Bidding for port PPP moved anew

THE DEPARTMENT of Transportation and Communications (DOTC) has given potential bidders more time to prepare offers for its P19-billion Davao Sasa port modernization project, the Aquino administration’s first seaport public-private partnership (PPP) deal.

The DOTC said in a bid bulletin that the submission date has been moved to Feb. 26 from Jan. 11 next year.

The deadline, already moved from December this year, was extended “to give prequalified bidders more time to conduct technical, financial and legal due diligence,” the department explained.

Five groups were qualified to submit offers for the project, which is facing opposition from Davao-based port operators since its development would affect their individual businesses.

The prequalified groups are the San Miguel Holdings Corp.-APM Terminals Management (Singapore) Pte. Ltd. consortium, port tycoon Enrique Razon Jr.’s International Container Terminal Services Inc., the Asian Terminals Inc-DP World FZE consortium, the Portek International Pte. Ltd.-National Marine Corp. consortium and Bollore Africa Logistics.

Information on the PPP Center’s website showed that the private partner would finance the construction and modernization of the existing port. This includes the new apron, linear quay, expansion of the back-up area, container yards, warehouses and the installation of new equipment such as ship-to-shore cranes and rubber-tired gantry over the pre-agreed concession period.

The private partner will also be responsible for operating and maintaining the port for a period of 30 years.

“Once the first phases of the project are completed in 2018, the Sasa Port will be comparable to the country’s top ports in terms of speed and quality of service, cutting down cargo unloading from three days to three hours by using modern ship-to-shore cranes and port operating systems,” the DOTC said.

The Davao region thrives in banana exports, being the second-largest banana exporter in the world. A study conducted by International Finance Corp. (IFC) and Development Bank of the Philippines (DBP) showed that container traffic in the Davao region was projected to increase by at least 6 percent annually over the next 25 years.

“Without the added capacity of a modernized Sasa Port, there will be a strong chance of shortage in port capacity in Davao Bay which may affect small-medium banana growers who may not be able to export their bananas,” the DOTC said.

Apart from added capacity, the proximity of the Sasa Port to banana plantations would help growers save at least P8,000 in trucking costs per delivery, the DOTC said.