Tuesday, January 25, 2022
Home3PL/4PLRoyal Cargo marks 40 years with bigger expansion, investment plans

Royal Cargo marks 40 years with bigger expansion, investment plans

End-to-end logistics solutions specialist Royal Cargo is gearing up for continued business growth in 2018 and beyond as it celebrates 40 years in the business this year.

Among the plans for this year are additional container vessels and the ground-breaking of a cold storage facility in Cebu, Royal Cargo said in a statement.

“As we move forward, we will continue to adapt to changes brought about by technology, market developments and industry trends. We’re ready to face the challenges ahead and we’re confident we can take on any trials we may face in the future,” Royal Cargo president and chief operating officer Elmer Sarmiento said.

The company is set to celebrate its 40th anniversary in October after officially starting operations in 1978.

Now, the company has established a foothold from as far as northern Luzon to down south in Davao, and has expanded to 13 other countries with more than 2,000 personnel.

“Passion fueled the dream of building Royal Cargo and serving not just local but international clients as well,” Royal Cargo founder and group chief executive officer Michael Raeuber said.

In the ’90s, the company embarked on its first milestone project: to fast-track the transport of a power plant in La Union. Besides showcasing the firm’s capability in this field, the project addressed the perennial problem at that time—power shortages.

In 1992, Raeuber entrusted the leadership of the project and heavy lift operations to his business partner Sarmiento.

After successfully establishing its local presence and opening branches abroad, the company diversified into other businesses such as food processing. It did not pan out as expected, and the company incurred huge losses after its main customer defaulted. Nonetheless, the company honored all its financial obligations by restructuring existing loans.

By 2003, the company had become an integrated logistics solutions provider, handling international freight forwarding, warehousing and distribution, project transportation and heavy haulage, trucking, moving and storage, free port logistics, eco-zone logistics, liquid solutions, and shipping. From P165 million in 2003, revenue has jumped to P4.3 billion in 2017. Company assets have also grown, increasing from P241.43 million in 2003 to P4.9 billion in 2017, while net income rose from P6.28 million in 2003 to P638 million last year.

In 2003, Royal Cargo realized one of its long-term investment plans: its first solar-powered cold storage warehouse in the country. Located in Biñan, Laguna, the warehouse was completed in 2016.

In 2017, the company kicked off the construction of its biggest cold storage facility by far, a six-hectare property in Plaridel, Bulacan.

The company also continues to invest substantially in ultra-heavy lift cranes and self-driven hydraulic trailers to meet growing demand in this division.

Aside from being the leader in project and heavy lift as well as in logistics and freight, Royal Cargo is a pioneer in the country’s cold chain industry, embarking in this field after seeing the need for cold storage and for an expanded fleet of refrigerated trucks for frozen and chilled products such as meat and concentrated juices.

According to Sarmiento, Royal Cargo is more than just an end-to-end logistics provider. “We deliver as needed. Apart from delivering power plants, cement ball mills, wind mills, we are bringing products that people consume to convenience stores and supermarkets nationwide.”

Royal Cargo currently owns cold chain facilities in Laguna, Parañaque, Cavite, and Bulacan, and has newly acquired land in Mactan, Cebu, in order to build another cold chain warehouse in the area.

“Royal Cargo has come a long way. We are grateful to our people and our clients for believing in what we do and supporting how we do it. We are defining ourselves by constantly creating new, differentiated services and heavy investments in this country. We look forward to growing in this market further and continuously developing our solutions and services for many more years to come.” Raeuber said.




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