Harbour Centre faces challenger for Subic port

Listed port operator Asian Terminals, Inc. has expressed interest in bidding for an exclusive Subic port concession, an official of the Subic Bay Metropolitan Authority (SBMA) yesterday said. Asian Terminals purchased last week a copy of the terms of reference (TOR) to challenge Harbour Centre Port Terminal, Inc.’s unsolicited bid for a joint venture contract with the SBMA to develop and manage the naval supply depot at the free port, SBMA legal department manager Von F. Rodriguez said. Back in February, SBMA formally accepted Harbour Centre’s bid for the 17-hectare multipurpose terminal. It went on to open a Swiss Challenge, inviting other firms to submit counterproposals. “As of now, [Asian Terminals] is the only one that has purchased the TOR. It shows that at least someone is interested to invest other than Harbour Centre," Mr. Rodriguez said in a telephone interview yesterday. A spokesman for Asian Terminals was unable to confirm this, however, saying he was not familiar with the deal. The auction has earned the ire of existing cargo operators in Subic, with some accusing the SBMA of tilting the process in favor of Harbour Centre. One of them, Amerasia International Terminal Services, Inc., has refused to participate in the Swiss Challenge because it claims this move might forfeit its existing 25-year lease at the free port. The firm has threatened to sue the free port unless its demands are met. Mr. Rodriguez confirmed that neither Amerasia International nor any of the other existing cargo operators have purchased TORs for the Swiss Challenge. “The documents are available from March 12 to April 12. But it is not advisable to purchase on the last day because proposals are due by 2 p.m. then," Mr. Rodriguez said. Asian Terminals will have to offer a bid higher than Harbour Centre’s commitment to remit 15%-20% of annual port revenues on top of a promise to pay a guaranteed revenue of $32 million to the SBMA for a 25-year period. Under bidding rules, a challenger can only win the contract if Harbour Center -- the original proponent -- cannot match the highest counterproposal. Asian Terminals already operates at the Manila South Harbor which occupies five piers and has an annual capacity of 850,000 containers. It also operates at the Port of Batangas, the Mariveles Grain Terminal, and the Port of General Santos. Shares in Asian Terminals were unchanged yesterday at P4.00 apiece. -- Jessica Anne D. Hermosa, BusinessWorld