NDC sells maritime leasing unit for P379M

The National Development Co. (NDC), the investment arm of the government, has sold the National Development Co.-Maritime Leasing Corp. (NMLC) for P379 million to state run Development Bank of the Philippines (DBP).

DBP will pay P100 million for the capital stock while the remaining P279 million will be allocated to pay NMLC’s debt.

DBP’s offered price is 173.6 percent of the NMLC shares’ book value.

“It is a good package. We need logistical support,” DBP president Reynaldo G. David said during yesterday’s signing.

According to David, the acquisition of NMLC will enable DBP to provide duration lending which other institutions do not provide.

In addition to this, he said NMLC will have a positive impact on the efficiency and reliability of the logistics system which in turn will spur more business activities.

“We are optimistic that the acquisition of NMLC will prove to be a wise investment,” David said adding that before the year ends they will expand the duration of lending activity.

The NMLC supports the full implementation of the Road Roll-On, Roll-Off Terminal System (RRTS) by leasing facilities to qualified RORO operators. RRTS maximizes the use of RORO system to transport goods from Mindanao through the Visayas to Luzon . The system has reduced travel time and costs both for the passengers and cargoes.

For his part, NDC Chairman Peter B. Favila said DBP’s acquisition of NMLC consolidates government’s effort to fast track the development of missionary routes that optimize the benefits of the Strong Republic Nautical Highway (SRNH) program.  

The SRNH is one of President Arroyo’s priority programs to bring down the cost of inter-island shipment of goods and people, and boost domestic tourism. Under the program, the government provides a Ro-Ro port system to link the country’s islands.

The 2004-2010 Medium-Term Development Plan (MTPDP) provides for the priority development of the RORO through the establishment of the SRNH composed of the Western, Eastern and Central Seaboard.  

NDC Acting General Manager Ma. Lourdes F. Rebueno said one of NMLC’s major accomplishments over the last three years is the acquisition of three RORO vessels namely: M/Vs Maria Lolita, Maria Oliva and Maria Natasha.

These vessels are currently leased out to Montenegro Shipping Lines Inc. (MLSI) and ply the routes of Roxas, Mindoro and Caticlan, Aklan.