MANILA, Philippines - Port operator Asian Terminals Inc. (ATI) has earmarked P2.8 billion for its capital expenditures this year to bankroll the upgrade and expansion of its existing port facilities.
ATI informed the Philippine Stock Exchange (PSE) the budget to be sourced from internally generated funds is part of its most aggressive capital investment program in over two decades to continuously upgrade and expand its port facilities in support of the growing economy.
The port operator said the planned capital expenditures would cover the acquisition of more container-handling equipment, upgrade port systems and technologies as well as the development of new container storage areas within the Manila South Harbor and the Batangas Port.
It added that the investments are aligned with its commitments with the Philippine Ports Authority (PPA).
The company reported a sharp increase in revenues last year amid higher volume handled by its Batangas container terminal amid the congestion experienced at the ports of Manila.
The Batangas operations jumped over 750 percent to a record-volume of over 98,000 twenty foot equivalent units (TEUs) last year.
The Batangas Port also remained as South Luzon’s biggest passenger port and preferred gateway for imported completely-built up car units, as well as bulk and break-bulk cargoes.
ATI said revenues jumped 25.4 percent to P8.24 billion last year from P6.57 billion in 2013 due to the higher international containerized cargo volumes in Batangas Container Terminal, the higher non-containerized volumes handled in Port of Batangas, and the higher revenues from Inland Clearance Depot.
It pointed out that the robust growth of cargoes at Batangas Port, the best alternative port gateway in Southern Luzon, along with foreign exchange gains boosted the net income of ATI to P1.9 billion last year.