• ITVI.USA
    15,496.720
    85.590
    0.6%
  • OTLT.USA
    2.743
    0.003
    0.1%
  • OTRI.USA
    21.110
    0.000
    0%
  • OTVI.USA
    15,466.390
    90.520
    0.6%
  • TSTOPVRPM.ATLPHL
    3.300
    0.000
    0%
  • TSTOPVRPM.CHIATL
    3.140
    0.190
    6.4%
  • TSTOPVRPM.DALLAX
    1.590
    0.150
    10.4%
  • TSTOPVRPM.LAXDAL
    3.330
    0.020
    0.6%
  • TSTOPVRPM.PHLCHI
    2.170
    0.020
    0.9%
  • TSTOPVRPM.LAXSEA
    4.080
    0.130
    3.3%
  • WAIT.USA
    125.000
    -1.000
    -0.8%
  • ITVI.USA
    15,496.720
    85.590
    0.6%
  • OTLT.USA
    2.743
    0.003
    0.1%
  • OTRI.USA
    21.110
    0.000
    0%
  • OTVI.USA
    15,466.390
    90.520
    0.6%
  • TSTOPVRPM.ATLPHL
    3.300
    0.000
    0%
  • TSTOPVRPM.CHIATL
    3.140
    0.190
    6.4%
  • TSTOPVRPM.DALLAX
    1.590
    0.150
    10.4%
  • TSTOPVRPM.LAXDAL
    3.330
    0.020
    0.6%
  • TSTOPVRPM.PHLCHI
    2.170
    0.020
    0.9%
  • TSTOPVRPM.LAXSEA
    4.080
    0.130
    3.3%
  • WAIT.USA
    125.000
    -1.000
    -0.8%
American Shipper

$10 million opening bid set for Batangas port

$10 million opening bid set for Batangas port

The auction of the Philippines' Batangas Port, located south of Metro Manila, drew an opening bid of about $10 million for the first five years of the contract.

   The state-owned Philippine Ports Authority finalized the terms of the scheduled mid-March auction last week. PPA aims to privatize the entire Batangas operation by December. The government hopes to develop the port into a major transshipment facility by 2010.

   'According to the final ToR (terms of reference), it is $2.26 million per annum for the first five years. But for the succeeding years, we expect the price to escalate,' Benjamin B. Cecilio, PPA assistant general manager, told BusinessWorld in a phone interview Wednesday.

   He said the agency deliberately lowered the floor price for the first five years of the 25-year contract to attract bidders. So far, no one has bit, according to the PPA. The agency said it was still in talks with Manila-based Asian Terminals Inc., which already operates four of the largest ports in the Philippines. ATI has been operating the port under a temporary permit since 2005.

   PPA also said they have signed a purchase agreement with Chinese manufacturer Zhenghua Port Machinery Corp. for gantry cranes and other cargo-handling equipment worth $33 million. The equipment is set for delivery to Batangas in December.

   The lack of cargo-handling equipment at Batangas' international cargo section has turned off investors and stalled the government's privatization effort for the port.

   The agency had already shelled out some $144 million for expansion of the port. The government expects the port's cargo handling capacity to increase from a million tons a year to more than five million annually.

We are glad you’re enjoying the content

Sign up for a free FreightWaves account today for unlimited access to all of our latest content

By signing in for the first time, I give consent for FreightWaves to send me event updates and news. I can unsubscribe from these emails at any time. For more information please see our Privacy Policy.