International Container Terminal Services, Inc. (ICTSI) may consider bidding for the Davao-Sasa port modernization project if the government lowers the P17-billion capital spending requirement.
Christian Gonzalez, ICTSI vice president and Asia Region head, said the government is reconsidering the required investment amount based on comments from potential investors.
“If that’s reconsidered, we’ll look at it again. If the numbers are reasonable, there’s a possibility we will participate,” Gonzalez said.
Deadline for submission of prequalification documents is on June 30. ICTSI has yet to purchase bid documents. Five companies have, according to Department of Transportation and Communications: San Miguel Holdings Corp., Óbrascon Huarte Lain S.A., Bolloré S.A. Portek International Pte. Ltd, and Davao International Container Terminal (DICT).
Qualified bidders will be announced on July 8.
Davao-Sasa, the first seaport project under the public-private partnership scheme, has been assailed by the private sector and local government units for contract cost exceeding the proposed cost set in a study by the Philippine Ports Authority.
Banana growers, which drive export volume in the region, earlier said they have no plans of returning to Davao-Sasa, saying the area around the port is congested and offers no room for expansion.
ICTSI chairman Enrique Razon earlier said ICTSI was not keen to bid for Davao-Sasa due not only to the high project cost but also to strong competition in the area.
Aside from Davao-Sasa, there are more than 15 private ports and several municipal ports in Davao, according to PPA. One other international port operating in the region is DICT established in 2012 by San Vicente Terminal and Brokerage Services, Inc. of the Anflocor Group of Companies.
Gonzalez said ICTSI had been consulted by government for the Davao-Sasa project and was “involved to some degree from the very beginning because we have an active contract in Sasa.”
ICTSI currently provides cargo-handling services to Davao-Sasa under a contract that will expire next year. It also is part of the joint venture that developed Hijo Port in Davao Del Norte.
“We understand the market. We knew clearly that [project cost] wasn’t going to fly with all the private port operators including ourselves. We’ll see how it goes,” Gonzalez said.
The Davao-Sasa project involves modernizing the existing port and establishing dedicated container handling facilities with an initial design capacity of 1,900 container ground slots and an eventual minimum number of 2,700 ground slots. It also includes constructing a new apron, developing a linear quay, expanding the back-up area, providing container yards and warehouses, and installing container handling equipment through a 30-year concession period.
