THE Board of Investments (BOI) approved the incentives provision for a business unit of port operator International Container Terminal Services Inc. (ICTSI), covering a P2.35-billion project in Central Philippines.
The port operator was given a certificate of registration to modernize, manage, and operate the Visayan Container Terminal (VCT), which ICTSI bagged in January 2024, the Investments Board said in a statement yesterday.
The Visayan terminal is formerly the Iloilo Commercial Port Complex.
The incentives include a three-year income tax holiday and a five-year enhanced deduction scheme, said Mary Ann Raganit, the board’s director for Infrastructure and Services Industries Service.
Raganit said the deductions will cover the following items: depreciation allowance, labor allowance, and research and development expenses, under the Corporate Recovery of Enterprises and Tax Incentives Law or CREATE Act.
The savings value ICTSI would get from these incentives was not immediately available.
The BOI said it considers VCT a landmark project that will transform the former Iloilo Port Complex into a state-of-the-art port facility, with ICTSI investing in advanced cargo handling equipment, cutting-edge information technology systems, and enhanced civil infrastructure.
The P2.35-billion project is part of a 25-year port terminal management contract between the Philippine Ports Authority and ICTSI.
With ICTSI at the helm of this project, the Iloilo POrt Complex would be able to function and operate as an international container port terminal, the Investments Board noted.
It added that ICTSI started to upgrade and modernize the port facilities, expanding existing berths to accommodate large international vessels while expanding cargo capacity.
In October 2024, ICTSI deployed 46-meter Mobile Harbor Cranes with a lifting capacity of 100 tons. It was the first significant step toward boosting the Iloilo Port capacity to handle the increasing volume of containerized, bulk, general, and project cargo in the Panay region.
The technology was expected to streamline operations, for faster turnaround of vessels and trucks, as well as improve safety and enhance port efficiency.
The new mobile cranes are part of ICTSI’s ongoing modernization plan for the container terminal in Panay. The VCT also acquired new reach stackers, trailers, prime movers, and empty container handlers.
The terminal is also expanding its bulk operations with additional bagging machines, clamshells, and mobile equipment. Additionally, VCT is building reefer stacks to meet the growing demand for refrigerated cargo.
According to the Investments Board, the modernized port could generate over 3,000 jobs.
“This initiative is vital to our national development, facilitating the movement of goods and people across our islands and strengthening our position in international trade,” Ceferino Rodolfo, BOI managing head, said in the statement.
