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Globalport JV wins Davao Sasa port management contract
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The joint venture of Globalport Terminals Inc. and Globalport Ozamiz Terminals Inc. bagged the 20-year terminal management contract for Sasa port
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The lone bidder for the contract, the JV put forward a concession fee of P8.635 billion
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Parent firm Globalport 900, Inc. will incorporate a subsidiary to be named Globalport Davao Terminal Inc. to operate Sasa port
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The contract covers management and operation of the cargo-handling, passenger, roll-on/roll-off, and other port-related services at the port
A Globalport joint venture has won the Davao Sasa port management contract.
The joint venture Globalport Terminals Inc. (GTI) and Globalport Ozamiz Terminals Inc. (GT Ozamiz) bagged the 20-year terminal management contract with a concession fee of P8.635 billion.
In a resolution adopted on May 30, the Philippine Ports Authority (PPA) bids and awards committee recommended the award of contract to the JV after being declared the highest responsive bidder. The JV was the lone bidder during the opening of bids for the contract on May 5 after another company, which bought bid documents, failed to submit a bid.
The notice of award of contract was signed on May 30 as well.
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 it will incorporate another subsidiary to be named Globalport Davao Terminal Inc. (GP Davao) once it receives the notice of award for the Sasa port contract. GP Davao will be 99% owned by GTI.
Globalport has already incorporated eight other indirect subsidiaries, including GP Ozamiz, after winning the bidding for the ports of Zamboanga, Ozamiz, Iligan, Tacloban, Matnog, Nasipit, Surigao, and Bohol under PPA’s Port Terminal Management Regulatory Framework (PTMRF). GTI is also operating Pulupandan port, which also won under PTMRF.
The contract for Sasa port covers management and operation of the cargo-handling, passenger, roll-on/roll-off (RoRo), and other port-related services at the port. This 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 PTMRF, which outlines new rules for terminal management contracts.
PTMRF, provided under PPA Administrative Order 03-2016, seeks to promote private sector participation. Under this framework, 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).
Aside from Sasa port, PPA since 2020 had already bidded out 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. All contracts have been awarded except for Pagadian and Pasig River ports. – Roumina Pablo
