South Korean Firm Wins ₱11.7 Billion Contract for New Cebu Port

South Korean company HJ Shipbuilding & Construction (HJ S&C) has been awarded a 280 billion won contract to construct a new port in Cebu, Philippines. The project, ordered by the Philippine Ministry of Transportation, is set for completion by 2027 and aims to address congestion at the existing Cebu Port and boost maritime infrastructure in the region.

Image from Maeil Business Newspaper

Project Scope and Timeline

Construction of the port will take place on a 250,000-square-meter reclaimed area in Consolacion, Cebu, featuring key infrastructure such as a pier, operational facilities, and access roads. Two vessels with a capacity of up to 2,000 TEUs can accommodate the facility, enhancing Cebu’s current cargo handling capabilities.

South Korea’s Economic Development Cooperation Fund (EDCF) finances the project. Construction is anticipated to span 35 months, with a total estimated cost of 282 billion won, equivalent to ₱11.7 billion.

Strategic Importance of the Port Project

Cebu has long served as a vital economic hub in the Philippines. With over 7,000 islands, the country depends heavily on maritime transport, often resulting in congested port facilities. The construction of this new port seeks to address this challenge by increasing port capacity, ultimately driving trade growth and supporting economic development in the region and nationwide.

HJ S&C brings extensive experience to large-scale infrastructure projects in the Philippines. Since 1973, the company has completed more than 80 projects across the country, playing a significant role in the nation’s modernization.

This port project underscores HJ S&C’s commitment to enhancing the Philippines’ maritime infrastructure while strengthening economic partnerships between South Korea and the Philippines. It is also expected to deliver long-term advantages for Cebu’s logistics and trade sectors that will bolster the local economy. 

References:

Maeil Business Newspaper. (n.d.). Construction of a large port northeast of Cebu Port. Maeil Business Newspaper. https://www.mk.co.kr/en/realestate/11168412

Oh, S.-Y. (n.d.). HJ S&C wins $200 mn Philippines new port construction project order. The Korea Economic Daily. https://www.kedglobal.com/construction/newsView/ked202411140006