Iloilo City guns for the top

After the International Container Terminal Services Inc. (ICTSI) secured a 25-year contract to develop and operate the Iloilo Commercial Port Complex or ICPC, the City of Love now aims to be at the top of highly urbanized cities in the years to come.

Just this March, the Philippine Statistics Authority (PSA) said Iloilo City’s per capita gross domestic product (GDP) based on the Provincial Product Accounts (PPA) results for 2022 is at P306,444, higher than the national average of P178,751.

Aside from this, the PSA said Iloilo City placed fourth among the pilot highly urbanized cities (HUCs) outside of the National Capital Region (NCR) based on the PPA result.

“We worked very hard for that, and it showed in the result. We are delighted that Iloilo City is gaining ground. Hopefully, this will continue because we have so many plans for Iloilo City,” Mayor Jerry Treñas said, quoted in a report by the Philippine News Agency.

In terms of HUC ranking, Iloilo City was trailed by the cities of Baguio, Cagayan de Oro and Lapu-Lapu, which are the top three.

“Iloilo City has a strong economy based on the result of the PPA. The strength of its economy is one of the elements investors look into. The high GDP per capita of Iloilo City indicates that the population is productive,” said Velma Jane Lao, head of the Iloilo City Local Economic Development and Investment Promotion office.

Further, she said the city’s aggressive promotion of investments has generated more employment and opportunities for entrepreneurship, thus increasing the productivity of the Ilonggos.

“The output of each Ilonggo contributes to our GDP,” she said, adding that investments have multiplier effects like job creation, boosting purchasing power, and increasing tax collection.

A big boost

ICTSI’s pronouncement that it has secured a 25-year contract to develop and operate the Iloilo Commercial Port Complex (ICPC) is seen to even make the economy of Iloilo City boom in the coming years.

Once the development is completed, the ICPC will be called Visayas Container Terminal (VCT).

This was extolled by Ilonggo’s pride, former Senate President Franklin Drilon has extolled the pronouncement of the Enrique Razon-led ICTSI, stating the acquisition of a port operation in Iloilo by the ICTSI will reinvigorate the economy and establish Iloilo as an international gateway, pouring in about P1.1 billion in investment within the first two years as he expects cargo volume increase in the coming years.

“With the substantial investment that ICTSI is poised to inject, we are now on the path to realizing our shared aspiration of restoring Iloilo to its former stature as an international gateway, as it was at the turn of the 20th Century when Iloilo was dubbed as the ‘Queen City of the South,’” Drilon stressed.

“I am glad that ICTSI has finally been awarded the 25-year concession as the port operator. Ricky Razon and ICTSI deserve special recognition for their significant investment and unwavering confidence in Iloilo. ICTSI is a true partner in moving Iloilo forward,” Drilon said

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.

Notice to proceed

On 15 April, the Philippine Ports Authority provided regulatory approvals for the ICTSI to operate and develop the VCT.

ICTSI was granted a 25-year concession approval that would strengthen its presence in the international seaport of Iloilo City in central Philippines and unlock the economic potential of the Western Visayas region.

“ICTSI received a Notice to Proceed on 15 April to operate Iloilo’s international seaport, following a review by the PPA and the Office of the Government Corporate Counsel,” the statement read.

With this, ICTSI is mandated to focus on improving terminal productivity and service quality by investing in the development and rehabilitation of the terminal infrastructure and the deployment of cargo-handling equipment.

“The Visayas Container Terminal is poised to become a catalyst for Iloilo’s economic and social growth. 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,” said Christian R. Gonzalez, ICTSI executive vice president.

VCT serves as a vital gateway for the province of Iloilo, the entire Panay Island, and the wider Western Visayas region.

Its natural harbor in the Panay Gulf, sheltered by Guimaras Island, provides a safe and ideal environment for ships and vessels.

It is said that while the seaport plays a crucial role in regional trade, capacity and efficiency constraints have held back its full potential.

Moreover, the ICTSI’s involvement in the VCT will transform the port, addressing these challenges and unlocking its economic benefits.

The port will be operated exclusively to serve foreign vessels and cargoes, with a provision for domestic vessels and cargoes in the initial five years.

Yearly, the VCT handles a current volume of 100,000 TEUs and 2 million metric tons of non-containerized cargo.

It features 627 meters of operational quay length and 20 hectares of land dedicated to container and general cargo storage, warehousing, and other cargo-handling activities.