SINCE 2Go expects to corner a bigger than expected slice of the supply chain market this year, the logistics unit of the Philippines’ largest shipping company foresees a surge in revenues in 2007.

Sabin Aboitiz, 2Go’s president and general manager, said that the company expects revenues of P3 billion this year, up from P2.6 billion in 2006.

According to Aboitiz, whose family controls the Aboitiz Transport System Corp. of which 2Go is an affiliate, its Pasig supply chain facility has already operated at full capacity, just three months after it opened.

Besides delivering products of Mead Johnson, it also serves Mercury Drug, Gerber, Wrigleys, and Nestlé Water. The same facility is also expected to store the products of J&J Vision Care.

Aboitiz explained that these companies use the Pasig facility as the single-stocking point for distribution to other areas.

With the facility’s full operation, 2Go claimed that their clients could reduce their supply chain cost by 10 percent.

“We are now looking for a place to expand our supply chain hub to house other possible users as our current facility could not accommodate it anymore,” Aboitiz said, adding that companies which intended to use 2Go’s supply chain exceeded the expected number before the facility started full commercial operations early this year.

An estimated $2 million was spent to develop the warehouse, which could handle 6,500 pallet positions, 1,200 of which are for air-conditioned storage such as food items like chocolates and baby food.

“Our main focus now is to further develop our supply chain management nationwide as it already made 2Go a complete logistics solutions provider,” Aboitiz stressed.

2Go’s supply chain service include warehouse management, order entry and releasing, transport planning and routing, delivery to customers nationwide and document management.

Aboitiz said that its supply chain business is the missing link that will complete 2Go’s line of services starting from the release of the goods from the manufacturer through the delivery of the products to its designated customers nationwide.

BETWEEN December last year and January this year, Negros Navigation Co. (Nenaco) sold two of its aging vessels, proceeds of which will be used to pay its debts and acquire newer ships.

SINCE 2Go expects to corner a bigger than expected slice of the supply chain market this year, the logistics unit of the Philippines’ largest shipping company foresees a surge in revenues in 2007.

ATLANTA—FedEx Corp. , the world’s largest air-cargo carrier, said quarterly profit fell for the first time in three years and cut its earnings forecast for this quarter because of a slowing US economy.