The Manila South Harbor, long recognized as the Philippines’ premier international trade gateway, is now equipped to handle significantly larger volumes of cargo following the completion of a major expansion project.

Spearheaded by Asian Terminals Inc (ATI) in partnership with global logistics giant DP World, the modernization initiative has increased the port’s annual capacity by 25 percent, from 1.45 million to over two million twenty-foot equivalent units (TEUs).

The expansion, which was inaugurated on May 2, marks a new chapter for the bustling port. Key infrastructure upgrades include the extension of Pier 3’s berth to over 600 meters, the installation of two advanced ship-to-shore (STS) cranes, and the expansion of the container yard to accommodate 20,000 TEUs.

The project, entirely funded by ATI and DP World, represents a private investment of approximately US$100 million, or about P5.7 billion.

During the inauguration, Philippine Ports Authority (PPA)’s general manager Jay Santiago underscored the significance of the project. “These are the largest cranes in the Philippines, and we’re proud to say they are fully electric — environmentally responsible.”

“With these new cranes, we expect to increase Manila South Harbor’s capacity from 1.4 million to over 2 million TEUs annually. That’s an additional 600,000 TEUs — faster and more efficient cargo handling,” he added.

According to DP World, the two new STS cranes, manufactured by Shanghai Zhenhua Heavy Industries, are neo post-Panamax models engineered to handle some of the world’s largest container vessels. Each crane boasts an outreach of 58 meters and can service ships carrying up to 20 containers across. They also feature intelligent systems that monitor speed, vibration, trailer positioning, and other parameters to ensure safe and efficient operations.

The inauguration ceremony was attended by key government and industry leaders, including Transportation Secretary Vince Dizon, PPA’s chief Santiago, DP World Group’s chairman and CEO Sultan Ahmed bin Sulayem, ATI’s president Eusebio Tanco, and representatives from the country’s Bureau of Customs.

Dizon praised the collaboration between the public and private sectors: “I commend GM Jay (Santiago) and his team for really pushing the private sector partners to provide these world-class facilities—not only for our passengers but to really improve our supply chain.”

Dizon noted that the previously substandard port facilities have been transformed into world-class infrastructure, aligning with the Marcos administration’s broader agenda to modernize the country’s infrastructure.

DP World’s Sulayem also highlighted the Philippines’ strategic role in international commerce. 

“We consider the Philippines a major port and logistics hub. That’s why we’re investing in projects like in Batangas, as well as this new expansion,” he said.

“A lot of people see problems. We see opportunities, and we believe that the Philippines will be able to take advantage of whatever happens in the world today,” he added. “Even with the height of the customs duty, the Philippines still has the lowest among all the Asian countries in its exports to the United States.”

In a separate statement, Sulayem affirmed DP World’s commitment to working with the Philippine government to modernize vital trade infrastructure. He emphasized that investments in logistics not only optimize supply chains but also deliver lasting socioeconomic benefits, reflecting the company’s enduring commitment as a global trade enabler.

ATI’s Tanco echoed these sentiments, saying the upgrades will enhance ATI’s capacity to provide comprehensive, responsive services to its customers and partners.

“We are very pleased to inaugurate these major development projects that collectively enhance our capacity and capability in delivering comprehensive and market-responsive services to our customers and stakeholders. ATI, alongside our partners from DP World, stands proud of our contribution to powering economic progress by ensuring supply chain efficiency through ATI’s strategic ports and logistics assets.”

Last year, ATI handled nearly 1.6 million TEUs in total container volume, marking a four percent increase over the previous year. Manila South Harbor alone accounted for approximately 1.3 million TEUs, an eight percent year-on-year increase that aligns with the country’s steady economic expansion.

The port recorded over 350,000 TEUs in international container traffic for the first quarter of 2025, reflecting a 25% rise compared to the same period in 2024, signaling robust growth in trade and logistics.

ATI, along with its strategic foreign shareholder DP World, operates a range of vital port facilities and logistics hubs across the country, including Batangas Port, Cavite Barge Terminal, and inland logistics terminals that support the national supply chain.

In light of recent shifts in global trade, particularly new U.S. tariffs on selected imports, the PPA sees a potential opening for the Philippines to strengthen its position as a regional trade partner.

“So far, we see no negative impact. In fact, the Philippines now has one of the lowest tariffs imposed by the U.S. among Southeast Asian countries, which could make us a more attractive trading partner,” Santiago noted.

Locally, the South Harbor upgrade is already expected to yield operational benefits.

“We can now accommodate more ships, especially here at South Harbor, which means cargo processing will be faster. Previously, ships had to wait in line, but now the queuing process will be much quicker,” Santiago said in Filipino.

Beyond quay-side improvements, ATI and DP World are also set to introduce eco-friendly landside equipment, including electric and hybrid yard tractors, container loaders, and rubber-tired gantry cranes. These are part of a broader initiative to reduce the carbon footprint of port operations.

With this modernization initiative complete, Manila South Harbor is not only ready to handle higher cargo volumes but is also taking a decisive step toward sustainable and future-ready port operations.

Photo credit: Philippine Ports Authority. Officials from the Department of Transportation, the Philippine Ports Authority, Asian Terminals Inc and DP World formally unveiled the Pier 3 Berth Extension and two ship-to-shore (STS) cranes at Manila South Harbor on May 2, 2025.