Wednesday, May 21, 2025

Manila South Harbor’s capacity expands to 2M TEUs

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MANILA South Harbor, the country’s premier international trade gateway, has expanded its yard capacity to over 2 million twenty-foot equivalent units (TEUs) yearly following the recent completion of the Pier 3 Berth extension and the installation of two advanced ship-to-shore (STS) cranes.

The Department of Transportation and the Philippine Ports Authority (PPA) led the formal unveiling of the newly completed infrastructure on May 2, emphasizing its impact on accelerating and modernizing Philippine trade.

Asian Terminals Inc. (ATI), the operator of Manila South Harbor, and its global partner DP World’s P5.7 billion private sector investment involved Pier 3’s berth extension to over 600 meters, installation of the two cranes, and new eco-friendly landside equipment.

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Largest cranes in PH

PPA General Manager Jay Santiago highlighted the project’s significance: “These are the largest cranes in the Philippines, and we’re proud to say they are fully electric—environmentally responsible.”

“With these new cranes, we expect to increase Manila South Harbor’s capacity from 1.4 million to over 2 million TEUs annually. That’s an additional 600,000 TEUs—faster and more efficient cargo handling,” he added.

With the upgrade, the PPA expects faster processing and shorter ship queuing time at Manila South Harbor, ultimately boosting trade flow and efficiency.

In a statement, DOTr Secretary Vince Dizon commended Santiago and his team “for really pushing the private sector partners to provide these world-class facilities not only for our passengers but to really improve our supply chain.”

DP World Group’s Chairman and CEO Sultan Ahmed bin Sulayem reaffirmed the Dubai-based company’s commitment to the Philippines, saying they consider the country a major port and logistics hub.

‘We see opportunities’

“A lot of people see problems. We see opportunities, and we believe that the Philippines will be able to take advantage of whatever happens in the world today,” he added. “Even with the height of the customs duty, the Philippines still has the lowest among all the Asian countries in its exports to the United States.”

Santiago said the Philippines’ trade outlook remains stable, and having one of the lowest tariffs imposed by the US among Southeast Asian countries “could make us a more attractive trading partner.”

Meanwhile, ATI has raised its capital expenditure by 40 percent this year to P4.2 billion, up from P3 billion in the previous year, in line with its ongoing expansion strategy and investment commitments with port authorities, according to its filing with the Philippine Stock Exchange on April 25.

ATI said the capital investment this year will primarily support the expansion of seaside and landside facilities, acquisition of green equipment to boost its carbon reduction program, gate automation and IT systems, and expansion of integrated logistics solutions leveraged on its port infrastructure.

In 2024, ATI invested a total of P3 billion, completing the Batangas Passenger Terminal, which is now the country’s biggest, busiest, and smartest terminal facility. This also paved the way for the operationalization of the Tanza Container Barge Terminal project, which optimizes the flow of containers from Manila to Cavite.

Last year, ATI’s revenue rose by 7.1 percent to P16.5 billion, up from P15.45 billion in 2023. Revenue from South Harbor (SH) international containerized cargo grew by 13.7 percent, driven by higher container volumes and a tariff increase.

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