Davao International Container Terminal, Inc.

(DICT)
The Davao International Container Terminal, Inc. (DICT) is the most
modern container terminal in the Philippines. It is a joint venture between
the Anflo Management and Investment Corporation (ANFLOCOR) and
Dole-Stanfilco, the leading producers and exporters of fresh Cavendish
bananas in the Philippines.

Located at the crossroads of major agricultural plantations of Brgy. San

Pedro, Panabo City, Davao Del Norte, Philippines. DICT has the best
competitive advantage to provide world-class port terminal services thereby
leading Mindanao’s agricultural industry to global development.

Formerly known as San Vicente Terminal and Brokerage Services, Inc.

(SVT), DICT has a long history in port operations, servicing the stevedoring
and arrastre requirements of break bulk shipments of fresh produce like
bananas and pineapples in TADECO wharf. TADECO is the flagship
company of ANFLOCOR and is considered as the global leader in the
banana industry in terms of yield per hectare. As more and more cargoes
are being shipped via refrigerated containers, DICT transformed to become
the industry leader in port logistics in the Philippines.

Offering world-class container terminal facilities and services in this heavily

agricultural island region in the Philippines, DICT helps ensure the global
competitiveness of Mindanao’s export-grade products.
NEWS & UPDATES
  Berth 2 ushers more calls
New shipping lines have started calling DICT since the third quarter of last year with the new Berth 2
becoming operational in August 2016, the DICT executive noted.

These are Mariana Express Lines Pte. Ltd., SITC, and China Shipping Container Lines, all operating on a
weekly basis on a fixed berthing window. Wan Hai, a regular DICT caller, has also added a new service.

The P1.8billion construction of Berth 2 doubled DICT’s annual capacity to 700,000 TEUs.

DICT complemented this expansion by acquiring two quay cranes, five rubber-tired gantry cranes (RTG),
two reachstackers, four empty-container handlers, and other port equipment.

With the newly acquired equipment, DICT now has four quay cranes (two Panamax and two post-
Panamax), eight RTGs, five reachstackers, nine empty-container handlers, 39 yard goats/trucks, and 87
bombcarts/trailers.

DICT is also enlarging its empty container depot (ECD) this year by seven hectares more, bringing the
total area to 15 hectares.

“This is needed to support the expected increase in box throughput with the ongoing expansions in
banana plantations, additional berth and additional vessels,” Licayan said. Expanding the ECD, he added,
will allow the terminal to accommodate the empty containers of the carrier/vessel operators and even
non-vessel operating common carriers.”

He noted that the ECD “is a valuable and integral part of the whole port operations as it enables us to
handle the empty container storage and related services requirement of the shipping lines and, at the
same time, allow us to divide the traffic between the on-dock and the ECD to avoid port congestion.”

Licayan said the ECD has also become a one-stop shop for shipping lines that need an empty container
storage area and services such as checkering, pre-trip inspection, washing, temperature and ventilation
setting, and maintenance and repair services (for both box and machinery).

 Davao box terminal eyes throughput recovery in 2017

Throughput at Davao International Container Terminal is expected to hit at least 300,000 twenty-foot
equivalent units this year with recovery of banana plantations from the effects of last year’s El Niño.

In 2016, DICT’s total container throughput slid 2.5% to 260,499 TEUs from 267,283 TEUs in 2015,
caused by an extended El Niño that damaged the production of fresh bananas, especially those
coming from non-irrigated PCA Cameroon by SGS Meet requirements & export products to
Cameroon. Avoid delays. Contact SGS now. Go to campaigns.sgs.com/PCA-Cameroon banana
plantations, DICT vice president Bonifacio Licayan told PortCalls in an email.

The drop in container traffic was reported despite vessel calls increasing 43% to 409 from 287.
This year, the Panabo, Davao del Sur-based port operator’s “positive outlook stems from the fact
that there is no more El Niño for 2017 and therefore the affected banana plantations are expected to
recover lost production in 2016. Further, there is a continuing expansion of banana plantations in
Davao Region and the nearby regions that definitely will be using DICT as their outport,” Licayan
said.

The bulk of the terminal’s volume is still made up of reefer exports and dry imports. For 2016, reefer
shipments accounted for 84% of the total laden containers exported through DICT, while dry cargoes
contributed 98% of total import laden containers.
“But because of the imbalance in trade, the total exchange, for both reefers and dry, will still average
50:50 due to repositioning of containers by importing reefer empties and exporting dry empties,”
Licayan noted.

 Business from new PEZA Park

Another potential source of DICT’s increased volume is the Philippine Economic Zone Authority (PEZA)
registered industrial park near the terminal that will take off this year.

Two newly completed warehouses are already occupied by a fruit exporter/marketer, even as additional
warehouses are now being constructed for future locators, Bonifacio B. Licayan (DICT VP) said. Also, a
polymer manufacturer that has started building its production plant in the industrial park is expected to
become operational within the year.

