Government mulls PPP for cruise ports

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February 2, 2026 | 12:00am

Siargao terminal up first

MANILA, Philippines — The country’s dedicated ports for cruise vessels are next to be turned over to the private sector, as the government sees potential in their viability to pull corporate investments.

The Philippine Ports Authority (PPA) plans to develop a public-private partnership (PPP) model for cruise ports, with the goal of handing over their operations and maintenance to private groups in the long run.

PPA general manager Jay Santiago said one of the first cruise terminals that could be transferred to private control is the Jubang Cruise Terminal, the gateway to surfing paradise Siargao.

“In general, the PPA plans to bid out all ports for private management where it is commercially feasible. For Jubang, that would happen in the future, unless we receive indicative proposals for private management,” Santiago told The STAR.

The PPA spent P620.64 million to build the Jubang Cruise Terminal. The project aims to enhance the logistical capability of the Port of Jubang to dock larger ships, such as cruise vessels.

Still, the PPA is tempering its expectations in the potential of cruise ports as PPP projects, seeing the need to grow their commercial markets first before they attract private interest.

The Jubang Cruise Terminal, for instance, made it possible for shipping giant 2GO Group Inc. to launch direct trips between Manila and Siargao.

Last year, 2GO started operating weekly voyages between Manila and Siargao, offering travelers another way of reaching the island aside from by air.

With the Port of Jubang’s new capability, 2GO is able to assign its MV St. Francis Xavier, one of the largest vessels in its fleet, to serve the route. The ship can ferry as many as 1,700 passengers, with space allocation for containerized cargo, reefer vans and temperature-controlled shipment.

The PPA has reason to be confident that cruise ports can be viable as PPP projects. The Philippines is positioning itself to become a destination of choice for cruise lines.

Cruise passenger traffic in Philippine ports increased by half to 226,247 in 2025 from 150,903 in 2024, as the country drew trips from cruise giants such as Norwegian and Royal Caribbean.

Luxury vessel Luminara, owned by Ritz-Carlton Yacht Collection, arrived in Boracay on Jan. 17, with prior stopovers at the cruise terminals in Salomague Island and Puerto Princesa.

For 2026, the PPA is taking a step further in promoting cruise tourism, embarking on a P5-billion plan to put up a dedicated terminal in Manila Bay.

The PPA is looking for potential sites in Manila Bay where it can anchor the project, which may require about two hectares. It hopes that agencies owning properties in the area, particularly the Philippine Reclamation Authority, can turn over parcels of land for the project.

The cruise terminal in Manila Bay will be patterned to Hong Kong’s Ocean Terminal, maintained by the Harbour City Estates Ltd. The famous terminal in Hong Kong is designed as an all-in-one complex where visitors can dine, relax and shop.

This model has allowed the Ocean Terminal to attract daily trips from some of the biggest cruise lines like Azamara, Holland America, Norwegian, Royal Caribbean, Silversea and Star Cruises.

Given the immensity of the project, the PPA also plans to package the cruise port in Manila Bay as a PPP project to transfer its operations and maintenance costs to a private partner.

Currently, the Port of Manila assigns cruise vessels to Pier 15, which is shared with the maritime assets of the Philippine Coast Guard and cargo units of Asian Terminals Inc.