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COMPANIES interested in managing the Manila North Harbor
are still on the lookout for foreign partners that will
give them the needed financial muscle to allow them to
upgrade one of the Philippines’ most inefficient and
busiest ports, and the search may delay the bidding.
Of the
six bidders, only publicly listed Asian Terminals Inc.
(ATI) has so far shown both the financial capability
through the support of its principal Dubai Ports World
and cargo handling experience to manage the terminal. DP
World owns 20 percent of ATI, which already operates the
Manila South Harbor.
The
other five bidders still have to form joint ventures
with more financially able companies after they were
unable to comply with various requirements of the
Philippine Ports Authority.
According to industry estimates, the terminal needs at
least P1 billion to install modern cargo handling
equipment to increase the port’s capability to service
larger vessels.
The
Magsaysay Maritime Corp., represented by National Marine
Corp., for instance, has only the financial resources to
own 20 percent of a joint venture, as with fellow
aspiring bidder publicly listed Lorenzo Shipping Corp. (LSC).
While
the government port agency has allowed foreign shipping
operators to own stakes in any joint company managing
the North Harbor, their ownership had been limited to 10
percent.
Although
Magsaysay controls majority of LSC, a Magsaysay shipping
executive said the PPA will treat it as a separate firm.
“We are still on the lookout for a partner. We are
currently negotiating with foreign and local firms for a
possible joint venture but we are waiting for the best
option to land the North Harbor contract,” said
Magsaysay chief operating officer for transport and
logistics Roberto Umali.
Bidding
rules indicate that if a joint venture wins the contract
to operate the North Harbor, the winning company should
be formed within 30 days upon the project’s awarding.
The group’s equity composition should also remain the
same for the 25 years of the contract.
Harbour
Centre Port Terminal Inc. said it already has a partner,
although they do not intend to reveal its identity.
Meanwhile, although Metro Pacific Investments Corp. may
have sufficient cash to invest in the facility, it still
is required to prove it has the experience in handling
cargo, a capability that a partner could provide.
Other
interested bidders include Pier 8 Arrastre and
Stevedoring Services Inc. and Prudential Customs
Brokerage Services Inc.
Pier 8
Arrastre ran
North Harbor’s
Pier 8 from 1974 until 2000 when the PPA took over.
Prudential is a sister firm of CAPP Group, which could
easily qualify for the required volume of cargo handled
since it hauled several power plants such as the
105-megawatt Bacon Manito geothermal power plant in
Sorsogon. It is also one of the main contractors of the
600-MW Masinloc coal fired thermal plant.
CAPP,
which also owns Philharbor Group, claims to be one of
the country’s largest conglomerates that runs several
companies in the field of supply, transport and
logistics.
What is
at stake is the right to operate the North Harbor’s
container terminal, general cargo terminal and the
passenger terminal complex. PPA will bid out the
terminal to a single operator, which is expected to
market the facilities to other concessionaires.
The PPA
requires each bidder to lodge a bid security bond of
P68.2 million in cash or check, a bank guarantee for
P102.3 million, or a surety bond worth P170.5 million.
By next
week, the government will trim down the number of
eligible bidders. |
