All clear for North Harbor project

MANILA, Philippines - The much-delayed modernization of North Harbor, the country’s oldest and busiest sea port, has cleared its final hurdle after the Supreme Court dismissed a petition from the seaman’s union seeking to stop the Philippine Ports Authority (PPA) from undertaking the bidding for the multi-billion peso port privatization and modernization project.

In a two-page decision, the SC first division chaired by Associate Justice Antonio Carpio dismissed the instant petition for prohibition and mandamus, with prayer for the issuance of a temporary restraining order and permanent injunction filed by Nelson Ramirez for lack of legal standing.

Court records show that Ramirez, president of the United Filipino Seafarers, is not a party to the ongoing modernization of the North Harbor, nor a party to any labor union operating in the country’s once premier port.

The case reached the High Tribunal after the Manila Regional Trial Court ordered the PPA to proceed with the bidding for the modernization project.

“The PPA welcomes this development. The project has long been delayed, prejudicing the millions of port users who are looking forward to the modernization of the port. The petition is a nuisance suit and we are glad the Supreme Court saw it that way,” a port official said.

The joint venture of Harbour Centre Port Terminal Inc. (HCPTI) and Metro Pacific Investment Corp. (MPIC) is scheduled to sign the modernization contract with the PPA early part of November and take over North Harbor’s operations within the year.

After two years of bidding, the contract was awarded to the joint venture last Oct. 8, 2009. The joint venture submitted a modernization package of more than P 14.5 billion in infrastructure, equipment and technology expenses.

The consortium also committed to pay the PPA P6.8 billion in fixed fees for the 25 year contract and to reduce port fees by as much as 20 percent.

The PPA also mandated the HCPTI-MPIC consortium to absorb all existing port workers of North Harbor, allaying fears that the takeover will result mass layoffs.

“The smoke has settled and nothing should stop this project from going into high gear. We will sign the contract soon and set into motion one of the most significant development in the history of our port industry. We encourage everybody – the port workers, stakeholders and most especially the public – to join us in this endeavour and make this project work,” consortium officials said.