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MAGSAYSAY Maritime Corp. (MMC), one of the Philippines’
largest cargo operators, is still in a wait-and-see mood
regarding plans to replace its old vessels with new
ships.
The
company, which has controlling stakes in cargo carriers
Lorenzo Shipping Corp. (LSC) and National Marine Corp. (NMC)
said their refleeting program will still depend on price
movements in the import market.
In a
recent interview with reporters, Roberto Umali, MMC
chief operating officer for transport and logistics,
explained that since brand-new vessels remain expensive,
the company may still have to shelve its acquisition
plans until high prices taper off.
“We’ll
wait and see until prices soften as current prices are
too expensive due to massive global demand,” Umali told
reporters.
Publicly
listed Lorenzo Shipping has already postponed its ship
acquisition program for this year and instead focused
resources on upgrading its cargo-handling equipment to
expand its services to other sectors.
Lorenzo
Shipping has earmarked at least P50 million for the
acquisition of 500 new containers to replace the old
ones and some P20 million for the acquisition hog vans
or a specialized containers to deliver livestock from
the provinces to major cities. While Lorenzo’s
operations mainly involve the transport of break bulk
cargo, it recently ventured into containerized shipping
as part of its expansion plans.
For her
part, MMC chairman Doris Magsaysay-Ho earlier said that
“[t]he thrust right now is to improve the quality of
shipping. So, it’s just a matter of timing as it all
depends on the market.”
LSC
wants to replace its two-decade-old German fleet,
composed of seven ships. The last time the company
bought new vessels was during the early 90s.
Meanwhile, NMC, a joint venture between MMC and Fenwick
Shipping Services Ltd., has extensive interests and
operations in petroleum tankering and barging, LPG sea
transport, container shipping and ship agency. To save
on costs, the two companies are currently sharing some
facilities.
In
November 2004, National Marine bought the 28.68-percent
stake of Singapore’s Neptune Orient Lines Ltd. in
Lorenzo Shipping.
The next
year, Magsaysay-Ho entered into a voting trust agreement
with some of its major shareholders, including Pioneer
Insurance and Surety Corp., which owns 20 percent of the
company. The move allowed her to hold a majority stake
in the company.
Shares
of Lorenzo Shipping have not been traded at the
Philippine Stock Exchange since March 1. The most recent
trade was on February 28, when it closed at P1.24, lower
than the previous day’s close of P1.28. |
