Cebu Ports Face Relocation Amid Ground Subsidence Fears
The Cebu Port Authority (CPA) is considering relocating three major ports in northern Cebu after observing ground subsidence that threatens their structural viability, following a magnitude 6.9 earthquake on September 30, 2025. CPA General Manager Francisco Comendador III raised the issue during a regular session of the Cebu Provincial Board on Monday, June 15, 2026.
“What concerns us most is if the study prohibits the continuing use of the same area,” Comendador said. He explained that ongoing ground sinking in several port zones could compromise future infrastructure. The CPA has partnered with a consultant to conduct an Engineering Geological and Geohazard Assessment Report (EGAR), scheduled for completion in November.
CPA Commissioner Jose Emery Fulache Roble noted that the scientific assessment directly affects the agency's infrastructure spending decisions. “The delay was caused by EGAR,” Roble said. “Actually, the problem goes back to the EGAR study because our repairs, improvements, and rehabilitation might just go to waste, so that is why we have a timeline until November for it to be finished.”
Roble recalled that National Government officials previously pushed for immediate funding following the disaster. “I remember during the time when we were in Bogo and the President was there, we were being pressured by the DOTr Secretary to immediately fund P500 million, and so GM Comendador was tasked with how to do that, and the P500 million was first identified for all the ports,” Roble said.
Due to the risk of ground subsidence, the CPA has instructed San Remigio municipal officials to identify alternative locations in their Comprehensive Land Use Plan in case Hagnaya Port cannot be safely rebuilt on its current site.
Local Governments Propose Self-Financing with Revenue Sharing Demands
The prolonged timeline for the geological assessment and budget approvals has caused concern among local chief executives, who note that standard procurement and reconstruction phases mean the ports might not be fully restored until late 2027. Local leaders warned that an extended shutdown will severely harm northern Cebu's economy.
To bypass the administrative delays, Board Member Celestino Martinez III presented a proposal where affected municipalities would finance the repairs immediately using local funds. However, local leaders are demanding a revised revenue-sharing model to recoup their upfront investments. Currently, two earthquake-damaged ports operate under a 50-50 revenue split with the CPA, while Hagnaya Port only retains a minority share of passenger terminal fees, remitting the rest to the authority.
“They are willing to put in money, but if you stick to the 50-50 percent sharing, it will take them a long time to recoup the investment,” Martinez said.
Comendador expressed openness to the proposal, citing a similar financing arrangement being discussed with another local government unit. “Just as a matter of information, last week, we also visited Cordova, and the mayor is proposing that the LGU will be the one to finance the port. With that, if that is also the direction you want to take—to initiate your own funding because you see the urgent need to have your own ports—I think we can perhaps make an arrangement,” Comendador said. He suggested the CPA could forge memorandums of agreement to formalize local financing frameworks.
Infrastructure Crisis and Budget Allocation
The infrastructure crisis stems from the September 30, 2025 earthquake. The CPA has allocated a total rehabilitation budget of P545 million to cover five outport projects:
- Port of Polambato, Bogo City: P215 million for reconstruction of port facilities (Proposed)
- Port of Hagnaya, San Remigio: P150 million to repair damaged facilities (Proposed)
- Port of Carmen, Carmen: P110 million for rehabilitation and expansion of RC deck with Ro-ro ramp (Awarded)
- Port of Kawit, Medellin: P50 million to rebuild concrete sheet pile and repair pavement (Proposed)
- Port of Hagnaya, San Remigio: P20 million for construction of new CPA office building (Proposed)
Comendador assured local executives that the CPA can pass supplementary budgets as late as December. He said the reconstruction of Polambato Port in Bogo City, Hagnaya Port in San Remigio, and Kawit Port in Medellin will be integrated into the CPA’s 2027 budget once the geological studies conclude.
Revenue Sharing Disparities Cause Frustration
CPA performance metrics and official statements revealed substantial disparities in revenue sharing among different ports across the province, contributing to the frustration of local officials. Only select active outports, such as Kawit Port in Medellin and Polambato Port in Bogo City, currently operate on an equal 50 percent income split between the CPA and the host municipality based on historical memorandums of agreement. Meanwhile, major active hubs like Carmen Port, Danao Port, Taloot Port, and Bato Port remit all operational collections directly to the CPA without any local government revenue share.
In a privilege speech, San Remigio Mayor Mariano Martinez pointed out that unlike other municipalities, San Remigio receives zero percent of the actual port collections, cargo fees, or docking revenues from Hagnaya Port. Instead, the only revenue shared is from the passenger terminal fees, which operate under a 70-30 split where the CPA takes 70 percent of collections and the local government unit retains only 30 percent.
The CPA is a government-owned and controlled corporation created through Republic Act (RA) 7621 on June 26, 1992. Under the policy supervision of the Department of Transportation (DOTr), the CPA is mandated to integrate, coordinate, and manage the planning, development, and operations of all maritime port facilities within its territorial jurisdiction.
During her privilege speech, Bogo City Mayor Maria Cielo Martinez recognized the CPA's legal authority under RA 7621 but argued that operational realities on the ground require a policy shift. She maintained that port operations should be classified as governmental functions under Section 17 of the Local Government Code, rather than proprietary operations that primarily benefit national entities.
“Pulang Bato Port was built, developed, and improved through the investments of the City Government of Bogo and the Provincial Government of Cebu,” Mayor Martinez said. “For years, local government resources have funded its maintenance, operations, and continued development.” She questioned the fairness of the remittance setup given that local governments bear the immediate recovery burdens during disasters. “If local governments built the port, maintained the port, improved the port, and rehabilitates the port, should they not also be allowed to retain a greater portion of the revenues generated by the port?” Mayor Martinez asked. “Every peso remitted away from Pulang Bato Port is a peso that cannot be used to strengthen its structures, expand its facilities, improve passenger services, modernize operations, or prepare the port for future disasters.”
Mayor Mariano Martinez also highlighted the strain on local infrastructure, noting his town receives zero revenue from cargo or docking collections despite bearing the local burdens of traffic congestion and road wear.
