San Miguel eyes new grains terminal at Manila North Harbor

MANILA, Philippines - Diversifying conglomerate San Miguel Corp. is eyeing to build a new grains terminal at the Manila North Harbor through a partnership with the Romero family, which controls the company that was awarded a 25-year concession to operate and redevelop the country’s busiest domestic cargo port.

San Miguel said it is in the final stages of negotiations with the Romero family to invest in Manila North Harbor but pointed out that the Romeros would still take charge of port operations while the conglomerate would provide financial assistance.

“San Miguel does not want to be involved in the actual port operations as that remains the expertise and responsibility of the Romeros,” said the food, drinks and packaging giant.

Following a foiled attempt to acquire the Mariveles Grains Terminal (MGT) in Bataan – the country’s most modern grains handling facility, San Miguel is now setting its sights at the Manila North Harbor as the alternative location for its planned grains terminal to service the needs of the San Miguel Group’s food and beverage businesses.

San Miguel had long been wanting to acquire the MGT in line with its bid to become a distribution and logistics powerhouse. The MGT handles bulk cargo of commodities like wheat, soya bean meal, corn and soybeans.

 Apart from its traditional food and beverage businesses, San Miguel’s investment portfolio now includes interests in energy, power, banking, telecommunications, infrastructure and mining.

San Miguel said its affiliate Petron Corp. is keen on investing as well, as the offshore areas of Manila North Harbor provide the ideal location for a tank farm that will replace the Pandacan oil depot.

San Miguel entered into the picture after Metro Pacific Investments Corp. (MPIC) signified its intention to pull out from Manila North Harbor Port Inc. (MNHPI) because it failed to obtain a controlling interest in the 65-35 joint venture between the Romero-led Harbour Centre Port Terminal Inc. (HCPTI) and MPIC.

The Philippine Ports Authority announced it has cleared the Romero group’s buyout of MPIC from MNHPI, paving the way for the entry of MPIC. Any change in ownership must be approved first by the PPA. The 35 percent stake of San Miguel is valued at P350 million.

MPIC earlier said it would seek the return of all invested capital and the release of all guarantees it had provided for the joint venture.

Under the terms of reference of the contract, the operator should have at least two member firms.

HCPTI president Michael Romero earlier said the company would spend about P7 billion over the next six years to renovate North Harbor, which currently services two million domestic passengers per year and 1.5 million twenty-foot equivalent units of cargo.