineering Office (PEO), (g)
CPA officials and staff, and, (h)
What is the present financial performance of selected LGU-Port Management Body (PMB) at the infant stage after turnover by DOTC? 7.
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PPA officials and staff; (f)
Provincial Development Council (PDC) secretariat or the Provincial Planning Development Office (PPDO) and Provincial Engineering Office (PEO), (g)
CPA officials and staff, and, (h)
--National Development Corporation-Maritime Equity Corporation (NDC-MEC). The study utilized the descriptive type of research applying the Input-Process-Output Model. The research instruments used survey questionnaires administered to 100 respondents belonging to 8 groups (LGU, RDC, DBP, DOTC, PPA, PDC, CPA and NDC) to determine the validity of the null hypothesis. The hypothesis test was performed using the analysis of variance (ANOVA) and F-test to draw inference about the variance in the perception of the 8 groups of respondents. When the null hypothesis was rejected in the ANOVA (meaning there is a significant difference in the assessment of 8 independent groups), multiple comparison test (Dunnet T3 Test) of the sample means is conducted to determine which group means are responsible for the difference in rating among the group means. Focused Group Discussion (FGD) with the 8 groups of respondents were conducted to obtain more data and to clarify the ratings given by the respondents and to discuss related issues, concerns and recommendations given by the respondents. For the analysis of secondary data gathered such as the financial performance of selected LGU-PMB, the researcher did the following: (1) Projected Attainable Revenues and Costs with Improved Management Practices, and (2) Sensitivity Analysis. In terms of the assessment of LGU practices and financial analysis on LGU performance, the dissertation concluded that the current practices of LGUs in port administration and management as to planning, organizing, staffing, leading, directing and controlling are not adequate and that it resulted to the following: (1) poor performance of PMB/ low earnings of PMB; (2) practices which are not favorable/ encouraging for private sectors to invest in port development and operation; (3) LGU giving subsidy to PMB for salaries of personnel; and (4) National Government periodically giving subsidy for the repair, upgrading, rehabilitation and expansion of the ports which the LGUs presently operate. In terms of the assessment of DOTC practices, the dissertation concluded that: (1) DOTC does not adequately monitor the performance of LGU-PMBs operating government ports due to inadequate monitoring and feedback mechanism as well as lack of permanent office to periodically monitor LGU-PMB performance. As a result, DOTC could not give the corresponding advice/ sanctions to LGU-PMBs which are found not complying to the terms and conditions of the MOA; (2) DOTC does not adequately coordinate the rationalization of port development throughout the country which affects sustainability /viability of the ports and therefore, is not encouraging to private sectors, and (3) DOTC cannot adequately provide the funds for the repair, rehabilitation, upgrading and expansion of existing public ports due to budgetary constraints of the national government. In terms of the assessment of PPA/CPA practices, the dissertation concluded that: (1) PPA/CPA adequately prescribes rules/ regulations, procedures and guidelines as well as performs regulatory function of ports. However, it cannot adequately and consistently develop, maintain, rehabilitate, upgrade and operate adequate number of public ports throughout the country because it has to maintain primarily its corporate viability, (2) PPA coordination with DOTC and other port development bodies for the rationalization of port development and operation is not adequate. (3) PPA implementation/review of the port tariffs along the existing Strong Republic Nautical Highway is not adequate because presently tariffs along the network are not uniform. (4) PPA issued policy guidelines on the transfer of the administration of government ports to LGUs in recognition to the provision of the Local Government Code of 1991 is not adequate because it is not attractive or does not encourage LGU investment in ports. (5) PPA does not adequately provide technical assistance to LGUs in the operation and management of government ports because PPA is not included in the existing MOA (involving only DOTC and LGUs). Since PPA/CPA has the mandate on port operation, it is necessary that PPA/CPA be involved in the MOA on the transfer of operation and management of the ports to LGUs by the National Government (DOTC). The findings of the study resulted to the development of the Proposed Port Management Model to Modernize Selected LGU-Port Enterprises Towards the Development of an Efficient and Financially Viable Transport Network System. The components of the model consist of the proposed Manual of Operation and Management for LGU-PMB, the proposed monitoring and feedback mechanism entitled Performance Standard and Rating System for LGU-PMB, and the proposed policy advocacies to support the modernization of LGU-Port Enterprises. The following are the implications/significance of the findings and conclusions of the dissertation: (1) The proposed port management model can be used to improve/modernize the management organization of selected LGUs-PMBs operating national government ports. The improvement/modernization of management set-up of LGU-PMB will ensure greater discipline in the operation and management of ports, professionalize the management of PMB, and improve the efficiency and viability of PMB. (2) Subsequently, the modernization of selected LGUs-PMBs will provide the proper mechanisms for the total devolution of National Government ports to deserving LGUs. The devolution of ports will properly define the transfer of ownership of ports to deserving LGUs which will pave the way to increased LGU participation in the investment and development of ports. It will be a useful tool of the National Government to catalyze the development of Super Regions through the full devolution of government ports to LGUs. Most of all, (3) Clearly defined ownership and modernized management structure of LGU-PMBs will make it attractive to private sectors to enter into contract / agreement with them for investment in the development and operation to say, the central RoRo network system because it wil