By James A. Loyola
Chelsea Logistics Holdings Corporation (CLC) of Davao tycoon Dennis A. Uy has tapped Kegoya Dock Co., Ltd. in Japan for the construction of one brand-new RORO-Passenger Ship.
In a disclosure to the Philippine Stock Exchange, the firm said it has signed a contract with Kegoya Dock in pursuit of CLC’s goal of becoming the country’s prime mover of vital goods, cargo and people.
“This ship is specifically designed for Philippine waters taking into consideration the local sea condition and consumer demand,” CLC said.
Under the Contract with Kegoya Dock, CLC also has the option for an additional three units with respective delivery dates in 2019 to 2020, according to CLC President and CEO Chryss Alfonsus V. Damuy.
He said the “newly built” ships will modernize the Company’s fleet and will enhance safety and reliability for better customer experience.
Shipping and Logistics business is a long-term business as it takes 2 years to 3 years to acquire new ships.
However, once these new vessels are put into operation, they will deliver better cash flows for the Company as the brand-new ships have very minimal downtime and very low maintenance costs, noted Damuy.
“We are conscious of our direction and our deliverables to our shareholders, thus we are fast-tracking our fleet expansion which is aligned with the Company’s plans as disclosed during the initial public offering (IPO) of CLC last August 2017,” he said.
Damuy added that, “shipping and logistics is not a short-term business as the Company has to make substantial capex not limited to acquisition of ships and equipment, before it can start delivering the returns to its shareholders.”
In late 2017, CLC’s subsidiary Trans-Asia Shipping Lines acquired a cargo vessel which can handle 700 twenty-foot equivalent units (TEUS). Trans-Asia will be operating this vessel by first quarter 2018.
Also in 2017, after the IPO, CLC through its wholly-owned subsidiary, PNX-Chelsea Shipping acquired three vessels. These acquisitions will further boost the profitability of the Company as these vessels are already in commercial operation.
Further, Fortis Tugs Corporation one of the Companies in the Chelsea Shipping Group, has acquired new tugboats which will be used to maneuver tankers and other larger vessels in harbors. The purchased tugboats are expected to arrive first quarter 2018 to expand Fortis Tugs operations nationwide.
“The newly acquired vessels and tugs, and the newly built vessels which are soon to be delivered, will bring Chelsea Logistics another step closer to fulfilling its commitment to growth in order to realize more value for our stakeholders, from the investors to the consumers,” Damuy said.