Home » Maritime » Nenaco eyes 4-7% volume hike for 2010

DOMESTIC shipping operator Negros Navigation Co (Nenaco) is taking a conservative approach and pegging volume growth forecasts for the year to between 4% and 7%.

Last year, the company lost 15% of its volume.

“We have seen the bottom of the crisis,” Nenaco chair and chief executive officer Sulficio Tagud, Jr said. “However, we are not sure whether the uptick in volume is just temporary or not.”

In the next two to three years, Nenaco is planning to double capacity and vessel frequency in all ports of operation to grow market share. Among priority ports are Bacolod, Iloilo and Cagayan de Oro, where business has been swelling.

Additional cargo volume is expected from Butuan, Cotabato, General Santos and Davao.

Passage service to Palawan will be reintroduced.

Nenaco is planning to acquire five new ships until 2015. The first two worth $20 million will be delivered this year. Each can carry about 2,000 passengers and about 150 standard containers.

The remaining three vessels are pure cargo carriers that can ship 250 to 300 containers.

Half of the acquisition cost will be financed through internally generated funds and the other half through local borrowing.

Last year, Nenaco posted a 124% increase in net income to P412 million from P184 million in 2008, allowing for its early exit from a court-appointed rehabilitation program.

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