LISTED Philippine company 2GO Group Inc. is eyeing higher throughput this year after a successful first quarter and with the company now feeling the synergies of the ATS Consolidated Inc. and Negros Navigation Co. Inc. merger completed two years ago.
Freight business in the first quarter of this year was “very good”, said Jose Manuel Mapa, 2GO executive vice president-Freight Sales and Operations Luzon. “We performed above budget and higher than last year also. Target throughput is around 320,000 TEUs this year.”
Reports also said the group is eyeing a net income of P858 million this year, rising more than fourfold from P181 million last year.
The freight business increased 5% to P1.58 billion in the first quarter from P1.51 billion year-on-year. Revenue rose 7% to P3.5 billion from P3.3 billion. The company turned around to a net profit of P59.44 million from a loss of P213 million in the previous year.
The shipping operation accounted for 66% of total revenue with P2.3 billion in the first quarter, compared with P2.1 billion in same period last year. Supply chain and logistics operations contributed 34% with P1.2 billion from P1.1 billion.
2GO has consolidated its services at the North Harbor as part of its One Port Project that aims to achieve positive operating results by consolidating freight and passenger vessels in just one port. Two 2GO ships are already catering for clients at the North Port.
“We are in the process of doing that. We still have two vessels though at the South Harbor (St. John Paul and St. Gregory the Great). We hope to consolidate everything at North Port within this year. It makes more sense to consolidate in just one port in terms of cost perspective and (it’s) more convenient also for our clients to just bring all the cargoes to North Port,” Mapa said.
Photo from www.2go.com.ph