PPA turns over Masao port to CASCOR

• The Philippine Ports Authority Port Management Office of Agusan turned over on June 2 the management of Masao port to Concord Arrastre and Stevedoring Corp

• CASCOR won the 15-year contract with a proposed concession fee of P687.365 million

• CASCOR said it is the cargo-handling operator for all state owned-ports in Butuan City, which includes Masao port

The Philippine Ports Authority (PPA) Port Management Office of Agusan officially turned over on June 2 the terminal management of Masao port in Agusan Del Norte to Concord Arrastre and Stevedoring Corp. (CASCOR).

The turnover follows PPA’s award of the 15-year port terminal management contract to CASCOR, which won the contract bid with a proposed concession fee of P687.365 million. The bidding was conducted pursuant to PPA’s Port Terminal Management Regulatory Framework (PTMRF), which outlines new rules for terminal management contracts.

READ: CASCOR wins 15-year contract to operate Agusan del Norte port

PPA’s Bid and Awards Committee in a resolution on March 28 recommended the award of the contract to CASCOR, which bested two other companies’ proposals during the opening of bids on March 14.

CASCOR said it is the cargo-handling operator for all state owned-ports in Butuan City, which includes Masao port.

Masao port handled 210,662 metric tons of domestic cargoes in 2021, up from 149,615 MT in 2020.

PPA in October 2017 embarked on a rehabilitation and modernization program for Masao port, expanding its yard space and back up area. The project was completed in October 2019, allowing Masao port to become an alternate port to decongest Nasipit port.

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

READ: PPA bares guidelines for awarding of port management contracts

PTMRF, provided under AO 03-2016, seeks to promote private sector participation in port management. 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.

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

Aside from Masao port, PPA earlier also opened the 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, Pagadian, Pasig River, and Sasa ports.

PPA general manager Jay Daniel Santiago earlier said they are privatizing operations of ports managed by PPA. Including the previous ones already bid out, 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.