THE establishment of an oil island and grains terminal proposed by new North Harbor operator Manila North Harbour Port Inc (MNHPI) requires pre-approval by the Philippine Ports Authority (PPA) Board.
PPA Manila port district manager Engr. Constante Farinas insisted that such proposals must satisfy environment and security concerns and must also form part of the North Harbor development masterplan “which MNHPI has yet to submit.”
The oil island is meant to host Petron Corp’s new oil depot. Petron along with the other oil majors were recently ordered to relocate from the Pandacan depot for fear the facility, being near the seat of the national government, will be a target of terrorist attacks or that a fire in the area may quickly spread to congested Manila.
The establishment of an oil island at the North Harbor was revived after Harbour Centre Port Terminals, Inc (HCPTI) and its new joint venture partner in MNHPI, San Miguel Corp, (SMC) which is also the biggest Petron shareholder, signed a pact allowing the buyout of 35% of MNHPI by SMC from ex joint venture partner, Metro Pacific Investments Corp.
Under the plan to put up an oil island, Petron will invite Pilipinas Shell and Chevron to also relocate their depots to the North Harbor and share equally in the cost of construction and development.
Aside from the oil terminal, SMC plans to build a grains terminal in North Harbor after it failed to acquire the Mariveles Grains Terminal from Asian Terminals, Inc.
Earlier, HCPTI – MNHPI’s majority stakeholder – said it was willing to invest in an oil island if the oil companies agree to transfer to the facility. This will ensure recouping the estimated $200-million investment in construction.
According to the initial plan, HCPTI will reclaim 50 hectares for the island. The oil companies will construct the facilities and equipment needed for the depot.
