Asian Terminals changes by-laws on capex over P10M

Port operator Asian Terminals Inc. (ATI) has revised its by-laws to require a two-thirds vote of the board of directors for expenses over P10 million for budgeted capital expenditures.

In a disclosure to the Philippine Stock Exchange, ATI said a two-thirds vote of the board is also required for expenses over P5 million for unbudgeted capital expenditures and P5 million for development expenditures.

ATI is pursuing the upgrade of its flagship Manila South Harbour terminal, despite setbacks last year in its international container and non-container operations.

The company reported a 50-percent growth in net profit for the first six months of the year to P258.7 million from P172.5 million, mainly driven by higher revenues and cost reduction. It handled more containers, pushing revenue growth by 10.5 percent to P1.95 billion from P1.76 billion in the same period last year.

Operating expense increased by only 2.1 percent to P1.4 billion for the period from P1.3 billion the previous level.

ATI president and chief executive officer Jerry Rickcord pointed out that its container handling business in the first half 2005 grew steadily with cargo movements reaching record-high volumes, particularly at the Eva Macapagal Super Terminal in South Harbor.

Rickcord said the Eva Macapagal Super Terminal is an important component of the Arroyo administration’s Strong Republic Nautical Highway and is a strategic transshipment point for domestic-to-foreign cargoes.

An affiliate of global marine terminal operator P&O Ports, ATI operates in four of the country’s major ports: South Harbor at the Port of Manila, Mariveles Grain Terminal in Bataan, Port of Batangas, and the Port of General Santos in South Cotabato.

P&O Ports is a world leader in cargo handling services and port management throughout Europe, the United States, South America, Asia, Africa and Australasia with 27 container terminals and logistics operations in over 100 ports in 18 countries.

In line with ATI’s long-term commitment to the development of the South Harbor, the company has undertaken additional investments on the container yard and back up area expansions and port facilities and equipment during the period.

At the Eva Macapagal Super Terminal, ATI has undertaken civil works involving rehabilitation of piers, installation of additional pier lighting structures and expansion of area for stuffing operations during the year’s first half. Further expansion of the current 300,000 twenty foot equivalent unit (TEU) container yard for an additional 200 TEU is programmed towards the end of the year.

Rickcord said more aggressive improvements on operational efficiencies are programmed towards the end of the year. "We will continue to modernize container handling equipment fleet and more value-added services will be put in place," he said.