Razon-led ICTSI awarded 25-year Iloilo port contract
THE Philippine Ports Authority (PPA) has awarded International Container Terminal Services, Inc. (ICTSI) a 25-year contract to operate the Iloilo Commercial Port Complex in Western Visayas.
The contract includes a concession fee of P750 million, covering a period of six to 10 years, excluding taxes, PPA General Manager Jay Daniel R. Santiago said in his notice of award to ICTSI. This amount is 50% higher than the P500 million minimum fixed fee set by the agency in its bid invitation.
“You are hereby instructed to formally enter into contract with us… within 30 calendar days from the signing of the port terminal management contract,” he said in the letter.
Razon-led ICTSI, the sole bidder for the project, will assume control of the facility after the contract signing and once the PPA has issued the notice to proceed.
“ICTSI will focus on improving terminal productivity and service quality by investing in the development and rehabilitation of the terminal infrastructure and the deployment of cargo-handling equipment,” the listed company said in a statement.
“Capacity efficiency constraints have hampered its full potential. ICTSI’s involvement aims to tackle these challenges head-on, unlocking the port’s economic engine,” it added.
The Iloilo Commercial Port Complex, which will be named Visayas Container Terminal after the handover, has approximately 627 meters of operational quay length and 20 hectares of land for container and general cargo storage, warehousing, and other cargo-handling activities.
“We recognize the port’s pivotal role in driving Iloilo’s economic and social growth,” Christian R. Gonzales, ICTSI executive vice-president, said in a statement.
The facility caters to Iloilo province and the entire Panay Island. Situated apart from older port facilities on Panay Island’s southern coast in Panay Gulf, it benefits from being one of the country’s safest harbors, according to ICTSI.
Guimaras Island protects the port from storms, making it suitable for docking ships and vessels, the company noted. —