Chelsea freight, logistics segments improve in 2021
Cargo utilization for subsidiaries Starlite Ferries, Inc. and Trans-Asia Shipping Lines, Inc. jumped 97% and 90%, respectively, with the latter exceeding its 2021 target at 123%
The logistics business saw delivery transactions rise 20% year-on-year
The tugboat and passage segments continued to experience challenges
Chelsea Logistics and Infrastructure Holdings Corp. (CLC) reported improvements in its freight, logistics, and tankering businesses in 2021.
Cargo utilization for CLC subsidiaries Starlite Ferries, Inc. and Trans-Asia Shipping Lines, Inc. improved by 97% and 90%, respectively, with the latter exceeding its 2021 target at 123%, CLC president and chief executive officer Chryss Alfonsus Damuy said in a report during the company’s recent annual stockholders’ meeting.
The logistics business also continued to thrive during the pandemic with a total of 315,132 delivery transactions, 20% up year-on-year.
The tankering business has also seen operational improvements with tanker utilization up from 62% in 2020 to 74% last year.
The tugboat and passage segments, on the other hand, continued to experience challenges.
Tugboat movements were down by 7% to 6,094 in 2021 while the group carried 686,096 passengers last year, down 47% on a year-on-year basis.
The decline in revenues in the tanker, passenger, and tugboat segments led to the group posting P4.469 billion consolidated revenues in 2021, down 4% year-on-year, said CLC chief finance officer Ignacia Braga IV.
Braga said this was caused by several factors including vessel availability issues, low passenger volume and lower tugs movement due to reduced entry of foreign vessels as a result of requirements imposed by port operators.
With more of the population being vaccinated, CLC is hopeful of further improvements in its operations.
Damuy said “business fundamentals remain to be strong and with the Chelsea Group’s commitment, competence, and resilience to adapt to the new normal, we will continuously implement our recovery strategies, and turn the tide for the group.”
Despite the challenges, he said CLC hit several milestones in 2021.
It took delivery of MV Trans Asia 21, a brand-new roll-on/roll-off passenger vessel built in Japan and was configured for operation in Philippine waters and conditions. The Fiscal Incentives Review Board last March approved a set of tax incentives for Trans-Asia’s operation of MV Trans Asia 21, which is now plying the strategic Cebu-Cagayan de Oro-Cebu route.
Starlite Ferries also expanded last year with three new routes in the Visayas and Mindanao.
Moreover, CLC completed its e-commerce facility in Paranaque City, and continued to work on the digital transformation of its processes and services, including partnerships with trusted global innovators like NTT Data, Barkota, Amazon Web Services, ShopeePay among others.
As of the end of 2021, CLC has accomplished 70% of its five-year digital transformation program, which is set to be completed in 2023.
To remain resilient and agile, Damuy said the group will be implementing its 5Rs of Recovery in the next five years, namely: recapture lost revenues, restructure liabilities, rationalize costs, retire less-efficient assets, and reinvest cash in the business.
CLC is engaged in shipping and logistics businesses with subsidiaries currently include Chelsea Shipping Corp.; Trans-Asia, Udenna Investments B. V.; Starlite Ferries, Worklink Services, Inc.; TASLI Services, Inc.; and The Supercat Fast Ferry Corp.