PPA eyes privatization of 4 southern ports

MANILA, Philippines - State-run Philippine Ports Authority (PPA) is looking at privatizing four major ports as part of efforts to transform major ports into world-class facilities to complement the operations of the congested Ports of Manila.

PPA general manager Juan Sta. Ana said the agency is awaiting the completion of the feasibility study to determine the mode of privatization of major ports in Iloilo, Cagayan de Oro, Zamboanga, and General Santos.

Sta. Ana said the PPA is looking at installing cranes at the four major ports to complement the operation at the Manila North Harbor.

If viable, he explained that the PPA would tap the Aquino administration’s public private partnership (PPP) scheme to privatize the four ports.

According to him, the privatization of the Sasa Wharf in Davao is now pending before the National Economic and Development Authority (NEDA).

He pointed out that the two consultants hired by the PPA to conduct the feasibility study for the privatization of the port has concluded their study and have submitted their respective recommendations to the PPA.

“The PPA Board, on the other hand, is busy harmonizing the two results to come up with a win-win solution on how to carry out the privatization to pave the way for the modernization of Sasa Wharf, the country’s major port for Banana exports,” he explained.

The PPA, which is currently celebrating its 40th Anniversary, has successfully privatized major ports in Manila as well as Batangas.

Listed International Container Terminal Services Inc. (ICTSI) of port and gaming mogul Enrique Razon has poured in P20 billion into the operations of the Manila International Container Terminal (MICT) that now has the capability to handle post-panamax vessels while port capacity has already reached at least 2.5 million 20-foot equivalent units (TEUs).

On the other hand, Asian Terminals Inc. (ATI) likewise has committed to invest $500 million until 2030 to modernize the operations of the Manila South Harbor that has the capability to handle post-panamax vessels and its capacity has already reached one million TEUs.

Manila North Harbour Port Inc. (MNHPI), a joint venture between the Harbour Centre Port Terminals Inc. and diversified conglomerate San Miguel Corp. (SMC), is sinking in P14 billion to modernize the Manila North Harbor that now boasts of a world-class passenger terminal building while its cargo terminal is likewise being upgraded.

ATI has also committed to invest more at the Batagas port after the government poured P5 billion to groom the port facility as an alternative port with a capacity of 450,000 TEUs to handle spillover cargo of Asia’s cargo hubs like Singapore, Hong Kong, Malaysia, among others.

 Aside from the four major gateways, Sta. Ana said the PPA was also able to upgrade to world standards seven more ports to make sure that the Philippines is able to accommodate the increasing demand in the international markets.