Cover Design Table of Contents Our Cover PPA Mission, Vision and Corporate Values 3 The cover design for 2015 PMO MOC Annual Report revolves around the theme “Positively Driven”. The circle with an arrow symbol was Message of the Port Manager 4 inspired by the electrical symbol “positively driven contact”. PMO 2015 Performance at a Glance 5 This design reflects the evolving culture of excellence at PMO Misamis Oriental / Cagayan de Oro. The arrow, which is directed towards the Shipping and Trade Performance 6 center of the circle and hits the ISPS, PSHEMS and ISO 9001:2008 Port Services 8 logos, represents the “drive” that signifies the motivational leadership of PM Isidro V. Butaslac, Jr. that enables the PMO to continually tread Physical Infrastructure Development and and uphold the international standards in port safety & security, health Maintenance 9 and environmental protection, and quality management. Sustainability, Environment and People 13 The layers of circles with hi-tech accent design symbolizes the ripple effect of the highly motivated PMO where the standards transcend not Financial Performance 16 only in papers but are embodied by the PMO workforce in their day to day activities and significantly felt by the customers through improved Financial Statements 18 delivery of port related services, provision of appropriate port infra- structure projects, and innovative, technology-based systems and Port Statistics 26 procedures. PMO Executive Officers 27 Further, the layers of circles, which simulates a camera shutter, imply a well-focused and far-reaching effect of the developmental and reengi- neering progressions achieved through the collective and shared vision of PPA in 2015 and beyond. 2 PMO Misamis Oriental / Cagayan de Oro 2015 Annual Report 3 Let’s play the game “I know, you know, we all ter being envisioned as an alternate port of the Baseport know!” The essence of this simple verse is transparency in where tramping vessels loaded with cargoes coming direction and closely knitted coordination and timely ac- from or destined to the western side of Cagayan de Oro tion. This seems to be the panacea that has driven PMO City may be diverted to effectively decongest the Base- MOC to exceed the goals set for 2015, its milestone year. port as well as declog the heavy vehicular traffic on the Through enhanced coordination among employees and city thoroughfares. These, along with five (5) other engi- customers, the PMO marked 40 years of public service by neering interventions, form part of the PMO’s Seven (7) leaping beyond frontiers and conquering new horizons. Pillars of Development for CY 2015-2016 which has been duly deliberated and endorsed through resolutions by the This is evident in the PMO’s remarkable revenue Port and Maritime Management Advisory Council performance reaching more than Php 265 million in 2015, (PMMAC) to PPA Management in order to address issues a 36.43% increase over the previous year’s earnings of on port congestion, safety, security, productivity, passen- roughly Php 195 million. Component in this achievement ger comfort and convenience. were the increase in collection of passenger terminal fees at the Terminal Ports due to the operationalization of the At 40 years old, the PMO remained solid and PTBs and revenues from private ports operations, com- steady and constantly evolving. Responding to prising Php 9.1 million (540.61% increase from 2014) and customers’ needs for infrastructure and facilities required Php 24 million (33.91% increase from 2014), respectively. by benchmarked standards coupled with advancements in technology, the PMO embarked on the Seven (7) pillars The critically deficient and high power demand of development to stay attuned with the changing times industry in this part of the country provided the impetus to better serve the needs of the public. We have ex- for increases in foreign shipcalls and imports, which alto- panded the backup area at Berth 12-13 to increase the gether boosted our financial performance and at the same Baseport’s cargo holding capacity. Meanwhile, a 45-meter raised the Baseport’s berth occupancy rate to an average berth expansion is nearing completion by early 2016, with of 95%. This prompted the PMO to push for the needed another phased extension of berth and backup areas for development and construction of the proposed the succeeding years, which will directly connect to the Laguindingan and Opol Ports in Misamis Oriental, the lat- newly completed City Coastal Road through a new portal to be named Port Gate 6. To ensure productive use of available facilities at the Baseport, we have consolidated some container yards (Areas I and J) to give way for RTG operations with the end view of optimizing vessel/cargo movements and in- creasing real estate income, and redefined the delinea- tion and use of certain areas (stuffing area transferred from Area L to Area F & G) in order to strengthen enforce- ment of safety and