PPA pushes P43-B bulk cargo facility

MANILA, Philippines - The Philippine Ports Authority (PPA) is pursuing the planned establishment of a P43.3-billion bulk cargo handling facility at the northwest portion of South Harbor to cater to the needs primarily of oil companies.

PPA general manager Juan Sta. Ana said in an interview with reporters that the results of the master plan and feasibility study on the proposed bulk cargo handling facility would be presented to the Department of Transportation and Communications (DOTC) for approval.

Sta. Ana pointed out that the master plan and feasibility study of the proposed facility would be presented to DOTC Secretary Joseph Emilio Abaya next month.

The project would involve the dredging and reclamation of a 100-hectare area in South Harbor that would cost about P22 billion and as well as civil works such as the handling equipment, bridges, roads, among others worth over P20 billion.

As early as March 2011, PPA proposed the establishment of a bulk cargo handling terminal as most public and private ports in Metro Manila do not have adequate facilities that handle liquid and dry cargo.

The agency then identified an area of about 200 hectares within the Port Zone Delineation (PZD) of the Port of Manila which is considered as ideal site for long-term commercial operations of ports catering to liquid and dry bulk cargoes and lies at the northwest portion of South Harbor adjacent to Engineering Island.

Under its Charter, the PPA has the primordial responsibility to formulate a comprehensive and practicable port development for the country in coordination with other national concerned agencies. Specifically, part of its corporate powers is to “reclaim, excavate, enclose or   raise any part of lands vested in the Authority.”

Sta. Ana said the PPA would also present the results of the feasibility study and the proposed master plan of the bulk cargo handling terminal to the private sector particularly oil companies led by Petron Corp. of diversified conglomerate San Miguel Corp., Dutch-owned Shell Pilipinas, and American-owned Chevron Corp. (Caltex).

He said that oil companies are expected to benefit from the proposed bulk cargo handling facility

“This facility would serve as an alternative to the oil depot in Pandacan and they no longer need to pass through the Pasig River” he added.

He said the project would be bidded out to the private sector that would fund the proposed reclamation worth about P22 billion as well as the construction of other infrastructure such as roads, bridges as well as the acquisition of cargo handling equipment.

In August last year, the City Council of Manila passed an ordinance requiring oil depots in Pandacan to relocate by 2016 so that resident would be spared from the dangers posed by the presence of oil refineries.

Under the zoning ordinance of Manila, the Pandacan depot area was classified as commercial zone. But Ordinance 8187 in 2009 created heavy industrial zones in the district, which allowed the oil depot to continue operating in the area.

PPA earlier reported a flat growth in the number of passengers amid the aggressive fare promotions of budget airlines in the country and a slight growth in the volume of cargo shipped in and out of the country’s ports last year.