Ports ready for higher cargo load, says PPA

MANILA, Philippines - Ports controlled by the Philippine Ports Authority (PPA) are prepared to accommodate higher cargo volume following amendments to the Cabotage Law.

In a statement, PPA general manager Juan Sta. Ana said the agency’s efforts to improve the capacity and capability of ports in anticipation of the implementation of the Asean Economic Community starting next year would also allow ports to easily adjust to higher cargo volume amid the approval of the amended Cabotage Law.

“The major gateways have long been capable of handling bigger ships and our secondary gateways are being improved to handle international vessels,” Sta. Ana said.

“While we expect the effect of the relaxation of the cabotage will not immediately trickle down to port operations, our ports will not have a hard time adjusting to the expected influx of vessels and cargoes in the different ports,” he said.

The amended Cabotage Law, signed by President Aquino last month, seeks to allow foreign ships to dock at multiple ports.

The law also aims to lower logistics costs and benefit the country’s exporters which use ships to transport their goods.

Among the major Philippine ports where foreign-flag ships dock are the Manila International Container Terminal, the Manila South Harbor, the Manila North Port, Batangas Port, Port of Davao, Makar Wharf in General Santos, Iloilo Port, Zamboanga, Ozamiz and Cagayan de Oro. Other government ports where ships call include Cebu and Subic Bay.

The ports handle about 90 percent of the total cargo movement in and out of the country.

From January to April, total cargo volume reached 66.60 million metric tons (mmt), up 6.34 percent from 62.63 mmt in the same period of 2014.

Domestic cargo volume posted a 6.85 percent increase to 27.75 mmt from January to April from 25.97 mmt in the same period last year.

Foreign cargo volume, meanwhile, rose 5.97 percent to 38.85 mmt as of end-April from 36.66 mmt a year ago.