MANILA, Philippines — The operator of some of the largest ports in the Philippines is increasing its capital expenditures to P2.7 billion this year, seeing the need to expand its capacity as trade recovers here and abroad.
According to its financial report, Asian Terminals Inc. (ATI) will raise its capex by 23 percent to P2.7 billion in 2024, from P2.2 billion in 2023, to fund expansion projects and improve existing infrastructure.
For 2024, ATI said it would expand its landside and seaside facilities, purchase new carbon-saving equipment and upgrade its information technology systems.
Further, ATI will start exploring new growth drivers to sustain the business in the long term. For one, it will look into the opportunity of offering ancillary services like smart cargo storage spaces within and outside economic zones.
ATI remains keen on adding new ports to its portfolio given the right opportunity. The company committed to maximize resources to improve service quality and increase shareholder value.
ATI failed to disburse all of the P5.2 billion that it allocated for capex in 2023 on delays faced in the construction of Pier 3 Berth Extension and the purchase of new cargo equipment.
The company operating ports in Metro Manila and Southern Tagalog spent the bulk of its capex for the completion of the second phase of the Batangas Passenger Terminal.
Financially, ATI expanded its profit by nearly half to P4.44 billion in 2023, from P3.02 billion in 2022, with the growth in its revenue outpacing the rise in expenses.
Broken down, revenue rose by 14 percent to P12.78 billion buoyed by the increase in gains from international containerized cargo in the Manila South Harbor and Batangas Container Terminal. The growth managed to offset the four percent drop in revenues from ATI Batangas that suffered a decline in roll-on, roll-off volumes.
On the contrary, ATI posted a seven percent jump in its expenses to P6.63 billion. The company attributed the expenditure hike to adjustments in the costs of labor and equipment.
The government also received an eight percent boost in its share in ATI earnings to P2.67 billion.
ATI operates and maintains the Manila South Harbor, Port of Batangas, Inland Clearance Depot and Empty Container Depot in Laguna, Batangas Supply Base, Tanza Barge Terminal and South Cotabato Integrated Port Services Inc.