The Philippine Ports Authority (PPA) is looking at the option of buying out the contract of Davao Integrated Port Stevedoring Service Corp (DIPSSCOR) to prevent legal conflict when PPA auctions off Davao port next year.
DIPSSCOR, a subsidiary of the country’s biggest port operator International Container Terminal Services, Inc (ICTSI), is the cargo-handling operator at Davao port located in the island of Mindanao. Its contract expires in 2016.
“There are many ways to prevent (legal) conflict (when it comes to the privatization of Davao port) and this early we are now exploring the best possible option,” PPA assistant general manager for operations Raul Santos said at the sidelines of the 1st Philippine International Maritime Conference and Exhibition at the World Trade Center recently.
PPA is expanding Davao port at a cost of P3.98 billion. Under the project, berths 1 and 2 will be strengthened, container yard 3 constructed, and 300 container yard reefer outlets developed. Four gantry cranes and eight-rubber tired gantry cranes are also being installed. Once complete, the project is expected to increase Davao port’s capacity to 1.3 million twenty-foot equivalent units (TEUs).
Currently, the port has an annual cargo throughput of 5.194 million metric tons, container volume of 524,498 TEUs, passenger traffic of 62,220, and shipcalls of 1,447.
The port of Davao is Mindanao’s main gateway and is the world’s third biggest exporter of the bananas.
