After more than two decades of planning, Philippine officials have officially launched construction on the New Cebu International Container Port (NCICP), a project designed to modernize Cebu’s maritime infrastructure.

Officials marked the occasion with a groundbreaking and capsule-laying ceremony in Consolacion, Cebu, on February 5, marking a significant milestone since the port’s first feasibility study was conducted 23 years ago.

Led by the Department of Transportation (DOTr) and the Cebu Ports Authority, the project aims to enhance Cebu’s cargo-handling capacity, ease congestion at the Cebu Baseport, and strengthen the region’s overall port infrastructure.

The DOTr issued a notice to proceed on January 6 to South Korea’s HJ Shipbuilding & Construction, which will handle the port’s civil works.

The Philippine government considers the NCICP a key infrastructure project that will boost trade efficiency, attract investments, and create jobs in the region. Officials emphasized its role in addressing logistics bottlenecks and positioning Cebu as a leading maritime hub in Southeast Asia.

Speaking at the groundbreaking ceremony, Transportation Secretary Jaime Bautista highlighted the project’s significance in streamlining logistics and boosting economic growth.

“This ambitious project would not be possible without the strong support of our development partners, most notably the Export-Import Bank of Korea (KEXIM). Their confidence in this project underscores its potential as a game-changer for the region,” Bautista said in his speech.

KEXIM is an export credit agency established by the Korean government that actively facilitates infrastructure development in Asia and the Pacific through financing and advisory services.

Groundbreaking ceremony of the New Cebu International Container Port in the Philippines on February 5, 2025.

Modern, high-capacity port

The NCICP will rise on a 25-hectare reclaimed area in Tayud, Consolacion, Cebu, and will connect to the mainland via a 300-meter offshore bridge and a 1.365-kilometer inland road. The P16.93-billion (US$291 million) port is set to open in the second quarter of 2028.

Designed to accommodate growing international trade demands, the port will feature a 500-meter-long berth with a 12-meter water depth, allowing it to handle two vessels with a capacity of 2,000 twenty-foot equivalent units (TEUs) simultaneously. The container yard will house five quay cranes and hold 14,400 TEUs, with an annual cargo-handling capacity of 375,900 TEUs.

Bautista noted that the port’s modern facilities would decongest the Cebu Baseport, improve cargo distribution, and increase port efficiency.

“This redistribution will pave the way for a seamless flow of goods and services, ensuring our economy remains robust and dynamic,” he said.

Officials also underscored the port’s role in enhancing trade competitiveness by improving turnaround times for commercial vessels and reducing costs associated with port congestion. With more efficient container stacking and handling facilities, businesses will benefit from faster shipment processing, resulting in improved supply chain reliability.

The South Korean government, through KEXIM, is investing P10 billion in the project, while the Philippine government will fund the remaining balance.

Boosting trade, jobs, and investment

Bautista emphasized the project’s economic impact, particularly in job creation and business development.

“We expect job creation during the construction phase and in related industries, as well as opportunities for local businesses to participate in and benefit from the port’s operations,” Bautista said.

Local officials and industry leaders welcomed the project as a catalyst for economic growth, job creation, and improved trade relations.

“This project is a testament to our shared vision of progress. The JICA study, which laid the foundation for this development, identified Consolacion as the ideal location. Now, we are witnessing the realization of a dream decades in the making,” Consolacion’s mayor Teresa Alegado said.

Cebu Port Authority’s general manager Francisco C. Comendador III underscored the port’s role in elevating Cebu’s status as a key maritime hub.

He said this advancement will make Cebu even more attractive to foreign and domestic investors, leading to expanded trade relations and fostering long-term economic sustainability.

Beyond employment, the project is also expected to generate higher tax revenues for both national and local governments, further fueling economic progress. Bautista also highlighted the environmental advantages of modernizing port operations.

Meanwhile, Kiyeon Hwang, senior executive director of the EDCF Korea Eximbank highlighted the project’s broader economic impact.

“This project will elevate Cebu’s role as a key maritime hub in Southeast Asia. Once completed, it will not only make goods more affordable but also create jobs and opportunities for port-related activities while improving local and global supply chains,” Hwang said.

In addition to direct employment during the port’s construction phase, businesses related to logistics, warehousing, and transportation are expected to expand, further generating job opportunities for local workers.

The improved infrastructure is also projected to encourage small and medium enterprises to engage in export and import activities, strengthening Cebu’s economic foundation.

Addressing growing cargo demand

The new international container port will provide a long-term solution to Cebu International Port’s growing cargo volumes.

Bautista stressed that the port will reduce delays caused by congestion, promote faster and more cost-efficient transport of goods, and stimulate local and international business growth.

“The benefits of this project extend far beyond its physical structure. It will generate a wide array of advantages for users, the local community, and the public sector,” he said.

Aside from Bautista and Alegado, officials who attended the event included Ako Bisaya party-list Rep Sonny Lagon, Cebu Rep Daphne Lagon, Korean ambassador to the Philippines Lee Sang-Hwa, and representatives from Korean development partners.

“We hope this project further strengthens ties between our two countries,” Ambassador Lee said.

Officials also emphasized that the port would help the Philippines become a stronger player in regional trade by accommodating more international cargo traffic.

As the country continues to grow as a key logistics hub in Southeast Asia, Cebu’s expanded port capacity will support increased trade volumes, making it a preferred entry point for foreign shipments.

The DOTr originally planned to start construction in August 2022, but procurement delays caused by the COVID-19 pandemic pushed back the schedule. Now, with construction in full swing, stakeholders see the NCICP as a crucial investment in Cebu’s long-term economic growth and logistics efficiency.

With its modern facilities, increased cargo capacity, and strategic location, the NCICP is expected to play a pivotal role in boosting Cebu’s economic landscape, ensuring that businesses, investors, and consumers benefit from a more efficient and globally competitive port system.

All photos credit: Department of Transportation. Transportation Secretary Jaime Bautista delivered his message at the groundbreaking ceremony of the New Cebu International Container Port in the Philippines on February 5, 2025.