PPA to remit ₧3.54B to national govt

The Philippine Ports Authority (PPA) will remit P3.54 billion to the national government to help it in its Covid-19 response initiatives, the chief of the port regulatory body said on Thursday.

Jay Daniel R. Santiago, the general manager of the PPA, said the amount represents 56 percent of the stateowned agency’s net income, about the 50-percent minimum dividend remittance as mandated by law.

“We anticipate that the fight against this global health emergency is a long and winding road. As a response, we are increasing our dividend to P3.541 billion representing 56 percent of PPA’S 2020 net income to help the government in its fight against Covid-19,” he said.

For his part, Transportation Secretary Arthur Tugade said the dividend remittance will enable the government to procure vaccines, while also providing assistance to vulnerable sectors.

“The decision of the PPA to increase the amount of its dividend remittance to the Bureau of the Treasury is a shining example of Bayanihan spirit. Dividend remittances from government agencies help sustain the government’s efforts to contain the spread of Covid-19,” he said.

Last year, the port regulator recorded a 16-percent drop in profits to P6.14 billion from the year prior, but the figure is above its target of P5.56 billion.

Over the past few years, the PPA has always been among the topperforming transport sub-agencies, booking growth rates beyond its targets. The pandemic has slowed this down, and the port authority forecasts that traffic in Philippine ports will not return to pre-pandemic levels through 2023.

however, the group forecasts “conservatively optimistic” growth rates for cargo and passenger volumes from 2021 to 2023, as the effects of pandemic are expected to drag on in the next three years.

For cargo, the port authority expects volumes to increase to 246.70 million metric tons (MMT) in 2021, to 249.17 MMT the following year, and 256.29 MMT by 2023.

This is still 4-percent lower than the pre-pandemic cargo volume of 266.42 MMT in 2019, but is 11-percent higher than the 2020 cargo volume.

For passenger traffic, the port authority expects an almost flattish increase in sea travel through 2023.

From 24.79 million passengers in 2020, the port regulator expects a very minimal increase to 25.84 million passengers this year, 26.10 million by next year, and 26.79 million in 2023.