2GO fortifies fleet with new ships

MANILA, Philippines — Logistics giant 2GO Group Inc. has brought in a new vessel to cater to the resurgent demand for sea travel, as it plans to strengthen roll-on, roll-off (RORO) services to Visayas and Mindanao.

2GO yesterday welcomed MV Masigla to its fleet of RORO ships, assigning it to sail passengers to Iloilo, Bacolod and Cagayan de Oro.

Apart from this, 2GO will launch another vessel within the first semester of the year in a show of confidence that the booming demand for sea travel will return profits.

2GO chief financial officer William Howell said the company is expanding its RORO services in Visayas and Mindanao. Right now, 2GO is experiencing a rise in bookings for southbound trips, so much so that every voyage from Manila is almost full.

Howell said 2GO traces its strongest demand to metropolitan areas in Visayas and Mindanao. In particular, passengers are going to destinations like Bacolod, Cebu and Iloilo, and they choose to take a ship instead of a plane to get the maximum allowance for baggage.

Whereas airlines charge for a 20-kilogram baggage, passengers on RORO vessels can bring up to 50 kilos of luggage with them without additional fees.

For 2024, Howell said 2GO would invest around the same amount as it did for capital expenditures in 2023, at P1.5 billion to P2 billion.

2GO plans to spend the bulk of its capex for the refurbishment of MV Masikap and MV Masigla to ensure that passengers are satisfied with the quality of trips provided to them.

Aside from this, 2GO aims to expand its route network in Mindanao within the year. Howell said one of the destinations under consideration is a tourist hotbed most popular for its surfing spots.

For MV Masigla, Howell said the target is to make the vessel look like a floating mall and hotel on the sea. Specifically, MV Masigla is equipped with an exclusive cafe and select stores owned by the SM Group like Goldilocks, Kultura, Miniso and Watsons.

With the entry of new ships, Howell believes 2GO is in a position to grow the business even as the economy is faced with domestic and global risks.

2GO, one of the largest logistics providers in the Philippines owned by SM Investments Corp., offers a variety of services from sea travel to freight forwarding.