CHELSEA Logistics Holdings Corp. (CLC), a firm owned by Davao businessman Dennis Uy, said it has signed a contract on Monday with Kegoya Dock Co. Ltd. for the construction of one brand new roll-on, roll-off (Roro) passenger ship.
The ship is designed for Philippine waters, taking into consideration the local sea condition and consumer demand, according to CLC. The company, however, failed to state how much it spent for the construction of the ship.
In addition, under the contract with Kegoya Dock, the company also has the option for additional three units with respective delivery dates in 2019 and 2020, CLC President and CEO Chryss Alfonsus V. Damuy said.
The newly built ships will modernize the company’s fleet, he added.
“Shipping and logistics business is a long-term business, as it takes two years to three years to acquire new ships. However, once these new vessels are put into operation, they will deliver better cash flows for the company, as the brand new ships have very minimal downtime and very low maintenance costs,” Damuy said. “We are conscious of our direction and our deliverables to our shareholders, thus we are fast-tracking our fleet expansion, which is aligned with the company’s plans as disclosed during the initial public offering of CLC in August 2017. Shipping and logistics is not a short-term business, as the company has to make substantial capex [capital expenditures] not limited to acquisition of ships and equipment, before it can start delivering the returns to its shareholders.”
Late last year the company’s subsidiary Trans-Asia Shipping Lines Inc. acquired a cargo vessel named MV Orient Spirit, which can handle 700 20-foot equivalent units. Trans-Asia will be operating this vessel by first quarter 2018.
Also in 2017, through its wholly owned subsidiary, PNX-Chelsea Shipping acquired three vessels.
Fortis Tugs Corp., one of the companies in the Chelsea Shipping Group, has acquired new tugboats that the company said will be used to maneuver tankers and other larger vessels in harbors. The tugboats are expected to arrive early this year.
Currently, the company has 15 tankers, eight tugboats, 21 Roro and passenger vessels and four cargo ships.