By Rjay Zuriaga Castor
An unnamed international shipping company is set to establish a connection with the Philippine Ports Authority-Iloilo (PPA) in either the second or third week of July, bringing in more import and export services in Iloilo.
The cargo vessel making the port call will lead Iloilo to become the country’s third international export center, said PPA Iloilo Port Manager Marcelo Mabilog during the quarterly meeting of the Regional SMED Council held at the DTI Office in Iloilo on June 23.
“If these become successful, this will make Iloilo the third international export hub in the country. Currently, the two active export hubs are Cebu and Manila,” he explained.
The undisclosed shipping company, originating from Singapore, will bring in tons of containerized cargo to be distributed nationwide.
Mabilog emphasized that the significant volume of cargo being exported and imported across the region, “makes Iloilo a strategic hub.”
He highlighted that this would result in cost reductions for various exported products, which implies that the streamlined transportation process would lead to “cheaper” prices of products.
Earlier, the PPA began the bidding on the proposed P5.87-billion development plan and privatization of the terminal leasing of the Iloilo Commercial Port Complex (ICPC) in Iloilo City.
During a public consultation on June 21, PPA noted that capital outlay projects would account for P4.61 billion out of the overall projected cost, while major equipment expenses would amount to P1.26 billion.
The winning bidder will take care of the operations, management, landside, and waterside improvement and expansion, among others.
PPA Commercial Services Department manager Mark Jon Palomar said that aside from the operations and maintenance, the plan also calls for turning ICPC into an exclusively international port and decongesting the main gateway in Manila.
Once ICPC is developed into an international port, PPA said shippers can ship directly to the port from the port of origin, bypassing the need to go through Manila or Cebu ports initially and reducing transshipment expenses.
The ICPC, classified as Tier 1, will be the first Tier 1 port to be subjected to bidding under the PTMRF. Tier 1 covers a concession period of 25 years.
PPA noted that ICPC, as a Tier 1 port, necessitates the potential concessionaire such as building landside infrastructure, installing information technology systems, and deploying advanced equipment and machinery to efficiently handle and operate cargo-related services at the port.
PMO Panay/Guimaras said ICPC lacks modern equipment, which “prevents cargo owners from shipping directly to and from Iloilo and international origins, and from avoiding multiple and expensive handling of their containers.”
PMO Panay/Guimaras added that the port ICPC has not served international shipping lines or dealt with international containerized cargo, “making it a severely underutilized investment.”