security policies. Incidentally, revenue from leases increased by 85.87% or roughly 11.76 million from 2014 revenue on rentals. In 2015, Oroport Cargo Handling Services, Inc. operationalized its new Open Transit Shed located at Berth 12-13, Port of CDO and pur- chased additional stackers/forklifts. With the guidance of the Office for Transporta- tion Security, we have intensified our security measures 4 PMO Misamis Oriental / Cagayan de Oro by establishing physical and access controls at critical areas and instituted Standard Operating Procedures (SOPs) to en- sure compliance of all customers and port users with the appli- cable port and security policies. This strengthening of the secu- rity posture of the ports under PMO MOC, attained through vibrant cooperation among various law enforcement and civic organizations, has raised the confidence of the riding public and modestly increased passenger traffic to 12%. All throughout the year, the Baseport of Cagayan de Oro has undergone and passed several audits for ISPS Code, QMS and PSHEMS implementation. More than just the certifi- cations, these systems have helped improve the overall management of the port and ingrained the culture of excel- lence among the employees. The results translated into ap- proval by the customers, including other government offices, who gave their positive comments. With the PPA Rationalization Plan in place, the PMO has now strengthened its different divisions with the comple- ment of the newly promoted managers and with the additional personnel from the former PDO Northern Mindanao. The PMO has also initiated the automation of certain administrative pro- cesses including payroll, communications, supply and attendance managements through local development of MIS applications for improved efficiency and productivity among the employees. Henceforth, synergy of people and systems came into place and drove the PMO to surpass its targets. With all these achievements, through the aid of the Divine Providence, I sincerely thank all the PMO Employees, its Outsourced and Security Service Personnel, the Cargo Han- dling and Ancillary Service Operators, and the Porterage and Pilotage Service Providers, for their hard work, untiring dedica- tion and commitment to public service amidst the trying times. Thank you for playing the game with me. However, the game isn’t over yet. Let’s move forward to the next level and continue to confront new challenges and welcome new oppor- tunities to better serve the public. Likewise, let me extend my gratitude to PPA Management for their relentless support and guidance to the PMO in all its programs and projects. Mabuhay ang PPA! Mabuhay ang PMO Misamis Oriental/Cagayan de Oro! Mabuhay tayong lahat! ISIDRO V. BUTASLAC, JR. Port Manager 2015 Annual Report 5 Remarkably, foreign trade increased by 23%, and this is attributed to the 67% increase in import car- goes at the Baseport, although export dropped by 1%. The substantial volume of structural pipes and steel products discharged at the Port of Cagayan de Oro due Trade Performance to the ongoing construction and installation of power plants in the region contributed tremendously to the The Philippine economic growth for 2015 at 5.8 increase in foreign trade in 2015. percent was mainly driven by a rebound in the agricul- ture sector and increased investments in industry, ac- cording to the Philippine Statistics Authority. This was Container (in TEUs) manifested by the 7% increase in total cargo handled by the ports under PMO MOC. Of the total cargo handled in 2015, 61% were conventional cargoes and 39% were containerized. For Investments in power plant industries in the the Baseport, 62% were containerized, and 38% were region contributed to the significant increase in vessel handled in conventional operation. There were 237,720 traffic and cargo throughput, particularly on importa- tions. Local businesses appreciated the convenience TEUs handled in 2015 compared to 208,632 TEUs and benefits of transporting cargo thru containers as handled in 2014. demonstrated by the surge of domestic container car- goes. About 39% of total cargoes (in MT) handled by the ports were containerized. Meantime, passenger 39% traffic managed to rise despite competition from low airfares. 61% Cargo Throughput 0.4% 0.2% 37.1% Conventional Containerized Baseport Passengers Terminal Ports Other Gov't. Ports During the year, total number of passengers who availed of water transportation increased by 12% or Private Ports 62.3% 269,866 as compared to 2014. Of the total passengers, 51% or 1.268 million were catered at the Terminal Ports of Balingoan and Benoni in Camiguin Province; 47% were passengers at the Baseport of Cagayan de Oro; Total cargo increased by 7% during the year or while 2% were catered at the Other Government Ports 0.554 million metric tons higher as compared to of Balbagon & Guinsiliban in Camiguin Province, previous year’s total cargo of 7.883 million metric tons.