Home » Ports/Terminals » Davao port privatization moving along

The Philippine Ports Authority (PPA) will submit to the National Economic and Development Authority (NEDA) privatization documents for the Port of Davao by July 15, according to PPA general manager Atty. Juan Sta. Ana.

“There will be no preference (given to anyone) and the contract will be bidded out via a competitive bid and not a negotiated bid,” Sta. Ana explained.

“There will also be no conflict with the existing contract of DIPSSCOR” (Davao Integrated Port Services & Stevedoring Corp) since the Davao project has been extended to coincide with the end of DIPSSCOR’s contract, he added.

DIPSSCOR, a subsidiary of the country’s biggest private port operator International Container Terminal Services, Inc (ICTSI), is Davao’s cargo-handler.

ICTSI chairman Enrique Razon said the company is interested in Davao. “Whether Davao will be privatized via negotiated or competitive bid, doesn’t matter,” he said. “In fact, we even preferred bidding. We always prefer to bid for a project.”

PPA is targeting to privatize Sasa Wharf in the Port of Davao this year to pave the way for its modernization.

Apart from ICTSI, potential bidders for the port are Asian Terminals, Inc and Manila North Harbour Port, Inc.

Berth utilization at Sasa is currently at 90%. Cargo throughput has been growing at 7-8% annually since eight years ago.

About 70% of products handled at the port are bananas from Davao shippers like Dole, Del Monte, La Panday, Nader Ibrahim and Davao Central.

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