Business Bayani PH

The Iloilo Commercial Port Complex (ICPC) in Lapuz district is on the brink of a transformative journey as the Philippine Ports Authority (PPA) grants a 25-year concession contract to International Container Terminal Services Inc. (ICTSI). 

The move aims to elevate ICPC into a modern, efficient, and premier gateway for the Western Visayas region, unlocking economic opportunities and fostering growth.

Christian R. Gonzalez, ICTSI executive vice president, expressed enthusiasm, stating, “We are elated and grateful to be entrusted with the redevelopment of the Iloilo Port. Our comprehensive proposal outlines significant investments in infrastructure upgrades, cargo-handling equipment, and operational efficiency measures, all aimed at transforming the Iloilo Port into a premier gateway.”

Situated at the heart of Iloilo City, ICPC serves the province of Iloilo and the entire Panay Island. Despite being a safe harbor, capacity limits restrict its full potential. ICTSI aims to tackle this challenge and enhance efficiency.

Visayas Container Terminal (VCT), the future name of the facility under ICTSI’s management, is a critical trade gateway for the Western Visayas. Former Senate President Franklin Drilon, a native of Iloilo, emphasized the significance of the PPA’s decision, saying, “The decision to partner with ICTSI is a significant step forward in transforming VCT into a modern, world-class port facility and accommodating more domestic and international shipments. This will position Iloilo as a key driver of economic progress in the Philippines.”

VCT offers 627 meters of quay length and 20 hectares of land for cargo storage. After the contract signing, ICTSI plans to boost terminal productivity and service quality with investments in infrastructure and cargo-handling equipment.

Drilon, credited for Iloilo’s transformation, sees immense potential in the project. He believes transforming Iloilo into an international gateway will unlock significant economic opportunities, fostering trade, job creation, business expansion, and regional connectivity. He noted, “The VCT is a crucial missing piece for our development.”

Expressing appreciation for the support received, Gonzalez added, “We extend our sincere gratitude to the Iloilo stakeholders and officials who believe in ICTSI’s vision for the Visayas Container Terminal. This is our first project in the Visayas, and we will do all to make this a success and make Iloilo key to improving the country’s supply chain and competitiveness in global trade.”

Governor Arthur Defensor and Mayor Jerry Trenas, among other Iloilo officials, have played a crucial role in supporting the initiative. Drilon further emphasized that enhancing VCT’s infrastructure will facilitate a surge in international container ship arrivals and streamline the flow of goods in and out of the port.

The PPA announced on January 29 the notice of award to ICTSI, with a total project cost exceeding ₱10.5 billion. The contract stipulates that ICTSI must remit 20% of annual gross revenues to PPA for the first five years, followed by a fixed concession fee from the sixth to the 10th year. Incremental increases based on the consumer price index are set every three years from the 11th to the 25th year. 

While the notice to proceed is pending, this significant step toward modernization signals a promising future for Iloilo’s economic landscape.◼