ICTSI bags deal for Iloilo port ops

ICTSI bags deal for Iloilo port ops | Daily Tribune

Razon-led global port operator International Container Terminal Services Inc., or ICTSI, has secured a 25-year contract to develop and operate the Iloilo Commercial Port Complex, or ICPC.

ICTSI confirmed the development on Monday through a stock exchange disclosure where it indicated that it will start the operations of the facility upon contract signing and the Philippine Ports Authority, or PPA, issuance of the Notice to Proceed.

Upon contract signing, ICTSI will invest in terminal infrastructure development and cargo-handling equipment deployment to improve productivity and service quality structure and the deployment of cargo-handling equipment.

“We are elated and grateful to be entrusted with the redevelopment of the Iloilo Port. We recognize the port’s pivotal role in driving Iloilo’s economic and social growth,” ICTSI executive vice president Christian R. Gonzalez said.

“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,” he added.

Located at the heart of Iloilo City, ICPC serves the province of Iloilo and the entire Panay Island, in Western Visayas. It is located away from the older port facilities on the Southern coast of Panay Island, in Panay Gulf.

20 hectares for containers

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.

Based on the PPA’s bid invitation, the concession agreement for the port’s development requires a minimum fixed fee of P500 million for the sixth to 10th year and a minimum annual concession fee of P100 million for the sixth year.

It also indicated that the project should include an internationally recognized terminal operating system, upkeep of PPA-owned equipment, and continued maintenance of the infrastructure.

Last year, the Iloilo City government actively appealed to PPA general manager Jay Daniel R. Santiago to prioritize the city’s port expansion.

In a letter dated 5 September 2023, Iloilo City Mayor Jerry P. Treñas cited that Western Visayas recorded the highest economic growth rate among all regions at 9.3 percent, which exceeded the national average of 7.2 percent.

Treñas lamented that the Iloilo International Port in Barangay Loboc, Lapuz, Iloilo City, has not seen any additional improvements since its establishment in the 70s.

Thus, he reiterated that access to domestic and international transportation and logistics is of utmost importance to boost the sectors of trade, commerce and tourism.