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An indirect subsidiary of Globalport 900 Inc. will operate and manage Sasa Port after it was awarded the 20-year port terminal management contract for the Davao gateway
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Globalport Davao Terminal Inc. will primarily operate cargo handling, passenger, roll-on/roll-off, and other port terminal-related services in the Port of Sasa
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GP Davao is 99% owned by Globalport Terminals Inc.
Globalport 900 Inc. has set up an indirect subsidiary that will operate and manage Port of Sasa in Davao after being awarded a 20-year port terminal management contract (PTMC) for the Davao gateway.
In a regulatory disclosure, Globalport said the joint venture of Globalport Terminals Inc. and Globalport Ozamiz Terminal Inc. (GP Ozamiz) incorporated Globalport Davao Terminal Inc. (GP Davao), which was issued a Certificate of Incorporation by the Securities and Exchange Commission on June 14, 2022.
GTI is a wholly owned subsidiary while GP Ozamiz is an indirect subsidiary of Globalport.
GP Davao will primarily operate cargo-handling, passenger, roll-on/roll-off (Ro-Ro), and other port terminal-related services.
GP Davao is 99% owned by GTI and will be operating the Port of Sasa under a 20-year PTMC with the Philippine Ports Authority (PPA).
The incorporation of GP Davao follows the May 26 declaration of the joint venture of GPI and GP Ozamiz as the highest bidder for the contract to manage, operate, and maintain Sasa Port. The joint venture was the lone bidder when bids were opened on May 5.
On June 28, the notice to proceed was signed. It instructed the joint venture to start with the work and perform the services under the terms and conditions of the contract, which was signed on the same date.
The contract for Sasa Port covers the management and operation of the cargo-handling, passenger, Ro-Ro, and other port-related services at the port.
Sasa Port was the first Tier 2 port to be bid out under PPA’s Port Terminal Management Regulatory Framework (PTMRF), which outlines the new rules for terminal management contracts.
PTMRF, under PPA Administrative Oder 03-2016, calls for investments in ports to be categorized into six tiers, ranging from a fully private concession to a fully PPA-managed port. This will make it easier to determine the investment arrangements of a port.
As Sasa Port is a Tier 2 port, Globalport DavaoTerminal will be responsible for the physical landside infrastructure works (wharves, piers, land reclamation), above-ground semi-fixtures (cranes), above-ground fixtures (passenger terminal building, pavement, fence), and mobile-handling equipment (forklifts, trucks). PPA will be responsible for the physical undersea infrastructure (capital, maintenance dredging).
Aside from Globalport DavaoTerminal, Globalport 900 has established eight other indirect subsidiaries after GTI, either alone or with a joint venture partner, and won 15-year PTMCs for various Tier 3 ports under PPA’s PTMRF. These ports include Zamboanga, Ozamiz, Iligan, Tacloban, Matnog, Nasipit, Tagbilaran, and Surigao.
The indirect subsidiaries, meanwhile, are GP Ozamiz, Globalport Zamboanga Terminal Inc., Globalport Iligan Terminal Inc., Globalport Tacloban Terminal Inc., Globalport Matnog Terminal Inc., Globalport Agusan Terminal Inc., Globalport Surigao Terminal Inc., and Globalport Bohol Terminal Inc.
Other ports that have been bid out under PPA’s PTMRF since 2020 include Puerto Princesa, Ormoc, Tabaco, Legazpi, Calapan, Fort San Pedro, Pulupandan, Masao, Pagadian, and Pasig River ports.
