Five Firms Gun to Prequalify for First PPP Port Project

Five firms submitted their pre-qualification documents for the Davao Sasa Port Modernization Project of the Department of Transportation and Communications and Philippine Ports Authority (PPA). The 18.99 Billion peso project is the first port project under the country’s public-private partnership program. The pre-qualifying companies or consortia include: Asian Terminals Inc. and its Dubai-based partner DP World, French industrial and holding firm Bollore Africa Logistics, San Miguel Corporation and its Netherlands-based partner APM Terminal, Singapore-based Portek International Pte. Ltd. and its partner the National Marine Corporation and the International Container Terminal Services, Inc.

DOTC will announce the pre-qualified bidders after 20 calendar days.

Under the Build-Transfer and Operate structure, the private proponent will finance the construction and modernization of the existing port including the new apron, linear quay, expansion of the back-up area, container yards, warehouses, and the installation of new equipment like ship-to-shore cranes and rubber-tyred gantry over the pre-agreed concession period. The private partner will also be responsible in operating and maintaining the port.

Located within the Davao Gulf, the Davao Sasa Port is a major sea port of the Philippines, catering to both inter-island and international shipments that consist mostly of container cargo, raw materials exportation, bulk cargo, general cargo and passenger traffic facilities.

Given the strategic location and the significance of the port to boost the economic activities south of the Philippines, the modernization efforts being pushed by the DOTC will transform the existing Davao Sasa Port into a modern and international-standard container terminal that will improve trade access to Mindanao by providing a dedicated containerized port in the region. The expected improvement in port operations will drive down shipping and cargo cost as turnaround time is cut and larger ships can be accommodated. The lower shipping costs will translate to more operational efficiencies in cargo and handling, lowering costs for consumers. This will support the growing agro-industrial sector in Mindanao, spurring economic growth in the region.

When modernized, Davao Sasa Port will boost the banana industry of Davao which accounts for 57% of the total Philippine production. Currently, the Davao banana industry employs approximately some 240,000 workers in farms across Mindanao but affects an estimated 1.4 million person who benefit directly and indirectly from the banana industry.

Source: ppp.gov.ph