ICTSI bids P5 B for 2 Iloilo ports
Ports operator giant International Container Terminal Services Inc. (ICTSI) of billionaire Enrique Razon Jr. looks to expand further its network in the country as it seeks to modernize and manage two ports in Iloilo for at least P5 billion.
ICTSI yesterday said it has submitted a proposal to the Philippine Ports Authority (PPA) to develop the Iloilo Port Complex and the port of Dumangas in line with the future development needs of Iloilo and the Visayas.
Part of the proposal is to modernize the ports’ infrastructure and superstructure, and to eventually manage and operate the two Iloilo ports.
“We truly believe in the growth potential of the Visayas in general and of Iloilo in particular. That growth is anchored on the building of infrastructure and the delivery of basic utilities and services. With the development of port superstructure and the costefficient delivery of electric services, we hope to be able to help Iloilo in attaining its full potential,” ICTSI chairman and president Enrique Razon Jr. said.
“ICTSI believes that the ports’ development will not only improve efficiency, but will, more importantly, evolve the ports into becoming the country’s hub in the Visayas that will improve connectivity for cargo movement within the country. Our vision is to ultimately turn these two ports into international gateways,” ICTSI global corporate head Christian Gonzalez said.
ICTSI said it is hoping to arrive at an agreement with the PPA that would be compliant with the agency’s rules and regulations and applicable laws.
With its three decades of experience across the 30 ports it operates worldwide, ICTSI also intends to bring to the Iloilo ports its know-how in managing ports.
Over the life of the concession that will be agreed on with the PPA, ICTSI has estimated an investment of over P5 billion to fully develop the Iloilo Port Complex.
An integral part of the investment will include the dredging and deepening of the port itself and the channel to allow the direct entry of new generation international vessels, the company said.
ICTSI said new port equipment to be brought in during the first phase alone is estimated to cost P1.35 billion as it will include modern quayside crane handling equipment.
ICTSI is also offering to substantially invest in the development of the port of Dumangas in order to seamlessly handle the spill over from the city port.
“As with other ports that it operates, ICTSI will introduce new systems in operations, engineering and administration. The introduction of au- tomation will further promote efficiency and security,” ICTSI said.
“With its excellent relationship with major shipping lines, the ICTSI commercial team will promote the services of the Iloilo ports. And as with its other ports, ICTSI hopes to employ local talent that will operate the ports. Last but not least, ICTSI also hopes to roll out engagement programs for port users to ease business transactions,” it said.
Overall, ICTSI said it hopes to be able to assist the PPA in the agency’s goals to upgrade the Philippine port network in the hope of facilitating interisland and international cargo movement.
The PPA has also received two unsolicited proposals from the private sector to rehabilitate and upgrade some the country’s ports.
Dennis Uy’s Chelsea Logistics Holdings Corp. last August submitted an P11.2billion unsolicited proposal to the PPA for the modernization of the Sasa Port in Davao City, while Davao-based Kudos Trucking Corp. last month offered to rehabilitate and improve the General Santos Port.
PPA general manager Jay Daniel Santiago earlier said the agency would only be entertaining unsolicited proposals for ports classified as Tiers 1 and 2.