MANILA, Philippines — San Miguel Corp. (SMC) has set aside P22.9 billion for the ongoing rehabilitation and modernization of the Manila North Harbor, a 55-hectare port facility in Tondo, Manila, which is targeted for completion in 2022.
Of the amount, SMC Infrastructure already spent P13.8 billion for the improvement and upgrading of the passenger terminal complex as of the first half.
The remaining amount will be used for phase 2 rehabilitation, which is targeted for completion in December 2022.
Phase 1 includes the development of berth and quay lines, reclamation of the piers, rehabilitation of container yards and the construction of new passenger terminals, which began in 2011.
Funding for the P13.8 billion came from long-term debt, equity infusion from shareholders and through short-term loans and cash generated from operations.
Manila North Harbor is said to be the country’s busiest domestic port. It has a total quay length of 5,200 meters and 41 berths, which can accommodate all types of vessels such as containerized and non-container type vessels.
SMC took over the rehabilitation and modernization of Manila North Harbor through concessionaire Manila North Harbour Port Inc. (MNHPI), which has the sole and exclusive right to develop and operate the port.
During the company’s annual stockholders meeting in June, tycoon Ramon Ang said he was excited about his partnership with fellow billionaire and ports tycoon Enrique Razon to redevelop the country’s biggest domestic port.
He said Manila North Harbor would become an international port with income projected to grow two or three times.
Razon’s International Container Terminal Services Inc. gained a foothold in Manila North Harbor after acquiring Petron Corp.’s 34.83 percent interest in the port operator last year for P1.75 billion.
Aside from Petron, other major shareholders of the company include SMC, which owns 43.33 percent and the Romero family’s Harbour Centre Port Terminal Inc.
Aside from the Manila North Harbor, SMC has several other infrastructure projects including airports, expressways, elevated roads, and bulk water.