The Philippine Ports Authority (PPA) reported a net income of P3.97 billion in the first five months of the year, 31.9% higher than the P3.007 billion recorded in the same period last year, as a result of heightened shipping and trade activities at ports it handles.
Total revenue for the period likewise increased, up 11.63% to P6.05 billion from P5.42 billion in the same period last year, the port authority said in a report. The figure is 5.3% higher than the P5.74 billion target.
Of the total, revenues from port operations increased 11.76% to P6.02 billion from P5.39 billion last year. PPA attributed this to heightened business activities at its ports coupled with the impact of foreign exchange movements on dollar-denominated tariff.
In contrast, fund management income, a passive income from investment in treasury bonds and other temporary/short-term investments, fell 6.38% to P34.21 million from P36.54 million due to fluctuations in the interest rates of special and high-yield savings deposits.
Total expenditures for the period amounted to P2.084 billion, 13.6% lower than the P2.412 billion expenses in the first five months of 2016. The decline was mostly attributed to lower operating expenses owing to a downswing in costs for repairs and maintenance and dredging projects, as well as reduced outlays for personal services and other administrative matters.
Budget for port projects
PPA said a huge portion of its financial resources is earmarked for port development, repairs, and maintenance nationwide, “directed towards improving the capacity and efficiency of ports that is consistent with the government’s development agenda and strategic objectives.”
For this year, P1.266 billion has been allocated for locally funded projects, which as of May 2017 totaled to 95 projects, consisting of both carry-over and new projects nationwide in varying stages of development. Of this total, 28 projects are for Luzon ports, 30 projects for Visayas ports, and 37 for Mindanao ports.
Part of the program is to construct wharves for rail-mounted gantry cranes at the ports of Iloilo, Makar (General Santos), Cagayan de Oro, and Zamboanga. PPA is set to complete the remaining portion of civil works for the Iloilo Commercial Port Complex and the Port of Makar within the year, while 20% of civil works for the ports of Cagayan de Oro and Zamboanga are expected to be completed by the end of the year.
Dredging slowdown
For dredging, the port authority has set aside P1.208 billion. As of May 2017, physical accomplishment in dredging was valued at P19.07 million.
This year, PPA is programmed to remove 4.084 million cubic meters of silt from various piers and harbors to ensure that serviceable water depths are maintained for the safe navigation of large vessels calling at ports.
As of May, a total of 80,300 cubic meters of siltation has been removed at the port of Tagibilaran in Bohol under a privatized setup with WTG Construction & Development. Programmed dredging at other ports for the year is still under various stages of procurement as of May.
PPA said dredging was slowed down when several carry-over dredging projects were suspended pending resolution of issues over dumping sites with the Department of Environment and Natural Resources and the Philippine Coast Guard, and over a contract award issue with the Commission on Audit.
For the repair and maintenance of ports, the approved budget for this year is P3.039 billion, which will fund 202 projects nationwide. As of April 2017, 43 projects have been completed, 41 are ongoing, and 20 have not yet started.
Ro-ro construction works
PPA has also scheduled the construction of 15 roll-on/roll-off (ro-ro) ramps at selected ports to improve trade movement and provide seamless inter-island transport connectivity.
Of the total, 10 are targeted for completion within the year, while the remaining five will have posted significant accomplishments by yearend.
These ro-ro ramps are those at the ports of Calapan and Balatero, Oriental Mindoro; Castilla and Matnog, Sorsogon; Larena, Siquijor; Culasi and Lipata, Antique; Tubigon, Catagbacan, and Tagbilaran, Bohol; Siaton, Negros Occidental; Alegria, Aklan; Dapa, Surigao Del Norte; Banton, Romblon; and Ozamiz, Misamis Occidental.
Miscellaneous works
Aside from infrastructure projects, PPA is also moving to improve other port operations.
In view of this, it conducted consultation meetings with its Port Management Offices (PMO) for comments and recommendations on the draft policy regarding a simplified scheme for processing tariff applications.
PPA said it aims to establish a tariff administration system that will update the existing port tariff system management and administration, in line with recent developments in PPA’s port operations, services, and development programs. This is also to provide a new scheme or formula for evaluating and processing new tariff applications. The proposed formulae for adjustment in port pricing were set to be presented to the PPA Board last June.
PPA also consulted PMOs about preparing a draft policy on a compendium about private ports.
Through the compendium on private ports, PPA intends to address various issues and concerns relating to private port development and operations so as to cater to the changing environment, in line with the port authority’s medium-term programs.
The implementing rules and regulations of PPA’s new Terminal Management Operation and Service Policy were also presented to the authority’s Board.
Further, PPA targets completing by the second quarter of 2017 a certification in Quality Management System for core processes and vessel entrance and clearance at its head office and 16 ports, but with possible changes to the procurement processes of the certifying body.
The port authority’s Port Planning and Design Department was preparing as of May the terms of reference in the procurement of the system developer for its port infrastructure database. Based on the detailed work of the project, the system is expected to be completed in December of this year, but rollout is scheduled in 2018 following the conduct of user trainings. – Roumina Pablo
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