New port to ease Cebu cargo congestion

The construction of the New Cebu International Container Port (NCICP) officially commenced on February 5, 2025, to alleviate cargo congestion at the Cebu Base Port and enhance vessel turnaround in the region.

Department of Transportation (DOTr) Secretary Jaime Bautista emphasized that the NCICP aims to resolve logistics bottlenecks, facilitate faster and more cost-efficient goods transport, and boost the competitiveness of local businesses and industries.

“This development will ensure a seamless flow of goods and services, keeping our economy strong and dynamic,” Bautista stated during the groundbreaking ceremony in Barangay Tayud, Consolacion, Cebu.

According to him, the new port will help users save costs by minimizing vessel waiting times, reducing transport and congestion-related expenses, and increasing revenue from land leases.

“The impact of this project extends beyond its infrastructure. It will bring significant benefits to users, local communities, and the public sector,” he added.

Beyond cost efficiency, the port is expected to create jobs, open opportunities for local businesses, support regional industries, and position Cebu as a key logistics hub. Additionally, both national and local governments will benefit through increased tax revenues and reduced environmental costs due to improved operational efficiency.

Project Details and Economic Impact

The PHP16.93-billion project is funded through an official development assistance (ODA) agreement with the Export-Import Bank of Korea (KEXIM), with the International Finance Corporation of the World Bank serving as a transaction adviser.

Slated for completion in the second quarter of 2028, the NCICP will be constructed on a 25-hectare reclaimed island. It will feature a 500-meter berth, a 12-meter water depth, and the capacity to accommodate two 2,000 twenty-foot equivalent unit (TEU) vessels simultaneously, utilizing five quay cranes. A 1,365-meter access road and a 300-meter offshore bridge will also connect the port to the mainland.

Strengthening Philippines-Korea Ties

The project is expected to strengthen economic relations between the Philippines and South Korea, especially with the recent implementation of the bilateral free trade agreement (FTA).

“With Korean tourists being the Philippines’ top visitors and the Korea-Philippines FTA now in effect since December 31, trade and cargo volumes between the two nations are set to rise significantly,” the Korean Embassy in Manila stated.

The embassy further highlighted that the NCICP will serve as a crucial hub for economic cooperation and cultural exchanges between the two countries.

South Korean Ambassador to the Philippines Lee Sang-hwa expressed confidence that the port will transform Cebu into a leading maritime hub in Southeast Asia.

“The new port will greatly enhance Cebu's cargo handling and logistics efficiency, attract investments, and generate a ripple effect benefiting not only Cebu but the entire Visayas region,” Lee said, calling it a vital step toward shared prosperity between the two nations.

The groundbreaking follows the December 18, 2024, signing of the civil works contract for the Cebu New Port Project at Malacañang Palace, attended by President Ferdinand R. Marcos Jr.

Secretary Bautista and Cebu Governor Gwendolyn Garcia extended their appreciation to South Korea for its continued support, emphasizing that the project will significantly contribute to economic growth and improve the quality of life for Filipinos.

This initiative builds upon last year’s Philippine-Korea bilateral summit, which elevated the nations’ relationship to a strategic partnership.