Enrique Razon, chairman and chief executive officer of International Container Terminal Services Inc. (ICTSI), dampened speculation about their interest in the P17-billion Davao Sasa Port Modernization project.
“We are not quite sure if we are going to bid,” he told reporters.
“The investment requirement is so large. Numerous private ports are already in the area. So we may not bid for that.”
He said Davao port operation has a plenty of competition that operate cheaply and it would be difficult for the company to recover its investments in the area.
The Department of Transportation and Communications (DOTC) and the Philippine Ports Authority (PPA) have been invited potential bidders for the Davao Sasa Port Modernization project.
The project includes a dedicated container handling facilities with an initial design capacity of 1,900 container ground slots to a minimum of 2,700 container ground slots, construction of a new apron, development of linear quay, container yards, warehouse, and the installation of container handling equipment throughout a 30-year concession period.
The existing port occupies a total area of 18.1 hectares, including a 4.15-hectare container yard, and 864 container yard ground slots. The port, which can accommodate 800 TEU, has an annual capacity of 550,000 TEU.
DOTC and PPA have been appointed by the Development Bank of the Philippines and the International Finance Corp., the private arm of the World Bank Group, to act as transaction advisors for the international competitive public bidding.
Officials said prospective bidders will finance, design, develop, operate and maintain the port.
When asked if the company was being defensive in not bidding for the P17 billion project, Razon said: “Defensive move is not for P17 billion. That’s not a defensive move anymore. I doubt you can recover that type of investment in Davao.”
“Davao has a lot of competition. We invest that money while your competitors just operate cheaply. How are you going to recover from that,” he said.