ICTSI bags 25-year Iloilo port rehab deal
MANILA, Philippines —International Container Terminal Services, Inc. (ICTSI) clinched a 25-year concession deal to develop and operate the Iloilo Commercial Port Complex (ICPC), a crucial gateway facilitating trade in Western Visayas.
In a statement on Monday, the Razon-led port operator said it had received a notice of award to take over the operations of ICPC, which will be renamed Visayas Container Terminal after finalizing the contract. ICTSI will be able to start operating the port once it gets a notice to proceed by the Philippine Ports Authority (PPA).
“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,” ICTSI executive vice president Christian Gonzalez said.
The port has 627 meters of operational quay length and 20 hectares of land for container and general cargo storage, warehousing and other cargo-handling activities. It serves the province of Iloilo and Panay Island in Western Visayas.
According to PPA data, cargo throughput in Visayas reached 38.1 million metric tons in January to September last year. This represents about 19 percent of the total cargo volume across the country during the period.
The Iloilo city government has previously called on the Department of Transportation to speed up the process for the port rehabilitation after getting a proposal from the ICTSI.
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Article continues after this advertisementThe local government unit had endorsed the ICTSI offer to the National Economic and Development Authority in 2021. Rehabilitating the port was seen as a necessity because there was little to no additional improvements done since it was developed in the 1970s, Iloilo Mayor Jerry Treñas earlier said.
Expansion projects
The Iloilo port is among the latest expansion projects ICTSI has lined up.
ICTSI is also currently constructing a multipurpose terminal in Indonesia, which is targeted to become operational by September. The project includes a 300-m quay line, breakwater and super heavy lift break-bulk deck.
The Razon-led port operator also won last year a 25-year contract to operate and develop Durban Container Terminal Pier 2 at the Port of Durban in South Africa.
READ: ICTSI wins deal to operate South Africa’s biggest port
The listed company spent $233.58 million in January to September last year for expansion and acquisition of equipment for its operations in Manila, Mexico, Australia and Congo. INQ
