MANILA, Philippines - The consortium of Metro Pacific Investments Corp. and Harbour Centre Port Terminals has set up a P700-million company that will serve as the corporate vehicle for the development and modernization of the Manila North Harbor.
The new unit, Manila North Harbor Corp., secured a business license from the Securities and Exchange Commission (SEC).
The consortium won the bidding for the right to develop and operate the country’s oldest but busiest port for a period of 25 years after hurdling all the technical and financial criteria of the two-year rigorous pre qualification and bid process mandated by the Philippine Ports Authority’s terms of reference.
The project is expected to cost P14.5 billion, with bulk of the amount to be spent during the first six years.
Under the plan, North Harbor ‘s Terminal 1 will service roll on-roll off (ro-ro) container and passenger vessels. Terminal 2 will service container and passenger vessel, and will also cover the reclaimed Piers 6 and 10 while Terminal 3 will be allotted to conventional, non-containerized, bulk or break-bulk vessels and passenger vessels.
The project is expected to generate 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. More than 1,000 workers of the different operators of North Harbor will be absorbed, while an additional 5,000 jobs will be generated directly and indirectly by the ambitious construction and modern operations entailed in the modernization.
The North Harbor currently accounts for more than half of the total domestic port business, servicing Metro Manila and nearby provinces of Bulacan, Pampanga, Tarlac, Nueva Ecija, Nueva Vizcaya, Rizal, Cavite, Laguna, Batangas and Quezon.
The port business is one of the sectors identified by MPIC as new engines for growth alongside tollways, water, healthcare and mining.