Construction of the New Cebu International Container Port (NCICP) broke ground on Wednesday to address cargo congestion at the Cebu Base Port and improve the turnaround of commercial vessels in the region.
Department of Transportation (DOTr) Secretary Jaime Bautista said the New Cebu International Container Port (NCICP) will address the current bottlenecks in the logistics chain, promote faster and more cost-efficient transport of goods, and enhance the competitiveness of local businesses and industries.
“This redistribution will pave the way for a seamless flow of goods and services, ensuring our economy remains robust and dynamic,” Bautista said during the groundbreaking rites for the NCICP in Barangay Tayud, Consolacion in Cebu.
Through the new cargo port, he said users will save money through reduced vessel waiting costs, reduced transport and congestion-related costs, and increased income from land leases.
“The benefits of this project extend far beyond its physical structure. It is expected to generate a wide array of advantages for users, the local community, and the public sector,” he said.
Aside from cost savings, its benefits include job creation, more opportunities for local businesses, development of regional industries, improved competitiveness of local industries, and establishing Cebu as a regional logistics hub.
On the other hand, he said the national and local governments will benefit through increased tax revenues and environmental cost savings due to better operational efficiency.
The PHP16.93-billion cargo port project is implemented through an official development assistance (ODA) scheme from the Export-Import Bank of Korea (KEXIM) and transaction adviser International Finance Corporation of the World Bank.
The NCICP will be completed by the second quarter of 2028 and will be built on a 25-hectare reclaimed island with a 500-meter berth length and a negative 12-meter water depth.
It will be capable of serving two 2,000 twenty-foot equivalent unit (TEU) vessels at the same time using five quay cranes, and with an access road of 1,365 meters to connect the port through the 300-meter offshore bridge.
Improving PH-Korea economic ties
The project, meanwhile, is seen to significantly boost economic engagement between the Philippines and South Korea, especially with the bilateral free trade agreement (FTA) already in effect, according to the Korean Embassy in Manila.
“Since Korean tourists are the Philippines top visitors, and with the entry into force of the Korea-Philippines FTA on December 31, trade and cargo volumes between the two countries are expected to increase significantly in the future,” the Korean Embassy said in a statement.
“The NCICP is expected to be an important base for economic cooperation and people-to-people exchanges between the two countries,” it added.
In his remarks, South Korean Ambassador to the Philippines Lee Sang-hwa said he expects the project to transform Cebu into a “key maritime hub in Southeast Asia”.
“The construction of the new port is expected to significantly improve Cebu's cargo handling capacity and logistics efficiency, attract investment, and have a positive ripple effect not only on Cebu but also on the entire Visayas region,” said Lee, adding that it serves as an “important step towards shared prosperity between the two countries.”
The groundbreaking was held just over a month after the signing of the civil works contract for the Cebu New Port Project at Malacañang Palace on Dec. 18, 2024, in the presence of President Ferdinand R. Marcos Jr.
Both Bautista and Cebu Governor Gwendolyn Garcia expressed their gratitude for Korea's continued support and cooperation for the development of the Philippines, and emphasized the project’s positive impact on improving the quality of life of Filipinos.
The groundbreaking is a follow-up to last year's Philippine-Korea bilateral summit, which elevated the relationship to a strategic partnership.
Article courtesy of the Philippine News Agency
