Newly listed Philippine company Chelsea Logistics Holdings Corp. (CLC) is on the lookout for opportunities to go into port development and acquire other logistics companies as it seeks to expand its maritime portfolio.
CLC chairman Dennis Uy said the company “will look if there is an opportunity to expand into ports since we are a major user.”
CLC engages in the shipping business through its two wholly owned subsidiaries. Chelsea Shipping Corp. carries petroleum products and general cargo, while Trans-Asia Shipping Lines, Inc. handles passenger and cargo transport.
Last August 8, Davao-based CLC debuted on the Philippine stock market with an initial public offering price of P10.68 each, raising P5.84 billion from the IPO.
Uy said the company is “looking around if there are a lot of gaps.”
“Some of the expansion will be carried (out) by government through ODA (official development assistance) programs so if we have a chance to be part of PPPs (public private partnerships), we will look at opportunities,” Uy said.
He noted that CLC is also looking at the modernization project for Davao-Sasa port.
Aside from ports, the firm remains keen to acquire other shipping and logistics companies to expand its market reach as it embarks on a fleet expansion program. About P3.20 billion of the net proceeds from the IPO are earmarked for this.
Last March, CLC bought a 28.15% indirect economic interest in integrated transport solutions provider 2GO Group, Inc. and then took over its management. SM Investments Corporation completed its purchase of a 34.5% stake in 2GO’s parent firm, Negros Navigation, later that month.
Uy said CLC intends to increase its stake in 2GO to about 32% to 39.85%, as the latter will complement its operations.
CLC has also earmarked about P1.78 billion from the IPO proceeds for fleet expansion, including acquiring a medium-range tanker that can carry 45 million to 55 million liters of bunker fuel across international waters.
The company has likewise set aside P245 million for acquiring or upgrading ports, port facilities, containers, machineries, and equipment to support its core business.
The remaining P275 million will be used for general corporate purposes, including paying for dry-docking expenses, trade payables, and the company’s working capital requirements.
As of March, CLC has 11 tankers, eight tugboats, seven RoPax vessels (roll-on, roll-off vessels with passengers and cargo), four barges, and three cargo vessels. 2GO has a separate fleet of 16 RoPax and eight cargo vessels.
Image courtesy of khunaspix at FreeDigitalPhotos.net
