The Philippine Ports Authority (PPA) will invest P16 billion (US$274 million) in infrastructure projects over four years until 2028, targeting 14 major initiatives nationwide to handle the rising passenger and cargo traffic, according to general manager Jay Santiago.
“We are implementing 30 to 40 projects annually, each valued between P3.5 billion and P4 billion. Over the next four years, we have earmarked around P16 billion,” Santiago told reporters at a news briefing at the South Harbor in Manila July 9.
The agency is also conducting feasibility studies and site surveys to identify locations that need improved sea transport connectivity. Santiago said that the PPA will manage these projects independently, without pursuing public-private partnerships (PPPs), but the agency remains open to such arrangements, if needed.
“I am not discounting PPP. In the immediate term, our focus is to implement the projects on our own. The project size and cost do not require outside funding,” said Santiago.
Big ticket projects across regions
These projects are divided into three sections based on island clusters.
In Luzon, the projects include the Port Capinpin Expansion in Orion, Bataan; Currimao Port Expansion and Restoration; Jose Panganiban Port Improvement in Camarines Norte; Balogo Port in Camarines Sur; and the Wharf in Claveria Port, Cagayan.
In Visayas, the projects encompass the Wharf and Operational Area construction at Catacbacan Port in Loon, Bohol; Tapal Port Expansion in Ubay, Bohol; New Port Development in Lavezares, Northern Samar; Babatngon Port in Leyte; Banago Port Improvement in Negros Occidental; and Ormoc Port Extension in Leyte.
In Mindanao, the PPA will construct a cargo port in Dapa, Surigao del Norte, upgrade the general cargo berth at Davao City Port of Sasa, and expand Plaridel Port in Misamis Oriental.
As a government-owned and controlled corporation (GOCC), the PPA continues to advance through the country’s ports, maintaining its status as one of Southeast Asia’s strongest port systems. To date, the PPA is overseeing expansion programs in all PPA-run ports in Metro Manila, including those 14 major projects across the country to enhance the passenger experience for domestic and foreign travelers.
“For cargoes, expansion projects include the biggest at the Manila International Container Terminal (MICT). An ongoing expansion program at Berth 8, and expansions in the South Harbor, are part of 30 to 40 projects started this year,” Santiago explained.
Five more projects for 2024
To mark its 50th anniversary on July 11, the PPA also launched five new key projects this year. These projects include a state-of-the-art law enforcement building at the Port of Currimao in Ilocos Norte to strengthen security and streamline coordination among government agencies ensuring port and water safety.
The PPA-PCG K9 Academy in Pampanga is now operational for independent K9 training for port security. The academy, equipped with comprehensive facilities, assists the Philippine Coast Guard (PCG) in ensuring port security and efficiency.
The Balanacan Port Project in Marinduque has been expanded to accommodate growing maritime trade demands. The Tubigon Port Passenger Terminal Building in Bohol has been upgraded to accommodate 1,000 passengers daily.
The PPA also completed the Cruise Ship Port in Dapa, Surigao del Norte, enhancing maritime and economic connectivity in Siargao.
Officials of PPA led by general manager, Jay Santiago (second from left), during the agency’s 50th anniversary on July 11.
Contributions to country’s coffers
Since its establishment in 1974 by then President Ferdinand E. Marcos, the PPA has significantly contributed to the Philippines’ economic development, ranking as one of the top GOCC performers.
In 2023, the PPA posted its highest dividend remittance of P5.06 billion, ranking as the fourth top GOCC contributor in the country, with a revenue of P25.44 billion.
Santiago announced a projected 30 to 33 percent increase in passenger numbers, up from the 73.637 million recorded in 2023.
For cruise ship passengers, the PPA expects the number of cruise passengers to reach 103,899 in 2024, compared to 87,217 in 2023. From January to May 2024, the PPA already recorded 58,648 cruise ship passengers.
PPA to implement 10 percent cargo-handling rate increase at Manila ports
The PPA will enforce a 10 percent increase in cargo-handling rates at Manila ports beginning August 6, following the release of the revised schedule of cargo-handling tariffs.
This increase is part of a phased 16 percent tariff rise outlined in PPA Memorandum Circular No. 007-2024 and will affect operations at both the MICT and Manila South Harbor.
Asian Terminals Inc. (ATI) and International Container Terminal Services, Inc. (ICTSI) have proposed respective increases of 16.55 percent and 17 percent in cargo-handling tariffs at Manila South Harbor and MICT to address rising costs and inflation.
The PPA regulations permit operators to request tariff adjustments if the consumer price index (CPI) increases by at least five percent over three years. ATI and ICTSI experienced CPI increase exceeding five percent since the last tariff adjustment in 2021, which resulted in a 10 percent rate hike implemented in two phases: two percent in 2021 and eight percent in 2022.
While operators assure that the impact on basic goods will be minimal, the Philippine Exporters Confederation, Inc. (PHILEXPORT) has urged the PPA to put off the increase until stability returns to the export industry.
According to PHILEXPORT, this tariff hike comes after a recent increase in storage charges for foreign containerized cargoes and additional surcharges on reefer container storage fees implemented in January 2024.
All photos credit: Philippine Ports Authority (PPA)
Top photo: PPA general manager Jay Santiago.
