VESSEL operator Magsaysay Maritime Corp. (MMC) is taking a wait-and-see attitude on fleet modernization.
MMC, the owner and operator of cargo carriers Lorenzo Shipping Corp. (LSC) and National Marine Corp. (NMC), said its refleeting program is still dependent on the movement of ship prices in the import market.
We’ll wait and see until prices soften as current prices are too expensive due to massive global demand,”MMC chief operating officer for the transport and logistics group Roberto Umali recently said.
LSC has earlier temporarily postponed its ship acquisition program for 2007 focusing instead on modernizing its cargo-handling equipment.
“The thrust right now is to improve the quality of shipping,”said MMC chair Doris Magsaysay -Ho.
LSC is looking to replace its two ageing German-made vessels. The last time the company bought new ships was in the early ‘90s.
LSC has earmarked at least P50 million for the acquisition of 500 new containers to replace its old ones, and P20 million for hog vans or a specialized container for the delivery of livestock.
The company expects its revenue to increase 10% as a result of the 9% surge in cargo volume.
LSC recently began offering full containerized services in addition to its mainstay breakbulk shipping services. It has seven vessels.