Globalport JV bags 15-year Tagbilaran port contract

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Tagbilaran port. Photo from Philippine Ports Authority.
  • The joint venture of Globalport Terminals, Inc. and Globalport Ozamiz Terminal, Inc. won the 15-year management contract for the baseport of Tagbilaran in Bohol
  • The JV won for a proposed concession fee of P3.903 billion
  • The contract covers management and operation of the cargo-handling, passenger, roll-on/roll-off, and other port-related services at the ports

The joint venture (JV) of Globalport Terminals, Inc. (GTI) and Globalport Ozamiz Terminal, Inc. (GOTI) won the 15-year port terminal management contract for the baseport of Tagbilaran in Bohol.

The JV won for a proposed concession fee of P3.903 billion, according to PPA’s notice of award.

In a resolution dated March 28, PPA’s Bids and Awards Committee recommended the award of contract to Globalport JV, the highest bidder. The JV bested the bid of Mega Lifters Cargo Handling Corp. The other bidder Starlite Marine & Industrial Services Corp. failed to pass the technical bid during the bids opening on March 14.

READ: PPA seeks management bids for Bohol, Agusan del Norte ports

GTI and its subsidiaries, which include GOTI, are engaged in port terminal management operations. Its network includes the ports of Matnog, Tacloban, Nasipit, Pulupandan, Iligan, Ozamiz, Surigao and Zamboanga, which they won the biddings for under PPA’s Port Terminal Management Regulatory Framework (PTMRF).

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

The bidding was conducted through open competitive bidding procedures using non-discretionary pass/fail criterion as specified in PPA Administrative Order (AO) No. 12-2018, as amended.

AO 12-2018 provides guidelines for selecting and awarding contracts under PPA’s PTMRF, which outlines new rules for terminal management contracts.

PTMRF, provided under AO 03-2016, seeks to provide higher quality port service by promoting 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 investment arrangements of a port.

PPA started bidding out port contracts under the PTMRF in 2020.

Tagbilaran port falls under Tier 3, which means the contractor’s investments include above-ground fixtures and semi-fixtures, and mobile handling equipment.

The baseport of Tagbilaran handles domestic and foreign cargoes, recording 1.759 million metric tons (MT) in 2021 slightly less than the 2020 volume of 1.874 million MT. Last year, PPA inaugurated a newly constructed second passenger terminal building at the port, expanding the facility’s capacity to 1,110 passengers. The port sustained significant structural damage from a strong earthquake in 2013.

PPA earlier also opened bidding for the port terminal management contracts of Puerto Princesa, Ormoc, Tabaco, Legazpi, Zamboanga, Iligan, Ozamiz, Calapan, Tacloban, Nasipit, Matnog, Fort San Pedro, Pulupandan, Surigao, Tagbilaran, Masao, Pagadian and Pasig River ports.

Of these, PPA has already awarded the contracts for the ports of Iligan, Ozamiz, Zamboanga, Tacloban, Nasipit, Matnog, Pulupandan, Surigao, Ormoc, Puerto Princesa, Calapan, Legazpi, Tabaco and Masao.

Including the ones already bid out, PPA general manager Jay Daniel Santiago said the target is to bid out a total of 25 port terminal management contracts before the end of the current administration’s term next year. – Roumina Pablo