MANILA, Philippines — The Board of Investments (BOI) has approved the P2.35 billion project of Razon-led International Container Terminal Services Inc. (ICTSI) to modernize the Iloilo commercial port.
In a statement yesterday, the BOI said it has issued the certificate of registration of ICTSI for the modernization, management and operation of the Visayan Container Terminal.
With the approval, the project would be entitled to incentives.
In particular, the modernization project is entitled to income tax holidays for three years, followed by five years enhanced deduction and duty-free importation of equipment under the CREATE Act.
The project will transform the old Iloilo Commercial Port Complex into a state-of-the-art facility to help drive economic growth in the Visayas region.
It forms part of a 25-year port terminal management contract between the Philippine Ports Authority and ICTSI and will involve investments in advanced cargo handling equipment, cutting-edge information technology systems, as well as enhanced civil infrastructure.
To further enhance the port and handle various cargo, mobile harbor cranes with a reach of 46 meters and a lifting capacity of 100 tons will be deployed.
The project is expected to create over 3,000 jobs that will directly and indirectly benefit the region and other related industries.
Aside from the jobs to be generated, the project is expected to improve operational efficiency, expand cargo handling capabilities and enhance connectivity, as well as help encourage new investments across Panay and neighboring areas.
Trade Undersecretary and BOI managing head Ceferino Rodolfo said the project underscores the government’s push to modernize port operations and logistics services to improve the Philippines’ rank in the logistics performance index.
“This initiative is vital to our national development, facilitating the movement of goods and people across our islands and strengthening our position in international trade,” he said.
The transportation and storage sector contributed P779.54 billion or 4.1 percent of the country’s gross domestic product from January to September last year, employing around 3.85 million Filipinos.
The BOI said it expects ICTSI’s project to further bolster these figures and enable the sector to have a greater impact on the economy.