Listed domestic carrier Lorenzo Shipping Corp.’s (LSC) target volume for 2015 is 90,000 twenty-equivalent units, up 5.2% from the 85,521 TEUs handled in 2014, LSC president Roberto Umali said in a text message to PortCalls.
The increase will come from “growth in volumes of our existing accounts following also the growth in the economy.”
For the first quarter of 2015, LSC reported a 70% drop in net income to P16.242 million from P30.638 million year-on-year due to drydocking of vessels that resulted in a decrease in cargo volume handled.
Revenue likewise slid 14.2% to P442.296 million from P515.579 million last year.
Direct costs declined 14.58% to P364.212 million from P426.391 million, parallel to the decrease in revenue.
Umali said three of the carrier’s vessels were dry-docked in the first quarter.
LSC is co-loading with NMC Container Lines, Inc., its sister company under the Magsaysay Group, in the meantime. Two of the three dry-docked vessels have already been re-deployed in the second quarter, Umali noted.
LSC on January 5 entered into a memorandum of agreement with a third party to acquire vessel MV Rio Para for US$3.6 million. On February 24, the carrier paid the deposit amounting to $720,000. Last year, LSC entered into a MOA with a third party to acquire MV Greetsiel, now MV Lorcon Bacolod.
As of December last year, Lorenzo owned a fleet of seven vessels—Lorcon Visayas, Lorcon Cebu, Lorcon Manila, Lorcon General Santos, Lorcon Cagayan De Oro, Lorcon Dumaguete, and Lorcon Bacolod—with capacities ranging from 200 TEUs to 426 TEUs. These are deployed in 10 major ports in country, which are Cebu, Davao, General Santos, Cotabato, Iloilo, Cagayan, Zamboanga, Dumaguete, Bacolod, and Manila.
The carrier also owns various equipment and facilities such as forklifts, toplifts, trucks, container yards, and warehouses in different parts of the country.
Looking ahead, Lorenzo plans to deepen its collaboration with service partners in order to offer full logistics services to customers.
Other plans include focusing on six key areas of growth, dubbed the “6 Ps,” namely, profit, people, portfolio, partner, planet, and productivity. The company aims to ensure that its plans and programs are balanced and well-rounded.
Under the 6 Ps strategy, the firm also intends to work on improving traditional areas of administration such as corporate governance, risk management, health, safety and environment, and social responsibility.
In 2014, LSC reported a net income of P43.798 million, a surge of 324.2% from P10.324 million in 2013. – Roumina Pablo
