STATE-OWNED Philippine Ports Authority (PPA) saw profits dropping slightly during the first three months of the year, owing to increased expenses on port infrastructure development.
Jay Daniel R. Santiago, the general manager of the agency, said the group’s net income for the first quarter of 2018 reached only P2.26 billion, a 4-percent decline from P2.36 billion a year prior due to high expenses on repair, maintenance, and dredging.
During the same comparative periods, total revenues grew by 9 percent to P3.78 billion, from P3.48 billion, thanks to increased collection on storage and layup, and a 26.6-percent growth in fund management income.
Its expenses, however, rose by a faster 37.03 percent to P1.52 billion from P1.11 billion.
“We have been injecting so much investment in our ports in support of the ‘Build, Build, Build’ program of the Duterte administration,” Santiago said.
Among the areas where ports are being improved include Puerto Princesa, Eastern Leyte, Ilocos Norte, Occidental Mindoro, Batangas and Ozamiz.
Locally funded port development projects being carried out include 45 projects in Luzon wherein seven have already been completed, 19 are ongoing and another 19 projects are for procurement; 19 for the Visayas where three have already been finished, eight are ongoing and eight are for procurement; and 40 for Mindanao where five have been delivered, 21 ongoing and 14 under procurement.
“Once completed, these projects will definitely boost our revenues and eventually our income all anchored on faster turnaround of vessels and cargoes in our ports,” Santiago added.
The agency is bullish that it can hit its target gross income of P16.18 billion for 2018, as some of the port development projects start to go online this year to accommodate the demand of the increasing economic activity this 2018.