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Publish Date : 13-Jul-2015

The Department of Transportation and Communications (DOTC) is pushing for the expansion and modernization of the Davao Sasa Seaport to meet the rapid growth of the country’s export demands over the next few years.

The Davao Sasa Port Modernization Project involves the expansion and modernization of the existing seaport which will include the construction of a new quay and installation of cranes to address port traffic congestion, thus will greatly boost its efficiency, the DOTC said in a press report Thursday.

This project is the first Public-Private-Partnership (PPP) venture for Mindanao and is projected for completion from 2017 to 2020.

“The modernization of the century-old Davao Sasa port will bring about more vibrant trade, which will spur economic and social development across Mindanao. Exporters will have more efficient operations and importers will have better logistics. Shipping lines will have quicker turnaround times. Consumers will enjoy a wider range of imported products,” said DOTC Secretary Jun Abaya.

According to DOTC, the development of the port will benefit large-scale businesses as well as small- and medium-sized enterprises (SMEs) since bulk of the port’s traffic consists of banana exports, which could generate more job opportunities.

“With the Philippines being the 2nd-largest banana exporter in the world, and Davao being the top banana grower in the region, we need to pursue the long-term opportunities which will usher in inclusive growth in the south. Our project will generate jobs, boost the export industry, and drive consumer costs down,” Abaya added.

Based on a study conducted by the International Finance Corporation (IFC) and the Development Bank of the Philippines (DBP), a world-class Davao Sasa Port is needed to meet the country’s export demands.

In the IFC-DBP study, Davao’s container traffic is projected to increase by at least 6 percent annually over the next 25 years, which will amount to three million Twenty-Foot Equivalent Units (TEUs) by 2040.

DOTC says this project will boost the port’s capacity to 1.2 million TEUs upon the completion of the infrastructure component in 2020 and will complement both existing and future demands, alongside other major ports in the region, namely the Hijo port and the Davao International Container Terminal.

For instance, the current manual setup of cargo unloading can take up to three days, but once new cranes are in place, unloading time will be drastically cut down to about 3 hours.

The project is currently still in the bidding process, with the submission of qualification documents scheduled on July 29, and will be implemented in three construction phases.

Abaya is expected to head to Davao City today to meet with stakeholders and explain to the public how the project will impact on social and economic growth for the country, especially for Mindanao.

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