MPIC-Harbour Centre to keep port tariffs stable for first three years

MANILA, Philippines - The privatized Manila North Harbor will keep port tariffs stable for the first three years of operation as part of an agreement with the Philippine Ports Authority (PPA).

This was revealed by the consortium of Metro Pacific Investments Corp. (MPIC) and Harbour Centre Port Terminal Inc. (HCPTI) as it denied reports (not in The STAR) that under the new management, North Harbor’s revenues will triple to over P3 billion annually.

The MPIC-HCPTI joint venture earlier won the 25-year contract to develop, manage, operate, and maintain at a cost of P14.5 billion the country’s oldest and busiest port facility. The PPA has issued a notice of award to the consortium and has asked the winning bidder to incorporate the joint venture company within 30 days from receipt of notice of award.

A contract between the PPA and consortium is expected to be signed five days after the incorporation of the joint venture company.

The P14.5-billion bid submitted by the joint venture will cover the capital expenditure plan to reconfigure the existing ports, expand its operational area from 52 hectares to 70 hectares, and improve operational facilities.

This will raise more than P6.8 billion in revenues for the PPA over 25 years and decrease port rates at an average of 10 to 15 percent, according to the consortium, even as it added that more than 1,000 workers of the different operators of North Harbor will be absorbed and not displaced, while an additional 20,000 jobs will be generated directly and indirectly by the ambitious construction and modern operations entailed in the modernization.

“After meeting all the criteria of the two-year rigorous pre-qualification and bid process mandated by the PPA’s terms of reference, we are pleased that we have finally won the bid for this ambitious project and start gearing up for another growth opportunity in MPIC’s core business in infrastructure,” MPIC president and CEO Jose Ma. K. Lim said.

The consortium noted that the project will facilitate inter-island shipping and boost the economy as a whole since the harbor will be dredged to accommodate even bigger ships such as tankers and international luxury liners.

The port will be fitted with modern cranes, including bigger and wider container and cargo depot to accommodate more containers coming from the provinces in Southern Philippines.

Phase I of the project will be implemented over a period of six years. The first year of the contract should complete the crane rail for two load on – load off (lo-lo) berths at Terminal 1 and pavement/concreting of container yards. After the completion of the crane rail for the two lo-lo berths, the operator shall procure two shore cranes and support equipment.

The other components of Phase 1, such as reclamation, construction of additional lo-lo berths and roll on – roll off (ro-ro) berths and the development of an information

technology system to facilitate travel and cargo handling, will be completed within three years from the start of the contract.

Meanwhile, Phase II of the project will cover the development of Terminals 2 and 3 and the second Passenger Terminal Building at Slip 5, which shall be constructed within a period of three years, commencing from completion of Phase I.

Consortium officials stressed that the modernization of North Harbor into a world-class port will be done without the government spending a single centavo, adding that the government, through the PPA, will be guaranteed a fixed fee of P6.8 billion for 25 years regardless of economic conditions.

As agreed, PPA will retain collection of fees for usage, wharfage and anchorage, among others. The project will maintain the government’s power and authority to approve the rates on cargo-handling charges tariff similar to the South Harbor and Manila International Container Terminal (MICT) contracts.