Home » Features, Ports/Terminals » PPA ready for global challenges as it marks 43rd anniversary

Foreign cargoes that entered Philippine ports reached 151.604 million metric tons (mmt) in 2016, up 12.62% from 134.620 mmt handled in 2015. Photo of Manila International Container Terminal courtesy of International Container Terminal Services, Inc.

The Philippine Ports Authority (PPA) is celebrating its 43rd founding anniversary this year with the theme “43 years of Responding to Global Challenges in Ports”.

These challenges include continuous improvement in port facilities that would serve the expected increase in trade volumes.

In 2016, the PPA—which maintains 115 ports nationwide, 10 of which are considered major gateways and 16 hub ports—handled 11.6% more cargoes to 249.567 million metric tons (mmt) from 223.672 mmt.

Foreign cargoes accounted for 151.604 mmt, up 12.62% from 134.620 mmt handled in 2015. Export cargoes represented 74.822 mmt of the 2016 foreign cargoes figure, a 23% increase from 60.855 mmt. Import cargoes, on the other hand, rose 4% from 73.765 mmt to 76.781 mmt.

Domestic cargoes contributed 97.963 mmt to the total 2016 cargo throughput from 89.051 mmt in 2015, representing an improvement of 10%.

Container throughput

Container volume also posted positive figures, rising 12% to 6.574 million twenty-foot equivalent units (TEUs) in 2016 from 5.861 million TEUs in 2015.

Foreign containers amounted to 3.973 million TEUs, up 14.11%, while domestic boxes jumped 9.28% to 2.6 million TEUs. Import boxes reached 2.005 million TEUs and export containers 1.968 million TEUs, up 15.4% and 12.8%, respectively.

Among the ports which registered strong performance in 2016 were the Manila International Container Terminal and Manila South Harbor for international cargoes, and North Harbor, Cagayan de Oro, Davao, and Iloilo for domestic cargoes.

From 2010 up to the end of the first semester of 2016, the PPA said it was able to provide adequate facilities and services to accommodate sustained growth in cargo throughput, vessels and passengers with an annual average increase of 6.11%, 2.74% and 3.74%, respectively.

PPA revenue

Last year, PPA posted P6.159 billion in net profit, beating the target by 165%, or by P3.836 billion.

The agency achieved the feat with strong figures coming from lay-up fees, roll on-roll off fees, berthing fees, and remittances from port operator Asian Terminals Inc.

The 2016 figure is 8% better against the P5.705 billion registered in 2015.

For first five months of the year, the agency reported a net income of P3.97 billion, 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.

PPA is a member of the “Billionaires Club”, a group of government-owned and controlled corporations that remit to the national government dividends that amount to at least a billion pesos.

This year, the PPA is in its third tranche of filling up another 25% of vacant positions based on its Rationalization Plan.

The agency completed 251 projects worth P9.8 billion. These projects have increased berth and back-up areas, passenger seating capacity and  ro-ro berths throughout the country.

Ro-ro projects facilitated the carriage of goods and people, promoted domestic tourism, and reduced cargo slippage by at least 50% and costs by 30%, PPA said.

The agency also maintained ports in optimal operating conditions, resulting in sustained safety and an average annual increase in revenue of 10%.

2017 and onwards

PPA recognizes the need to integrate and align various port developments throughout the archipelago to serve increasing demand.

Within medium-term plans of the PPA are the modernization and development of the ports of Davao-Sasa, Iloilo, Cagayan de Oro, General Santos and Zamboanga via privatization under the public-private partnership arrangement, although other modalities are also being evaluated.

These five ports have been identified by the PPA as both strategic and commercially important, with Davao-Sasa being the priority target for development but on a more cost-efficient level than was originally planned.

PPA is also in the process of procuring vessel traffic management solutions (VTMS) equipment to cover five additional locations in addition to the ports of Batangas and Manila. However, the long-term intention is to install appropriate VTMS facilities in most of the major ports to ensure offshore safety.

For a pdf of the Philippine Ports Authority 43rd anniversary supplement, click here.


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