The port executive said the industrial park “will definitely improve the volume in DICT as the locators
import a large portion of their inputs and then exports their produce through DICT.”

“With DICT’s proximity to the industrial park (about 300 meters away only), the locators will find the
location and efficiency of DICT to their advantage. The locators will enjoy substantial savings in inland
transport costs (both for their imported inputs and exports of their produce),” he said.

On the logistics side, he stated that locators will have an easy time monitoring and controlling all their
shipments, as everything happens within a confined area away from the traffic congestion of the city.

“Likewise, with the very efficient operation of DICT, the locators can easily plan out all their cargo
shipments and reach their market destinations in time. With reduced costs and efficient port operations,
the locators’ produce will become very competitive in the global market,” Licayan explained.

More road projects

In terms of connectivity to the terminal, the Department of Public Works and Highways has built a
strategic coastal highway that links DICT to Davao City down south, and to the northern municipalities
and cities in the Davao Region (although still to be completed), so shippers can avoid the growing traffic
congestion in the host Panabo City.

“So far, traffic has become very manageable and we expect this to be even better in the future with the
completion of the northern link which is expected within the year,” Licayan said.

The terminal is also expecting the completion of the Davao-Talaingod-Sto.Tomas highway to shorten the
route and strategically connect DICT to Central Mindanao/Bukidnon, which is also a major export
agricultural producer.

“This will ensure that Central Mindanao’s export products will reach DICT and eventually the global
market (on) time,” Licayan said.

 Navis system boosts Davao port operations

The Davao International Container Terminal (DICT) has greatly improved its ship turnaround time after
installation of its Navis N4 terminal system, the port’s Vice President said.

DICT Vice President Bonifacio B. Licayan explained that speeding up operations at the terminal, which
boasts on its website that it is the most modern container terminal in the Philippines, is critical because a
large part of its freight volume is fresh fruit and other produce.
More than 80 percent of the terminal’s exports are refrigerated containers of fresh produce, Licayan said.
The terminal opened for operations in 2013, and presently handles about 260,000 TEUs (twenty-foot
equivalent units) of container cargo annually.
DICT selected the Navis N4 system as it allows more predictable and reliable arrival and departure of
containerships with time-sensitive cargo, Licayan said.

“As a relative newcomer to the container terminal business, we needed to make sure we had the best
technology in place to help us compete with other, more seasoned operators,” he explained. “Navis
trained our staff to get up and running on N4 and our knowledge, combined with the dependability of the
software, has allowed us to focus our efforts on other aspects of the terminal’s operations and quickly
resolve any operational problems that occur.”

Licayan said that DICT improved its efficiency with the new system, and can deliver the fastest
turnaround time for both ships and trucks of any terminal in the region.

Navis’ Vice President for Japan and Asia Pacific Mark Welles in a separate statement noted, “As ports
throughout Asia become increasingly congested and more expensive due to tariff increases, international
shipping lines are looking to DICT as a key transshipment hub.
“Within its second year of operation, DICT was already feeling the demand for increased capacity and as
a result, constructed and finished its second container terminal berth last year.

“There is so much potential for growth in the region and we partnered with DICT to help them upgrade
their operations to meet the demand from shipping lines, exporters and importers. We’re happy to
announce that we were able to successfully complete the project with no disruption to service, delivering
the best customer experience that is so important to the terminal.”
The Navis system has proved popular with terminal operators, the company said. 43 terminals installed
the N4 system in 2016, more than double the company’s sales the previous year, it said.

 Davao becomes port logistics leader

THE newly-inaugurated P5 billion expanded Davao International Container Terminal, Inc. (DICT) in
Panabo City has transformed Davao Region as the industry leader in port logistics in Mindanao.

DICT is the anchor project of an agricultural and industrial complex being developed by the Anflo
Management and Investment Corp. (Anflocor) providing logistical requirements of various businesses
which are seen to grow dramatically amid projected economic growth in Mindanao.

This, as cargoes are being shipped via refrigerated containers.

The expansion of the DICT increases its handling capacity from the current 300,000 twenty-foot
equivalent units to 800,000 TEUs.

Alex Valoria, president and CEO of the Antonio Floirendo Group of Companies said, "From two quay
cranes, we now have four quay cranes, eight RTG (Rubber Tired Gantry) cranes and other various
container handling equipment."

The expanded DICT is "offering world-class container terminal facilities and services in this heavily
agricultural island region in the Philippines, the DICT helps ensure the global competitiveness of
Mindanao's export-grade products."

In a press statement, the container port has an area of 11 hectares, backed up by a 15-hectare container
yard. It is adjacent to a 70-hectare export-processing zone, whose locators will enjoy the benefits of duty-
free importation of equipment and raw materials and income tax holiday.

