Construction of the new P9.13-billion Cebu International Containerized Port could start by the third quarter of 2016, according to the chief of the Cebu Port Authority (CPA).
CPA general manager Edmund Tan, in a text message to PortCalls, confirmed that work on the new terminal is slated to begin August of next year.
A 12-hectare site for the new terminal has been identified in Tayud, Consolacion, northern Cebu by a feasibility study conducted by the Korean Export-Import Bank, according to a report by the Philippine News Agency (PNA). Tayud has been chosen as the most ideal site for the project because of its ample area for expansion, also because it has no other conflicting planned developments.
Regional Development Council 7-Infrastructure Development Committee chair Emmanuel Rabacal said development of the new port may be undertaken using official development assistance (ODA) financing.
“The Department of Finance will decide on the specific foreign funding facility that will be availed of by the Government of the Philippines (GOP),” PNA quoted Rabacal.
In an ODA funding arrangement, the Philippine government would shoulder around P1.27 billion or 13% of the total project cost, while the donor, which has yet to be identified, would bear P7.12 billion or 87%.
According to Rabacal, the new port is expected to be completed in 35 months, or by the second quarter of 2019.
The proposed gateway is among CPA’s measures to mitigate congestion at the base port of Cebu City. The Cebu International Port (CIP) faced berth and yard congestion issues from last year through early this year due partly to an increase in cargo volume. After CPA took steps to decongest the terminal, yard utilization went down to around 60% in August.
In the first half of 2015, CIP handled 20.625 million metric tons (mmt) of cargo, which is 21.3% more than the 16.999 mmt processed in the same period last year. – Roumina Pablo
