THE PORT MANAGER’S REPORT

PMO Surigao Annual Report 2020

2020 was a year unlike anything we’ve ever experienced.

For one thing, it has disrupted the maritime and logistics industry in ways that are difficult to
address with adequate response.

Yet, in 2020, the Port Management Office of Surigao’s ability to continue to facilitate
maritime transport and supply chains through the ports under its jurisdiction has played a
critical role in overcoming this pandemic. COVID 19 has forced the PMO to become agile and
adaptable to this changing situation, and learned to focus on building effective response
strategies and plans.

In the face of the very significant challenges wrought upon by the COVID 19 pandemic, the
Port Management Office of Surigao has ably responded and remained up to the task. For
one thing, although performance indicators show that port operations at ports under its
jurisdiction altogether declined in 2020 due to the limitations brought about by imposed
measures and health protocols, the PMO has somehow managed to mitigate the effects of
various restrictions.

Yet in spite of the gargantuan and extraordinary challenges faced by PMO Surigao in 2020,
the PMO has not only proven its resilience, it also managed to rise above the difficult
constraints and still came out as the proverbial winner.

Bleak Shipping and Trade Scenario

Domestic Cargo Throughput at ports under PMO Surigao however enjoyed an increase of
around 15% in 2020 compared to the previous year. This largely due to increased domestic
shipment of nickel ore from the Cagdianao Mining Corporation and Hinatuan Mining
Corporation to the Coral Bay Nickel Corporation in Rio Tuba, Palawan.

On the other hand, Foreign Cargo throughput slightly went down by 2%. The continued
exportation of mineral products, along with the importation of sulfuric acid and other
chemical inputs used in the high-pressure acid leaching plants of the Taganito HPAL Nickel
Corporation, somehow maintained the foreign cargo throughput and offset the effects of
decreased trade and commerce due to the COVID 19 pandemic. Foreign shipcalls also
decreased by around 4% in 2020.

Yet the picture altogether has remained dismal for the other performance indicators.
Domestic shipcalls at ports under the PMO also decreased by around 20%, particularly
RORO vessels serving the Baseport, the Lipata Ferry Terminal and the Port of Dapa in
Siargao Islands as health protocols constrained maritime trade – causing fewer scheduled
trips of liners – particularly those connecting Surigao City to Cebu City and the island ports
of Siargao, Dinagat and Southern Leyte.

Passenger traffic also got significantly affected, decreasing by around 66% in 2020 due to
the imposed health protocols (50% capacity if not total suspension in the early months).
RORO Vehicles loaded/unloaded at the RORO ports of PMO Surigao also declined by around
33% in 2020.

Winning Revenue Performance

Notwithstanding the challenges wrought upon by the COVID 19 pandemic, the PMO not just
managed to surpass target revenue, it went on to register its highest annual income since it
was established in 1977. In 2020, PMO Surigao reported earnings of PhP622,671,319.54
representing an increase of around 7% from last year’s actual collections and a whopping
15% increase from the revenue target.

With the imposed health protocols and procedures, service time for foreign vessels
increased by an average of 14 calendar days from an 8-day service time average in 2019.
Hence, longer port stays resulted to a 36% increase in anchorage fees – a revenue rise that
managed to offset the effects of decreased foreign shipcalls (down by 4% in 2020).

One may ask, what has PMO Surigao done to achieve this seemingly unbelievable feat – that
of gaining its highest collection ever despite the dismal economic scenario? The answer: old
fashioned hard work among its men and women. For one thing, collection efficiency
remained at optimum levels.

The PMO also exerted efforts to encourage port users to accept the e-payment system. As a
consequence, PMO Surigao reaped the benefits as the system helped the PMO post
favorable income—all-time high—despite the ongoing pandemic.

And at the end of the day, despite the work-from-home arrangements, PMO Surigao’s
personnel continued to serve above and beyond the call of duty.

IATF Coordination, Security and Corporate Social Responsibility

The PMO has, and continued to work in coordination with the local IATF particularly in port
security and access control in managing the movement of peoples and properties to
contain the spread of COVID 19. Our Port Police Division has ably maintained optimum
security and safety of lives and properties in line the PMO”s efforts to contain the spread of
the virus in workplaces, passenger terminals, and other port operational areas

The pandemic has displaced the daily incomes of many households and among the most
vulnerable are dockworkers, porters and other port workers whose earnings are governed
by a no-work-no-pay scheme. That is why PMO Surigao has immediately responded as early
as March of 2020 when Surigao City was placed under Enhanced Community Quarantine
(ECQ).
Elderly workers, security guards, dockworkers and people in the marginalized sectors of the
port community got assistance from the PMO and its partner organizations by way of
providing relief goods to tide them over during the pandemic.
In addition, PMO Surigao has temporarily converted vacant lots in ports under its
jurisdiction into vegetable gardens for sustenance amid the Enhanced Community
Quarantine due to #COVID19. Dubbed as ‘Gulayan sa Pantalan’, the project could be a
source of food during the pandemic.

The PMO has also collaborated with various government and civic organization in
responding to the challenges brought about by the COVID 19 pandemic. Foremost of which
is the hosting of a Rapid Antigen Test (RAT) Facility at the Port of Surigao in coordination
with the Surigao del Norte Provincial Health Office. It also welcomed the installation and
operation of handwashing facilities by the Surigao Metropolitan Water District –
Primewater, as well as the provision of sanitation tents by the local chapter of the Philippine
Institute of Civil Engineers and the Surigao Wensie Jaycees.

In 2020, the pandemic required the complete rethinking of our plans, programs and
responses as we go along our way during this critical times. Yet, I am proud to say that at
the end of the day, the Port Management Office of Surigao has somehow managed to
overcome the many challenges and build resilience through shared strength.

-o0o-