CEBU, Philippines - The economic planning agency hopes that Cebu’s international container terminal will be transferred as soon as possible to address the increasing number of port calls and volume of shipments.
National Economic and Development Authority-7 Director Efren Carreon, however, said the proposed relocation of the port has not yet reached the agency’s Investment Coordination Committee which evaluates the fiscal and balance of payments implications of major national projects.
“Actually we had undertaken meetings with CPA (Cebu Port Authority) officials to really determine when the project will be presented to the ICC,” Carreon said in an interview.
CPA has planned to transfer the container terminal to Tayud, Consolacion town to decongest the already crowded Cebu International Port in Mandaue City and improve the maritime business in Cebu.
The Department of Transportation and Communications announced the said plan April last year.
CPA had considered getting overseas development assistance funding to build the project but this will need approval from DOTC and NEDA. The transportation agency is currently handling the plan.
Carreon said he wants the proposal to be submitted to NEDA-ICC within the year, saying the local business sector really needs a new container port.
STUDIES
Two studies had already been conducted for the project.
A 2002 feasibility study by Japan International Cooperation Agency recommended Tayud as the new port’s site, which is about 10 kilometers north of CIP. JICA had estimated the project to cost P10 billion.
Details on JICA’s pending completion of an updated review of the study have not been known yet, the official noted, saying “whatever it will be it will be a big help for the development of Cebu and Central Visayas.” Korean experts also did another study.
The economic planner said: “I think they want to subject the old [JICA] study made sometime in 2002 and we need to look at the study and update. We want it that within the year ma-submit na nato siya [to the ICC].”
He said that once the container port will be moved from Cebu’s base port, CPI will eventually be decongested. Heavy traffic in cities of Cebu and Mandaue and in the CIP area caused by big trucks carrying huge shipments will also be minimized.
The relocation is also seen to spur economic development in Consolacion.
The Cebu Chamber of Commerce and Industry has supported the port expansion in Cebu in hope to attract more investments.
CARGO TRAFFIC
Available data from CPA showed container traffic in CIP in the first quarter in 2014 grew 8.5 percent to 166,699 twenty-foot equivalent units from 153,696.5 TEUs in the same period a year ago. Domestic boxes largely contributed to cargo traffic.
Cebu Port was designed to handle only around 250,000 TEUs every year but it is now handling more than 300,000 TEUs annually.
It runs a total length of 4,202 meters from international zone (690 meters) to domestic zone (3,707 meters).
While the new terminal is projected to handle 500,000 TEUs per year. — Carlo S. Lorenciana (FREEMAN)