Listed port operator Asian Terminals, Inc. (ATI) and its unit ATI Batangas, Inc. (ATIBI) have filed applications with the Philippine Ports Authority (PPA) to increase cargo handling tariffs at the Phase I and Phase II terminals of the Port of Batangas.
“The PPA will conduct a virtual public hearing on the petitions of ATI and ATIBI for upward adjustment of the cargo handling tariffs at Phase I and Phase II, Port of Batangas, respectively via Microsoft Teams” on May 7, the PPA said in a notice dated April 20.
In a copy of their sworn filing published on the PPA website, ATI and its Batangas unit, which hold the contract to operate, manage, maintain, and develop the Phase I of the Port of Batangas, said they are allowed to request rate adjustments every three years.
Citing a PPA board resolution, ATI and ATIBI said the rate of adjustment will be computed using a multiplier of 1.1523 on the current tariff.
The same formula will be used for Phase II’s rate adjustment.
The last increase at Phase I was in May 2017.
ATI, which holds a contract to operate, manage, maintain, develop, and promote the Container Terminal A-1 Phase II of the Port of Batangas, said its last increase was in November 2017.
The PPA issued Memorandum Circular No. 03-2017 on April 25, 2017, allowing an increase of 11% in the cargo handling rate in addition to the 10% provisional increase granted in 2013 at Phase I of the Port of Batangas.
For Phase II, the PPA issued Memorandum Circular No. 08-2017 on Oct. 26, 2017, allowing a cargo handling rate increase of 9% for foreign containerized cargoes.
ATI’s attributable net profit in 2020 fell 20.4% to P2.95 billion. Revenue from operations declined 17.8% to P10.96 billion.
ATI has said it is spending around P6 billion this year, mainly to acquire new cargo handling equipment and on some logistics infrastructure projects in Luzon.
Source: Business World