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ICTSI’s P4.5-B port project to get perks

By Ayen Infante

04/28/2008

Global port operator International Container Terminal Services Inc., (ICTSI) is spending P4.5 billion for the development of seaport facilities that involves reclamation of 23.4 hectares of shore area.

The proposed expansion project was approved by the Board of Investments (BoI) for fiscal incentives including income tax holiday (ITH), among other tax perks.

The project falls under the 2007 Investment Priorities Plan (IPP) for physical infrastructure development of seaport.

It was approved under a pioneering status because in 2007 IPP, guidelines for a physical infrastructure, projects that cost at least $100 million are qualified for pioneer status and entitled to ITH for six years.

The activity will involve the construction of berth 6 including wharf improvement of the Manila International Container Terminal (MICT).

The expansion was required to meet the growing demand for containerized traffic and service container cargo which facilities could accommodate the likes of Panama vessel of up to 85,000 dead weight ton while the wharf would support the rail-mounted post Panamax container crane.

Panamax are sea vessels consisting of five 12-meter berthing slots.

From the current handling capacity of 1.6 million 20-foot equivalent units, the expansion means an increase in capacity of up to over 2 million TEUs.

Part of the proposed project cost would be used to finance the reclamation and development of new land and the entire berth area which is located north of MICT and Pasig River.

The Philippine Ports Authority (PPA) has given ICTSI a go signal to proceed with it expansion plan pursuant to Executive Order 361 issued in August 1996 that calls for the implementation of an integrated program for the development of ports in the country, as well as encourage private sector participation.

PPA had contracted ICTSI for the exclusive operations of MICT for a period of 25 years ending in 2013. PPA has decided to renew the contract for another 25 years.

Part of what PPA has approved was the reclamation of 23.4 hectares of shoreline along the area. Apart from PPA, ICTSI’s concept was also approved by the Philippine Reclamation Authority.

Under the plan, ICTSI will start to acquire equipment by June 2009 after site preparation development this year. Once operational by 2010, total job generation is expected to reach 185.

ICTSI which was formed to bid for the privatization of MICT in 1988 is wholly-owned by Enrique Razon Jr.