PPA expects to beat cargo volume, passenger traffic targets for 2025

THE PHILIPPINE Ports Authority (PPA) said cargo and passenger traffic this year have been stronger than expected, with targets expected to be exceeded when demand peaks in the fourth quarter.

“PPA remains positive that it will meet its yearend targets. If current trajectories hold, the PPA is confident that it will exceed its target for the year,” the PPA told BusinessWorld via Viber.

The port regulator is targeting cargo throughput of 301.47 million metric tons (MT), while container volume is anticipated to top eight million twenty-foot equivalent units (TEUs) by year’s end.

“The cargo outlook remains favorable, supported by robust demand for construction materials (amid) ongoing infrastructure projects. Growth in mining activities and rising exports of raw minerals are expected to sustain consistent bulk shipment volumes throughout the year,” the PPA said.

For the third quarter, the PPA tallied 83.34 million metric tons of cargo, up 4.7% from a year earlier.

Container traffic for the three months to September increased 11.11% to 2.2 million TEUs, while passenger volume hit 17.41 million, down 7.25% from a year earlier.

Container traffic growth will be driven by efficiency enhancements and modernization, the PPA said, with public-private partnerships and the continued expansion of domestic shipping fleets key drivers of sustained container volume growth across the major ports.

For this year, PPA expects passenger traffic to hit 85.41 million, up 8.37%.

“With the Christmas season approaching, passenger volumes are expected to swell as travelers head to their home provinces. Accordingly, the PPA ports are fully prepared to accommodate this anticipated surge,” the PPA said.

Despite the decline in the third quarter passenger numbers, the PPA remains optimistic about hitting 2025 targets, with domestic tourism expected to pick up towards the end of the year, it said.

“Strong domestic tourism demand, coupled with the sustained performance of the cruise sector, provides a solid foundation for continued growth towards the end of 2025,” he said.

In the nine months to September, the PPA tallied 231.57 million metric tons of bulk cargo volume, up 6.18%, while container traffic rose 11.54% to 6.38 million TEUs.

Preliminary PPA data showed that passenger volume in the first nine months rose 4.27% to 63.06 million.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said port traffic usually picks up in the fourth quarter due to the seasonal increase in business activity towards the end of the year.

“Passenger volumes also peak, as more Filipinos go to provinces for holidays,” he said.

Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said listed port operators are headed for a strong fourth quarter,

“If trends hold, 2025 could be a strong year for Philippine-listed port operators. Additional growth over coming years will depend on how well they capture expanding trade flows, manage costs, and strategically deploy new capacity,” Mr. Arce said.

For the first nine months, International Container Services, Inc. (ICTSI) attributable net income increased 18.81% to $751.56 million.

Asian Terminals, Inc. (ATI) logged attributable net income of P4.26 billion, up 34.38% from a year earlier.

“The environment appears generally supportive: global trade is holding up, and domestic maritime commerce appears to be recovering from earlier headwinds. That said, downside risks remain — particularly global demand softness or currency volatility — which could hinder volume growth or translate to weaker earnings if not managed carefully,” Mr. Arce said. — Ashley Erika O. Jose