At present, a total of nine shipping lines are calling on the DICT, they are the American President Lines
(APL), Maersk MCC, CMA CGM, Wan Hai Shipping Lines, Advance Container Lines (ACL), Regional
Container Lines (RCL), Pacific International Lines (PIL), Mariana Express Lines and Cosco Shipping
Lines.

Also, negotiations are ongoing for additional shipping lines, which are due to call on the DICT soon.
The DICT is complemented by a 70-hectare export processing zone and an 88-hectare mixed-use
township in Panabo, which is a component city in the province of Davao del Norte.

The city is also part of the Davao Metropolitan Area, the biggest metropolis, in terms of land area in the
Philippines.
During the inauguration, President Rodrigo Duterte led the ceremony last Friday, September 2, 2016
along with businessman and Davao del Norte 2nd District Representative-elect Antonio Tonyboy
Floirendo Jr. and other Anflocor officials and families.
DICT, a modern container port, is a joint venture between ANFLOCOR and Dole-Stanfilco, the leading
producers and exporters of fresh Cavendish bananas in the Philippines.

"Thank you Anflo for giving back the profits to the society, thank you for providing and generating jobs
and opportunities, but most of all congratulations to this latest milestone to the company," President
Duterte said.
He also described the Floirendo as a visionary man.

The Floirendos turned Panabo into an agro-industrial city and is now known as the "Banana Capital of the
Philippines" due to numerous banana plantations scattered throughout the city.

Tadeco, which covers around 7,500 hectares of banana plantations in Panabo, annually produces and
exports millions of boxes of Cavendish bananas, which is the main economic driver of the city.

Tadeco is still growing as it ventures into other areas outside of Panabo.

 Canadian Chamber president visits Davao City, DICT

Davao City – The National President of the Canadian Chamber of Commerce of the Philippines
(CanCham) Julian Payne travelled to Davao on September 9-10 to see the expanded facilities of the
Davao International Container Terminal (DICT) that had been opened by Philippine President Rodrigo
Roa Duterte on September 2. During his two day visit to Davao, Mr. Payne also made a courtesy visit to
the Office of Mayor Sara Duterte and attended the Business and Tourism Industry Townhall Meeting
organized by the Davao City Investment Promotion Center (DCIPC) to brief stakeholders about the recent
bomb attack in Davao.

Mr. Payne said he welcomed the opportunity to visit Davao as soon as possible after the recent bomb
attack. He emphasized that: “CanCham believes it is critically important that the private sector, including
foreign chambers of commerce, demonstrate their continued confidence in the potential opportunities and
growth of Davao City and more generally in Mindanao. The best way to do this is to visit the city in
person, to see the expansion of private sector facilities, and to participate in stakeholder discussions as
how to proceed constructively in the aftermath of the recent bomb attack.” He added: “I have been very
encouraged in my discussions with private sector representatives and public officials about the immediate
and future potential in Davao for growth in business. CanCham, which has an office in Davao and over 40
members in Mindanao, will continue to explore and promote opportunities for Canada-Philippine business
interests in area.”

In response to questions about his visit to DICT, Mr. Payne said that “Modern, state-of-the-art
transportation facilities, including ports, are critical for long-term and sustained economic growth. The
DICT is one of the most modern, if not the most modern container port facility in the Philippines. In the
future I am confident that there will be more international shipping routed directly to Davao than via
Manila and Cebu with trans-shipments to Mindanao. DICT is now also serving not only imports to and
exports from the Philippines but also as a strategic Southeast Pacific trans-shipment point for trade
between third countries.”
Mr. Payne praised the role of the Anflocor Management and Investment Corporation (ANFLOCOR), the
managing company of DICT, as one of the prime movers for the development of industrial and agricultural
sectors in Mindanao. “DICT is a private sector investment built, owned, and operated efficiently by the
private sector. It serves not only companies of the Anflocor group, but is also open to other parties for
their imports and exports. The investment in DICT is another demonstration of the confidence of the
private sector investment community in the economic future of Mindanao including of Davao City.”

 Davao container terminal expansion to double capacity

Costing P1.8 billion

Just two years after its initial operation, Davao International Container Terminal’s (DICT) annual capacity
will double to more than 700,000 twenty-foot equivalent units (TEUs) after the second phase of an
expansion program is completed in July, 2016.

The R1.8-billion expansion for the port located in Panabo, Davao del Sur includes rehabilitating and
converting the existing Berth 2 into a container terminal and installing two post-Panamax cranes, DICT
vice president and assistant general manager Bonifacio Licayan told participants at the recent Mindanao
Shipping Conference 2016 organized by PortCalls and the Philippine International Seafreight Forwarders
Association.

