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ASIAN
Terminals Inc. (ATI), the operator of the Manila South
Harbor, reported a drop in its income in 2007 as the
peso continued to rise against the US dollar and
domestic activity in its flagship terminal incurred a
double-digit drop.
In a
report, the company said it had a net income of P722.8
million last year, or more than 7-percent lower than the
P782.6 million that it made in 2006. This year, the
company said that it has allotted to spend P975 million,
most of which will go for the planned cargo-handling
equipment and civil works for the expansion of South
Harbor.
“Funding
is expected to be sourced from internal funds and new
borrowings,” the company said, but did not give further
details on the mix of its sources.
At the
moment, ATI still has to spend about $150 million for
the first contract with the Philippine Ports Authority (PPA)
for the operation of the South Harbor, which would
expire on 2013.
ATI,
which also operates a grain terminal in Mariveles and
temporarily both the domestic and international
terminals of Batangas Port, said that for 2007 it had
revenues of P4.1 billion, or about 2-percent lower than
the previous year.
“Philippine peso on US dollar-denominated tariff
amounted to about P225 million,” the company said.
In ports
operations, revenues from South Harbor international
container operations grew by 3 percent, but the strength
of the peso has reduced its income.
Revenues
from noncontainer operations, or the bulk cargoes,
increased by 34 percent on account of the 18-percent
volume growth and the favorable commodity mix.
In
domestic-terminal operations, revenues declined by 32
percent as container volume and the number of passengers
were down by 40 percent and 22 percent, respectively,
due to reduced capacity of SuperFerry, the lone user of
the Eva Macapagal Super Terminal.
On
October 19, 2007, ATI promised to the PPA, the owner of
the facilities, to invest $300.5 million from 2009 to
2022, for the rehabilitation, development and expansion
of the South Harbor facilities.
This,
after the government extended its cargo-handling
contract to run the facility, the second-largest in
Port of
Manila.
The
commitment is dependent on container volume being
subject to joint review every two years, or as often as
necessary as mutually agreed, to ensure that its earlier
projections conform with actual growth levels.
The PPA,
on the other hand, cannot demand that ATI roll out the
necessary equipment since the state firm itself has
reneged on some of its promises in the first contract.
These
include the
Engineering
Island
in Baseco that should have been used by ATI to dock some
of vessels during stormy weather, but was only awarded
by the government to the informal settlers. |
