Gov't scraps Sasa Port modernization project

The proposed modernization of the Davao Sasa Port has been scrapped, due to opposition from the local government.

Davao City will prioritize its P40-billion reclamation deal with Mega Harbour Port and Development Inc., instead of going ahead with the modernization project, which was slated to proceed under a Public-Private Partnership (PPP) scheme, Finance Secretary Carlos G. Dominguez III said.

The Davao City government and the Sasa Port developer earlier signed a joint venture agreement for the reclamation of a 200-hectare offshore area running parallel to the entire shoreline of Poblacion and Agdao districts.

"Why will you fix the old one [Sasa Port], when actually you can have a much better, new and improved version?" Dominguez told reporters Thursday.

"The local government [also] doesn't like it, so how can you force them?"

He, however, clarified that Sasa Port will continue to operate along with the area to be developed by Mega Harbour.

The Sasa Port modernization was rolled out as a PPP project with an estimated cost of almost P19 billion under the Aquino administration.

Based on the terms released by the previous administration, the winning private company will fund the construction and other development works at the port to turn it into a modern container terminal.

The private partner will likewise handle the operations and maintenance of the port.

The transportation department recently prequalified Asian Terminals Inc., International Container Terminal Services Inc., Bollore Africa Logistics, Singapore-based Portek International Pte. Ltd., and San Miguel Corp. for the Davao Sasa Port project.

Sasa Port was designed for break bulk cargo vessels, which is vital to the economy of Davao City.

Around 500,000 metric tons of steel, wheat, fertilizer, motor vehicles, heavy equipment and other cargo not suitable for containers went through Sasa Port in 2014, according to data from the Philippine Ports Authority.

The Davao Integrated Port and Stevedoring Services Corp., an operator at the Sasa port, said the current capacity of Sasa stood at 700,000 twenty-foot equivalent units (TEU).

The yearly volume handled by Davao Integrated Port and Stevedoring Services Corp. (DIPSSCOR), a subsidiary of International Container Terminal Services, Inc. (ICTSI), was only 300,000 TEUs.