Subic to auction off navy supply depot

THE Subic Bay Metropolitan Authority (SBMA) is set to convert the Naval Supply Depot (NSD) at the former United States military base into a general cargo center.

Armand C. Arreza, SBMA administrator, said the depot will also be auctioned off to private-sector developers ahead of the New Container Terminal 2 (NCT-2).

”The board decided to privatize the NSD first, even before opening the NCT-2 for bidding,” Arreza said.

The privatization of the NSD comes after the International Container Terminal Services Inc. decided to leave the facility.

To avert a drop in the volume of cargo in both terminals, Arreza said NSD should be converted into a general cargo center before auctioning off the NCT-2, the bidding for which may be moved to end-2008.

Under the terms of the contract, the winning bidder should be committed to develop the area, pay minimum rentals, while SBMA is entitled to a share of the revenues. The winning bidder will also be controlling the terminal for 25
years.

The container facility could house a maximum of 100, 000 twenty-foot equivalent units, and will be used for general cargo. SBMA said the bidding is open to foreign proponents.

”So far, [we] are still discussing whether what type of cargo should come and go at the port, but steel, agricultural products, and silica sand are now being considered,” Arreza said.

The SBMA official said that the concessionaire will be handling the facilities, while old handlers should work with the winning bidder.
--Katrina Mennen A. Valdez -- Manila Times