THE Subic Bay Metropolitan Authority (SBMA) has signed a joint venture contract with private port operator Harbour Centre Port Terminals, Inc (HCPTI) to operate the Naval Supply Depot (NSD) for 25 years.
HCPTI pledged to invest P6 billion for the project – P3 billion for improvements of the NSD area including integration of operations from other bulk and break-bulk operators, and P3 billion for the procurement of equipment.
Under the agreement, HCPTI may also develop other areas in Subic, such as the Boton, Alava, Rivera and Bravo ports.
SBMA administrator Armand Arreza said the NSD port is now used for unloading heavy machinery, vehicles and grains, adding that the NSD “is more than capable of handling 2 million metric tons (mmt) every year.”
SBMA expects bulk and break-bulk traffic at the NSD to grow to 3 mmt from the annual average of 2.214 mmt.
Under the contract, HCPTI guarantees SBMA a minimum of $500,000 per year, plus an annual increase, inclusive of a variable commitment per metric ton of 20% depending on the volume.
The project would also involve construction of warehouses, a cold storage, food terminal and an oil depot, making NSD a multi-purpose facility that can handle various types of cargo.
