CHELSEA Logistics Holdings Corp. (CLC) has tapped Japanese firm Kegoya Dock Co., Ltd. for the construction of a roll-on/roll-off (Ro-Ro) passenger ship, as the Philippine company ramps up its fleet expansion.

In a statement on Monday, CLC President and Chief Executive Officer Chryss Alfonsus V. Damuy said the contract with Kegoya Dock includes an option for additional three units to be delivered between 2019 and 2020.

The firm led by Davao-based businessman Dennis A. Uy said the Ro-Ro ship is designed specifically for the Philippine market.

The new ships are expected to modernize the company’s fleet and improve safety and reliability.

“Shipping and logistics business is a long-term business as it takes 2 years to 3 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,” Mr. Damuy was quoted as saying.

At present, CLC has 21 Ro-Ro and passenger vessels, aside from owning 15 tankers, eight tugboats and four cargo ships. Through the 2GO group, CLC has an additional 16 Ro-Ro and passenger vessels.

Last year, CLC acquired Batangas-based passenger and cargo operator Starlite Ferries, Inc. and its subsidiaries. Starlite and its units have 14 vessels, including five new Ro-Ro passenger vessels that were acquired in 2016 and 2017. It uses its Ro-Ro vessels at the ports of Batangas, Calapan, Puerto Galera, Roxas and Caticlan.

PNX-Chelsea Shipping Corp., a fully owned domestic subsidiary, secured three vessels, while another unit Trans-Asia Shipping Lines, Inc. also acquired a cargo vessel with a 700 twenty-foot equivalent unit capacity late last year.

In November 2017, the company had also fully acquired integrated logistics solutions provider Worklink Service, Inc.

“[With] the newly acquired vessels and tugs, and the newly built vessels which are soon to be delivered, [this] will bring Chelsea Logistics another step closer to fulfilling its commitment to growth in order to realize more value for our stakeholders, from the investors to the consumers,” Mr. Damuy said.

Shares in CLC closed 1.31% or 11 centavos lower at P8.31 each on Monday. — Anna Gabriela A. Mogato

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