New Cebu International Container Port Construction Kicks Off

After a long delay, the construction of the New Cebu International Container Port (NCICP) in the Philippines has finally kicked off. The Transportation Secretary Jamie Bautista, along with other senior government officials, led the groundbreaking ceremony for the port this week. The $290 million NCICP is situated in Tayud, a district at the northern end of Cebu City.

The project, first proposed in the early 2000s, faced approval delays but received the green light for civil works in December. President Ferdinand Marcos, Jr. signed the project contract with the Korean company HJ Shipbuilding.

“This project aims to enhance Cebu’s cargo handling capacity, ease congestion at the existing facility (Cebu Baseport), and establish Cebu as a regional logistics hub. Construction is slated for completion by 2028,” stated the Cebu Port Authority (CPA).

The project involves converting 60 acres of reclaimed land into an international container port with an annual handling capacity of 395,000 TEU. The terminal will feature five quayside cranes, a 500-meter berth, and a water depth of 12 meters, allowing it to accommodate two 2,000 TEU feeders simultaneously.

The NCICP project is a bilateral partnership between the Philippine and Korean governments. The Import-Export Bank of Korea (KEXIM) is contributing around $172 million, with the remainder coming from the Philippines’ national government. The International Finance Corporation of the World Bank is serving as the transaction advisor.

“NCICP will greatly enhance economic ties between the Philippines and South Korea, particularly with the bilateral free trade agreement (FTA) that took effect on December 31. Trade and cargo volumes between the two countries are expected to see a significant increase in the future,” noted the Korean Embassy in Manila.

As the Philippines aims to enhance connectivity and supply chains across its 82 provinces, major port expansion projects have been announced. Recently, the Philippine Ports Authority (PPA) issued tenders for the expansion of three major ports totaling $14 million. The ports targeted for expansion include San Jose Port in the Province of Dinagat Islands, Roxas Port in Oriental Mindoro, and Guinsiliban Port in Camiguin.