PPA Fast-tracking Offers to Upgrade Seaports Across the Country

September 2019

The Philippine Ports Authority (PPA), the Philippines’ main authority managing large-scale ports, has recently received a couple of unsolicited seaport development proposals that aim to speed up the construction and modernization of new and existing sea terminals in the country. These big-ticket proposals for which the PPA is fast-tracking the processing of approval are:

Modernization proposal of Davao Sasa Port Development from Chelsea Logistics and Infrastructure Holdings Corp: This is the project proposal that is in the most advanced stage with the PPA awarding an original proponent status to Chelsea last month. Now the proposal has been forwarded to the National Economic and Development Authority (NEDA) Investment Coordination Committee (ICC), whose board will issue the final approval for a Swiss Challenge. Based on reglementary periods, PPA estimated that they should be able to award this proposal by the first quarter of 2020. The proposal covers a 25-year joint venture agreement for the modernization of Davao Sasa Port which will run in five phases, with the first and second phase to be completed in 2021 and 2023, respectively. The project targets to deliver port capacity expansion, flow improvement of waterborne commerce and inter-island seaborne commerce and foreign trades, and streamlining, enhancement, and optimization of port maintenance and operations.
Proposed upgrade of Iloilo Port by International Container Terminal Services Inc (ICTSI): This PHP 8.7 billion (USD 167 million) proposal that is looking to turn the Iloilo Port into a world-class facility, is currently under review by the PPA. The plan includes installing ship-to-shore gantry cranes and the continuous upgrading of its yard capacity based on demand. ICTSI was also planning to build a cruise ship terminal that would cater to domestic and international tourists. With this port upgrade, trade in Iloilo is expected to become more vibrant as it is being positioned to become a major exporter of agricultural goods.
Proposed rehabilitation of the Port of General Santos by Kudos Trucking Corp: PPA is currently concluding pre-negotiation meetings for this proposal, and is expected to begin actual negotiations with Kudos by either late September or October. 

Improvements and expansion of existing seaports, as well as the development and construction of new ones, are within the country’s Maritime Industry Development Plan (MIDP) 2019-2028, which aims to help solve the Philippines long-festering problem to grab a bigger slice of the international trade and tourism markets.

(Sources: Business Mirror; Philippine Star; Inquirer.net; PortCalls)

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