ICTSI earmarks $300-M capex to expand MICT
October 13, 2014 at 10:07
by Emmie Abadilla
October 8, 2014
The International Container Terminal Services, Inc. (ICTSI), operator of the Manila International Container Terminal (MICT), has set a $330 million capital expenditures (capex) over a 10-year period to expand and improve the already congested Manila port amid opposition from some sectors.
ICTSI Vice-President Christian Gonzalez said the investments would boost MICT’s yard capacity by 20 percent to allow cargo handling up to 2 million metric tons.
Container cargo ships unload containers at the Manila International Container Port in Manila, October 7, 2014. (EPA)
Of the total amount, Gonzalez said $100 million would be used to construct berth 7 while the remaining $200 million will be for new equipment and new systems.
The expansion program of ICTSI comes on the heels of the congestion of the Manila port and the government decision to make Subic and Batangas port as alternative ports.
Gonzalez, however, said the government has not yet approved its expansion program even as he noted that some factions in government are opposed to their plan as this will hinder the shift of cargoes to Subic and Batangas. He added the pressure is actually coming from outside forces.
The 9-hectare yard expansion, which is estimated to cost $35 million, has been approved and the project is already ongoing but the construction of berth number 7 has yet to be approved.
But Gonzalez stressed there is a need for MICT to expand because Batangas is operating at almost full capacity. Given the current growth in trade volume, Gonzales said both Subic and Batangas will be filled up in a year’s time. Last year, volume almost reached 2 million MMT at the Manila port.
“We will not pursue the berth construction if there is no government approval,” Gonzalez said noting that the planned expansion will have to be aligned with the road network.
“We’re lagging behind on roads, but that is not our problem,” he said.
Based on their concession, ICTSI has to build the berth but before reaching the 2 MMT capacity but would still need government approval.
The very general estimate based on very conservative plans is about 250,000 TEUs per year additional volume.
The capacity can easily be filled up once all programs are put in place, particularly the road network, railways.
The MICT port utilization as of yesterday morning was at 94 percent.
“And it’s looking like it coming down 5 percent a week, But we don’t know what the backlog is outside,” he added.
