THE Philippine Ports Authority (PPA) said its net income in January increased on more containerized cargoes handled during the month, but its operating expenses kept on increasing.

In a report, PPA said its net income in January surged 40 percent to P117.11 million from the P83.66 million in the same month in 2007. Its profitability resulted from revenue which rose 10 percent to P461.72 million, PPA said.

“The increase in PPA’s revenue is attributable to the increase in the volume of containerized traffic and non-traditional revenue sources which neutralized the continuing devaluation of the dollar currency and its negative effect to [PPA’s] dollar-denominated transactions,” the state firm said.

The state firm’s earnings from fund management initiatives, such as time deposits and bond placements, dropped by almost 60 percent to P6.47 million from last year’s P15.42 million

PPA’s expenses increase to P344.6 million, or P7.77 million higher than last year, because of higher costs of dredging activities and rising cost of utilities and services.

Its non-operating expenses, which consisted of interest charges on foreign loans and corporate notes, decreased 28 percent to P16.43 million.

“The decrease was due to foreign exchange rate difference on foreign loans,” PPA said.

PPA’s total cargo throughput in January slipped due to the sluggish movement of foreign cargoes in Mindanao ports.

According to PPA, cargo throughput registered more than 6 percent drop compared with the level in the same period last year from 10.08 million metric tons (MMT) to 9.44 MMT. The volume of foreign cargoes retreated 13 percent.

Both export and imported cargoes declined 3 percent and 17 percent, respectively.

PPA partly attributed the decline to the preference of Mindanao shippers to use the Mindanao Container Terminal, which is owned by Phividec Industrial Authority, instead of PPA-owned Cagayan de Oro port.

“Bulk of importations and exportations were handled principally at the private port of Philippine Sinter Corp., now under Phividec,” PPA said.

PPA also attributed the decrease to the reduced exportation of rolled coil by Global Steel Philippines in Iligan and oil products of Petron Corp.’s refinery in Bataan.

DOLE agency’s abolition gains support

A group of former ship captains and an association of manning agencies have supported the proposal of the Department of Transportation and Communications (DOTC) to either abolish the Maritime Training Council (MTC) or pare down its powers in handling seafarers.

THE Philippine Ports Authority (PPA) said its net income in January increased on more containerized cargoes handled during the month, but its operating expenses kept on increasing.

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