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Chelsea submits unsolicited offer to operate Davao, Panglao airports

Chelsea Logistics Holdings Corp., a company led by Davao-based businessman Dennis Uy, submitted an unsolicited offer to the Department of Transportation for the  bundled development, operation and management of Davao and New Bohol (Panglao) International airports for 30 years. 

“We will modernize both Davao and Panglao international airports into world-class airports without government subsidy by implementing the development in three phases with an estimated total project cost of P67 billion,” CLC president and chief executive Chryss Alfonsos Damuy said.

“However, for economical viability of the project, the succeeding works after the development of Phase 1 shall be subject to the traffic growth requirements and compliance with the minimum performance standards,” he said.

The proposal was submitted to the DOTr on Feb. 5, 2018.

CLC proposed to operate and maintain all existing and project assets of the two airports, with the exception of those that would remain within the control of the Civil Aviation Authority of the Philippines, while undertaking the necessary development works to meet future passenger and aircraft movements. 

The DOTr said in an acknowledgement letter that it was evaluating the unsolicited proposal as required under Republic Act No. 7718 and its implementing rules and regulations.

CLC said with the projected airport traffic growing to 8 million to 15 million passengers in Davao and 1.5 million to 2.1 million passengers in Panglao by 2050, bundling these two  airports would create opportunities for improved domestic connectivity and international tourism.

The planned reconfiguration and expansion of passenger terminal buildings are also expected to provide a new level of convenience and comfort to the passengers and airport users, it said.

“If the government approves the CLC proposal in 2018, improvement of passenger experience and benefit to the community will start next year,” Damuy said.

The Davao International Airport, Mindanao’s premier gateway, is expected to accommodate up to 30 hourly aircraft movements with the construction of a new full parallel taxiway providing improved airfield safety and efficiency.

CLC said that by the end of the concession period, Davao International Airport’s cargo terminal would be almost three times its current capacity to keep up with expected air freight demand, while Panglao International Airport’s facility would have expanded 25 percent.

“We expect that the enhanced air cargo channels of these airports will translate to a considerable increase in the cargo movements in the region, consequently, benefitting the logistics business of CLC,” Damuy said. 

“We ensure that every project we undertake is aligned with our goal to be the preferred end-to- end supply chain logistics service provider in the country, and which will as a result, generate more value for our stakeholders and improved outcomes for Filipinos,” he said.

Topics: Chelsea Logistics Holdings Corp
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