THE Board of Investments (BOI) is extending incentives to the shipping arm of San Miguel Corp (SMC).
SMC Shipping and Lighterage Corp (SMCSLC) — owned 70% by SMC and 30% by Kadiwa Transport Corp ¬— is investing P613.8 million to operate the SL Maple, a 3,999-gross ton oil tanker.
The vessel will be used to haul petroleum products for Petron Corp, another subsidiary of SMC, starting next month. Its mother port will be Santo Tomas, La Union.
The vessel was built in Japan in 2008 and is owned by El Magnifico Shipping Corp of Panama.
The acquisition is SMCSLC’s seventh project applied with BOI for incentive purposes.
The project, which involves a five-year lease with an option to buy the vessel, will employ 18 people.
Water transportation is among business activities eligible for BOI incentives such as income tax holidays and duty-free equipment importation under the 2010 Investment Priorities Plan.
