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Davao Sasa port upgrade project shot downDavao Sasa port upgrade project shot down

The PHP18.99bn ($401m) Davao Sasa Port Modernisation project in the southern Philippines has been shot down as the city government approved a resolution to stop the bidding process amid claims stakeholders were not consulted in the public-private partnership (PPP) deal, local reports said.

Vincent Wee, Hong Kong and South East Asia Correspondent

December 17, 2015

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The local business community apparently welcomed the decision. “This unnecessary project was being forced upon Davao without the proper consultation. This resolution will now enable Davaoeños to contribute meaningfully toward defining the correct need and use of Sasa Port,” Alexander Valoria, president of Anflocor Management and Investment Corp and a member of the Davao City Chamber of Commerce and Industries, said in a statement.

The pre-qualified bidders for the project are Asian Terminals Inc.-DP World FZE Consortium; Bollore Africa Logistics; International Container Terminal Services Inc.; Portek International Pte. Ltd.-National Marine Corp. Consortium with contractor Toyo Construction Co. Ltd.; and San Miguel Holdings Corp.-APM Terminals Management (Singapore) Pte Ltd. Consortium with contractors Hyundai Development Co. and Hanjin Heavy Industries & Construction Co. Ltd.

The project was planned in anticipation of higher demand and was expected to help meet a 6% annual increase in container traffic in the Davao region over the next 25 years. The modernized port would also have cut down cargo unloading to three hours from three days by using modern ship-to-shore cranes and port operating systems.

Apart from lack of consultation, among other concerns raised were the worsening of traffic congestion in Davao City as a result of the port's expansion, the lack of a plan for break-bulk and bulk cargo seen vital to the economy of Davao City, and lack of provisions for cruise vessels within the project.

Some 500,000 metric tons of steel, wheat, fertilizer, motor vehicles, heavy equipment and other uncontainerised cargo went through Sasa Port last year.

Furthermore, Valeria noted that 75% of import boxes amounting to 358,312 teu are already being handled by existing private ports. He claimed the container shipping requirements of Davao City are being addressed by existing private ports such as Davao International Container Terminal, Terminal Facilities and Services Corp., Sumifru, Unifrutti, Dole/Pacinter and the planned Hijo International Port Services, Inc.

Davao International Container Terminal is an affiliate company of Anflocor.

About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

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