Overview
Upgraded and purpose-fit ports are critical infrastructure for enabling offshore wind deployment. Even in mature OFW markets, upgraded ports often remain bottlenecks due to evolving turbine technologies and installation methods. As the Philippines prepares in the Green Energy Auction Program 5 (GEAP 5), OFW port development must be accelerated to meet installation and logistics timelines. Part of the OFW development is to have port facilities that will host assembly and storage of OFW turbine components, accommodate massive equipment, machinery, and wind turbine installation vessels. At present, there are no ports that could support the installation of OFW infrastructure in the country.
This study intends to outline viable business model pathways and highlight how these ports can attract investors, offer returns on infrastructure investments, and accelerate OFW development. The study will focus on two (2) priority ports, Port of Bulalacao and Aguila Subic Port, where a sizeable number of OFW projects, including OFW frontrunners (i.e., projects committed for 2028 commercial operation) are primarily located.
Study Structure
The study is structured around 5 core sections:
-
Carrying out a port capacity assessment to systematically evaluate existing facilities and functions of 2 existing ports, at Bulalacao and Agila Subic, benchmark their readiness for OFW support, and document findings through site visits, data collection, and gap analysis
-
Mapping ownership structures, regulatory frameworks, and key stakeholders to support the legal and institutional readiness for OFW port development in the Philippines
-
Assessing infrastructure upgrades, facility expansions, and develop cost estimates for the 2 port locations, including phased development
-
Developing a Philippines-tailored OFW port business and revenue model with high-level financial projections (CAPEX/OPEX, NPV, IRR, payback) for the 2 ports under selected scenarios. This includes screening of allied multi-use sectors, producing comparative matrices and actionable policy/investment recommendations to support long-term port sustainability.
-
Analyzing up to five international OFW port case studies to extract best practices and actionable insights for adapting robust OFW port strategies in the Philippines.
Report Aim
- Support the government and private sector stakeholders in understanding the commercial context for port upgrades and development, and how existing port business models could be improved to attract more investment, aligned with the Philippines’ offshore wind goals.
- Articulate effective business strategies for different types of port, whether marshalling, manufacturing, operations and maintenance (O&M), or hybrid set-up, to sustain long term sustainability of the facility.
- Layout viable trade models (whether government funded, fully private investment, or Public Private Partnership (PPP) set-up) that can be replicated in various local areas in the country where similar attributes can be seen.
- Identify allied industries (i.e., steel fabrication, cement and aggregates, construction and logistics services, passenger, cargo (break and bulk), Roll-on Roll-off (RORO), shipbuilding and vessel operations, environmental and marine services, education/training centers, ecotourism, colocation sectors (e.g. data centers, cold storage facilities, diversified fishing industries, etc.) that can potentially and optimally utilize the same space during normal and lag times.
- Enumerate existing and/or future policies in the national and local context (e.g. Cabotage Law, Philippine Coast Guard’s (PCG) Navigational Safety Compliance Certificate for OFW projects, etc.) which may potentially impact the business case for the identified ports.
- Provide best practices and lessons learned from neighbouring ASEAN countries which have effectively implemented this.
