In an exclusive interview with Maritime Fairtrade, Jay Daniel Santiago, the general manager of the Philippine Ports Authority (PPA), shared the agency’s ambitious plans for port development, modernization, and sustainability.
With a focus on boosting the Philippines’ trade capabilities, supporting renewable energy projects, and enhancing tourism through cruise ports, Santiago emphasized PPA’s critical role in driving economic growth and ensuring operational efficiency across the country’s ports.
He also highlighted how the PPA is addressing congestion issues and promoting green port initiatives, positioning the Philippines as a key player in the global maritime industry.
Jay Daniel Santiago, general manager, PPA
Port development and modernization: PPA’s bold vision for the future
The PPA is charting an ambitious course for 2024 and beyond, setting its sights on extensive infrastructure development to modernize and expand ports across the country.
Santiago revealed that the PPA is investing significantly in major infrastructure projects, which are crucial for aligning with President Ferdinand Romualdez Marcos Jr.’s Build-Better-More (BBM) program, the Sustainable Development Goals, and the Philippine Development Plan.
“A crucial aspect of this strategy includes developing key PPA ports to support the Department of Energy’s (DOE) offshore wind project as part of the national shift towards renewable energy. These ports will be equipped to facilitate the logistics and transportation needs associated with offshore wind energy, supporting the government’s ambitious targets for sustainable energy generation,” said Santiago.
The PPA plans to enhance key ports to facilitate logistics and transportation needs for offshore wind energy, thereby bolstering the supply chain and ensuring seamless transport of critical components for the DOE’s wind energy projects.
“By enhancing the capabilities of these key ports, PPA will play a critical role in the offshore wind supply chain, ensuring the seamless transport of components and the efficient mobilization of resources necessary for the success of the DOE’s wind energy projects,” he added.
Apart from this, the PPA is also focusing on expanding its Roll-on/Roll-off (RoRo) infrastructure, a crucial element for improving passenger-heavy ports.
“We are building additional RoRo ramps, expanding backup areas, and extending berth lengths,” Santiago explained. These developments will boost the country’s ability to handle the increasing volume of cargo, accommodate new-generation container ships, and optimize port operations to meet growing demand.
Furthermore, the PPA is advancing efforts to modernize cruise ports, aiming to attract more international cruise lines and boost tourism.
“As part of boosting tourism, the PPA is likewise focused on expanding and modernizing cruise ports to attract more international cruise lines. Among the ports with notable growth in cruise passengers include Manila, Palawan, Northern Luzon, Panay/Guimaras, Bohol, and Bicol. With other emerging tourist destinations across the country, PPA is set to develop new cruise ports as part of its infrastructure development program,” Santiago said.
These initiatives are designed not only to meet growing trade and tourism demand but also to elevate operational efficiency, reduce environmental impacts, and support the country’s broader economic development agenda.
Tackling congestion
Congestion in major ports like Manila and Batangas is a critical issue that the PPA is addressing head-on. But Santiago was quick to clarify that, as of September 2024, yard utilization at these premier gateway ports is at 70 percent, indicating no congestion and efficient port operations.
He proudly shared that the average dwell time for containers stands at 5.4 days, the lowest in PPA history, though there are occasional delays, especially with rice shipments.
“Some rice shipments from specific consignees are taking over 20 days to be withdrawn despite clearance from the Bureau of Customs (BOC),” Santiago noted. This situation is being closely monitored to prevent any artificial price increases or perceived delays in rice shipments.
To prevent future congestion and further improve port operations, Santiago outlined several key strategies the PPA is implementing.
First is the expansion of port capacity, including upgrading container yards and developing berth and yard facilities at the Port of Batangas.
The Terminal Appointment Booking System (TABS), a web-based system, is also in place at Manila ports to optimize terminal resources and reduce wait times.
The decentralization of cargo traffic is another crucial element of PPA’s strategy. By developing regional ports outside Metro Manila, the PPA aims to reduce the concentration of cargo in Manila ports and distribute the load more evenly.
Moreover, the PPA has increased storage charges for containers exceeding the free storage period to discourage long-term storage, freeing up space and improving overall efficiency.
Expanding port infrastructure to meet growing trade demands
The PPA has launched a comprehensive port infrastructure expansion program to accommodate larger vessels and increased trade volumes.
In July, Santiago announced 14 major infrastructure projects across the country’s key island groups, all aimed at enhancing capacity and efficiency.
In Luzon, projects included the expansion of Capinpin Port in Bataan, the restoration of Currimao Port in Ilocos Norte, and the improvement of Jose Panganiban Port in Camarines Norte, among others.
In the Visayas, key developments are underway at Catagbacan and Tapal ports in Bohol, as well as new port construction in Northern Samar and Leyte.
Mindanao is also seeing significant upgrades, with a cargo ship port under construction in Dapa, Surigao del Norte, and the completion of general cargo berth upgrades at the Port of Sasa in Davao City.
These projects, many of which are more than 50 percent complete, are designed to increase the handling capacity of the ports, extend berth lengths, and improve the overall infrastructure to meet the demands of larger vessels and growing trade volumes.
Cruise port development: PPA’s role in boosting tourism
As the Philippines continues to attract more international cruise lines, the PPA is stepping up its efforts to modernize and expand cruise ports. Santiago shared that the completion of the Siargao Cruise Terminal in Dapa, Surigao del Norte, is a significant milestone.
“We are focused on creating dedicated cruise terminals in key tourist destinations like Camiguin, Boracay, Palawan, and Puerto Galera,” he said.
