ICTSI Complains High Bid Price for the Modernization of Sasa Port in Davao City

ICTSI Complains High Bid Price for the Modernization of Sasa Port in Davao City

Senior vice president of International Container Terminal Services Inc. (ICTSI) – the cargo handling contractor of Mindanao’s biggest port, Christian Gonzalez stated, that Mindanao is not receiving its fair share of investments as the government fails to privatize the Sasa port.

ictsi complain

Gonzalez said that the government decided to modernize the port yet the bid price is too high as the price is from P18 billion to P19 billion.

Gonzalez said, “That is about the same price we are spending for Victoria International Container Terminal (in Melbourne, Australia) – soon-to-open terminal in Webb Dock with a bid price of A$550 million. Then compare the tariff (VICT and Sasa), the difference is so huge it would be difficult to make money (in Sasa).”

Gonzalez added, “Mindanao has not had the correct amount of investments that it should have had because government sat on the privatization of Sasa.”

Davao Integrated Port and Stevedoring Services Corp., ICTSI units, has no determined limit contract to handle cargo in Sasa till it is transferred from public to private ownership.

ICTSI was never asked to provide rubber-tired gantry cranes (RTG) but nevertheless did so, Gonzalez said. He added, “We know the economics in Davao because we are there already. No one will bid at P18 billion to P19 billion.”

Gonzalez stated that the uncertainty of the projects also affects the ICTSI to invest more for the port, along with the other port in Tagum City, Davao del Norte which develops and operates with the Tuazons under Hijo International Port Services Inc. As he spoke, “We don’t want to put in more money in Hijo because the Sasa project remains unclear… If we put money in Hijo and invest in Sasa, people will accuse us of being a duopoly.”

ICTSI can bid for the innovation project as they are the current subcontractor in Sasa.

The terms of reference are yet to be released.

ICTSI, the subcontractor of the General Santos port possessed by the Philippine Ports Authority (PPA), should granted a longer contract of about 15 to 20 years, for them to stimulate more investments and recover them, Gonzalez added.

Gonzalez said, “We are offering cranes (which cost around $11 million) but we need a long-term contract, not two, three years to go because we cannot recover our investments.”

Up to now in Mindanao, ICTSI holds the Mindanao Container Terminal (MCT) in Misamis Oriental. And Mindanao International Container Terminal Services, Inc. (MICTSI) is allowed to operate and manage MCT for 25 years.

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