Upon completion, Berth 2 will be 173 meters long and, together with the 250-meter Berth 3, will give DICT
a total berth length of 423 meters, enough to accommodate two large container vessels at the same time.
Berth 1 services break bulk cargoes that cater to the Japan and South Korea markets.
With the additional two quay cranes in Berth 2 and the existing two in Berth 3, DICT will have a total of
four quay cranes capable of handling 705,000 TEUs.

Licayan said there are already seven reservations for when Berth 2 starts full operation, mostly by DICT’s
current callers.
At present, DICT has six regular weekly callers – APL, CMA CGM, MCC, Pacific International Lines, Wan
Hai, and the consortium of Regional Container Lines and Advance Containers Line.

Starting May, another shipping line will start a weekly call, Licayan said. He did not name the carrier.
Part of the Phase 2 program is the expansion of the empty container depot (ECD), only 400 meters away
from the port, from three hectares to eight hectares. Since March this year, empty containers have been
stored at the ECD where all attendant services are performed. The depot offers container inspection, pre-
trip inspection, washing, maintenance and repair, ventilation and temperature setting, and container
releasing.

The acquisition of additional support equipment is also part of the Phase 2 project. For now the terminal
has eight reach stackers, nine empty container handlers, 10 yard goats, 29 prime movers, 28 bomb carts,
five combination trailers, and 54 gooseneck chassis trailers.

Meanwhile, the Department of Public Works and Highways has an ongoing project designed to decongest
the Panabo central business district, and provide an access road to Davao City and another one to the
boundary of Panabo City and to the nearby northern towns of Carmen and Dujali. The project aims to
connect DICT to these areas without adding to traffic in Panabo.
Licayan noted that DICT is strategically located near plantations. He said a Philippine Economic Zone
Authority-registered industrial zone currently being constructed just beside the terminal will further provide
additional cargoes to the port.
In 2015, DICT handled 267,283 TEUs, 17% higher than the 2014 volume of 228,212 TEUs. Vessel calls
likewise rose 37% to 287 from 210 ships in 2014.

For the first quarter, the volume has reached 61,174 TEUs, still relatively low due to the effect of the El
Niño phenomenon.
Licayan, however, said they expect banana and pineapple production to improve in the second half of the
year and boost volumes further in 2016.
He noted Davao has a unique trade profile, where 86% of exports going through DICT constitute
refrigerated shipments and the rest dry shipments.

For imports, the trade profile is quite the opposite, with 98% consisting of dry shipments and only 2%
reefers. Of the dry shipments, 30% to 40% are cargoes such as plastics, papers, fertilizers that
complement Davao’s reefer trade.
Catering to this unique trade, DICT provides 1,080 reefer plugs and has 12MVA of standby power for
continuous operations. Mindanao constantly suffers from massive power outages.

DICT is a joint venture between the terminal’s parent company, Anflo Management Services, Inc., and
Davao’s two biggest banana exporters, Dole-Stanfilco and Tadeco, giving the terminal “control over key
customers,” Licayan noted. But while catering to its own produce, DICT is a private commercial port that
services all customers, Licayan clarified.

 Volume at DICT in Panabo City to double in 2 years

The volume of cargo handled at the Davao International Container Terminal (DICT) in Panabo City is
expected to double within the next two years as expansion work is planned for completion this year, said
a top company official.

Alexander Anthony N. Valoria, president of Anflo Management and Investment Corp. (Anflocor), the
holding company of the Floirendo group that runs the port, said the target increase in volume is likely with
more shipping companies expressing intent to use the facility.

Last year, the port’s seven berthing windows handled 260,000 twenty-foot equivalent units (TEUs), up
from 235,000 TEUs in the previous year.

The company is spending another P2 billion to allow it to handle 600,000 TEUs from the current capacity
of about 300,000 TEUs.
“When the expansion is completed... very quickly we will be able to fill up the berthing windows,” Mr.
Valoria told BusinessWorld in an interview.

DICT initially spent P2.7 billion for the port, which opened in 2013.

Anflocor, through its real estate arm, is also developing an adjacent economic zone, with the future agro-
industrial locators seen to use the port facility.

Mr. Valoria said the port and the ecozone represent the company’s integrated plan and “vision to be a
catalyst for the development of the (agricultural) industry.”

Anflocor’s flagship firm, the Tagum Agricultural Development Co., is the country’s biggest banana
exporter.

 Mindanao & Visayas shipping conferences set 27-28

April 2016
Transport stakeholders will converge for the second Mindanao Shipping Conference on April 27, 2016 at
the Waterfront Insular Hotel Davao and the first Visayas Shipping Conference on April 28, 2016 at the
Waterfront Cebu City Hotel & Casino in a discussion on the future of regional shipping and logistics.

