Hanjin poised to win $186 million Cebu port deal

MANILA, Philippines — The Hanjin Group is on track to win the deal to build the New Cebu International Container Port, as it has pitched the best proposal for the project, according to the Department of Transportation (DOTr).

Transportation Undersecretary Elmer Sarmiento told reporters Hanjin would likely land the contract for the civil works of the New Cebu International Container Port.

The DOTr secured the special allotment release order (SARO) for the project this month, and the agency is scheduled to award the contract to Hanjin in October.

“We received the SARO about two weeks ago and we are planning to already award the contract in early October. The only bidder so far with the best competitive offer (for the civil works of the port) is Hanjin,” Sarmiento said.

Hanjin, the South Korean multinational known for its expertise in transport ventures, submitted a $186 million bid to construct the New Cebu International Container Port. The company appears to be also well aware of the fact that it is about to win the bidding.

Sarmiento said Hanjin has deployed its equipment and personnel for early works even though it has yet to sign any agreement for the project.

As for the DOTr, the objective is to start construction within the year to complete the port before President Marcos ends his term in 2028.

Afterward, the DOTr will hold another round of bidding to look for a private firm who would be tasked to operate and maintain the port.

Based on the project brief, the New Cebu International Container Port will be funded by official development assistance from South Korea. However, the government will ask the private sector to acquire the quay cranes and handle the operations and maintenance.

Initially, the New Cebu International Container Port was estimated to cost nearly P10 billion. In June this was adjusted by the National Economic and Development Authority Board, chaired by the President, to P16.93 billion on pandemic delays and technical changes.

The New Cebu International Container Port will sit on top of reclaimed land in Cebu, stretching for 25 hectares with a 500-meter berth length and 12-meter water depth.

Once the facility is built, it can handle up to two 2,000 TEU vessels, reducing yard congestion at the Cebu International Port.