Five Consortia in the Race for Davao Sasa Modernization

Six companies have expressed interest in bidding for the Davao Sasa Modernization Project, the Philippines’ first seaport public-private partnership (PPP) project worth USD 417.18-million, the country’s  Department of Transportation and Communications (DOTC) said.

DOTC said that the companies that purchased bid documents were Anflocor, Netherlands-based global operator APMT, Asian Terminals Inc., French conglomerate Bollore, Singapore-based Portek and San Miguel Corporation.

The companies make a total of five consortia where foreign companies partnered up with local port operators, as it was the case with Philippine conglomerate San Miguel Corp. which partnered with APM Terminals, Asian Terminals with DP World, followed by International Container Terminal Services Inc. (ICTSI),  Bollore SA and Singapore’s Portek International Pte Ltd.

“This shows the enormous potential of the Davao region. The construction of a modernized port in Sasa will help meet the growing demand for world-class port services in Davao,” said DOTC Secretary Jun Abaya.

The submission and opening of bids is targeted in Q4 this year while award is targeted in April next year.

Philippine port management company International Container Terminal Services, Inc. (ICTSI) said responding to media reports that it had not submitted a bit yet for the Davao Sasa Modernization Project.

“ICTSI wishes to clarify that ICTSI’s response was only to an Invitation to Prospective Bidders issued by the Department of Transportation and Communication (DOTC) for the P18.99B Davao Sasa Modernization Project. It was not a bid. It only consisted of pre-qualification information. ICTSI has not yet submitted any bid at this stage,” the company said.

According to DOTC, once the first phases of the project are completed in 2018, the Sasa Port will be comparable to the country’s top ports in terms of speed and quality of service, cutting down cargo unloading from three days to three hours by using modern ship-to-shore cranes and port operating systems.

The Davao Region thrives in banana exports, being the second largest banana exporter in the world. A study conducted by the International Finance Corporation (IFC) and the Development Bank of the Philippines (DBP) shows that container traffic in the Davao Region is projected to increase by at least six percent annually over the next 25 years.

Davao Sasa Port is one of five commercial ports in the Davao Bay area.