ABOITIZ Transport System (ATS), the country’s largest domestic vessel operator, is concentrating expansion on its logistics arm 2GO as it expects lackluster performance from its other business ventures.
“This year, our expansion is centered on our supply chain and value-added business to become a total transport solutions provider,” chief executive officer Enrique Aboitiz said at the sidelines of ATS’ recent stockholders’ meeting.
Part of this program is ATS’ partnership with United Parcel Service and the full integration of food importer and distributor ScanAsia, acquired last year, into its supply chain business.
ATS is also looking at entering either into a code- or container yard-sharing agreement with Negros Navigation (Nenaco). Nenaco nearly became a sister company of ATS when Nenaco investor, Kuwaiti-based KGLI-NM, tried to buy the Aboitiz firm. The deal fell through due to the credit squeeze.
Aboitiz said ATS is integrating other logistics services such as customs brokerage, warehousing, liquid transport and container yard management to further support its freight business, which brought in the bulk of business last year.
This year, ATS is setting aside P1.4 billion in capital expenditure to finance drydocking and other fleet maintenance expenses. The amount includes funds for acquisition of Cebu Ferry 2 delivered last April.
