LEYTE — The Regional Development Council (RDC) announced on Wednesday that construction of the Babatngon port, poised to become a key transshipment hub in Eastern Visayas, is set to begin following the positive outcomes of essential technical and economic studies.
According to Philippines News Agency, the Philippine Ports Authority (PPA) will start the PHP934.206 million construction project in Babatngon, a town adjacent to Tacloban City, after feasibility studies conducted by Gammacon Builders, Inc. confirmed the project's technical feasibility and economic viability. The study revealed an impressive economic internal rate of return of 60.52 percent, well above the 10 percent threshold set by the National Economic and Development Authority (NEDA).
The decision was influenced by limitations identified at the existing Tacloban port site and the current Babatngon port in the town center. The new location in Bacong village, within District 1 of Babatngon, was selected due to its advantageous features, including a deep harbor, absence of a marine sanctuary, and lack of informal settlers, which makes it ideal for development. The site's proximity to the existing national road, which is slated for expansion into a six-lane highway, further enhances its suitability.
The RDC highlighted that this development will bolster the sea transport sector in the region, ensuring that inter-island shipping remains an efficient option for moving both people and cargo. This aligns with the goals outlined in the Eastern Visayas Regional Development Plan for 2023-2028, aimed at expanding and upgrading regional infrastructure.
Once operational, the new Babatngon Port is expected to reduce vessel operation costs by providing a more direct route for ships currently using the overcrowded Tacloban Port. It will also offer cost savings for passengers traveling from Cebu to Samar, presenting a more economical option than the existing Cebu-Ormoc-Samar route.
The Babatngon Port project has been under consideration for several years as a potential regional hub due to its strategic location and the logistical challenges faced by larger ships trying to reach Tacloban via the narrow San Juanico Strait. The feasibility study, which began in July 2023 and concluded in May 2024, not only assessed the technical viability of the project but also set both the short-term and long-term developmental directions for the port.
With the contract awarded to Ormoc-based MAC Builders Corporation on May 29, the RDC, through its Regional Project Monitoring Committee, has committed to regular oversight of the project to ensure its timely completion. This port is part of a broader infrastructure initiative that includes the proposed second San Juanico Bridge, aiming to enhance connectivity between Leyte and Samar.