PPA seeks operators for Misamis Oriental ports

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Opol port. Photo from Philippine Ports Authority-Port Management Office of Misamis Oriental/Cagayan De Oro.
  • The Philippine Ports Authority is seeking bidders for the port management contracts of Opol port and a cluster of three ports in Camiguin in Misamis Oriental
  • All projects come with a 15-year concession contract
  • The ports of Balbagon, Benoni and Guinsiliban in Camiguin is the first set of clustered ports to be bid out under PPA’s new port terminal management framework
  • Deadline for submission and opening of bids is on September 29 for Opol port, and October 2 for the clustered ports

The Philippine Ports Authority (PPA) is seeking bidders to manage Opol port and a cluster of three ports in Camiguin in Misamis Oriental.

The contract for Opol port covers the management and operation of cargo-handling and other port-related services.

The contract for the clustered ports of Balbagon, Benoni and Guinsiliban includes cargo-handling, roll-on/roll-off (Ro-Ro), passenger, and other port-related services. This is the first set of clustered ports that PPA will be bidding out under its Port Terminal Management Regulatory Framework (PTMRF). The three ports are under the jurisdiction of PPA Terminal Management Office of Camiguin.

All ports are under a 15-year concession contract.

In an invitation to bid, the Opol port project involves bagging services, berth-side operations, stevedoring services, storage management, waste and shore facility management, water distribution services, and ancillary and other related services.

The minimum concession fee for the duration of the concession period is P447.793 million, with a minimum concession fee of P4.931 million for the first year of the contract.

In a separate invitation to bid, the Balbagon, Benoni, and Guinsiliban port cluster project involves berth-side operations, stevedoring services, passenger terminal management, porterage services, Ro-Ro cargo services, storage management, waste and shore facility management, weighbridge facility, and ancillary and other related services.

The minimum concession fee for the duration of the concession period is P271.768 million, with a minimum concession fee of P8.195 931 million for the first year of the contract.

All concession fees are exclusive of all taxes. Bids below the minimum concession will be automatically rejected.

Under PPA Administrative Order (AO) No. 03-2023, the clustering of port terminal management at several ports maybe included to ensure commercial viability of the contractor. The clustering of ports for bidding will be within the same port management office and shall take into consideration the complementary ports/terminal sub-ports, as well as volume of vessels, cargoes, and passengers.

RELATED READ: PPA plans to bid out management contracts for port clusters

PPA general manager Jay Daniel Santiago earlier this year said they are looking at clustering of ports for bidding to stabilize the market of terminals in a particular area and make management of vessel traffic “flexible” in cases such as vessel queuing.

He said PPA is not pushing for anti-competitive behavior with having only one port operator for several ports in an area. “We’re just looking basically to make sure that the development is consistent and uniform for all,” he said.

Interested bidders for the two projects must have at least two years of experience in providing port terminal/cargo-handling services, or other related port services, as indicated in completed and ongoing contracts. Prospective bidders must also not be engaged in any business activity, whether primarily or otherwise, which will prevent it from properly and sufficiently discharging its contractual obligations. This prohibition covers entities engaged in maritime transportation.

The bidding will be 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 the guidelines for selecting and awarding contracts under PPA’s Port Terminal Management Regulatory Framework (PTMRF), which outlines the 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 three tiers to make it easier to determine the investment arrangements of a port.

Both Opol port and the three clustered ports are under Tier 3, where the contactor handles above-ground fixtures and mobile-handling equipment.

A pre-bid conference for the two port projects will be held on September 15.

The deadline for submission and opening of bids is on September 29 for Opol port, and on October 2 for the clustered ports.

Opol port, situated at Brgy. Luyong Bonbon in Opol, was inaugurated in 2019 and is 15 kilometers away from the baseport of Cagayan de Oro. Opol port serves as an alternate port for domestic tramping vessels carrying break bulk cargoes coming from the western part of Misamis Oriental and Iligan City.

Balbagon port is in the eastern part of the municipality of Mambajao, Camiguin Island and caters to domestic vessels and handles rolling cargoes, bottled and general cargoes.

Located in the southern part of the municipality of Mahinog, Benoni port handles vessels, rolling cargoes, fuel, bottled and general cargoes.

Guinsiliban port, in the eastern part of the municipality of Guinsiliban, serves as one of the complementary ports to Balingoan port and an alternate port for Benoni port, especially for cargo vessels. It caters to domestic vessels and handles rolling cargoes, fuel, bottled and general cargoes. It can also cater to cargo vessels with a maximum length overall of 64 meters and has a draft of five meters at its Ro-Ro ramp.

PPA since 2020 has been bidding out port terminal management contracts under PTMRF. PPA has so far has bid out 19 ports. Of these, one port was under Tier 2, which was Davao, while 18 ports under Tier 3 and these include Puerto Princesa, Ormoc, Tabaco, Legazpi, Zamboanga, Iligan, Ozamiz, Calapan, Tacloban, Nasipit, Matnog, Fort San Pedro, Pulupandan, Surigao, Masao, Tagbilaran, Pagadian, and Pasig River ports.

PPA also plans to bid out its first Tier 1 port, Iloilo Commercial Port Complex, this year.