Dubai-based DP World may spend about P1.8 billion for a second barge terminal in Mindanao to facilitate end-to-end logistics of exporters within the economic zones in the island.
Philippine Economic Zone Authority (PEZA) director-general Tereso Panga said the agency wrapped-up a 5-day investment roadshow on Nov. 6 to 10, 2023 in Dubai, UAE as part of the follow-through on investment pledges by countries in the Gulf Cooperation Council (GCC).
“They [DP World] are planning to replicate the same model for a similar barge terminal they put up in Tanza, Cavite. Other significant elements of logistics will also be present in the proposed terminal barge such as the creation of another international seaport and an economic zone in the Mindanao area,” he said.
Panga said PEZA is not at liberty to disclose critical details of the project.
“The proposal is a big-ticket project that should be facilitated through the green lane for strategic investments. The project is currently undergoing due diligence,” he said.
The new barge terminal is part of the DP World’s commitment to President Ferdinand Marcos Jr. at the sidelines of the World Economic Forum in Davos, Switzerland during the ASEAN-GCC Summit in Saudi Arabia early this year.
DP World is partnering with Asian Terminals, Inc. (ATI) for the second barge terminal project.
“We are happy to announce that DP World together with their partner ATI is committed in making this happen. This barge terminal is their entry into moving forward to economic zone development. They want everything to be ready for their investors from GCC,” Panga said.
The barge system will make it easier to facilitate their back haul to GCC countries, he said.
DP World in an Emirati multinational logistics company based in Dubai, specializing in cargo logistics, port terminal operations, maritime services and free trade zones.
PEZA met with the various business chambers from GCC countries during the roadshow as well as with Emirati locators in the Philippines that have expressed interest to expand their operations in the Philippines.
The Philippine would like to take advantage of the liquidity of GCC countries and their growing appetite for more offshore investments.
PEZA registered investments increased by 232.45 percent to P131.75 billion from January to October 2023, compared to P39.63 billion during the same months in 2022.
Exports were down by 2.64 percent to $42.05 billion from $43.16 billion while direct employment dipped to 1,776,389 from 1,798,162.
