BCDA unit takes over San Fernando seaport operations

MANILA, Philippines — State-run Bases Conversion and Development Authority (BCDA) has authorized its subsidiary, Poro Point Management Corp. (PPMC), to manage the San Fernando Seaport in La Union until a new operator is chosen.

BCDA president and CEO Joshua Bingcang and PPMC president and CEO Felix Racadio signed a memorandum of agreement (MOA) granting PPMC temporary operational control of the seaport to ensure continuity of operations and provision of services.

This follows the expiration of the lease contract of the seaport’s previous operator Poro Point Industrial Corp. (PPIC) on Oct. 31, 2024 and its intention to cease operations.

BCDA, PPMC and Bulk Handlers Inc. formed PPIC in 1999 to manage the San Fernando Seaport.

Before the lease contract expired, the BCDA offered PPIC a three-month holdover authority while preparing for the conduct of a competitive bidding for a new seaport operator.

However, the PPIC declined BCDA’s offer.

“The BCDA recognizes the vital role played by the San Fernando Seaport in facilitating international trade, boosting supply chains, and supporting various industries in La Union and Northern Luzon. The seaport has been a key driver of growth, generating jobs and livelihood for the community,” Bingcang said.

“That is why there is a need to ensure that services in the seaport are uninterrupted. We thank the PPMC for taking on this task on an interim basis,” he added.

The BCDA board authorized PPMC to take over the seaport operations effective Nov. 6, 2024 until a new operator is selected.

“With the trust that the BCDA has given us, PPMC assures that it will perform our task of managing the seaport well,” Racadio said.

Under the MOA, PPMC will ensure continued provision of cargo handling, customs brokerage, warehousing and equipment rental services.

PPMC will also be responsible for overseeing the safety and security, environmental protection, trade facilitation and labor regulations in the seaport.

In addition, PPMC will maintain and repair all the structures in the area.

Formerly known as US Wallace Air Station, the 236.5-hectare Poro Point Special Economic and Freeport Zone has contributed to La Union’s transport and logistics sector.

To help spur growth in La Union and Northern Luzon, the freeport zone is being positioned as a tourism and investment hub.