Privatization of Iloilo port in the works

MANILA, Philippines — The Department of Transportation (DOTr) has instructed the Philippine Ports Authority (PPA) to prioritize the privatization of the Port of Iloilo upon the request of the local government.

Transportation Secretary Jaime Bautista told reporters that the PPA is looking into its options on how to best conduct the rehabilitation of the Iloilo Commercial Port Complex (ICPC).

Further, Bautista said the PPA is also working on the privatization of other ports in the regions as part of efforts to improve their operations.

“For (the Port of)  Iloilo, that is what we are studying right now. The PPA is working with certain groups for its privatization,” Bautista said.

In October, the local government of Iloilo demanded the DOTr to expedite the privatization of the ICPC, citing the urgency to expand its capacity.

Prior to this, Iloilo Mayor Jerry Treñas submitted a letter to the PPA asking for the allocation of funds for the redevelopment and upgrade of ICPC.

Treñas wants the government to prioritize the enhancement of ICPC to accelerate the economic recovery of Western Visayas from the pandemic lull.

Meanwhile, Bautista confirmed that there is one serious proposal to upgrade the ICPC.

Razon-led International Container Terminal Services Inc. (ICTSI) had filed a P5-billion proposal to redevelop the ICPC, including the Port of Dumangas, also in Iloilo.

ICTSI is studying the revival of that proposal given the economic opportunities it presents. The ICPC, after all, serves as one of the largest ports in Visayas, and it is projected to expand further with the entry of new shippers.

On the other hand, the DOTr plans to spend at least P1.4 billion to expand roll-on, roll-off (RoRo) ports nationwide. At present, the agency is looking for funding partners and technical consultants which will take on the challenge to upgrade the RoRo ports, linking the nautical highways.

In line with this, the PPA is speeding up the privatization of operations and maintenance of some of the ports that it manages.

In September the PPA released the bidding documents for more than P700 million in contracts to operate and maintain four ports around Mindanao, namely, the Ports of Opol, Balbagon, Benoni and Guinsiliban.