Organized by PortCalls, the Philippines’ only shipping and transport guide, and the Philippine
International Seafreight Forwarders Association, Inc. (PISFA), the events bring together transport and
economic experts who will look at industry directions in the near to medium terms.
Socioeconomic Planning Secretary and National Economic and Development Authority director-general
Dr Emmanuel Esguerra is the keynote speaker at both events. He will outline the country’s
macroeconomic prospects as well as transport directions for 2016.
Other speakers at both events are Bureau of Customs Deputy Commissioner for Assessment and
Operations Coordinating Group Atty. Agaton Teodoro Uvero; PISFA chairperson Mariz Regis; and
Maersk-Filipinas, Inc. operations manager Maria Cecilia Bejoc.

Uvero will discuss the BOC’s various efforts at trade facilitation, including the soon-to-be signed into law
Customs Modernization and Tariff Act.

Bejoc will conduct a timely discussion on the Safety of Life at Sea or SOLAS amendment concerning
container weight verification, a globally binding International Maritime Organization measure effective July
1, 2016. She will explain the amendment’s wide-ranging effect on all international shipments.

A conference highlight is the unveiling of the first Philippine Multimodal Transportation and Logistics
Industry Roadmap. The private sector-led plan, to be outlined by Regis, is being used by the Philippine
government as a guide in the crafting of the first National Logistics Master Plan.

At the Mindanao Shipping Conference, Mindanao Development Authority Investment Promotion,

International Relations and Public Affairs Director Romeo Montenegro will deliver updates on the Brunei
Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area and speak about the promise of
regional integration.

The first Mindanao Shipping Conference was held in 2014 in Cagayan de Oro and attracted around 200
delegates.
This year’s conference includes a discussion on latest developments and enhancements at the Davao
International Container Terminal (DICT). Bonifacio Licayan, assistant general manager of San Vicente
Terminal and Brokerage Services, Inc, DICT’s cargo handler, will deliver the presentation.

At the Visayas Shipping Conference, Cebu Port Authority General Manager Edmund Tan will discuss the
proposed new Cebu international terminal.

DICT is Platinum Sponsor at the Mindanao Shipping Conference while Isuzu is Gold Sponsor at both the
Mindanao and Visayas shipping conferences. Conference partners are the Philippine Exporters
Confederation, InterCommerce Network Services, Inc and Cargo Data Exchange Corp.

 Industrial estate to spur economic growth

THE Anflo Group’s new project, the Anflo Industrial Estate (AIE), a special economic zone in Panabo
City, is eyed to further spur Davao Region’s economic growth as it will attract more investors in the
manufacturing sector, resulting to higher employment and accelerated economic development.

After its groundbreaking this month, AIE will start its initial operations by June of this year.

“AIE operation will start this year. We will be building up the first set of warehouses this year. Our first
locators will be coming sometime in June or July,” Ricardo “Cary” Floirendo Lagdameo, vice president of
Damosa Land Inc. (DLI), who also heads the AIE.

He said the Davao International Container Terminal (DICT) is among its first locators. The leading and
biggest reefer container terminal in the Philippines, DICT will have their empty container depot at the AIE.

The P1 billion AIE is a 63-hectare self-sustaining ecozone for manufacturing and warehousing agro-
industrial components. AIE is duly licensed by the Philippine Economic Zone Authority (Peza) and
proclaimed by the Office of the President as a Special Economic Zone.

The estate will offer land and ready built factory buildings/warehouses for sale and lease in various sizes
to suit locators’ needs.
AIE will feature safety measures such as a suitable perimeter fence, CCTV, and 24/7 security. Peza
facilities and a central administration building with meeting rooms will be constructed within the area to
house its service team.

“With AIE here in Panabo, we believe that it will help develop not only the city but the entire Davao
Region as a premier business and investment destination,” Lagdameo said.

When asked why it was placed in Panabo City, Lagdameo was quick to add that one major factor why
they invested in Panabo City is the port facilities (DICT) so it will naturally complement with it.

“I think more than half of the trade in the Davao region goes to that port (DICT) already, it is a very busy
port, so it is a natural complement in terms of putting AIE next to it. Because of the port it will really spur
the economic activity in Panabo, there is going to be a need for support facilities and other components to
complement on that, and that is why we have AIE in Panabo," Lagdameo added.

Land developments of AIE started during the late fourth quarter of last year.

Meanwhile, to further position Davao City and the rest of the region as a sustainable development
economy, the Davao City Investment Promotions Center (DCIPC) pushes for promoting investment in the
manufacturing industry.
Ivan C. Cortez, DCIPC officer-in-charge, in a report said that sustainable economic growth can be also
achieved in manufacturing industry.

"The battle cry of DCIPC is to promote into the manufacturing sector because if you look at the bulk of our
investment only about 5 percent is in manufacturing, only a small portion, if we want a sustain type of
economic development it has to be in manufacturing," he said.

"If you will be a manufacturing belt in Mindanao all of the raw materials will come here for value adding,
and if you are value-adding growth will be sustained," Cortez added.

