Home » Maritime » 2GO eyes 50% cut in freight capacity

Philippine-listed company 2GO Group, Inc plans to slash capacity of its freighters by half to better respond to requirements of the local trade.

2GO Travel vice president Stephen Tagud said the capacity of freighters 2GO 1 and 2GO 2 — each capable of carrying 1,000 twenty-foot equivalent units (TEUs) – is far too big for the Philippine market. This is especially so because of slow trade.

Plans call for the sale of 2GO 1 and 2GO 2 and acquisition of smaller-capacity ships, possibly two 500-TEU capacity vessels, Tagud told PortCalls at a recent 2GO media familiarization tour.

In the passenger front, Tagud said 2GO is working on rationalizing frequencies but ensuring all routes continue to be serviced.

Some 2GO ships will also undergo drydocking. Tagud said this will have minimal effect on operations with the rest of the fleet able to pick up the slack.

Following the sale of SuperFerry1, 2GO is planning to dispose of another vessel, most likely SuperFerry 5, the proceeds of which will be used to buy a newer model.

In 2011, revenues from 2GO’s cargo/freight business went up 7% to P5.7 billion year-on-year, thanks to a 5% rise in rates and 1% increase in volume and despite a 13% reduction in the number of trips made.

The logistics business is also seeing growth with warehouse capacity of about 56,000 pallet positions, an increase of 39,000 pallets following completion of a third warehouse, which is now being sub-leased.

Last year, 2GO Group posted a net loss of P626 million, narrower than the previous year’s net loss of P755 million.

Total revenues increased 11.7% to P12.97 billion from P11.61 billion.

The passage sector posted a 9% increase to P2.38 billion from P2.18 billion.

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