5 bidders vie to build P18.9-B Sasa port project

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The Department of Transportation and Communications (DOTC) said on Wednesday that five bidders have already submitted their prequalification bid documents to participate in the Davao Sasa Port Modernization Project.

The five potential bidders who submitted their prequalification bid documents are ICTSI, San Miguel-APM Terminals, Bollore, Portek and Asian Terminals-Dubai Port.

Netherlands-based global operator APMT formed a consortium with San Miguel Corp. Ballore is a French conglomerate and Portek is Singapore-based.

In a disclosure to the Philippine Stocks Exchange (PSE), Asian Terminals, Inc. said that “We confirm that we have expressed interest to participate in the bidding of Sasa Port in Davao.”


Earlier, the DOTC said several firms have expressed interest in the project, which is the first Public-Private-Partnership (PPP) project in Mindanao.

Port modernization
The submission and opening of bids is targeted in fourth quarter of this year while award is targeted in April next year. 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.

Without the added capacity of a modernized Sasa Port, there will be a strong chance of shortage in port capacity Davao bay, which may affect small-medium banana growers who may not be able to export their bananas.

The private partner will finance the construction and modernization of the existing port including the new apron, linear quay, expansion of the back-up area, container yards, warehouses, and the installation of new equipment like ship-to-shore cranes and rubber-tyred gantry over the pre-agreed concession period. The private partner will also be responsible in operating and maintaining the port.

Besides added capacity, the proximity of the Sasa Port to banana plantations will help growers save at least P8,000 in trucking costs per delivery.

Implementing agencies are DOTC and Philippine Ports Authority (PPA), under the PPP’s build-transfer-and-operate (BOT) with a cooperation period of 30 years.

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