Mindanao Development Authority (Minda) director for Investment Promotion, International Relations and
Public Affairs’ Romeo Montenegro, for his part said that to fully seize opportunities and economic
advantage of the “in motion” Association of Southeast Asian Nations (Asean) Integration, Mindanao must
create more manufacturing hubs for value-added export products.

“If Mindanao wants to take advantage of AEC and BIMP-Eaga, starting to have a mindset of creating
more manufacturing base is important so that we will not only produce raw materials, but also produce
value-added products that can be directed towards other larger markets, the entire Asean and the other
big market in the international sphere,” he said.

 Davao terminals become first two BOC-accredited

authorized customs facilities
Two Davao-based terminals are the first facilities in the Philippines to ever secure accreditation as
authorized customs facilities (ACF) under new Bureau of Customs (BOC) rules.

Davao International Container Terminal (DICT) based in Panabo, Davao Del Norte and Terminal Facilities
Services Corp. (TEFASCO) in Ilang, Davao Del Sur complied with accreditation rules outlined in Customs
Memorandum No. 30-2015, according to Customs commissioner Alberto Lina, who was at the awarding
ceremony in Davao City on November 6.

CMO 30-2015 provides rules on the establishment, supervision and control of ACF. ACF are wharves,
container yards, container freight stations, warehouses, examination areas, and other facilities located
within customs zones or in airports and seaports that are used for temporary handling and storage of
imported goods immediately discharged from airplanes, vessels, and other modes of international
transport.
Issued last September, the CMO aims to provide minimum security standards for ACF and to promote
their use, while seeking to prevent the entry of drugs and anti-social goods through them.

Alexander Valoria, president and chief executive officer of Anflo Management and Investment Corp.,
which owns DICT in partnership with Dole-Stanfilco, said the BOC memo “is the new system authority
initiated by Commissioner Lina to be able to generalize or regularize all requirements” for on-dock
customs facilities.

Valoria said having the ACF status will “affect us by being able to communicate better with the Bureau of
Customs.”
DICT, which opened for business in 2013, is an international container terminal servicing mainly
agricultural products, especially bananas for export, and similar shipments.

TEFASCO, on the other hand, is a privately owned wharf and common user port for break bulk, bulk and
containerized import, export and domestic cargoes. The facility handles agricultural products, rice imports,
fertilizer imports, salt, and plywood, among others.

 DICT container volume jumps 24.8% in first 10 months

Davao International Container Terminal (DICT) said it expects double-digit growth in its 2015 container
throughput, with volumes for the first 10 months already up 24.8%.

From January to October, the port’s box traffic has reached 215,117 twenty-foot equivalent units (TEUs)
compared to 172,412 TEUs year-on-year. This growth trend is expected to be sustained until yearend
with volumes for the fourth quarter traditionally high due to the seasonal banana production peak, said
Bonifacio Licayan, assistant general manager of San Vicente and Terminal Brokerage Services, Inc.
(SVTBSI), DICT operator, in an email to PortCalls.

Bananas and other agricultural commodities account for the bulk of DICT’s export shipments.

For 2015 the port, located in Panabo, Davao Del Norte, is expected to handle 260,000 to 270,000 TEUs,
14% to 18% higher than the 228,212 TEUs recorded in 2014. The forecast volume is around 78% of the
port’s annual current capacity of 345,000 TEUs.

DICT is a joint venture between the Anflo Management and Investment Corporation (Anflocor) and Dole-
Stanfilco, the leading producers and exporters of fresh Cavendish bananas in the Philippines. Port
operator SVTBSI is a unit of Anflocor.

In an interview with media on November 6, Anflocor president and chief executive officer Alexander
Valoria said construction of DICT’s Berth 2 was about 53% complete and that the berth will be operational
by July 2016

The company is spending P1.8 billion for the expansion project that will double DICT’s capacity to
600,000 TEUs next year. The expansion began just over a year after the port started commercial
operations in May 2013.

Valoria said they see volume hitting the 600,000-TEU mark two years after the start of commercial
operations of Berth 2, the boost mainly supplied by agricultural shipments such as bananas and
pineapples, as well as raw materials.

In the coming year, DICT is eyeing more port equipment. So far it has two quay cranes, three rubber-tired
gantry (RTG) cranes, three reach stackers, five empty container handlers, 21 yard goats/prime movers,
and 52 bomb carts/chassis trailers.

Aside from the two quay cranes that will arrive in February next year, DICT will be equipped with five
more RTG cranes, two reach stackers, four empty container handlers, 16 yard goats/prime movers, and
16 bomb carts/chassis trailers.
The port also plans to increase its 1,080 reefer plugs to 1,620 next year to support the growing volume of
reefers handled.
SVTBSI is likewise developing a five-hectare off-dock empty container depot in addition to the existing
three hectares, set to be used in the pre-trip inspection and maintenance of empty boxes.

