ICTSI likely to cop Iloilo Port contract

THE International Container Terminal Services Inc. (ICTSI) of tycoon Enrique Razon is close to securing the cargo-handling contract of the Iloilo Commercial Port Complex (ICPC).

The Philippine Ports Authority (PPA), which made the announcement on Thursday (January 11), said the ICTSI’s technical and financial proposal passed the PPA Bids and Awards Committee.

ICTSI’s offer for the 25-year contract involves a concession fee of P750 million for the sixth to 10th year, surpassing the minimum fixed concession fee of P500 million stated in the contract.

ICTSI is the sole bidder for the 25year contract to manage and operate the cargo-handling and related services of the Iloilo Port, according to the PPA.

Following the initial approval, the PPA stated that ICTSI would undergo post-qualification. Upon successful completion, the PPA would then award the port management contract.

If awarded, ICTSI will oversee the operations, management, landside and waterside improvement and expansion, and other responsibilities.

The contract specifies that ICTSI’s operation of the Iloilo Port will exclusively serve foreign vessels and cargoes.

Domestic operations for vessels and cargoes are permitted only for the first five years or until the completion of the port development project at Fort San Pedro Port in Iloilo City proper.

It can be recalled that ICTSI’s initial bid on Dec. 18, 2023 was deemed “failed” due to the absence of a notarized Secretary’s Certificate or any legal document confirming ICTSI’s authorization in its Omnibus Sworn Statement.

The Razon-owned company was given until December 21 to request for reconsideration of its bid.

In 2019, the global port management company also submitted a P5-billion investment proposal to develop ICPC and the Port of Dumangas but withdrew it in 2022 due to procedural concerns.

Consequently, the PPA revised its policies on awarding of port terminal management contracts, introducing the Port Terminal Management Regulatory Framework (PTMRF).

The PTMFR outlined PPA’s new guidelines in the awarding of port terminal management contracts, which bid Iloilo Port under its Tier 1 classification.