Christian Gonzalez —PHOTO FROM ICTSI WEBSITE
MANILA, Philippines – International Container Terminal Services Inc. (ICTSI) is set to take over and develop the Iloilo port under a 25-year concession agreement with the government after receiving the green light from the Philippine Ports Authority (PPA) on Monday.
The Razon-led port operator, in a statement on Monday, said the PPA had issued a notice to proceed for the P10.53-billion port project, now called Visayas Container Terminal (VCT), in Western Visayas.
ICTSI will focus on rehabilitating the terminal facility and bringing in cargo-handling equipment to improve operations at VCT.
The sea terminal would be used exclusively for foreign vessels and cargoes, but it would include provisions for local shipments in the first five years, according to the listed company.
World-class gateway
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 has an annual cargo capacity of 100,000 20-foot equivalent units and 2 million metric tons of noncontainerized cargo.
“We’re thrilled to begin operations and transform the Iloilo Port into a world-class gateway for the Central Philippines. Our significant investments in modern infrastructure, cargo-handling equipment, and operational efficiency will drive this transformation,” ICTSI executive vice president Christian Gonzalez said.
PPA General Manager Jay Santiago, in a message to the Inquirer, said they were expecting ICTSI “to bring to the VCT its global expertise in port operations, further improving the efficiencies of our national port system, particularly in the Visayas region.”
$450-M capex
The Iloilo port serves Iloilo and Panay Island in Western Visayas. According to PPA data, 52.59 million metric tons of cargo passed through Visayas ports last year, representing nearly 20 percent of the country’s total volume.
This year, ICTSI earmarked $450 million in capital expenditures to fund the expansion of its terminals here and abroad.
Apart from the Iloilo project, ICTSI is also working on other expansion plans in Brazil, Mexico, and Indonesia, among others.
The global port company, which operates terminals in six continents, saw its consolidated cargo volume grow by 4 percent to 12.75 million 20-foot equivalent units last year.
ICTSI attributed the busier cargo movements to its operations at Manila North Harbor Port, which is among the country’s busiest sea terminals. —INQ