PORT operator International Container Terminal Services Inc. (ICTSI) on Tuesday said it will spend some $330 million (about P14.85 billion) for the expansion of its facilities in Manila and Subic Bay, and purchase of additional cargo-handling equipment.
Christian Gonzalez, ICTSI vice president and head of the Asian region, said the money will be spent mainly on its flagship port, the Manila International Container Terminal (MICT), as well as in Subic Bay’s New Container Terminals 1 and 2.
Gonzalez said the deployment of some of the equipment may be during a period of two to three years, depending on market forces.
He added that the company has already ordered six rubber-tired gantries worth about $12 million, which will go to both MICT and Subic Bay by the third quarter next year.
“We have not yet decided how many we are deploying in Manila and in Subic. That will come down to market demand. If the demand falls in Subic, we will give the additional to Manila,” Gonzalez, who is also the MICT general manager, said at the sidelines of a forum on Asian logistics organized by Asia CEO Forum.
There will be two new ship-to-shore cranes in Manila, but that will come in about three years depending on market development, he said.
The said amount is part of ICTSI’s medium-term development of its main
facilities. The company decided to frontload the spending next year, partly as a result of the congestion in the Port of Manila.
The plan calls for the development of its Laguna gateway container terminal into an inland container depot; completion of 12 hectares of land for MICT, or what it now calls Berth 7; and berth expansion in Subic Bay to cater to the next wave of vessel upsizing.
“With Subic you have literally no infrastructure expansion. So it will only be equipment and a relatively small portion [of investment]. What you do in Subic is that you continue to have two berths for the big ships and you don’t really need to extend the pier, itself. We’ll see how we can develop it depending on the market,” he said, adding that the company is already in contact with the Subic Bay Metropolitan Authority.
ICTSI said it still has to utilize a fifth of Subic Bay’s capacity as more of the shippers still prefer Manila than in Subic.
“To get to 50-percent [capacity utilization], a lot of things need to happen. We need to encourage more businesses to move there. That’s more important. If you have a port, that doesn’t mean you will always have the necessary volume. It doesn’t work that way,” he said.
Also included in ICTSI’s medium-term plan are the development of barge terminal, linking its Manila port with the Laguna hub by rail and a port overpass connector road. These projects are not included in the $330 million as they involve more funds and coordination with several government agencies.
At the moment, the ICTSI already has a 21-hectare lot in Laguna, which it earlier said it will develop into an inland container terminal, a facility that needs a clearance from the Bureau of Customs before it can operate as it will become an extension of the port, where cargoes are cleared.