Sunday, February 04, 2007
Shipping firm to prioritize supply chain, logistics services: exec
THE country's leading shipping company will focus on supply chain and logistics services for this year, a ranking official of the Aboitiz Transport System (ATS) said.
2GO president Sabin Aboitiz said they are set to phase out 100 container ships this year until 2011 and replace it by RO-RO vessels.
2GO is the integrated logistics solutions provider under the ATS, the transport and logistics company of Aboitiz & Company (ACO) and owned by publicly listed arm, Aboitiz Equity Ventures (AEV).
"The RO-RO service eliminates a lot of the middle steps in the supply chain, no more need for many warehouses," Aboitiz noted adding that "client can send and receive cargo as if it was running on dry land, because the truck runs on the road, gets on the boat, rolls off at the port, then drives to the end destination.
Recalling the time when they launched the Road RO-RO Terminal System (RRTS) in 2004, Sabin said they were able to double their target for this year.
2GO represents four units of its freight business, namely, Express, Freight, Solutions, and Logistics.
While admitting that the RO-RO ships are more expensive than containers ships, Sabin said they prefer to shift from containers to RO-RO because "they are faster, more efficient, and can make three trips a week compared to two trips a week for container ships."
Moreover, Sabin said it only takes two hours to clear a RO-RO ship in the port than to unload containers, which took them 14 to 16 hours using a crane. "The trucks inside just have to roll in and roll out," he said.
2GO vice president Mike Camahort, for his part, said transporting the goods to their client only takes three days with RO-RO than the six days using container vessels.
"In terms of time, it takes an average of six days using a container ship and just an average of three days via RO-RO, with less handling and waiting," said Camahort adding that all their trucks have bar codes and clients just have to log on their website to check on their cargos.
Aside from the removal of the container ships, 2GO sales manager Jerome Santos said they are also set to introduce another product called as the PLUS pulled by the 2GO truck.
Santos said they have at least 11 units of the PLUS at present and they are set to purchase another 50 more this year.
Among the clients of 2GO includes Jollibee, Nestle, and URC and are now looking at 13 new big accounts for this year. (MSN/Sunnex)For more Philippine news, visit Sun.Star General Santos. (February 4, 2007 issue)
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