Home » Ports/Terminals » Planned Manila bulk terminal shelved; target clients shun project

The Philippine Ports Authority (PPA) is for now putting aside plans to build a Manila bulk terminal after the project received the cold shoulder treatment from its target clients.

PPA said Pilipinas Shell, Petron Corp and Chevron indicated they will not use the terminal because it will only bump up their operational expenses and eventually increase oil prices.

Based on the terminal’s planned tariff scheme, PPA will levy at least P1 for every liter of oil that will pass through the terminal.

PPA port district manager Constante Fariñas said the oil firms are against the tariff scheme.

“The dream of having a bulk terminal in Manila continues to remain as a dream,” Fariñas said at the sidelines of a recent PPA board meeting.

“We believe the contention of the oil firms is valid so we are looking at how to come up with a more favorable tariff scheme,” he explained.

“If ever the plan will still push through, it will be under the Public-Private Partnership program of the administration. However, as of the moment, this is a long shot.”

Recently, PPA hired a third-party consultant to formulate the master plan and conduct a feasibility study for the proposed bulk cargo handling facility at the northwest portion of South Harbor area adjacent to Engineering Island. This followed recent approval by the PPA Board of the project’s proposed terms of reference.

The 200-hectare area for reclamation is considered ideal for long-term commercial operations of ports catering to liquid and dry bulk cargoes.

Despite their congestion and lack of space, PPA said Manila ports are still the most preferred staging areas for vessels and cargoes.

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