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PORT
operator Asian Terminals Inc. (ATI) said higher imports
may offset the losses it incurred from the peso’s
appreciation to the dollar, as the company is exploring
other business possibilities other than its core
operation.
Eusebio
H. Tanco, the company’s president, said at the sidelines
of its stockholders’ meeting on Thursday that the peso’s
appreciation is just one of a shipping firm’s and
terminal operator’s challenge since freight rates are
linked to the US dollar.
“If you
look at the potentials, now it is cheaper to import for
us. The exchange rate is only one facet of it; we should
look at the growth of importation. Look at the macro
point of view. More imports will be coming and that
means more revenues and more throughput for us,” Tanco
said.
The
company did not give its revenue forecast for the year.
The
company earlier 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, as a result of the
strong peso exchange against the dollar.
This
year the company said it has allotted P975 million for
spending, of which some 90 percent will go to 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 mix of its sources.
ATI also
said that it is diversifying its asset portfolio, after
its defeats in various port biddings in the country, and
hinted it may form a partnership with its minority owner
Dubai Ports World to bid for various ports available for
privatization abroad.
“We may
even look at foreign ports with our partner Dubai Ports
World. Anything that is interesting for us, with our
partner, we may even explore foreign ports,” Tanco said,
adding they are still exploring the options.
ATI
chairman Bryan Smith explained that they look at
opportunities as they come, but the main aim was to grow
the company that has seen little growth in the past
years aside from its flagship terminal, Manila South
Harbor.
“We’re
not a company which wants to continue to expand and grow
and have a bigger footprint here in the
Philippines
and elsewhere. We’re constantly looking at the business
opportunities, evaluating them if they make sense to
us,” Smith said.
In
recent months, ATI has been limited in its expansion
operations.
It was
recently disqualified by the bids and awards committee
of the Philippine Ports Authority (PPA) to bid for the
privatization of domestic Manila North Harbor. The
privatization process is still undergoing.
Earlier
last month, ATI was out-bidded by International
Container Terminal Services Inc. for the cargo-handling
operations of Mindanao Container Terminal, one of the
promising facilities in southern Philippines.
ATI,
however, continues to run the international terminal of
Batangas Port, for which PPA gave it the temporary
permit to operate while the state firm is busy facing a
court case on the land appropriation of the port. ATI is
also the cargo handler of the domestic port. |
