ATI earmarks P5.2B capex for 2023

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Manila South Harbor. Photo from Asian Terminals Inc.
  • Asian Terminals Inc is investing P5.2 billion this year to support its expansion projects and equipment acquisition
  • The capex will support completion of the Batangas Passenger Terminal modernization project, expansion of existing port facilities, acquisition of additional modern equipment, implementation of smart IT systems, and execution of integrated logistics solutions leveraged on ATI’s port infrastructure
  • Tanza Container Terminal Inc., ATI’s barge terminal in Cavite, is expected to start commercial operations in 2023

Asian Terminals Inc. (ATI) is earmarking P5.2 billion this year for capital expenditures.

In a regulatory disclosure, ATI said the investment will support completion of the Batangas Passenger Terminal (BPT) modernization project, expansion of existing port facilities, acquisition of additional modern equipment, implementation of smart IT systems, and execution of integrated logistics solutions leveraged on ATI’s port infrastructure.

The investment is also “in step with its growth strategy and in line with its investment commitment with the Philippine Ports Authority [PPA],” the port operator said. ATI operates the Manila South Harbor along with the Port of Batangas, Batangas Container Terminal and off-dock yards in Sta. Mesa, Manila and Calamba, Laguna.

In line with long-term sustainability, ATI said it is exploring new business growth drivers, including developing smart cargo storage spaces within and outside port zones, offering ancillary services anchored on its core competencies and exploring new port operations locally or overseas, given the right opportunity.

In 2022, ATI’s capital expenditure reached P2.8 billion, well below the planned P5.43 billion.

The 2022 capex included completion of the first phase of BPT, acquisition of additional modern equipment, implementation of smart IT systems, and construction of the Cavite barge terminal.

But delays in the Pier 3 berth expansion project (as a result of a design change) pushed back acquisition of cargo-handling equipment.

In addition, the COVID-19 pandemic held up the start of commercial operations of Tanza Container Terminal Inc. (TCTI). The company, incorporated in January 2018 and set up to develop, operate and manage a barge terminal in Tanza to cater Philippine Economic Zone Authority cargoes, is now expected to open for business in 2023.

Currently, there are lease improvements and ongoing construction of port facilities at TCTI located in barangay Calibuyo, Tanza, Cavite, on which ATI holds a 25-year lease.

Also, equipment has been acquired and recognized under TCTI.

The four-hectare TCTI features a concrete container yard, docking facilities with harbor cranes and will be supported by reach-stackers, loaders, internal transfer vehicles among other operations-critical equipment.

Once fully operational, TCTI will be directly linked to Manila South Harbor via barges, enabling efficient transfer of containers while contributing to traffic reduction along metro roads.