CASCOR wins 15-year contract to operate Agusan del Norte port

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Masao port in Agusan del Norte
Concord Arrastre and Stevedoring Corp. offered the highest bid for the management and operation of Masao port at P687.365 million. Photo from the Department of Transportation.
  • Concord Arrastre and Stevedoring Corp. won the contract to manage and operate Masao port in Agusan del Norte for the next 15 years
  • Philippine Ports Authority awarded the contract to CASCOR for offering the highest bid at P687.365 million
  • CASCOR bested two other companies during the opening of bids on March 14

The Philippine Ports Authority (PPA) has awarded the 15-year port terminal management contract of Masao port in Agusan del Norte to Concord Arrastre and Stevedoring Corp. (CASCOR).

PPA issued a notice awarding the contract to CASCOR for proposing a concession fee of P687.365 million, the highest offered by a bidder.

PPA’s Bid and Awards Committee recommended in a resolution on March 28 the award of the contract to CASCOR. The company bested the bid proposals of Globalport Agusan Terminal Inc. and Adfil Corp. during the opening of bids on March 14.

CASCOR said it is the cargo-handling operator for all state owned-ports in Butuan City. It is currently the cargo-handling operator of Masao port under a hold-over authority from PPA.

The contract covers the management and operation of the cargo-handling, passenger, roll-on/roll-off (RoRo), and other port-related services at the port.

The projects involve stevedoring services, Ro-Ro cargo services, bagging services, container terminal management, passenger terminal management, porterage services, storage management, waste and shore reception facility management, water distribution services, and ancillary and other related services.

The bidding was conducted through open competitive bidding procedures using non-discretionary pass/fail criterion as specified in PPA Administrative Order No. 12-2018, as amended.

AO 12-2018 provides guidelines for selecting and awarding contracts under PPA’s Port Terminal Management Regulatory Framework (PTMRF), which outlines new rules for terminal management contracts.

PTMRF, provided under AO 03-2016, seeks to provide higher-quality port services by promoting private sector participation. Under this framework, investments in ports are to be categorized into six tiers, ranging from a fully private concession to a fully PPA-managed port, to make it easier to determine investment arrangements of a port.

Masao port falls under Tier 3, which means the contractor’s investments include above-ground fixtures and semi-fixtures, and mobile handling equipment.

Masao port handled 210,662 metric tons of domestic cargoes in 2021, up from 149,615 MT in 2020.

PPA since 2018 implemented various ports projects to rehabilitate Masao Port, including the extension of its pier, expansion of the port’s back up area, repair and widening of the Ro-Ro ramp from 9 meters to 16 meters, construction of a new gate facility, and the refurbishment of its terminal office building. The project was completed in October 2019, allowing the port to become an alternate facility to decongest Nasipit port also in Agusan del Norte.

Aside from Masao port, PPA earlier opened the bidding for the port terminal management contracts of Puerto Princesa, Ormoc, Tabaco, Legazpi, Zamboanga, Iligan, Ozamiz, Calapan, Tacloban, Nasipit, Matnog, Fort San Pedro, Pulupandan, Surigao, Tagbilaran, Pagadian, and Pasig River ports.

Of these, PPA has already awarded the contracts for the ports of Iligan, Ozamiz, Zamboanga, Tacloban, Nasipit, Matnog, Pulupandan, Surigao, Ormoc, Puerto Princesa, Calapan, Legazpi, and Tabaco.

PPA general manager Jay Daniel Santiago earlier said the port regulator is privatizing the operation of ports it managed. Including those bid out previously, Santiago said the target is to bid out 25 port management contracts before the Duterte administration’s term ends on June 30 this year. – Roumina Pablo