THE transport group of the Aboitiz company reported loss of income for the first quarter of this year as a result of the continuous rise of fuel prices and stiff competition from the airline industry.
During the annual stockholders’ meeting last Monday, chief operating officer Erramon Aboitiz of the Aboitiz Equity Ventures Inc. (AEV) said the Aboitiz Transport System Corp (ATS) incurred a loss of P22 million for the quarter.
He added that during the same period last year, ATS also posted a net loss of P20 million.
In 2005, ATS incurred a loss of P126 million due to costly fuel but AEV president Jon Ramon Aboitiz said during the same
stockholders’ meeting that the company was already able to recover from the 2005 loss after it sold off assets in 2006 and 2007.
“But (the company) usually don’t make money on the first quarter since it is low passage season,” Jon Ramon told reporters in a press conference.
Erramon, in his report, said that the company has already sold off three ships —Superferries 15, 16 and 17—which generated P2.4 billion for the company. The gain from the sale was used to pay a P1.8-billion debt last year.
The sale of the three ships and the reduction of passenger capacity are considered by Jon Ramon as “right-sizing” the ATS fleet.
Excess passage capacity of ATS vessels were also converted into cargo and Roro (roll-on, roll-off) spaces to accommodate the increasing demand for these kinds of services.
Roro growth
2Go’s Roro business last year, according to Jon Ramon’s annual stockholder’s report, grew by over 60 percent in both revenue and volume compared to its performance in 2006.
Aside from Roro, the transport group —as part of its business strategy—will focus on supply chain management and logistics.
Jon Ramon said ATS will also make use of a supply chain software as a service it can offer to its customers.
ATS also partnered with the AP Moller Maersk Group, through the joint-venture company MCC Transport Philippines Inc. (MCCP), to beef up its freight operations.
MCCP is currently operating a 600-TEU (twenty feet equivalent units) capacity freight service.
Jon Ramon also said that operations for the passenger ships will continue despite more inter-island travelers opting to travel by air as it is faster.
“But if you compare the price, traveling by boat is still cheaper,” said Erramon.
Instead of raising boat fares, Jon Ramon said the company will continue to study how it can reduce operating costs and in what areas ATS can save.
Recently, the company also bought two new catamarans to add up to its fast craft fleet. The fast craft were from Portugal and are priced at $3 million each.
The new fast craft will replace the old vessels that plied the Tagbilaran and Ormoc routes, which were transferred to the Calapan, Batangas operation.
“These are also faster (vessels),” said Jon Ramon.
Currently, Supercat does not have any plans to open new inter-island routes. (DME)
