The Board of Investments (BOI) has registered the PHP2.35-billion modernization project for the Iloilo Commercial Port Complex (ICPC) in Iloilo City.

The project is being undertaken by Visayan Container Terminal (VCT), a unit of International Container Terminal Services, Inc. (ICTS).

Registration with the BOI means VCT will benefit from fiscal incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law. The benefits include three years of income tax holiday followed by five years of enhanced deductions and duty-free importation of equipment.

The project involves the modernization of the old ICPC as well as the management and operation of the new seaport.

The BOI said the projects are part of the 25-year Port Management Contract between ICTSI and the Philippine Ports Authority (PPA) to equip the port with advanced cargo handling equipment, cutting-edge information technology systems, and enhanced civil infrastructure.

The project involves the deployment of mobile harbor cranes with a reach of 46 meters and a lifting capacity of 100 tons, which significantly improves the port’s flexibility, efficiency, and capacity to handle various cargo types, including containerized, bulk, general, and project cargo.

The BOI said the port modernization project enhances the connectivity in the Panay Region and its neighboring provinces.

Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said the project is in line with the government’s push to modernize port operations and logistics services, helping Philippine ports meet global standards.

“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.

In terms of employment, around 3,000 direct and indirect jobs will be generated by the project.

In the first quarter of 2024, the transportation and storage sector contributed PHP779.54 billion, or 4.1 percent, of the total gross domestic product. (PNA)