PPA: Ports choke-free ahead of ‘ber’ months

The Philippine Ports Authority (PPA) assured there would be no port congestion ahead of the “ber” months despite the expected surge in cargo volumes.

PPA General Manager Jay Daniel Santiago said in a statement: “Despite the surging numbers, we guarantee that our ports remain clogged-free and can accommodate the increasing cargo, passenger and ship call volumes.”

He said the country’s cargo volume climbed another 11 percent in the first seven months of the year compared to last year’s figures.

“The strong performance of the cargo segment underscores the country’s economic resilience. The strong numbers in the passage sector also suggests the continuing vibrancy of both the local and international travel industries and more people are now considering traveling using ships,” he added.

Combined yard utilization at Manila ports is now at 40 percent, with approximately 32,600 TEUs inside the terminals while yard productivity ranges from 20 to 30 moves an hour.

Santiago said the efficient yard management seen in Manila terminals can be partly attributed to the truck Terminal Appointment Booking System (TABS) imposed recently, which bolstered port efficiency by at least 96 percent.

The average daily gate outs in Manila ports is now at 4,500 to 5,000 TEUs as compared to the post-TABS imposition of 7,000 to 7,500 TEUs daily gate outs.

“With this kind of yard utilization, we can say that Philippine ports are ready to handle the expected increase in the volume of cargo due to the run-up to Christmas,” Santiago said.

Meanwhile, Standard and Poor’s Ratings Services (S&P) said the ports sector in Asia-Pacific would suffer the most due to the weak volume growth ascribed to the slowing economies in the region.

In its report “Asia-Pacific Sector Outlook 4Q 2016: Net Negative Outlook Bias Rises to 13 percent from 11 percent,” S&P said the ports sector would feel the most impact from this regional headwind, fueled further by the recent bankruptcy filing of South Korean cargo liner Hanjin Shipping.

“Ports dedicated to commodity trades could benefit from the recent rebound of coal prices although this would reduce the downside risk rather than providing true upside,” S&P said.

S&P said it expected business conditions for other transportation subsectors such as road, airport and rail, to remain broadly stable, with some potential upside for rail operators exposed to commodity prices.

It, however, warned that for the ports subsector, the situation was more about “reducing downside risks.”

The report noted that in emerging Asia, the main risk “is a material slowdown since investments continue to be high and lumpy, with assets having limited ability to adjust.”

“The second risk is the tightening in credit markets as a result, which would further stretch balance sheets as earnings weaken,” it added.