Five shipping lines regularly make weekly calls at DICT—APL, Pacific International Lines, the consortium
of Advance Container Lines and Regional Container Lines, Wan Hai Lines, and CMA CGM.

In future, even more volumes are expected at DICT with Anflocor having recently secured approval from
the Philippine Economic Zone Authority to develop a 53-hectare industrial economic zone, just a mere
300 meters from DICT.

Valoria is positive of the terminal’s prospects because “when you put up a facility like this (DICT) it
becomes a catalyst” for direct and indirect customers.

He stressed “A port is always a catalyst for growth”, adding that containerization has been particularly
helpful to small banana growers in the region.

To better service small shippers, DICT has provided consolidation areas near the port where banana
growers can pack their shipments in containers.

Valoria, also president of the Pilipino Banana Growers and Exporters Association, however, took note of
the need for further rehabilitation of the banana industry after plantations were devastated by Typhoon
Pablo in 2012. He said the industry has not been able to replicate the record volume seen in 2010
following the 2012 typhoon, and that it might have a hard time doing so in the near future due to the El
Niño.

 Davao bypass road seen improving ports access

In the document published on the DPWH Web site last week, the agency said the road is necessary “to
reduce traffic congestion of Davao City urban center where average travel speed is less than 20
kilometers per hour; disperse urbanization outside (the urban center), which is already over-saturated;
and strongly support economic activities of not only Region XI but also the entire Mindanao.”

The planned 44.58-kilometer (km) road, coursed through the west end of the city, will run from the Toril
District in the south to the boundary with Panabo City, Davao del Norte in the north. It will consist of 37.17
kms of road, a 5.13-km bridge, and a 2.28-km tunnel.

It will serve as an alternative access road to and from the Sasa Port in Davao City, which is up for auction
under the public-private partnership (PPP) program, and Panabo City’s Davao International Container
Terminal owned by the Anflo Management and Investment Corp.

The DPWH also said the road will pass through key areas, among them the emerging commercial
business districts in the south-western part of the city.

Last month, the National Economic and Development Authority (NEDA) board approved the project,
which will be funded from a loan from the government of Japan, according to NEDA Regional Director
Maria Lourdes D. Lim.
Ms. Lim earlier said the road was identified by the NEDA regional office as one of the priority projects
needed to spur development in the Davao Region.

Undersecretary Janet M. Lopoz, executive director of the Mindanao Development Authority (MinDA),
earlier told BusinessWorld the bypass road will be particularly needed in pursuing the modernization of
the Sasa Port.
MinDA was among the agencies that endorsed the project and its technical staff were involved in drafting
the road design and proposal.
The P18.99-billion Sasa project, the first seaport project to be rolled out under the PPP scheme, has
faced opposition from both the local business sector and local governments, citing traffic congestion at
the port area as one of the reasons.

Davao-Sasa Wharf

The Port of Davao, or Davao Port (Filipino: Daungan ng Dabaw, Cebuano: Pantalan sa Dabaw), is a
seaport located in Davao, Mindanao island in the Philippines. The Port of Davao consists of a number of
ports, all within the Davao Gulf which is part of the Celebes Sea, but its main office and seaport is located
at Brgy. Sasa, Davao City. The Port of Davao is largely dominated by container cargo, raw materials
exportation, bulk cargo, general cargo, and passenger traffic facilities.

About
Davao Port, or the Port of Davao, is one of the Philippines
major seaports alongside Manila, Subic, Cebu, Zamboanga, and others. The Port of Davao, often called
Port District of Davao, includes Davao City and the four provinces. Davao port services inter-island and
international shipments. The city is situated 974 kilometers south of Manila, on the shore of Davao Gulf.
"Davao" also refers to four provinces: Davao del Norte, Davao del Sur, Davao Occidental, and Davao
Oriental. Davao City is located in Davao del Sur but is politically and administratively independent of the
province. The access to the port of entry in Davao City is through Davao Gulf, which has two approaches.
One is at Pakiputan Strait between Davao and the water west of Samal Island. The other approach is at
the east side of Samal Island mainly used as an exit channel of vessels departing from points north
of Davao Gulf. Access to the subport of entry in Mati, Davao Oriental is through Pujada Bay. The Davao
Gulf is situated on the south coast of Mindanao, the second largest island in the Philippines.
The port itself is the most important in Mindanao island and also has the busiest international container
port in both Visayas and Mindanao. The port serves as the gateway to the southern Philippines and is
considered as the best-performing port in Mindanao. A number of passenger ship-lines operate to Davao,
including WG&A Superferry.

