A unit of San Miguel Corp (SMC), SMC Shipping and Lighterage Corp, has bought a majority stake in Keppel Cebu Shipyard Land, Inc (KCSLI) valued at P596.2 million.

In a disclosure to the Philippine Stock Exchange, Keppel Philippines Holdings (KPHL) said it had approved the sale of the entire 72% of KCSLI, which owns lands in Cebu, held by Goodsoil Marine Reality Inc (GMRI). KPHL owns 51% of GMRI.

KCSLI had already suspended shipbuilding operations since the second half of 2009 due to the global economic crisis.

SMC Shipping, 70% of which is owned by SMC, said the share buyout allows it to expand its business interests.

SMC Shipping provides cargo-handling, warehousing and shipping services to the San Miguel Group.

In the last three years, SMC Shipping invested P224.9 million to acquire three vessels — two brand-new and one retrofitted — that will transport raw materials for processed products of its parent firm, among others.

The company also recently acquired a second-hand 5,552.2-metric ton oil tanker worth P552.3 million for use in servicing the needs of oil refiner Petron Corp, another SMC subsidiary.

You May Also Like

Local lines seek audit of North Harbor equipment

THE Philippine Liner Shipping Association (PLSA) is asking the Philippine Ports Authority (PPA) to audit cargo-handling equipment provided by Manila North Harbour Port, Inc…

Container shipping forecast to see biggest hike in vessel operating costs

Vessel operating costs are expected to rise in both 2016 and 2017, with the container shipping sector seen logging the highest overall cost expansion…

PH Customs collects P30B in Jan, still short of goal

  The Philippine Bureau of Customs (BOC)’s revenue collection in January rose 21% year-on-year to P29.8 billion from P24.54 billion a year earlier, but…

Malaysian liners seek debt relief, Taiwan carriers see rosier 2014

Malaysia’s shipping industry is asking for relief funding, saying many local ship owners are going belly up due to heavy losses as a result…