Atty. Brenda V. Pimentel : Understanding the MIDP

Understanding the MIDP
Atty. Brenda V. Pimentel July 19, 2023 https://www.manilatimes.net/2023/07/19/business/maritime/understanding-t...

MIDP is an acronym that has been broadcast since 2018 and continues to be circulated as an important maritime agenda.

MIDP means the "Maritime Industry Development Program" enunciated under Presidential Decree (PD) 474 issued in 1974 by the late President Ferdinand E. Marcos Sr. (FEM), father of President Ferdinand R. Marcos Jr. (BBM).

To better understand the MIDP, it is essential to know the rationale for creating the Maritime Industry Authority (Marina), the agency that was given by PD 474 a clear and unambiguous mandate to develop the Program that shall contain a rational and integrated development of the maritime industry.

The creation of Marina finds basis in the "Whereas" clauses of PD 474, specifically citing: a) the need for efficient sea transport of goods and people; b) functions pertaining to the development and regulation of shipping enterprises are fragmented; c) the need to modernize and expand the Philippine merchant fleet; and d) the need to provide a strong organizational framework to effect the accelerated and integrated development and effective regulations of shipping enterprises.

Way back in 1974, FEM gave cognizance to the archipelagic nature of the Philippines and the importance of sea transport to achieve the desired reforms in the country's social, economic and political structures.

FEM's prognosis on the state of the maritime industry and his aspiration to make the Philippines become a developed maritime nation was amplified by the Declaration of State Policy and Objectives as stipulated in Section 2 of PD 474, to wit: a) Increase production and productivity of the various islands and regions of the archipelago through the provision of sea linkages; b) Provide for the economical, safe, adequate, and efficient shipment of raw materials, products, commodities, and people; c) Enhance the competitive position of Philippine flag vessels in the carriage of foreign trade; d) Strengthen the balance of payments position by minimizing the outflow of foreign exchange and increasing dollar earnings; and e) Generate new and more job opportunities.

Today, the policies and objectives espoused under PD 474 remain compelling and relevant, even after 49 years. The revised MIDP, which was submitted to stakeholders' consultation last week, is rooted in FEM's prognosis and ambition per PD 474.

Maritime industry conundrum

The question many ask is about what constitutes the maritime industry.

The initial MIDP that was crafted covered a wide range of sectors, which included not only sea transport but also fisheries, which is more of an agriculture concern (food production/security). Cruising, which is a subsector of the country's tourism target, was also included in the initial MIDP.

Maritime industry according to Section 3. A of PD 474 is briefly referred to as "industry" in the broadest concept of the term. – All enterprises engaged in the business of designing, manufacturing, acquiring, operating, supplying, repairing, and/or maintaining vessels or parts thereof; of managing and/or operating shipping lines, stevedoring, arrastre and customs brokerage services, shipyards, drydocks, marine railways, marine repair shops, shipping and freight forwarding agencies and similar enterprises. The definition embraces the rationale ("Whereas" clauses) and the State policies and objectives provided in the law.

The definition focuses on the Philippine merchant fleet and the associated activities that will help promote and develop an adequate number of ships able to service the sea transport needs of the archipelago, either for domestic or international mobility of people and goods.

The MIDP underscores the importance of assisting enterprises that are engaged in sea transport services with the expectation that the key result of such a policy will be to the benefit of Philippine society.

Therefore, in addressing the concerns of the fisheries and cruising sectors, the MIDP must focus on undertaking action steps that ensure the Philippine merchant fleet can meet its sea transport requirements.

Let the pertinent government agencies charged with fisheries and tourism concerns put up their respective agendas for advancing their sectors while at the same time identifying the sea transport support needed, which must be incorporated into the MIDP.

The revised MIDP gives serious attention to putting up a Philippine merchant fleet as envisioned under PD 474, which way back in 1974 laid down the Philippine maritime transport policy — capable of linking the islands of the archipelago and connecting the country to the world.

The eight programs of the revised MIDP framework are the pillars for developing and expanding the Philippine maritime industry, with PD 474 providing the yardstick by which to measure the realization of the State policies and objectives as enunciated in the law.