Tugboat operator to expand fleet

MANILA, Philippines - Harbor Star Shipping Services Inc., a soon-to-be-listed local tugboat operator has charted its path toward becoming a niche player in Southeast Asia while expanding its domestic operations.

New capital from Harbor Star’s P341.4-million initial public offering (IPO) will jumpstart its expansion program.

“The company’s business plan for the next 12 to 36 months involves structuring a fleet plan for domestic and international expansion and re-fleeting initiatives; expansion of lighterage operations; and development of new marine services,” Harbor Star said.

For instance, it will acquire 13 tugboats, one barge and one landing craft transport to increase its fleet to 32.

Harbor Star, which has numerous tug boats located in 12 major ports in the country, will sell 181.6 million shares at P1.88 each to raise P341.4 million from its IPO this month.

“Harbor Star’s domestic expansion initiatives shall focus on establishing the company as the Philippines’ leading harbor assistance services provider, in terms of port coverage,” the firm said.

Services of Harbor Star, which started operations in 1998, include ship salvage, wreck removal, firefighting, oil spill abatement and recovery and handling hazardous chemicals.

Harbor Star said it will strengthen its visibility and increase its market share in the other port areas while creating a presence in untapped ports.

The company said it plans to start operations in key ports in the Visayas and Mindanao areas, and secure exclusive harbor assistance service contracts with private ports that enjoy significant traffic.

It has so far identified four ports for new operations in the next 12 months.

“Driven by heightened interest in oil exploration, Harbor Star is targeting the country’s oil exploration sector as a potential market for growth,” Harbor Star said.

The expansion program is not only focused on the Philippines given increasing demand in neighboring countries.

“Apart from domestic expansion, Harbor Star is also considering growth opportunities within the Southeast Asian region,” Harbor Star said.

“At present, the company has identified five countries namely Malaysia, Indonesia, Vietnam, Papua New Guinea and Myanmar that are potential new markets in which it plans to operate,” it added.

Early last year, Harbor Star acquired a 45-percent stake in Malaysian marine service firm Peak Flag, which is targeting ports that posted a notable increase in vessel traffic and are opening additional berthing areas.