MANILA, Philippines — Port operator Asian Terminals Inc. (ATI) will spend more than P5 billion this year to complete its infrastructure upgrades expanding the Manila and Batangas gateways.
In a regulatory filing, ATI said it would invest P5.2 billion for capital expenditures in 2023 in line with the growth strategy of the firm and spending commitment to the government.
ATI, in particular, will use bulk of the amount to finish the modernization of the Batangas passenger terminal, enhance existing port facilities, and acquire additional modern equipment.
Further, ATI will upgrade its information technology systems, as logistics players are shifting some of their operations online. The port operator also wants to explore its opportunities in growth segments like smart cargo storage spaces, and ancillary services.
Last year, ATI reported a near P3 billion difference between actual spending from its capex budget. ATI invested P2.8 billion mainly for the completion of the first phase of the Batangas passenger terminal and for the construction of the Cavite barge terminal scheduled for opening this year.
Initially, ATI allocated P5.43 billion for its capex in 2022, but failed to spend it all due to expansion delays.
The firm said the Pier 3 berth extension had to be deferred due to a change in design, which in turn suspended the acquisition of cargo handling equipment.
For 2023, ATI vowed to keep on improving the Manila and Batangas ports that it is handling by raising their capacity to support future market demand both in the cargo and passenger segments.
In 2022, ATI reported a 35 percent surge in its profit to P3.02 billion, from P2.24 billion in 2021. Revenue rose by 22 percent to P13.62 billion, while expenses grew by 14 percent to P6.18 billion.
All revenue segments improved last year, with stevedoring and arrastre accounting for 43 percent (P5.86 billion) and 41 percent (P5.53 billion), respectively, of ATI’s earnings. Similar to previous years, foreign transactions made up 95 percent, or P12.99 billion, of ATI’s revenue.
For 2022, the government saw its share in ATI’s earnings go up by 27 percent to P2.47 billion.
ATI maintains, runs and upgrades the Manila South Harbor, Port of Batangas, Inland Clearance Depot and Empty Container Depot in Laguna, Batangas Supply Base, Tanza Barge Terminal and the South Cotabato Integrated Port Services Inc.