Privatization of Iloilo Port in full swing
THE privatization of the Iloilo Commercial Port Complex (ICPC), Panay Island’s premier port and one of the country’s most important seaports and trade hubs, is in full swing this year, said Allan Rojo, manager of the Port Management Office (PMO) Panay/ Guimaras.
Rojo said that ICPC is “on the verge of transformation” with its upcoming turnover to the International Container Terminal Services Inc. (ICTSI), the sole bidder for the port’s privatization program.
The PPA has granted ICTSI a 25year concession contract to develop and operate the ICPC in Western Visayas, signaling a major leap toward modernizing the region’s gateway.
ICPC serves the province of Iloilo and Panay Island in Western Visayas, boasting natural advantages like its safe harbor shielded by Guimaras Island.
Renamed Visayas Container Terminal (VCT) post-handover, the facility encompasses 627 meters of operational quay length and 20 hectares of land for cargo-handling activities. ICTSI plans to enhance terminal productivity and service quality through infrastructure development and the deployment of modern cargo-handling equipment.
“We have already concluded the post-evaluation proposed by ICTSI. We will be expecting that anytime until end of February, a Notice of Award and Notice to Proceed will be issued,” Rojo said.
ICPC is among the four major ports in the country to be privatized as part of PPA’s efforts to transform major ports into world-class facilities and to complement the operations of the congested Ports of Manila.
The major ports in Cagayan de Oro, Zamboanga and General Santos are among those that have been determined to be privatized since July 2014.
The Iloilo PMO is expecting significant infrastructure development following the privatization of ICPC.
“The changes in the façade of ICPC will soon begin. Modern equipment like ship-to-shore (STS) crane and rubber-tired gantry (RTG) will be deployed because ICTSI will mobilize right after the issuance of Notice to Proceed,” Rojo said.
Ships currently berthed in ICPC are self-sustaining through their own cranes to transfer cargoes from ship to shore.
With the upcoming infrastructure development from ICTSI, however, the loading and unloading of cargoes will be hastened. This is seen to improve a faster turnaround for ships in ICPC.
“We have already created a transition committee, and we are about to conduct an inventory of facilities that will be turned over to ICTSI. But based on the Terms of Reference, a gradual turnover of domestic operations will be held in a span of five years. Domestic ships will be transferred from here to Baseport Fort San Pedro and with the ensuing port modernization, ICPC is expected to fully receive vessels straight from other countries,” he explained.
This development is also seen to lessen the vessel traffic in the Port of Manila as foreign vessels bound for Panay Island no longer have to pass through Manila. It will significantly reduce costs for shipowners.
Based on the Port Terminal Management Contract (PTMC), the concession fee is posted at around P2.013 billion. This includes the repair, construction and provision of equipment at the port.
Rojo said that no port workers in ICPC will be laid off with the privatization.
“All staff are well protected. In fact, there will be an augmentation of personnel due to the expected vastness of operations of ICTSI,” he said.
Christian Gonzalez, ICTSI executive vice president, said: “We are grateful to be entrusted with the redevelopment of the Iloilo Port. We recognize the port’s pivotal role in driving Iloilo’s economic and social growth. Our comprehensive proposal outlines significant investments in infrastructure upgrades, cargo-handling equipment, and operational efficiency measures, all aimed at transforming the Iloilo
Port into a premier gateway.”
Former Senate president Franklin Drilon, a native of Iloilo, lauded PPA’s decision to partner with ICTSI, foreseeing transformative impacts on Iloilo’s economic landscape.
“ICTSI is well-positioned to efficiently manage the ports and address the longstanding congestion issues plaguing our ports, which have deterred potential investors. The decision to partner with ICTSI is a significant step forward in transforming VCT into a modern, world-class port facility and accommodating more domestic and international shipments. This will position Iloilo as a key driver of economic progress in the Philippines,” Drilon said.
Gonzalez acknowledged key stakeholders’ belief in ICTSI’s vision for VCT, emphasizing their commitment to success.
Drilon added that enhancing the infrastructure of VCT will undoubtedly facilitate a surge in international container ship arrivals and streamline the flow of goods in and out of the port: “I am confident that this strategic move by the PPA, in collaboration with ICTSI, will lead to a revitalized and efficient port complex in Iloilo.”