The submission date for bids to the P19.8-billion Davao-Sasa port modernization project has again been moved by the Department of Transportation and Communications (DOTC) to give bidders more time to prepare their proposals.
This is the third time the bid submission date, now set on March 28, has been moved to allow the pre-qualified bidders “more time to conduct technical, financial and legal due diligence,” said DOTC Undersecretary Rene Limcaoco, who is also the pre-qualification, bids, and awards committee chairman, in General Bid Bulletin No. 17-2016.
The bid submission was originally scheduled for December 2015, moved to January, then again to February 26.
Asked if the project contract can be awarded before the current administration steps down middle of the year, Transport Secretary Joseph Emilio Abaya told PortCalls, “We are hoping. It has to go through some legal pass and board approvals.”
Further asked if such approvals included the nod of the Sangguniang Panlungsod ng Davao (SPD), which is opposing the project on account of non-consultation, Abaya replied, “We are addressing that.”
The modernization project has attracted four qualified bidders: San Miguel Holdings Corp.-APM Terminals Management (Singapore) Pte. Ltd. Consortium; Asian Terminals Inc. and DP World FZE Consortium; Bollore Africa Logistics; International Container Terminal Services, Inc.
A fifth bidder, which had earlier also pre-qualified–Portek International Pte. Ltd. and AP National Marine Corporation Consortium–had withdrawn its bid, according to Abaya.
READ: Davao port project bidder bows out
Local opposition
Government is determined to push through with the seaport project, its first under the Public-Private Partnership scheme, despite the SPD resolution against the project.
“This unnecessary project was being forced upon Davao without the proper consultation. This resolution will now enable Davaoeños to contribute meaningfully toward defining the correct need and use of Sasa Port,” Alexander Valoria, president of the Anflocor Management and Investment Corp. and a member of the Davao City Chamber of Commerce and Industries Inc., had earlier said in a statement.
READ: Davao International Container operator calls for level-playing field at Davao-Sasa
Anflocor owns Davao International Container Terminal (DICT) located in Panabo, Davao del Norte.
Valoria said projections for the Davao Sasa modernization project were “unrealistic” given existing operators in the area.
He said container shipping requirements were already met by DICT as well as other groups such as the Terminal Facilities and Services Corp., Sumifru, Unifrutti, Dole/Pacinter and the planned Hijo International Port Services, Inc., many of whom have commercial port operations that would be affected by the PPP project.
Valoria said 75% of foreign containers totaling 358,312 TEUs are already using the private ports.
In its resolution, the Davao City Council resolution also cited Section 2 (c) of Republic Act 7160, otherwise known as the Local Government Code, which said: “It is likewise the policy of the State to require all national agencies and offices to conduct periodic consultations with appropriate local government units, nongovernmental and people’s organizations, and other concerned sectors of the community before any project or program is implemented in their respective jurisdictions.”
Apart from the lack of consultation, concerns were raised on the PPP project worsening traffic in Davao City. Sasa is a highly urbanized area crowded with commercial establishments and residential subdivisions already suffering from severe traffic congestion.
The project’s lack of a plan for bulk and break-bulk cargo facilities seen vital to the economy of Davao City was also raised.
There are likewise questions on the project’s lack of provision for cruise vessels. The Department of Tourism has identified Davao as a potential destination for cruise tourism but no private sector player has expressed willingness to invest in in this particular project due to market uncertainty.
The Davao-port Sasa concession period will run for 25 years from start of operation and maintenance.
Once the first phases of the project are completed in 2018, the Davao-Sasa Port “will be comparable to the country’s top ports in terms of speed and quality of service, cutting down cargo unloading from three days to three hours by using modern ship-to-shore cranes and port operating systems,” according to DOTC.
Without the added capacity that a modernized Davao-Sasa Port will bring, DOTC said “there will be a strong chance of shortage in port capacity in Davao bay which may affect small-medium banana growers who may not be able to export their bananas.”
If the Davao-Sasa Port, which has the advantage of proximity to banana plantations, is upgraded, it will help growers save at least P8,000 in trucking costs per delivery, DOTC noted.
Latest data from the Philippine Ports Authority show that Davao-Sasa handled 296,255 twenty-foot equivalent units (TEUs) in 2015, or 27% higher than the 233,112 TEUs processed in the preceding year.
