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The Philippine Ports Authority plans to bid out terminal management contracts for “clusters” of ports this year
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PPA is looking at “clustering” the ports of Roxas, Mansalay, and Bulalacao in Oriental Mindoro, and three or four ports in Bacolod
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PPA general manager Jay Daniel Santiago said having only one port operator supervising several ports in a particular area will allow flexibility in the management of vessel traffic
The Philippine Ports Authority (PPA) plans to bid out management contracts for “clusters” of port terminals this year, according to PPA general manager Jay Daniel Santiago.
The agency is looking at grouping together the ports of Roxas, Mansalay, and Bulalacao in Oriental Mindoro, and three or four ports located in Bacolod, Santiago said in a recent media briefing.
The PPA chief said having one port operator to oversee several terminals in a particular area will allow “flexibility” in the management of vessel traffic. The operator will be able to divert vessels to another nearby ports if there is vessel queuing in one terminal.
Cargo handling in port terminals has been privatized since 1994, as mandated in Executive Order 212, which was signed by former President Fidel V. Ramos.
Santiago clarified that PPA is not pushing for monopolies in port management, with having only one port operator supervising several ports in an area. “We’re just looking basically to make sure that the development is consistent and uniform for all,” he said.
The PPA executive earlier said clustering of terminals is meant to stabilize the market in a particular area. He explained that “not all terminals are constructed equally. If a better terminal increases rates, obviously some will start using other terminals [that are offering lower rates]. But most other terminals are not capable of handling [higher vessel traffic].”
“We need to cluster [these ports] so there will be uniformity and stability in fees and standard of operations,” Santiago said.
Aside from the identified port clusters, PPA is scheduled to bid out management contracts for other port terminals, including Iloilo and General Santos.
Santiago said PPA port terminal management offices are set to finalize the terms of reference for the bidding.
The PPA chief earlier said he hopes to bid out the contracts for two ports, “ideally” before the end of June. Biddings for terminal management of 25 ports that already have expired operator contracts or are on hold-over capacity have been scheduled for this year.
The PPA has been bidding out since 2020 port terminal management contracts under its Port Terminal Management Regulatory Framework embodied in PPA Administrative Order 03-2016 issued in 2016, which categorizes investments in ports into six tiers.
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