BOI Approves PHP 2.35-B Iloilo Port Upgrade

By Rjay Zuriaga Castor

The modernization of the Iloilo Commercial Port Complex (ICPC) in Loboc, Lapuz, is set to accelerate following its registration with the Board of Investments (BOI), ensuring reduced operational costs and streamlined processes.

The PHP 2.35-billion modernization project, led by Visayan Container Terminal (VCT) and operated by International Container Terminal Services Inc. (ICTSI), aims to upgrade the port’s facilities to meet global standards.

With BOI approval, the terminal will benefit from income tax holidays lasting three to eight years, exemptions from local business taxes for four to six years, and tax credits.

Additional incentives include simplified customs procedures, permission for foreign nationals and expatriates to work at the port, and exemptions from wharf dues.

The project forms part of ICTSI’s 25-year concession to develop and operate the port, which was renamed VCT after the company’s takeover. This aligns with the Philippine Ports Authority’s (PPA) port modernization program, aimed at encouraging private sector participation and transforming key Philippine ports into global trade hubs.

Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo said the project reflects the government’s commitment to modernizing port operations and logistics services to position the Philippines as Southeast Asia’s leading hub for sustainable manufacturing and services.

“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,” Rodolfo said.

The BOI expects the project to generate over 3,000 jobs, directly and indirectly benefiting related industries in the region through a multiplier effect.

Since ICTSI began operations at the Iloilo port in April 2024, significant investments have been made to upgrade its facilities, including modern equipment such as five reach stackers, five empty handlers, 15 prime movers, 15 trailers, and 66 reefer plugs.

In October 2023, VCT operationalized two new ESP.5 Konecranes Gottwald mobile harbor cranes, enhancing the terminal’s capacity to handle increasing volumes of containerized, bulk, general, and project cargo.

VCT has also facilitated shipments for international shipping companies, enabling cargo movement to China, Singapore, the U.S., and Europe.

Ongoing developments at VCT include berth dredging to increase depth capacity for larger vessels and container yard rehabilitation to improve operational efficiency.