Home » Ports/Terminals » Davao port projects both boon and bane for shipping industry

DAVAO CITY, SOUTHERN PHILIPPINES — The two port projects in this area are a cause for both optimism and concern for businessmen.

On the one hand, they say Davao International Container Terminal (DICT) and Hijo International Port (HIP) would address port congestion at nearby Sasa Wharf, Davao’s main international gateway, and reduce logistics costs.

On the other hand, the projects would require fresh investments, especially on the part of shipping industry stakeholders, at a time when most are putting a brake on expansion and adopting a wait-and-see attitude.

“The two terminals are up north or half way nearer the plantation of fruits (mainly bananas), which are the top export products of the region,” said Alvin Reyes, operations general manager of IRS Eastern, Inc. Mindanao, one of Davao’s leading container yard operators.

“We have invested a lot on our facilities near Sasa Wharf and a similar investment will be needed to put up a facility near the two new ports,” Reyes said.

IRS Eastern has injected P35 million into its 2.5-hectare container depot located right in front of Sasa Wharf.

Once DICT and HIP go online, the dilapidated Sasa Wharf will most likely be relegated to handling domestic and break-bulk cargoes.

The P2.7-billion DICT is being constructed by the Anflocorp group and will go online in 2013. The terminal is designed to handle 240,000 twenty-foot equivalent units (TEUs).

HIP will be developed by the country’s biggest port operator, International Container Terminal Services, Inc. (ICTSI). The project will be completed in 16 months, eight months earlier than planned. The terminal is expected to have a two million-TEU capacity, making it the country’s second-biggest container terminal.

At full development, HIP will have an area of over 50 hectares, a 12-meter draft berth—the deepest in the Philippines—and will be capable of servicing between five and seven vessels at any one time.

Photo from ictsi.com

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