Cargo passenger traffic in ports surge

MANILA, Philippines — The Philippine Ports Authority (PPA) is poised to achieve its growth targets for the year, as both cargo volume and sea travel reap benefits from the lifting of border limits here and abroad.

Latest records from the PPA showed that cargo traffic coursed through domestic ports grew by four percent to 201.87 million metric tons (MT) from January to September, from 194.41 million MT a year ago.

Further, the PPA recorded a 21 percent increase in the number of passengers who traveled by sea to 53.08 million, from 43.92 million, during the period.

Likewise, the agency logged 7.9 million travelers who used roll-on, roll-off vessels to reach their destination. As of September, the Philippines has also welcomed 46,657 guests from cruise ships, marking the return of a segment that was severely hurt by the pandemic.

The PPA said local ports are benefiting from the recovery of trade and travel here and overseas. In its monitoring, the agency listed 394,633 ships that docked in domestic ports in the nine months to September, from 352,929 during the same period last year.

For 2023, PPA general manager Jay Santiago expects cargo volume to go up by eight percent and passenger traffic to balloon by 20 percent on spending aggression in the pandemic aftermath.

The PPA is relying on the rebound of the blue economy to keep its revenue and profit up even as it was tasked to slash the cost of cargo handling to help reduce consumer prices.

PPA’s net income improved by two percent to P7.33 billion as of September, from P7.16 billion a year ago, driven by the growth in port operations.

Revenue swelled by 12 percent to P16.72 billion attributed mainly to the expansion of its service and business earnings. On the other hand, expenses ballooned by 22 percent to P7.81 billion, as the PPA spent on additional personnel and new projects to cater to the post-pandemic demand.

The PPA is mandated to generate as much profit as it can to beef up government funds. It serves as one of the largest dividend contributors to the government among state-run firms, joining the likes of the National Transmission Corp. and the Philippine Deposit Insurance Corp.

Every year as mandated under the law, the PPA has to turn over at least 50 percent of its profit to the government.

The PPA grew its dividend payout by nine percent to P4.44 billion in 2022, from P4.08 billion in 2021, providing the government with additional cash to finance its programs and projects.