Philippine listed company 2GO Group Inc. expects better business this year after reporting a rebound to a net profit of P80 million in the first two months of 2013, helped by its freight, passage, and logistics businesses that it says are on track to hit their targets.
Sulficio Tagud Jr., 2GO president and CEO, said shipping and supply chain improvements are in place to better serve the growing domestic economy.
“This year, we are projecting P600 million to P700 million net income, on the back of P18 billion revenues,” Tagud said. This will be boosted by a wider client base and overall growth in the economy, he said.
The bulk of 2GO’s revenues came from shipping: freight and passage contribute 70% while logistics, which involves land transport, warehousing distribution and courier service, accounted for 30%.
The P80-million profit marks a turnaround for the group, which, in the first year of integration of Aboitiz Transport System (ATS) and Negros Navigation Co. Inc., posted a net loss of P1.4 billion.
In 2012, the group made additional equity of about P1.2 billion, which helped it return to shape and narrowed its net loss to P92 million.
Tagud said to increase its revenues, the company is continuously upgrading its fleet to better serve clients’ needs.
“Last month, we brought in a 350-TEU containership that will support our expansion in freight business. The ship built in Germany was acquired at $5 million,” he said.
The cargo vessel, named after San Pedro Calungsod, services the Manila, Iloilo, Cagayan de Oro, and Iligan loop.
2GO has 21 vessels – 10 roll-on, roll-off (RoRo) ships, four pure cargo and seven fast ferries.
“We’re trying to improve our fleet – the passenger, Ropax and cargo ships, and even the fast ferries. We’re on the lookout for additional opportunities where we can bridge islands by short-haul day ferries or long-haul vessels,” he added.
Meanwhile, Tagud said 2GO has invested P10 million to set up The Hub@kilometer zero, a check-in facility for luxury patrons of 2GO Travel ships at the Rizal Park.
A special free shuttle will transport passengers from the Hub to the port.
“2GO hub is a halfway place for VIP passengers. There, they can have snacks or coffee and we will bring them by bus to the ship, about 30 minutes before departure time,” Tagud said.
2GO has signed an agreement with the National Parks and Development Committee, for use of the Hub for 10 years. The facility is not exclusively for 2GO passengers, as it also welcomes the general public.
Photo from www.2go.com.ph