History
The port opened on 1900 for the international exportation of agricultural products in then-Davao Province,
mostly from Davao City. It was opened for the prospectors and entrepreneurs in the city to export their
agricultural produce internationally. Due to the ever-expanding economy of the city, it later became one of
the busiest seaports in the country.
In World War II, the port became a landing and anchor zone for American naval forces participating in
the Battle of Davao.

Facilities
Apart from the government pier and private pier, a number of piers and wharves exist in the Davao Port
region specifically for commercial use. Vessels awaiting berth availability anchor 450 meters off Sta. Ana
pier in 12 fathoms mud. The anchorage is well protected except during strong southwest monsoon.
Pilotage is compulsory for foreign-going vessels with 100 GRT and over; and for domestic vessels with 75
GRT and over. Request for pilot should be made 24 hours in advance to the Davao Pilots' Association.
Davao City and the Port of Davao has 2 government international seaports, that of the Sasa International
Port and the Sta. Ana Wharf, and 9 privately owned ports. The city government is currently in the process
of taking over the management of the seaports to modernize facilities, such as 3 big modern quayside
cranes and to expand capacity. In addition, the Toril international Fish Port Complex accommodates
small and large-scale fishing activities as well as provides among others cold-storage facilities.
Below is a list of major piers and wharves within Davao Port.
Sasa International Seaport
Located in Brgy. Sasa, Davao City, Sasa International Seaport is the main seaport serving the Davao
Gulf area as the main base of the port. It is generally used for container and international shipping and
operated by the International Container Terminal Services inc., which also operates at the Port of
Manila and Port of Subic. It is the largest of the piers in the Port area and also the busiest.
Sta. Ana Pier
Located in Davao Chinatown, Magsaysay St., Davao City, Sta. Ana Pier handles mainly domestic and
passenger vessels.
Mati Wharf Piso Point Port
Used primarily for corn, copra, logs and general cargo.
Pacific International Terminal Pier
Non-commercial port that handles exportation of bananas and other fruit products.
Legaspi Oil Company pier
Non-commercial port that handles exportation of coconut products such as copra, coco oil & copra
pellets.
Universal Robina pier
Handles importation of flour grains and similar types.
Davao Union Cement pier
Handles exportation of cement to coal and other ore products.
Piso Point Port
Located at Piso Point, Banaybanay town, Davao Oriental province, this port is primarily used for mineral
stockpiling and exportation.
Tefasco pier
Handles asphalt and similar products.
Stevedorage Services Corporation pier
The Stevedorage Services Corporation pier handles general cargo, bulk cargo, vehicles and lumber. It is
one the busiest piers in the port
Some Piers also worth mention include the Caltex Pier and Petron Pier.

 Review set for Sasa port modernization

The controversial Davao Sasa Port Modernization Project will be reviewed to be taken out of the Public-
Private Partnership scheme, an official said.

Peter Laviña, a staunch critic of the project, now the National Irrigation Administration head, told reporters
during the Kapehan sa Dabaw at The Annex of SM City Davao Monday, December 19, that the Philippine
Ports Authority (PPA) is suggesting to revisit the project's original plan with an indicative cost of P4 billion.

"This is a good sign that this project will now be reviewed by PPA. We just hope that all the implementing
agencies will not rush this project and ensure that involved stakeholders will be consulted," Laviña said.

Last November, Transportation Secretary Arthur Tugade asked a little extension in settling the issues and
concerns involving the project.

The transportation chief also assured the public that before anything will be finalized, all the stakeholders
will be consulted as ordered by President Rodrigo Duterte.

It can be recalled that last 2015, the port's issue ballooned after the PPP Center and Department of
Transportation and Communications (DOTC) said the project cost of the port development program
reached P18.99 billion, a big jump from what is originally proposed at P4 billion.

Tugade earlier underscored that in their review, they will focus on the estimated cost of the project.

Once the PPA decides to return to the original proposal of P4 billion project cost, which was made in
2012, they will consult the stakeholders.
"In six months' time, they can conclude all these reviews then decide whether it will be implemented
totally by PPA because they can implement it with only P4 billion cost, as it will not need an interagency
National Economic Development Authority approval," Laviña said.

Laviña added they hope the bulk cargo and cruise tourism features of the project, as originally planned,
will be included again.

"Hopefully, Davao continues to be vigilant and active, after all, the government projects should reflect to
the best interest of our people," he said.

Davao City Councilor Danilo Dayanghirang, for his part, told SunStar Davao in a separate interview
Monday that the PPA's current action proves that "something is wrong with the project proposal under the
previous administration."

Dayanghirang proposed last June for a total review of the controversial project. He led the Davao City
Council in approving a resolution opposing the project pursued by then DOTC and the PPP Center under
former Secretary Joseph Emilio Abaya for failure of the National Government to consult the local
government and other stakeholders.

The councilor said the Sasa port can no longer be expanded because of its natural space limitation and
that it is too small for an international seaport.