Philippine ports eye sustained growth in cargo, passenger volumes

The Philippine Ports Authority (PPA) expects continued growth in cargo and passenger volume this year as demand is seen to remain strong.

“The PPA has an optimistic outlook for the year 2025 with growth expected across various segments of the domestic shipping and sea freight market sector,” PPA General Manager Jay Daniel R. Santiago said in a Viber message to BusinessWorld.

Robust consumer demand is expected to drive growth in sea freight and shipping services despite domestic and external uncertainties, he added.

For this year, PPA projects cargo throughput to reach 301.47 million metric tons (MT), up 4.5% from last year’s target of 288.56 million MT.

“This corresponds to the steady and stabilizing growth in the global economy which translates into sustained growth in the country,” Mr. Santiago said.

According to PPA’s latest data, cargo throughput climbed by 7.3% to 218.28 million MT in January to September 2024 from 203.51 million MT a year ago.

Of the total, foreign cargo accounted for 64% or 140.21 million MT, while domestic cargo made up 36% or 78.07 million MT.

In the nine months to September, the PPA logged imports of 80.38 million MT, with Luzon ports accounting for more than half or 43.15 million MT.

Exports reached 59.83 million MT in the period ending September, with 28.9 million MT passing through Northern Mindanao ports.

In the first nine months, the PPA said it serviced 5.72 million twenty-foot equivalent units (TEUs) of container cargo, up 3.5% from the same period in 2023. The bulk or 3.74 million TEUs came from foreign containers, while domestic containers made up 1.97 million TEUs.

Meanwhile, Mr. Santiago said PPA expects passenger traffic to grow by 9.5% to 85.41 million by the end of 2025 from the 78-million target in 2024.

In the first nine months of 2024, passenger volume rose 10.3% to 60.47 million, PPA’s recent data showed.

“PPA for its part has been implementing and accelerating its infrastructure projects for cruise terminals to accommodate the expected cruise arrivals,” Mr. Santiago said.

The PPA is planning to enhance port facilities, including the development of dedicated ports to bolster cruise tourism.

In the next four years, the PPA has set aside about PHP 16 billion to fund infrastructure projects, including 14 flagship projects.

Earlier this week, PPA issued a bid invitation to build a PHP 706.05-million cruise ship port in Puerto Galera, Oriental Mindoro.

“Government initiatives promoting domestic travel and improvements in passenger facilities at the ports will continue to bolster the upward trend in passenger footprints,” Mr. Santiago said.

Meanwhile, the operations of shipping and port operators will be heavily influenced by global trade volumes and volatility in fuel costs, according to stock market analyst Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc.

“The shipping and port operation sectors are inherently influenced by global trade volumes, fuel costs, geopolitical stability and regulatory changes. These variables add volatility to their earnings,” he said in a Viber message.

He said listed port operator International Container Terminal Services, Inc. (ICTSI) would likely benefit from infrastructure developments in the country, while Chelsea Logistics and Infrastructure Holdings Corp. might see growth due to the rebound of domestic and regional transport.

“ICTSI, being a global player, is likely to maintain stable growth by leveraging its international exposure, which diversifies its revenue streams and mitigates domestic risks,” Mr. Arce said. — Ashley Erika O. Jose