Modular port contractor presses start of project

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THE contractor of the P11.8-billion modular ports project, the consortium of Eiffel-Matiere SAS, is keen on pushing through with the controversial plan.

The project, which calls for the completion of 72 ports across the Philippines, is in limbo because the Department of Transportation and Communications (DOTC) wants to renegotiate the contract which it claims is overpriced.

Transport Undersecretary Dante Velasco said the department has recommended that the project be canceled but “but since they (contractor) threatened to file a case, we’re considering to push through but it now depends on the incoming DOTC Secretary Mar Roxas.”

The project should have taken off in 2009 but was delayed due to the 2010 national elections. When it assumed office, the new government ordered a review of all contracts, including the modular ports project, entered into by the previous administration.

If the original schedule was followed, 10-15 modular ports should have been started this year. About P1.5 billion worth of steel pipes has already delivered.

“These pipes incur demurrage fees since they are stored in the freight forwarder’s custody,” said Patrick Azanza, senior advisor to the consortium.

“In three years’ time, we can deliver the 72 modular ports since installation period is only two months and we can fast track the installation once all the equipment are here,” he added.

“We also have yet to receive any notice that the contract has been canceled as what the department has been claiming.”

The modular ports feature five interdependent modular components that can be assembled and disassembled. Each port can be used for 80 years or more with proper maintenance.