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MANILA, Philippines — With the Mindanao subsidiary of tycoon Enrique Razon Jr.’s International Container Terminal Services Inc. (ICTSI) being granted another 25 years of concession period, the global port operator is pouring in $100 million to ramp up the terminal capacity amid the projected rise in cargo shipments.
In a disclosure on Friday, the parent company said that the Phividec Industrial Authority had allowed Mindanao International Container Terminal Services Inc. (MICTSI) to operate the port in Misamis Oriental until 2058.
Article continues after this advertisementConsidering this, the Razon-led company plans to extend the berth by 300 meters, construct more support infrastructure, and acquire additional port equipment to boost capacity from the current 350,000 twenty-foot equivalent units (TEU).
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“The new berth will enable the shipping industry to deploy larger ships on new service routes to support growth and demand from Mindanao’s importers and exporters,” ICTSI said.
Article continues after this advertisementThe 24-hectare (ha) terminal has an 11-ha container yard. It has been serving as the transshipment hub for goods in northern Mindanao since 2008.
Article continues after this advertisementLast September, MICTSI welcomed the inaugural China-Philippines service by SITC Container Lines Co. Ltd., which traverses Shanghai, Wenzhou, Manila, Cebu and Cagayan de Oro.
Article continues after this advertisementThe route caters to the export of Bukidnon’s fresh produce, such as pineapple and banana.
Extended concessionSecuring the extended concession period came about nine months after ICTSI won the 25-year contract to take over and develop the P10.53-billion Visayas Container Terminal (VCT) project in April.
Article continues after this advertisementICTSI is rehabilitating the terminal facility and bringing in more equipment to improve operations at VCT. This port has 627 meters of operational quay length and 20 ha of land for container and general cargo storage, warehousing and other cargo handling activities.
The global port operator will also start building by next year an $800-million seaport in Bauan, Batangas, to boost shipping in the Calabarzon region.
In a statement on Monday, GSIS said the transport hub dubbed as ‘Project Hub’, will be located at the corner of the Elliptical Road and Commonwealth Avenue.
The planned port, which is designed to handle over 2 million TEUs of cargo yearly, will include 900 meters of quay and at least eight ship-to-shore gantry cranes. The completion of the first berth is targeted by the end of 2027.
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The Philippine Ports Authority projects cargo volume to increase by 8 percent next yearslotsdreamer, banking on the sustained economic recovery that spurs trading activities.
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