Razon invests P462-B for new container terminal

Deemed to be its second-largest container facility next to Manila International Container Terminal (MICT), shipping magnate Enrique K. Razon announced to shell out P462.72 billion ($800 million) to erect a new international container terminal in Bauan, Batangas.

On Monday, the Enrique Razon-led International Container Terminal Services Inc. (ICTSI) said the new terminal will be the largest privately funded marine terminal investment in the country’s history, and it will begin constructing the terminal in 2025.

Upon completion, the terminal will feature up to 900 meters of quay, at least eight ship-to-shore gantry cranes, and an estimated capacity of over 2 million TEUs (twenty-foot equivalent units) per annum.

The terminal will have critical direct and unencumbered access to Southern Luzon’s expressways, made possible by completing the Bauan-San Pascual-Batangas-STAR tollway diversion road.

Additional expressway projects from Cavite to Bauan by Metro Pacific Tollways Corporation and San Miguel Corporation are expected to further enhance the new port’s connectivity making it the most efficiently connected maritime facility in Luzon by both capacity and route access.

With design and engineering studies well underway, ICTSI will begin construction in the first quarter of 2025.

The terminal will become a catalyst for economic growth across Southern Luzon, creating jobs and accelerating regional development, with the first berth scheduled for completion by the end of 2027.

The terminal is also expected to play a role in providing the marine handling needs required by the country’s renewable energy transition strategy for Southern Luzon.

“The new terminal represents a significant leap forward for Southern Luzon. We are building a world-class facility that will unlock a wave of economic benefits for the region and the country. It will create new employment opportunities, improve the quality of life for our host communities and the industries located around the terminal, and solidify Southern Luzon's position as a key player in global trade,” Christian Gonzalez, ICTSI executive vice president, said.

Gonzalez stressed that the new terminal complements ICTSI’s strategy of providing a national network of ports with ICTSI’s brand of operational synergy that would further improve the country’s supply chain and competitiveness in global trade.

Strategically located 120 kilometers south of Manila and nine kilometers west of Batangas City, the Bauan facility will become the premier international gateway for shippers based in the CALABARZON region (Cavite, Laguna, Batangas, Rizal, and Quezon), and the most modern container terminal in the country.

Bauan is a first-class municipality in Batangas province known for its agro-industrial strength.

On the other hand, CALABARZON continues to be one of the Philippines’ fastest-growing regions, reaching a 5.2 percent growth rate in 2023, according to latest figures from the Philippine Statistics Authority.

The region's gross domestic product stands at P3.10 trillion, representing 15 percent of the Philippines' total GDP.

The facility will likewise allow ICTSI to efficiently balance capacity needs across both the Metro Manila consumption center and CALABARZON through the new Bauan terminal and the MICT.