ICTSI not keen on P17-B Davao port project

Subscribe Now April 20, 2015 at 10:14am

International Container Terminal Services Inc. (ICTSI) is not keen on joining the bidding for the Aquino administration's first seaport public private partnership (PPP) project.

Enrique Razon, chairman of ICTSI, said the port operator is lukewarm to the proposed P17 billion modernization project as well as operation and maintenance (O&M) of the Davao Sasa port.

On top of the huge investment requirement, Razon said that there are several private ports already operating in Davao. “What we are seeing is the investment requirement is so large. Numerous private ports are already in the area. So we may not bid for that,” Razon said.

With the presence of several competing private ports in Davao, Razon explained that it would be difficult to recover the required investment.

“Defensive move is not for P17 billion. That’s not a defensive move anymore. I doubt you can recover that type of investment in Davao,” he said.

The Department of Transportation and Communications (DOTC) has finally rolled out the first seaport PPP project of the Aquino administration.
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The government has tapped the International Finance Corp. (IFC) of the World Bank (WB) as well as the Development Bank of the Philippines (DBP) to act as the transaction advisors for the two-stage bidding to be conducted in accordance with the Build-Operate-Transfer (BOT) Law.

The PPP project covers the modernization of the exiting port and the establishment of a dedicated container handling facilities with an initial design capacity of 1,900 container ground slots to a minimum of 2,700 container ground slots.

It also involves the construction of a new apron, development of a linear quay, expansion of back-up area, provision of container yards and warehouses as well as the installation of appropriate container handling equipment.

The winning bidder would operate and maintain the Davao Sasa port for a period of 30 years.

Davao City serves as the main trade, commerce, and industry center of Mindanao and is known to be one of the fastest growing cities in the Philippines.

The existing Davao Sasa port is situated in an 18.1-hectare property with a container yard size of 4.15 hectares that could accommodate 864 containers. The port has an annual capacity of 550,000 twenty-foot equivalent units (TEUs).

Source: bworldonline.com

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