The integration of Philippine firm Elite Inspections and Technical Services, Inc into the Switzerland-based Cotecna group was formally sealed recently, a move that is seen to expand both companies’ footprint in the cargo inspection business.
“Cotecna is an international player and Elite is a local player. We will be able to bring the expertise from Cotecna globally through technology transfer so that the local team will now be equipped with certain skill sets they might not have which, in turn, will help them serve their local clients better,” Fermin Barranechea III, Cotecna country manager and vice president of business development in Asia, said at the sidelines of the integration signing.
Cotecna has been in the business of testing, inspection and certification services since 1974 and has operated in the Philippines for around 10 years. It is one of six Bureau of Customs-accredited surveyors for the load port survey program on bulk and break-bulk shipments.
Elite, on the other hand, was established in 1982 and provides a full suite of superintendence, inspection, and marine survey services on a wide range of materials and commodities in key Philippine ports. It was a subcontractor of Cotecna for seven years.
The integration means Cotecna now owns 60% of Elite.
Both companies are bullish about Philippine prospects, especially since the country’s economy is import-driven, a definite boon to companies offering cargo inspection services.
“Clearly, the Philippines is doing something correctly,” Barrenechea said, noting the country is in a “sweet spot” within a fast-growing region.
“If the economy is growing, then imports will also grow,” he said.
Barranechea sees 2014 as a “transformational year” for Cotecna and Elite and 2015 “a better year”, with the full effects of the integration realized.
Elite chief operating officer Antonio Ortigas expressed confidence that the integration will provide possibilities for further expansion and development of services in the Philippines.
Barranechea predicts growth in the company’s clientele even further once the BOC implements its planned expanded load port survey (LPS) program covering containerized cargoes.
But he believes that before the LPS is adopted, port congestion has to be addressed first – Roumina Pablo
