PPA upgrades forecast revenue growth to 7.5%

The Philippine Ports Authority (PPA) now expects revenue to grow 7.5 percent this year from an initial target of flat growth due to the favorable performance in the first five months.

PPA general manager Jay Daniel Santiago said in a statement yesterday the agency has revised the revenue target following the developments seen in the earlier part of the year.

Santiago said the new revenue growth target for the year is 7.5 percent.

“The intention is to set a more realistic revenue commitment taking into account the development in the economy during the first half of the year,” he said.

Earlier this year, PPA said revenues are expected to be at best flat compared to last year’s P14.23 billion due to the deteriorating foreign exchange rates, transfer of control of several high-yielding ports to local governments and freeport zones, as well as issues affecting the operations of the mining industry.

Latest available data showed revenue of the PPA rose 12 percent to P6.05 billion as of end-May from the previous year’s P5.42 billion.

PPA attributed the growth to heightened business activity at the ports and the impact of foreign exchange on dollar denominated tariff.

Last week, PPA said it is reviewing the forecast for volume of cargo handled by the ports, citing the favorable figures seen in the January to May period.

Santiago expects flat growth for volume of cargo handled by ports this year due to the volatility of the local currency, as well as expectations of slowdown in mining activity.

Last year, volume of cargo handled by the country’s ports reached 249.57 million metric tons (MT), 12 percent higher than the 223.67 million MT in 2015.

As of end-May, total cargo volume handled by the ports climbed nine percent to 103.56 million MT this year compared to 94.69 million MT in the same period last year.

Container traffic also went up 14 percent to 2.91 million twenty-foot equivalent units (TEUs) in the first five months from last year’s 2.56 million TEUs.