THE Philippine Ports Authority (PPA) has issued a notice to proceed to International Container Terminal Services, Inc. (ICTSI) for the rehabilitation and operation of the Visayas Container Terminal (VCT), formerly known as the Iloilo Commercial Port Complex in Western Visayas, the company said.
The Razon-led port operator is set to commence operations and upgrade the facility upon signing the notice to proceed, the company told the stock exchange on Monday.
ICTSI said it will work on improving terminal productivity and service quality by investing in the development and rehabilitation of the terminal’s infrastructure and deploying cargo-handling equipment.
The PPA awarded in January the 25-year contract to operate the VCT to ICTSI, the port’s lone bidder.
The contract includes a concession fee of P750 million, PPA said. This amount is 50% higher than the P500 million minimum fixed fee set by the agency in its bid invitation.
“Our significant investments in modern infrastructure, cargo-handling equipment, and operational efficiency will drive this transformation,” Christian R. Gonzalez, ICTSI executive vice-president said in a statement.
The VCT has about 627 meters of operational quay length and 20 hectares of land for container and general cargo storage, warehousing, and other cargo-handling activities.
The facility caters to Iloilo province and the entire Panay Island. Situated apart from older port facilities on Panay Island’s southern coast in Panay Gulf, it benefits from being one of the country’s safest harbors, according to ICTSI.
ICTSI said capacity and efficiency constraints have hindered the seaport’s full potential as it aims to unlock the facility’s full potential.
Currently, the seaport managed a total volume of 100,000 twenty-foot equivalent unit or TEUs and two million metric tons of non-containerized cargo annually.
“iCTSI’s involvement will transform the port, addressing these challenges and unlocking its economic benefits. The port will be operated exclusively to serve foreign vessels and cargoes, with a provision for domestic vessels and cargoes in the initial five years,” the company said. — Ashley Erika O. Jose