Davao City blocks P19-B Sasa Port bidding

Local business community lauds move 

MANILA, Philippines - The business community of Davao City welcomes the city government’s approval of a resolution to stop the bidding for the P18.99-billion Davao Sasa Port Modernization project, citing stakeholders were not consulted in the public-private partnership (PPP) deal.

“This unnecessary project was being forced upon Davao without the proper consultation. This resolution will now enable Davaoeños to contribute meaningfully toward defining the correct need and use of Sasa Port,” Alexander Valoria, president of the Anflocor Management and Investment Corp. and a member of the Davao City Chamber of Commerce and Industries Inc., said in a statement yesterday.

The Sangguniang Panlungsod of Davao has approved a resolution opposing the bidding of the Davao Sasa Port Modernization project due to various questions raised on the deal.

The city council noted the project  is being offered for bidding without prior consultation and expressed approval of the local government as provided for by the Local Government Code.

The pre-qualified groups to bid for the project are Asian Terminals Inc.-DP World FZE Consortium; Bollore Africa Logistics; International Container Terminal Services Inc.; Portek International Pte. Ltd.-National Marine Corp. Consortium with contractor Toyo Construction Co. Ltd.; and San Miguel Holdings Corp.-APM Terminals Management (Singapore) Pte Ltd. Consortium with contractors Hyundai Development Co. and Hanjin Heavy Industries & Construction Co. Ltd.

Apart from the lack of consultation, concerns were also raised on the PPP project such as the possibility of the worsening of traffic congestion in Davao City.

Sasa is a highly urbanized area that is crowded with commercial establishments and residential subdivisions already suffering from severe traffic congestion.

Concerns have also been raised on the lack of a plan for break-bulk and bulk cargo seen vital to the economy of Davao City.

According to the Philippine Ports Authority, about 500,000 metric tons of steel, wheat, fertilizer, motor vehicles, heavy equipment and other cargo not suitable for containers went through Sasa Port last year.

There are likewise questions on the lack of provisions for cruise vessels in the project.

The Department of Tourism has identified Davao as a potential destination for cruise tourism but no private sector player has expressed willingness to invest in in this particular project due to market uncertainty.

Valoria said the container shipping requirements of Davao City are already being addressed by existing private ports such as Davao International Container Terminal, Terminal Facilities and Services Corp., Sumifru, Unifrutti, Dole/Pacinter and the planned Hijo International Port Services, Inc.

Valoria said 75 per- cent of foreign containers totaling 358,312 TEUs (twenty-foot equivalent units) are already using the private ports.