Three foreign groups keen on container terminal in Subic

Three foreign groups have expressed interest in operating the multi-million dollar new Container Terminal 2 (NCT 2) in Subic Freeport.

In an interview, Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said the three foreign groups which failed to participate in the bidding for the newly inaugurated Container Terminal 1 are looking at the possibility of operating NCT 2.

Arreza  refused to name the three foreign groups but hinted that they are Asian or European firms. Another clue, Arreza gave was that the three did not take part in the NCT bidding.

These three foreign groups opted out of the NCT 1 bidding because the Subic Bay International Terminal Holdings (SBITC) consortium enjoyed the right of first refusal because it was the former operator of the Subic Naval Supply Depot.

The NCT2 is expected to draw more international bidders since its capacity can still be expanded to 600,000 TEUs (twenty-foot equivalent units), or double its current capacity, unlike the NCT 1, which is limited to 300,000 TEUs.

Arreza said since the NCT 2 will be completed by the time the contract is awarded, the operator will be enjoying a quick start-up. The NCT 2 is already 96 percent complete.

As such, Arreza said they expect to hold the international tender for its operation and maintenance in October and then award the contract as early as second quarter next year.

“We will release the TOR (terms of reference) in October and it will probably the same as the TOR for the NCT 1,” Arreza said.

Including wharfage fees, Arreza said the SBMA sees potential annual revenues for the 300,000-TEU capacity at $6 million. The annual lease for the port, which has a lifespan of 50 years, will be enough to shoulder the $60-million loan from the Japan Bank for International Cooperation (JBIC) that was used to partly fund the project.

For the NCT 1, SBMA sought a $1.5-million minimum fixed annual lease and concession from the operator. It likewise asked for a 10 to 12 percent revenue sharing per container that will go through the facility.

In July, President Arroyo inaugurated the first phase of the $215-million Subic Bay port development project.

The completion of the NCT 1, built on a 29.2-hectare reclaimed area at Cubi Point, is part of the development of Subic Bay and Clark freeport zones as the most competitive international service and logistics centers in the Asia-Pacific region.

The project is co-funded by the Japanese government through JBIC.