Oil firm to inject P6-B investment in Oro port-A A +A
Thursday, December 5, 2013
AN OIL company is sinking in some P6 billion in new investments to improve its facility at the Cagayan de Oro port (CDO).
Currently, Pilipinas Shell Petroleum Corp. (PSPC) has access to the CDO port facilities to serve the fuel requirements in the area.
CDO port, owned and operated by the Philippine Ports Authority (PPA), meanwhile, has been almost idle the past couple of years after most of its cargoes shifted to nearby Mindanao Container Terminal run by International Container Terminal Services Inc.
“This is a welcome development for PPA,” General Manager Juan C. Sta. Ana said.
“PSPC already made a presentation to the Board and we are now just fine tuning their rental rates and the length of the contract,” she said.
“PSPC is looking at Cagayan not just as a support investment but a major facility as they are planning to bring in import products directly to Cagayan de Oro and distribute it from there as they expect their Batangas production to be short to support the fuel needs of the country by 2016,” Sta. Ana added.
PSPC, for its part, said the new investment will guarantee the smooth and enough fuel supply within the country by 2016.
“If the Batangas refinery is inaccessible, the rest of the country will suffer, but by putting another hub in Mindanao, PSPC will be able to secure the fuel requirement of the region,” PSPC said in its presentation to the PPA Board.
Based on the plan, PSPC will upgrade and invest the amenities and convert it into an airport-like facility as well as refurbish their crane facility into a MR import capable facility. PSPC also wants a continued access to berths 11 and 13, which they are currently using and is likewise proposing a long-term lease of about 7,400 square meters in the waterfront area to allow them to put their equipment as well as for their pipeline system.
The structures to be built will be movable and will hot hamper future expansion in the area considering that the designated berthing for passenger vessels is about 300 meters away.
In terms of port development, PSPC is willing to put up about P180 million to improve some parts of the port and some P140 million to improve and install the fire fighting capabilities, lighting, berthing and security systems, including the upgrading of the fenders where they will be berthing their vessels.
The PPA, meanwhile, will greatly benefit from the new investment with the expected increases in leases, port dues and wharfage fees when the facilities become operational by 2016 from the current P1.8 million per annum to about P32 million per annum and projected to increase steadily as fuel growth in Mindanao is expected to be significant.
A couple of days ago, Pilipinas Shell donated about P6 million worth of fuel to be used at the Tacloban port or about P1 million a month to sustain the operation of the port for at least six months.
The agency has likewise sponsored a training program for PPA employees on cargo handling, maritime safety and environmental protection. (PIA)
Published in the Sun.Star Cagayan de Oro newspaper on December 05, 2013.