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Philippines: Ukraine conflict may stall recovery in cargo flows
MANILA, Philippines — Uncertainties brought about by the ongoing war between Russia and Ukraine may affect an expected strong recovery in cargo flows, according to a top executive of ports operator International Container Terminal Services Inc. (ICTSI).
ICTSI said the war sets several uncertainties, with the potential to disrupt businesses and institutions and poses threat to world trade and economies in general.
It said the continuing effect of the situation on business and institutions could result in business continuity interference, trade disruptions, rising prices of basic commodities, including oil and power, among others.
“At this point it’s too early to determine what the war’s long term impact will be on trade,” ICTSI executive vice president Christian Gonzalez told The STAR.
“The uncertainty, and the oil, commodity, and energy price spikes, however, will definitely slow down what we had hoped to be very strong recovery as we slowly move into this next phase of the pandemic,” he said.
From a direct terminal perspective, Gonzalez said issues in the Black Sea would naturally affect ICTSI’s Georgian operation.
ICTSI’s Batumi International Container Terminal operates a container terminal and a ferry and dry bulk handling facility in the Port of Batumi in Georgia.
It has been active in the port of Batumi since 2007 when it acquired a 48-year lease to operate a multi-purpose terminal with exclusivity for container handling.
ICTSI is currently involved in 35 terminal operations, including concessions and port development projects in 20 countries worldwide.
The group, however, has no exposure to investments in Ukraine or Russia.
Last year, ICTSI saw consolidated volume handled rise by 10 percent year-on-year to 11.16 million twenty-foot equivalent units (TEUs), primarily due to volume growth and improvement in trade activities.
ICTSI is earmarking a capital expenditures budget of $330 million this year, double from 2021’s $165 million capex, as the company continues the expansion of its projects globally.
In the country, ICTSI’s flagship operation at the Port of Manila recently took delivery of eight new Mitsui hybrid rubber tired gantry cranes (RTG) for its container yard to further improve operational efficiency in light of growing volumes.
The Manila International Container Terminal started using hybrid RTGs in 2018 to reduce the terminal’s carbon footprint as it ramps up efforts to become the most sustainable terminal in the Philippines.
Source: https://www.philstar.com/business/2022/03/15/2167258/ukraine-conflict-may-stall-recovery-cargo-flows