The Philippine Ports Authority (PPA) plans to start modernizing Malalag Port by yearend, with an initial project cost of P500 million, following its takeover of the port in Malalag Bay, Davao del Sur, from the local government.
The ports agency is taking over the management and operation of Malalag port to upgrade the terminal to international standards.
PPA and the local government unit (LGU) of Malalag formalized the transfer through a memorandum of agreement (MOA) signed by town mayor Peter Paul T. Valentin and PPA general manager Jay Daniel R. Santiago last month.
“With PPA now at the helm, much bigger infrastructure development for the terminal is in the offing to spur economic growth not only in Malalag but [also to] play a vital role in the economic boom in the province of Davao del Sur,” Santiago said in a statement.
“The mayor already agreed to the proposed development of Malalag port, which will start at the end of this year, with an initial cost of P500 million,” Santiago added.
“The MOA is significant as it coincides with the 50th founding anniversary of Davao del Sur, thus, marking a new era for development and progress for the next 50 years,” Santiago continued.
According to Santiago, the Malalag LGU yielded the operations of the port to the PPA to enable the terminal to get a much-needed facelift. The port has been underdeveloped since 2000 when its operation was devolved to the LGU.
In May 2000, PPA shifted the management and operation of the port to the Malalag LGU pursuant to Administrative Order No. 02-1998. Malalag operated the port even prior to the takeover despite their contract to operate the port having expired in July 2011.
However, under the control of the LGU, the physical infrastructure as well as dredging of the port area remained underdeveloped, prompting the PPA to step in.
Malalag wharf is located in the municipality of Malalag on the southwest coastline of Malalag Bay, situated about 25 kilometers from Digos and 88 kilometers south of Davao City. Cargoes handled at the port include molasses, sugar, steel products, vehicles and heavy equipment, and general cargo.
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