Globalport gets green light to take over Davao Sasa port

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Globalport gets green light to take over Davao Sasa port
The contract for Sasa port in Davao covers the management and operation of the cargo-handling, passenger, roll-on/roll-off, and other port-related services.
  • The Philippine Ports Authority on June 28 signed the contract and notice to proceed for the 20-year port terminal management contract of Sasa port in Davao
  • The joint venture of Globalport Terminals Inc. and Globalport Ozamiz Terminals Inc. may now start work on the project
  • The JV was the lone bidder during the opening of contract bids
  • It offered a concession fee of P8.635 billion
  • The contract for Sasa port covers the management and operation of cargo-handling, passenger, roll-on/roll-off, and other port-related services

The joint venture (JV) of Globalport Terminals Inc. (GTI) and Globalport Ozamiz Terminals Inc. (GT Ozamiz) received the green light from Philippine Ports Authority (PPA) to take over Sasa port in Davao.

In a notice to proceed signed on June 28, the JV was instructed to start with the work and perform services under the terms and conditions of the 20-year port terminal management contract.

The JV, the lone bidder during the opening of contract bids on May 5, offered a concession fee of P8.635 billion.

READ: Globalport JV wins Davao Sasa port management contract

The contract for Sasa port covers the management and operation of the cargo-handling, passenger, roll-on/roll-off (RoRo), and other port-related services at the port. It involves berthing management, container terminal management, passenger terminal management, stevedoring services, reefer facilities/services, Ro-Ro cargo services, bagging services, porterage services, storage management, waste and shore reception facility management, water distribution services, weighbridge facility, and ancillary and other related services.

Sasa port was the first Tier 2 port to be bid out under PPA’s Port Terminal Management Regulatory Framework (PTMRF), which outlines new rules for terminal management contracts.

Under PTMRF, provided under PPA Administrative Oder 03-2016, investments in ports are to be categorized into six tiers, ranging from a fully private concession to a fully PPA-managed port, to make it easier to determine the investment arrangements of a port.

As a Tier 2 port, the winning concessionaire for Sasa port will be responsible for the physical landside infrastructure (wharves, piers, land reclamation), above-ground semi-fixtures (cranes), above-ground fixtures (passenger terminal building, pavement, fence), and mobile-handling equipment (forklifts, trucks), while PPA will be responsible for the physical undersea infrastructure (capital, maintenance dredging).

GTI is a wholly-owned subsidiary while GP Ozamiz is an indirect subsidiary of Globalport 900, Inc., which is engaged in port development, management, and operations.

Globalport earlier disclosed that once it receives the notice of award for the Sasa port contract, it will process the incorporation of another subsidiary to be named Globalport Davao Terminal Inc. (GP Davao) to act as legal entity of Sasa port. Upon its incorporation, GP Davao will be 99% owned by GTI.

Aside from Sasa port, PPA since 2020 had already bidded out and awarded 18 ports under Tier 3, including Puerto Princesa, Ormoc, Tabaco, Legazpi, Zamboanga, Iligan, Ozamiz, Calapan, Tacloban, Nasipit, Matnog, Fort San Pedro, Pulupandan, Surigao, Masao, Tagbilaran, Pagadian, and Pasig River ports.

Of these, GTI has won the bidding for the ports of Zamboanga, Ozamiz, Iligan, Tacloban, Matnog, Nasipit, Surigao, and Bohol. – Roumina Pablo

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