THE Subic Bay Metropolitan Authority (SBMA) will award the contract to manage and operate the Freeport’s new container terminal to Subic Bay International Terminal Corp (SBITC), a unit of International Container Terminal Services, Inc. (ICTSI). This, after the expected Swiss Challenge from major port operators worldwide did not materialize.
The 25-year contract is, however, still subject to approval by the SBMA board and concurrence of the Japan Bank of International Cooperation (JBIC).
SBMA will control 15% of Terminal 1; SBITC, 83%; and Royal Cargo the rest.
A second terminal will be awarded through a three-week international competitive bidding.
The new terminal is equipped with two quay cranes and several rubber-tired gantries. Another pair of cranes will be installed before SBITC takes over. SBITC will have to build its own administration building, engineering office, truck holding area, refueling station and field office.
SBMA expects cargo traffic at the port to increase three fold with provisions of huge back-up areas for expansion once the terminal becomes fully operational this year.
For the past two years, SBMA saw a combined container volume of 65,587 TEUs. With the new terminal, SBMA sees container traffic doubling to up to 150,000 TEUs in the first year of operations and increasing 100,000 TEUs more starting the second half of 2008.
The opening of the Subic-Clark toll road is expected to bring in more export cargo with Luzon shippers seen shifting from Manila to Subic. The road cuts travel time to Subic from Clark by more than 60%.
The multi-million Subic Bay Port Development Project, which includes container Terminal 1, is aimed at making SBMA as one of the major cargo destinations starting this year and boost its drive to become one of the major transshipment hubs in the Asia-Pacific region. The project is funded by a special yen loan assistance granted by the JBIC.
