THE Department of Transportation and Communications is in discussions with Razon-controlled International Container Terminal Services Inc. (ICTSI) for the possible buyout of the cargo-handling contract for the Davao port as the government is keen on privatizing its operation.
The Philippine Ports Authority (PPA) wants to privatize the entire operations of the Davao port, one of the main gateways in the southern part of the country. At the moment, ICTSI subsidiary, Davao Integrated Port Stevedoring Service Corp. (DIPSSCOR), is the port’s lone cargo handler. DIPSSCOR’s contract with PPA expires in 2016.
Davao is the world’s third-biggest exporter of banana, and most of it is being shipped through the said port.
“The DOTC is discussing it with [ICTSI],” PPA general manager Juan Sta. Ana said, but declined to give any additional details on the negotiations between the two parties.
In a recent interview at the sidelines of the Philippine International Maritime Conference and Exhibition, PPA assistant general manager for operations Raul Santos said the government still needs to address possible conflicts, including legal issues, to have a smooth privatization process.
“I think there will be no conflict even if we privatize the port by next year,” Santos said.
“There are many ways to prevent such conflicts and this early we are now exploring the best possible options,” he said.
The PPA is spending about P3.98 billion to expand the Davao port. The project include the strengthening of Berths 1 and 2, development of container yard 3, demolition of existing building, development of 300 container yard reefer outlets as well as the supply and installation of four gantry cranes and installation of eight rubber tired gantry cranes.
Once completed, the project is expected to increase capacity of the port to about 1.3 million twenty-foot equivalent units (TEUs) or double the current capacity.
Currently, the Port of Davao has a total cargo throughput of 5.19 million metric tons, a passenger traffic of 62,220, shipcalls of 1,447 and handles some 524,498 TEUs of cargo every year.
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By: VG Cabuag
Source: Business Mirror, Nov. 21, 2011
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