MANILA, Philippines – The Philippine Ports Authority (PPA) is expecting gains from the planned P6 billion investment of Pilipinas Shell Petroleum Corp. at the Cagayan de Oro port.
PPA general manager Juan Sta. Ana said sufficient fuel supply within the country by 2016 will be guaranteed from Shell’s new investments.
PPA collections will also increase, he said.
“This is a welcome development for PPA. Pilipinas Shell 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 said.
Sta. Ana added that once the facility is completed in 2016, leases, port dues, and wharfage fees will increase from P1.8 million to 32 million per year.
He said most cargoes have been diverted to the the ICTSI-run Mindanao Container Terminal, making the Cagayan de Oro port to be almost idle for the past couple of years.
The PPA Board is now discussing rental rates and length of the contract with Shell.
Shell plans to convert the facility into an airport-like facility and refurbish its crane facility into a MR import capable facility.
Shell also wants continued access to berths 11 and 13 and is proposing a long-term lease of about 7,400 square meters in the waterfront area for its pipeline system.
Shell is investing P320 million to improve port features which include fire fighting capabilities, lighting, berthing and security systems.