PHILIPPINE company ATS Consolidated, Inc (ATSCI), formerly Aboitiz Transport System Corp, is banking on its cargo, supply chain and value-added services for growth this year.
In an interview at the sidelines of the company’s stockholders’ meeting last week in Manila, newly installed ATSCI president Ramon Villordon said the logistics business continues to be strong particularly with vessel capacity back to normal. Last year, a few vessels were sidelined due to drydocking and maintenance.
“Growth for the company is confined to short-haul for passage and our value-added group or our logistics arm,” Villordon, formerly president of Cebu Ferries, said.
“We are diversifying more to our value-added group and we expect to increase our position in the industry by reaching out to more markets this year,” he added.
“The airline industry continues to put pressure on our long-haul passage market that is why we are focusing more on the cargo industry.”
ATSCI has a cargo market share of 70%. Of this, 53% is accounted for by the value-added group, including local logistics arm 2GO and partnership with Kerry Logistics.
For 2011, the company will revisit income forecast due to volatile fuel prices.
Villordon said fuel expenses, now eating up 45% of total expenditures, are a major drag on revenue and margins.
Still, group-wide revenue forecast has been jacked by P2.5 billion to P18 billion from the earlier P15.5 billion.
Moving forward, ATSCI will sell up to 12% of new shares before November this year to comply with public float requirements of the Philippine Stock Exchange. This after Negros Navigation acquired 98.2% of ATSCI’s predecessor last year.
