Keeping PHL moving through port developments

As a nation of more than 7,600 islands, the Philippines relies heavily on maritime trade. Ports, serving as the main link between regions and the wider global economy, continue to see a surge in ship traffic, cargo volume, and cruise passenger arrivals.

Data from the Philippine Ports Authority (PPA) show that ship calls rose by 3.11% in the first quarter of 2025, reaching 153,867 compared to 149,224 during the same period last year.

Ports across the country handled 65.77 million metric tons (MMT) of cargo throughput, up from 59.52 MMT during the same period last year. Most of the movement came from domestic cargo, which totaled 28.28 MMT. Imports followed at 26.77 MMT, while exports reached 10.71 MMT.

Beyond national trade, ports have a direct impact on consumers. When port operations face congestion or inefficiencies, it often results in increased shipping expenses, which may translate into higher prices of basic goods. On the other hand, efficient port systems help keep transportation costs manageable, ensuring goods reach markets promptly and affordably. In this regard, port performance affects both large-scale business operations and everyday household consumption.

The Department of Trade and Industry (DTI) said more than 90% of the country’s trade by volume passes through ports. The PPA said investment in port upgrades and intermodal transport links remains a priority to strengthen not only commercial shipping activities but also the broader supply chain.

Strengthening port infrastructure

The government, through the PPA and its related agencies, is investing in port infrastructure to meet the growing demands of domestic and international trade. Backed by a P5.23-billion allocation for 2024, the agency has implemented 81 locally funded projects aimed at developing, modernizing, and maintaining key ports across the archipelago.

According to data from the PPA, 33 projects are under way in Luzon, 26 in the Visayas, and 22 in Mindanao. These projects involve the expansion of existing facilities, construction of new terminals, dredging operations, and the establishment of disaster-resilient port structures. The infrastructure enhancements are designed to accommodate growing shipping demands as the country seeks to attract more trade and tourism activity.

15 of the projects have already been completed, including six in Luzon, two in Visayas, and seven in Mindanao. The remaining 66 projects are in various stages of development, with 27 in Luzon, 24 in Visayas, and 15 in Mindanao expected to continue throughout the year.

Photo from Philippine Ports Authority

In Luzon, several major accomplishments have been reported. A new wharf and port operational area in San Juan, Batangas, valued at P145.9 million, was completed in December. In Oriental Mindoro, the port of Puerto Galera underwent a P147.6-million expansion. The ports of Mauban and Plaridel-Siain in Quezon province were also upgraded to improve operational capacity.

Pampanga marked the completion of the P89.5-million Philippine Coast Guard-PPA K9 Academy in July, which enhances maritime security training. In June, Ilocos Norte finalized several support facilities in Currimao, including a law enforcement building, staff quarters, and a new gate, all amounting to P222.6 million.

In the Visayas region, significant milestones included the P215.1-million development of the Alegria Port in Buruanga, Aklan. The Catagbacan Port in Loon, Bohol, underwent a P693.5-million upgrade that included the construction of a wharf and a Roll-on, Roll-off (RoRo) ramp.

Construction of wharf and port operational area with continuous RoRo ramp in Catagbacan Port — Photo from Philippine Ports Authority

Infrastructure development remains on track in Mindanao. A new operational area was completed at the Opol Port in Misamis Oriental. The general cargo berth of Sasa Port in Davao received a P902-million upgrade, increasing its capacity and efficiency. In Surigao del Norte and Surigao del Sur, construction efforts included a cruise ship port in Jubang, Dapa, and the rehabilitation of the Lipata port facility. Both are expected to boost local tourism and trade activity.

Apart from new construction, the PPA is also focusing on the ongoing maintenance and repair of existing port structures. For 2024, the agency scheduled 488 repair and maintenance activities nationwide. By the end of the reporting period, it completed 21 major repairs and 301 regular maintenance operations to ensure that the country’s maritime infrastructure remains in optimal condition.

Dredging operations were also conducted nationwide with a P1.2-billion allocation. The agency removed more than 3.63 million cubic meters of silt to ensure safe and efficient navigation. Priority dredging areas included the Manila International Container Terminal, North Harbor, Cagayan de Oro, and Iloilo clusters, as well as ports in Zamboanga, Tacloban, Surigao, and Siquijor.

The large-scale investments in maritime infrastructure coincides with a successful financial year for the PPA. In 2024, the agency recorded its highest-ever annual revenue, collecting P27.3 billion. The Department of Finance (DoF) confirmed that the PPA ranked among the top four contributors out of more than 50 government-owned and -controlled corporations, and remitted P5.20 billion in dividends to the National Treasury.

Construction of port operational area in Opol Port — Photo from Philippine Ports Authority

Enhancing travel access

The PPA continues to push for improved inter-island trade and passenger movement through the development of RoRo terminals. These investments support the Strong Republic Nautical Highway, a nationwide network of RoRo ports and roads that enables vehicles to travel across islands with ease.

Recently, the agency has completed or is working on more than 30 RoRo terminals in key provinces experiencing growing trade activity. These include Oriental Mindoro, Masbate, Davao del Sur, and Zamboanga del Norte. The ongoing port development aims to make domestic transport more affordable, faster, and more efficient — especially for small-scale farmers, microentrepreneurs, and regular commuters.

According to PPA officials, the RoRo network significantly shortens travel time and reduces shipping costs. It allows vehicles to cross islands without unloading cargo, minimizing delays and preserving the quality of transported goods. In Oriental Mindoro, for example, local farmers can now send fresh produce directly to Metro Manila via the Batangas-Calapan route. Previously, this required multiple transfers and longer travel hours, which increased freight costs and caused product spoilage.

Recognizing the growing number of passengers and freight using these routes, the PPA is prioritizing the development of ports located along high-demand corridors. Among these are the ports in Matnog, Sorsogon; Dapitan, Zamboanga del Norte; and Allen, Northern Samar.

Attracting private investments

The PPA has confirmed it is moving forward with the privatization of 12 ports located in Luzon and Mindanao, aiming to increase private sector participation in the development and operation of the country’s port infrastructure.

PPA General Manager Jay Daniel R. Santiago announced that feasibility studies have been completed for three Mindanao-based ports. These studies include indicative financial models required under the newly enacted Public-Private Partnership Code and its implementing rules and regulations.

The remaining nine ports in Luzon are undergoing similar assessments. The finalization of feasibility studies and the launch of corresponding bidding processes for these Luzon ports are expected before the end of the year.

The decision to pursue privatization stems from the agency’s recognition of its financial limitations and the growing demand for improved logistics and port services. The PPA emphasized that involving private entities would not only inject necessary capital into the sector but also introduce modern technologies and professional management systems that can improve operational efficiency.

“We are accelerating these initiatives mainly to support the national policy on PPPs as a catalyst for investments, jobs and more competitive logistics across the country,” Mr. Santiago said. — Mhicole A. Moral