Container depots in PH see mixed business picture for 2013

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The Container Depot Alliance of the Philippines (CDAP) sees mixed business prospects next year.

“From the looks of it, it seems that we have a very good business since our yards are full,” CDAP president Carl Fontanilla said, “but the add-on (revenues) are down.”

The top line business (hosting empty containers) is up 25%, according to Fontanilla.

Revenue from add-on services such as container cleaning, washing and repair, which comprises a third of income, is however slipping on account of the upsurge in the number of empty containers. Income from add-on services has gone down by almost half, Fontanilla told PortCalls.

“While revenues and yard utilization are soaring, yard inefficiency is also soaring which spells negative news for us,” he lamented. “Because of this, we are anticipating meek revenue growth next year — very much lower compared to our projection for 2012.”

The time it takes to withdraw empties following notification from shipping lines, is now double at a month from the usual two weeks, and this has become a source of operational inefficiency. Empties deposited much earlier are taking even longer to withdraw.

Efficiency is better achieved with a 75% to 80% yard utilization rate, according to depot operators.

Daily container volume handled by metro-wide depot operators has doubled to about 500-600 boxes from the usual 250-300 boxes.

This year, CDAP projects double-digit growth in volume and revenues.

Image courtesy of Victor Habbick / FreeDigitalPhotos.net