HIJO International Port Services Inc. (HIPS), a unit of Manila-based port operator International Container Terminal Services (ICTSI), has applied for tax incentives for the operation and development of Hijo International Port in Madaum, Tagum City, Davao del Norte, southern Philippines.
A notice published by the Philippine Board of Investments said HIPS has applied for non-pioneer incentives. Projects granted non-pioneer status are exempted for four years from income tax and entitled to a minimum of 1% duty on imported capital equipment. Applications for registration for incentives should be endorsed by the Philippine Ports Authority.
Hijo International Port, owned by HIPS, is a 10.3-hectare private commercial port in Barangay Madaum in Tagum City. The port, with an annual capacity of 300,000 metric tons of mostly bananas, has two berths and two cargo sheds.
In mid-November 2012, ICTSI acquired subscription rights to 40 million common shares in HIPS, a joint venture company with Hijo Resources Corp., a group involved in leisure and tourism, agribusiness, property development and port operations.
The listed port operator envisions Hijo to be the second-biggest container terminal in the country, next to its flagship Manila International Container Terminal. ICTSI plans the port to have an annual capacity of 2 million twenty equivalent units of containers and a 50-hectare area with a 12-meter-draft berth.