September 19, 2024 | 12:00am
MANILA, Philippines — The Department of Agriculture (DA) is set to bid out over P40 billion worth of port projects nationwide as part of measures to reduce retail food prices by slashing transport costs through efficient logistics system.
Agriculture Secretary Francisco Tiu Laurel Jr. said the agency would bid 17 port projects, 10 of which being big ones capable of accommodating Panamax vessels.
A Panamax vessel has a capacity of about 60,000 to 80,000 deadweight metric tons or about 4,500 20-foot containers.
The 10 big ports would cost P3 billion each while the other seven would be about P1.5 billion each for a total of P40.5 billion, Tiu Laurel said.
The agriculture chief explained that the country lacks ports to efficiently transport farm inputs to key producing provinces, thus, resulting in higher logistics costs and delays in much-needed materials.
Some of the prospective sites for the proposed port projects are Mindoro, Negros, Iloilo, Southern Albay, Southern Batangas, among others.
Tiu Laurel said the establishment of news ports could slash feed and fertilizer costs by as much as 15 percent since most of these inputs are imported.
“We make a proposal to the public and hopefully there will be bidders or there will be unsolicited proposals. In sites that there will be no interested parties then the government would look for the fund to undertake the project,” he said.
“Because if other people are interested to risk (in the projects) then let use other people’s money,” he added.
Tiu Laurel estimates that three out of the 10 Panamax size port projects could be the most attractive ones for private sector investment.
The agriculture chief also called on the private sector to bid and invest in the prospective new port projects of the government to reduce the country’s food course.
“That is why I’m asking the help of Makati Business Club and other groups to lobby. If possible, private sector would also build agricultural port,” he said.
“If we have the right number of agricultural ports all over the country, the cost of rice, fertilizer and seeds would go down,” Tiu Laurel added.
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