The PPA’s efforts have not gone unnoticed. The agency was awarded the “Best Port Call of 2024,” at the 10thAsia Cruise Awards in Jeju Island South Korea on July 10, recognizing its commitment to enhancing cruise passenger experiences.
In 2023, the Philippines welcomed 164 cruise ships with over 87,000 passengers, and Santiago expected even higher numbers in 2024.
By investing in cruise port infrastructure and working closely with international cruise operators, the PPA is positioning the Philippines as a top cruise destination, ensuring that tourists enjoy a safe and memorable experience.
Attracting international shipping lines
To attract more international shipping lines, the PPA is focusing on infrastructure development and strategic partnerships.
Santiago explained that the PPA is upgrading berths, expanding backup areas, and incorporating modern technologies to meet the demands of international trade.
“These developments ensure that Philippine ports can handle larger vessels and higher volumes of cargo, providing the capacity needed to accommodate key shipping lines,” he said.
Furthermore, the PPA is building long-term partnerships with international shipping companies to create stable maritime routes that drive consistent cargo traffic.
“PPA collaborates with private sector stakeholders and international shipping companies. This relationship-building is essential in creating stable maritime routes that drive consistent cargo traffic. By focusing on long-term partnerships, PPA aims to ensure that international shipping lines continue to include the Philippines in their routes,” Santiago noted.
The liberalization of domestic shipping, as part of Republic Act No. 11659, has also opened up new opportunities. By working with the Maritime Industry Authority (MARINA), the PPA is encouraging foreign companies to engage in domestic shipping through modernized ports and enhanced operational efficiency.
Addressing the call for functional separation
The issue of separating the PPA’s regulatory and commercial functions has been a topic of debate in the maritime industry.
However, Santiago asserted that there is no longer a need for such separation. “We’ve addressed this concern through the Port Terminal Management Regulatory Framework (PTMRF),” he explained.
Under the PTMRF, the PPA has shifted its role primarily to that of a regulatory body, with private sector operators taking over the commercial operations of ports. PPA no longer collects a share of operator revenues but instead receives a fixed annual fee.
With 28 ports already bid out under this framework and 10 more expected to follow, Santiago is confident that the PTMRF enhances transparency and operational efficiency without the need for further functional separation.
Promoting sustainability: PPA’s green port initiatives
Sustainability is at the core of the PPA’s long-term strategy, and Santiago highlights several initiatives aimed at reducing the environmental impact of port operations.
“We’re integrating renewable energy and decarbonization strategies into our port infrastructure program,” he said.
One of the key partnerships is with the World Wide Fund for Nature (WWF), under the “No Plastics in Nature” initiative, which targets reducing plastic pollution at major ports like North Harbor, Batangas, and Cagayan de Oro.
Since 2021, the PPA has banned single-use plastics in all its facilities, contributing to a 50 percent reduction in plastic waste leakage. In addition to this, the PPA has implemented mangrove and tree-planting policies, resulting in over 12 million trees planted nationwide.
Santiago also pointed to the Green Port Awards System (GPAS) model, which the PPA has adopted to implement climate change mitigation measures. Ports in Cagayan de Oro and Batangas have already been recognized under this system, with plans underway for compliance at other ports.
Ensuring security
In response to global threats such as terrorism, piracy, and smuggling, the PPA has ramped up its security measures.
Santiago said the agency is constructing Law Enforcement Buildings (LEBs) at critical ports, starting with Port of Currimao in Ilocos Norte. These facilities will enhance coordination among the PPA, Philippine Coast Guard (PCG), BOC, and Philippine National Police.
Moreover, the PPA has established the PPA-PCG K9 Academy, the first of its kind in Southeast Asia, to train K9 units in detecting narcotics, explosives, and smuggling.
“In addition, the PPA ensures compliance with the International Ship and Port Facility Security Code, implementing security measures across all port operations to address potential threats. This is supported by advanced security infrastructure, including additional CCTV cameras, x-ray machines, metal detectors, and an increased deployment of port police and security personnel,” said the PPA chief.
“Together, these initiatives strengthen port safety, align with international standards, and prevent illicit activities,” Santiago emphasized.
With these initiatives, the Philippine Ports Authority, under Santiago’s leadership, remains committed to transforming Philippine ports into world-class facilities that not only support the nation’s economic development but also address critical security concerns.
The PPA’s efforts to bolster port security through infrastructure improvements and inter-agency collaborations are paving the way for safer and more efficient port operations.
With these plans in place, Santiago and the PPA are positioning the Philippines to take on a greater role in global maritime trade while enhancing the country’s tourism prospects through modernized cruise terminals and improved port infrastructure.
“To capitalize on these global shifts, we will need to accelerate our development and modernization efforts, ensuring that our ports are well-equipped to meet the demands of larger vessels, increased cargo throughput, and higher passenger traffic. By embracing these changes, we can solidify the role of our ports as vital components of both regional and global maritime trade,” Santiago concluded.
The PPA’s initiatives, from infrastructure development to sustainability and security, underscore the agency’s commitment to creating a robust, future-ready maritime industry that can compete on a global scale.
As the PPA continues to move forward with its bold vision, Santiago’s leadership is driving a transformation aimed at positioning the Philippines as a key player in the international maritime sector while improving the lives of Filipinos by promoting trade, tourism, and sustainable development.
All photos credit: PPA.
Top photo: Jay Daniel Santiago (center), general manager, PPA.
