After a long delay, construction of the New Cebu International Container Port (NCICP) in the Philippines has finally started.
Recently, the Philippine Secretary of Transportation presided over the ground-breaking ceremony for the port. The port is located in Tayud, north of Cebu City, the second largest city in the Philippines, and will cost $290 million.
The NCICP project was initially proposed as early as the beginning of the 21st century, but its approval process has been fraught with twists and turns, resulting in slow progress. However, in December last year, the Philippines finally approved contractors to commence civil engineering work. Philippine President Ferdinand Marcos Jr. signed the project contract with South Korea’s HJ Shipbuilding & Construction.
The Cebu Port Authority of the Philippines said, “This project will enhance Cebu’s cargo handling capacity, relieve congestion at the existing facility (Cebu Basic Port), and help Cebu become a regional logistics hub. The project is expected to be completed by 2028.”
The project aims to transform 60 acres of reclaimed land into an international container port with an annual capacity of 395,000 Twenty-feet Equivalent Unit (TEU). The terminal will be equipped with five quayside cranes, a 500-meter-long berth, and a water depth of 12 meters, enabling the terminal to simultaneously accommodate two 2,000 TEU feeder container ships.
The NCICP project is being implemented within the framework of bilateral cooperation between the governments of the Philippines and South Korea. The Export-Import Bank of Korea (KEXIM) is providing approximately $172 million in funding, with the remainder being covered by the Philippine national government. The International Finance Corporation, a member of the World Bank Group, is serving as the transaction advisor for the project.
The Korean Embassy in Manila said, “With the Philippine-Korea Bilateral Free Trade Agreement (BFTA) officially coming into effect on December 31, the NCICP will significantly boost economic engagement between the two countries. In the future, trade volume and cargo volume between the two countries are expected to grow significantly.”
To improve interconnectivity and supply chains among the 82 provinces in the country, the Philippines has announced several port expansion projects. Last month, the Philippine Ports Authority (PPA) issued tenders for three major port expansion projects with a total value of $14 million. The target ports include San Jose Port in Dinagat Islands Province, Roxas Port in Oriental Mindoro Province, and Guinsiliban Port in Camiguin Province.