Chelsea Logistics offers P16 billion for Davao port rehab

MANILA, Philippines — Chelsea Logistics Holdings Corp. of Davao-based businessman Dennis Uy continues to bet big on infrastructure projects in Davao, this time seeking to rehabilitate, develop, and expand the Sasa Port for P16 billion.

Chelsea Logistics president and chief executive officer Chryss Alfonsus Damuy said the company submitted last June to the Department of Transportation (DOTr) an unsolicited proposal for the development of Sasa Port.

“We’re waiting on the actions of DOTr on that matter,” Damuy said.

“If you look at the state of the port of Davao at present, it really needs a massive rehabilitation. There’s a lot of damage areas so we really need to rehabilitate. There are also very limited equipment,” he added.

Damuy said Chelsea is asking the government for at least a 25-year concession period in its offer.

He said the proposal entailing P16 billion investment would be done in at least four phases, with the first phase likely costing P5 billion and involving the  rehabilitation of the existing port and installation of modern equipment.

Phase 2, he said, would consist of increasing the port’s capacity, depending on improvement of traffic.

Damuy said the proposal also involves a reclamation component.

The port, once developed, is targeted to handle containers, general cargo and passengers for both international and domestic travel.

The modernization of the Sasa Port was part of the public-private partnership program by the previous administration but was scrapped.

Aside from Sasa Port development, Chelsea Logistics has also submitted an unsolicited proposal to the DOTr to develop, operate and expand the Davao International Airport.

The airport proposal has been “favorably” endorsed by the DOTr to the Civil Aviation Authority of the Philippines, which will grant the original proponent status to the project.