The government and the Razon-owned International Container Terminal Services Inc. (ICTSI), which operates the Manila International Container Terminal, are planning to start shifting cargo movement outside of Manila to Batangas in a move to decongest the capital and expand economic development to the entire southern Luzon area.
Philippine Ports Authority (PPA) General Manager Jay Santiago said as he joined Transportation Secretary Vince Dizon on Friday, Aug. 1, 2025, during an inspection of the Luzon International Container Terminal (LICT), an USD800-M project of ICTSI in Bauan, Batangas, in response to President Marcos Jr.’s efforts to modernize port infrastructure.
“The national government and private sector partner ICTSI are planning to start shifting cargo movement out of Manila to Southern Luzon. We need to push this so that the manufacturing companies will also relocate to Southern Luzon,” Santiago said.
PPA data showed that cargo throughput in southern Luzon climbed to 46.25 million metric tons (MT) in 2024 from 44.52 million MT in 2023, reflecting a growth of about 3.89 percent. The region accounted for 15.98 percent of the country’s total cargo volume, which reached 289.41 million MT last year.
The expansion in port capacity will not only benefit Manila, but also the entire Calabarzon, he said. ICTSI also operates the Manila International Container Terminal. Santiago said that containerized cargoes will become the mode in shipments in the future.
Strategically located approximately 120 kilometers south of Manila and just nine kilometers from Batangas City, the LICT will have direct access to key road networks such as Makalintal Avenue, Palico-Balayan-Batangas Road, and the Bauan-Mabini Road. Upcoming expressways connecting Cavite to Bauan are also expected to boost accessibility and maximize reach across CALABARZON, one of the country’s most dynamic economic corridors.
Construction of the more than 52-hectare LICT is set to begin in the third quarter of 2025. The target completion for the first phase by the end of 2027, with full terminal operations expected by 2028.
Once operational, the LICT is expected to position Southern Luzon as a premier gateway for international trade, attract new shipping lines, and solidify the Philippines’ role in the global supply chain.
Transportation Secretary Dizon also said that ICTSI’s LICT will decongest Metro Manila and develop Southern Luzon as the country’s major trade and logistics hub.
Secretary Dizon said the ICTSI facility will stimulate investments by manufacturing companies and and development of industrial parks in the nearby areas. This will create more job opportunities. More importantly, he said, it will decongest Metro Manila as cargoes from Southern Luzon will no longer go to the Manila ports.
Santiago echoed this vision and highlighted the cutting-edge design of the LICT, particularly its shift toward full automation.
Santiago cited the plans of ICTSI for the LICT project, which is envisioned to become a fully-automated terminal comparable to its Victoria International Container Terminal (VICT) in Melbourne, Australia. VICT is equipped with remote controlled cranes and containers, ensuring safety for all operators and cargoes.
The LICT will span 56.21 hectares and feature an 800-meter quay length, berth depths of up to 18 meters to accommodate mega-ships, eight quay cranes, 20 rail-mounted gantries, and an annual handling capacity of over two million twenty-foot equivalent units (TEUs). It will also incorporate advanced automation and eco-friendly technologies to ensure efficient, sustainable operations.
