The Subic Bay Metropolitan Authority (SBMA) is bidding out the 30-year contract to operate the Container Terminal 1 (CT 1) in of Subic Bay, which has potential annual revenues of $ 6 million.
SBMA administrator Armand Arreza said that the terms of reference provides for a $ 1.5 million in minimum fixed annual lease and concession.
In addition, SBMA is also entitled to 10 to 12 percent revenue sharing per container. At 300,000 TEUs (twenty-foot equivalent units), Arreza estimated $ 3.5 million in revenue sharing.
"This is a potential $ 6 million in annual revenues from the CT 1 operation," Arreza said.
Arreza further said that CT 1 Subic Bay International Terminal Corp. (SBITC), a joint venture of Royal Port Services Inc., Subic Bay International (which is 83 percent owned by International Container Terminal Services Inc.) and SBMA.
According to Arreza, CT 1 would be subjected to a Swiss Challenge wherein SBITC has the right to match the highest bid.
Arreza explained that SBITC filed a case against SBMA in 1997 following a failure in the port bidding that was participated in by Hutchison Ports Philippines Ltd. and ICTSI.
In 2000, however, SBMA and SBITC agreed to put up a joint venture to run the Navy Supply making SBMA a 15 percent owner in the joint venture. The joint venture with SBMA has given SBITC the right to match the highest bid for the CT 1.
"Now we are a part owner of SBITC but we have an intention to go out of this joint venture," he said.
Awarding of the contract to operate CT 1 is expected by August if there are other bidders otherwise it would be awarded to SBITC in June at the earliest. CT 1 is equipped with two rubberized neck cranes. (BCM)
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