From substantial cargo and revenue growth recorded in 2016, the Philippine Ports Authority is anticipating “nominal” growth this year due to volatility of the Philippine currency as well as the expected drop in output of the local mining industry.
“Based on our review, almost all our business aspects have already reduced targets and budgets for 2017 ranging from the original 20% to only 3%. Nonetheless, PPA will remain resilient and committed to carry out its mandate of better connectivity and service amidst these developments.”
Among the areas seen to be hit hard by issues clouding the Philippine mining industry are the ports under the Port Management Offices of Surigao, Nasipit, Palawan, Batangas, Manila, and Northern Luzon. These ports handle the bulk of the shipments from the mining firms, like nickel, manganese, smelted copper, refined copper, pumice, marble, silica sand, iron ore, chromium, silver, and zinc.
In Surigao alone, the port broke past a half billion pesos in annual revenues for the first time in more than three decades, anchored on the increased volume in the exportation of mineral products from private mining ports, along with longer port stays and increased vessel frequency.
Meanwhile, the revised corporate operating budget (COB) of the PPA this year was reduced to P14.59 billion, which is only 2% higher than the 2016 COB, with the biggest cuts made in port dues, berthing, anchorage, arrastre/stevedoring, pilotage, wharfage for export, roll-on/roll-off fees, as well as in non-traditional income sources.
Revised operating expenses, on the other hand, are expected to balloon to P16.22 billion this year from only P9.33 billion last year while total capital expenditure is set to increase to P7.42 billion this year compared to the P3.50 billion posted in 2016, in order to implement several port projects that include the modernization of Mindanao and Visayas ports like Iloilo, General Santos, Cagayan de Oro, and Zamboanga; improvement of all passenger terminal buildings; repair and maintenance projects; and the implementation of 14 other capital expenditure projects.
Total budgetary outlays for the authority this year are now pegged at P23.64 billion compared to the total budget source of P23.87 billion.
Last year, PPA posted P6.159 billion in net profit, beating the target by 165%, or by P3.836 billion.
PPA achieved the feat with strong figures coming from lay-up fees, Ro-Ro fees, berthing fees, and remittances from port operator Asian Terminals Inc.
Compared to the year-ago level, the 2016 figure is 8% better against the P5.705 billion registered in 2015.
“While we expect this condition to be temporary, the authority is bracing for a challenging 2017,” Santiago said.
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