LOCAL shipping line Negros Navigation Co. (Nenaco) is eyeing to become a full logistics service provider in the next three to five years, according to its chairman and chief executive Sulficio Tagud.
“We are now looking at acquiring the needed equipment and facilities and slowly integrating other logistics processes into our operations,” Tagud said, adding he is spearheading the move to focus more on logistics than on the passage business.
“Nenaco is also partnering first with its existing clients and will try to build from there other possible customers,” Tagud said. Just recently, the shipping line bagged a cargo delivery contract with retail industry leader SM.
Nenaco is planning to acquire five ships until 2015, two of which will be delivered this year.
Nenaco has earmarked at least $20 million for the purchase of the first two vessels. Each of the vessels has a capacity for 2,000 passengers and 150 containers.
Last year, Nenaco posted a 124% increase in net income to P412 million from only P184 million in 2008, enabling the company to convince the court to exit its rehabilitation program earlier than projected.
“With the corporate rehabilitation behind us, our objective now is to sustain our profitability. We will continue to modernize our fleet and we will be relentless in finding ways on how to improve further our operations,” Tagud said.
