Eight new Globalport subsidiaries to operate VisMin ports

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  • Eight new Globalport subsidiaries to operate VisMin ports
  • Globalport 900 and its subsidiary, Globalport Terminals, incorporated eight indirect subsidiaries to manage, operate, and maintain various ports
  • Together with its subsidiaries, Globalport expects annual consolidated gross revenue of P3.5 billion in the next five years
  • The subsidiaries were formed after GTI, either alone or with a joint venture partner, won 15-year port terminal management contracts for various ports under the Philippine Ports Authority’s Port Terminal Management Regulatory Framework

Globalport 900, Inc. and its subsidiary, Globalport Terminals Inc. (GTI), have incorporated eight indirect subsidiaries to manage, operate, and maintain various ports in the country.

Through the subsidiaries, Globalport will have commercial operations in Visayas and Mindanao, bringing for the group an average annual consolidated gross revenue of P3.5 billion in the next five years, the company said in a regulatory disclosure.

The eight new subsidiaries are Globalport Zamboanga Terminal Inc. (GP Zamboanga), Globalport Ozamiz Terminal Inc. (GP Ozamiz), Globalport Iligan Terminal Inc. (GP Iligan), Globalport Tacloban Terminal Inc. (GP Tacloban), Globalport Matnog Terminal Inc. (GP Matnog), Globalport Agusan Terminal Inc. (GP Agusan), Globalport Surigao Terminal Inc. (GP Surigao), and Globalport Bohol Terminal Inc. (GP Bohol).

The subsidiaries were formed after GTI, either on its own or with a joint venture partner, won 15-year port terminal management contracts (PTMC) for various ports under the Philippine Ports Authority’s (PPA) Port Terminal Management Regulatory Framework (PTMRF).

In 2018, PPA issued AO 12-2018, which provides guidelines for the selection and award of contract under the PTMRF.

In 2019, PPA AO 10-2019 was issued providing uniform port tariffs that will be the base tariff for operators winning contracts categorized as Tier 3 under the PTMRF. A 2019 public hearing noted the proposed tariff was based on Cagayan de Oro port’s rates, the highest among PPA ports.

In 2020 PPA started bidding out ports under the PTMRF, which outlines new rules for terminal management contracts as it aims to privatize operations of its managed ports.

Under the PTMRF, a Tier 3 port contract means PPA handles the physical undersea and landside infrastructure (capital investment, wharves, piers, reclamation, dredging) while the contractor invests on above ground fixtures and semi-fixtures and mobile handling equipment (e.g., passenger terminal building, cranes, forklifts, trucks).

All PTMCs GTI has won so far are for Tier 3 ports:

  • Zamboanga port in Zamboanga del Sur operated by GP Zamboanga, 95% owned by GTI, formerly Harbour Centre Port Holdings, Inc.
  • Ozamiz port in Misamis Occidental operated by GP Ozamiz, 98% owned by GTI
  • Iligan port in Lanao del Norte, operated by GP Iligan, 98% owned by GTI
  • Tacloban port in Leyte, operated by GP Tacloban, 99% owned by GTI
  • Matnog port in Sorsogon, operated by GP Matnog, 99% owned by GTI
  • Nasipit port in Agusan del Norte, operated by GP Agusan, 99% owned by GTI
  • Surigao port in Surigao del Norte, operated by GP Surigao, 99% owned by GTI
  • Tagbilaran port in Bohol, operated by GP Bohol, 99% owned by GTI

In addition, GTI operates Pulupandan port in Negros Occidental, also under a 15-year PTMC with PPA.

The PPA on May 16, 2022 also declared the joint venture of GTI and GP Ozamiz as the highest-rated bidder for the management, operation, and maintenance of Sasa port in Davao City.

Once the JV receives the Notice of Award for the bidding, Globalport said it will process the incorporation of an additional subsidiary to be named Globalport Davao Terminal Inc. (GP Davao). GP Davao will be 99% owned by GTI.