The Bases Conversion and Development Authority (BCDA) said it will seek bidders that will operate the San Fernando Seaport in La Union.
In a statement last January 3, BCDA said the lease contract of Poro Point Industrial Corp. (PPIC), the seaport’s previous operator expired last Oct. 31, 2024.
In the interim, BCDA has authorized its subsidiary, Poro Point Management Corp., (PPMC) to manage the seaport in La Union following the lease contract expiration of the seaport’s previous operator.
BCDA said PPIC signified its intent to cease operations.
BCDA president and chief executive officer (CEO) Joshua Bingcang and PPMC president and CEO Felix Racadio signed a memorandum of agreement (MOA) granting PPMC interim operational control over San Fernando Seaport, and ensuring the continuity of operations and provision of services in the seaport area.
“The BCDA recognizes the vital role played by the San Fernando Seaport in facilitating international trade, boosting supply chains, and supporting various industries in La Union and Northern Luzon. The seaport has been a key driver of growth, generating jobs and livelihood for the community,” Bingcang said. “That is why there is a need to ensure that services in the seaport are uninterrupted. We thank the PPMC for taking on this task on an interim basis.”
PPIC was formed by the BCDA, PPMC, and Bulk Handlers Inc. (BHI) in 1999 to manage the San Fernando Seaport. Prior to the expiration of PPIC’s lease, BCDA offered the company a three-month holdover authority to ensure uninterrupted operations of the seaport while it is preparing for a competitive bidding for a new operator. However, PPIC declined the offer and confirmed its intent to cease operations.
To ensure continuity, the BCDA Board of Directors authorized PPMC to take over interim seaport operations effective Nov. 6, 2024. This MOA formalizes this interim arrangement until a new operator is selected.
Under the MOA, PPMC shall ensure the continued provision of key services, including cargo handling, customs brokerage, warehousing, and equipment rentals. It is also tasked to oversee the safety and security, environmental protection, trade facilitation, and labor regulations in the seaport. It shall maintain and repair all the structures in the area.
Formerly known as the US Wallace Air Station, the 236.5-hectare Poro Point Special Economic and Freeport Zone is being positioned as a vibrant tourism and investment destination to drive growth in La Union and Northern Luzon. It has also contributed to La Union’s transport and logistics sector through its own airport and international seaport.
