ATI sets bigger 2024 capex at P2.7B

MANILA, Philippines — Asian Terminals Inc. (ATI), which operates seaports in Manila, Laguna, Batangas, and Cavite, is earmarking P2.7 billion in capital expenditures this year to upgrade facilities and acquire more equipment.

The amount is bigger than ATI’s capex in 2023 when the company invested P2.2 billion in port expansion projects, which include the Batangas Passenger Terminal Phase 2 and Cavite Barge Terminal. It also bought additional modern equipment and implemented smart IT systems.

The listed port operator, in its recent financial statement, said it was improving its cargo handling and passenger operations to prepare for the anticipated growth in the market following the easing of pandemic-induced lockdowns.

“The capital investment will support the expansion of seaside and landside facilities, acquisition of more modern and greener equipment to boost its carbon reduction program, progression of its auto-gate infrastructure and other smart IT (information technology) systems, and execution of integrated logistics solutions leveraged on ATI’s port infrastructure,” the company said.

Along with this, ATI said it was looking into developing smart cargo store spaces at port zones. It has also set sights on potentially setting up new port operations here or abroad, depending on market conditions.

Port-centric, customer-focused

“Anchored on its port-centric and customer-focused business philosophy, ATI continuously enhances its trade and transportation infrastructure in Manila and Batangas which primarily serve as premier gateways for mega-Manila and Calabarzon, respectively,” the firm said.

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Last year, ATI saw its net income attributed to equity holders of the parent company rise by 47 percent to P4.4 billion.

This was attributed to revenues having improved by 13.4 percent to P15.4 billion for the period.

Revenue contribution from South Harbor international containerized cargo and Batangas port operations climbed by 12 percent and 38 percent, respectively, because of higher container volume.

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With busier operations, ATI’s total expenses increased by 7 percent to P6.6 billion.

Costs related to equipment handling, in particular, rose by 3 percent to P850.1 million with the acquisition of more spare parts and greater electricity use due to higher reefer and container volume. Facilities-related expenses also shot up by 14 percent to P309.3 million due to repairs and maintenance costs.

Further, sea terminals across the country have been seeing improved cargo and passenger movement.

The Philippine Ports Authority reported that passenger traffic on sea terminals surged by 24 percent to 73.6 million last year from 59.2 million in 2022. However, this was still below the 2019 level of 83.7 million passengers.

Cargo throughput, meanwhile, grew by about 5 percent to 272 million metric tons (MT) last year from 259.1 million MT in 2022, surpassing the pre-pandemic volume of 265.9 million MT.