Five local and foreign firms submitted pre-qualification documents as they vie for the P18.99-billion Davao Sasa modernization project, the Aquino administration’s first seaport project under the public-private partnership (PPP) scheme.
On July 29, the deadline for submission of the documents, the following companies submitted their requirements: International Container Terminal Services, Inc., operator of the Manila International Container Terminal; the joint venture of Asian Terminals Inc., operator of the Manila South Harbor, and Dubai Ports World; France’s Ballore Ports; Singapore’s Portek; and the joint venture of San Miguel Corporation and Netherlands’ APM Terminals.
The Anflocor Group, which operates Davao International Container Terminal in Davao Del Norte, bought bid documents but did not participate in the pre-qualification.
ICTSI, in a statement, clarified its “response was only to an Invitation to Prospective Bidders issued by the Department of Transportation and Communications (DOTC) for the P18.99B Davao Sasa Modernization Project.”
“It was not a bid. It only consisted of pre-qualification information. ICTSI has not yet submitted any bid at this stage,” the port operator added.
It further noted that DOTC has yet to release the terms of reference for the project and access to any documentation on the tender, whether feasible or not, will only be available to those who have filed for the pre-qualification.
“As part of its normal course of business, ICTSI constantly reviews and explores privatization processes in the Philippines and around the world,” the company said.
The DOTC targets the fourth quarter of the year to hold the submission and opening of bids, while awarding of the contract is targeted for April next year.
The project includes building a new apron and linear quay; expanding the back-up area, container yards and warehouses; and installing ship-to-shore cranes and rubber-tired gantries. It also involves operating and maintaining the port facility for a 30-year concession period.
According to DOTC, once the first phases of the project are completed in 2018, the Davao Sasa Port “will be comparable to the country’s top ports in terms of speed and quality of service, cutting down cargo unloading from three days to three hours by using modern ship-to-shore cranes and port operating systems.”
The economy of Davao thrives on banana exports, the region being the second largest banana exporter in the world. A study conducted by the International Finance Corporation and the Development Bank of the Philippines projects that container traffic in the Davao Region will increase by at least 6% annually over the next 25 years.
Without the added capacity of a modernized Davao Sasa Port, DOTC said “there will be a strong chance of shortage in port capacity in Davao bay which may affect small-medium banana growers who may not be able to export their bananas.”
An edge of an upgraded Davao Sasa Port is its proximity to banana plantations, as this will help growers save at least P8,000 in trucking costs per delivery, DOTC noted.
