Sta. Cruz shipping remains bullish despite initial losses

Operating at a loss in its one-month operation, Sta. Cruz Shipping Services Corporation, a new entrant in the fast craft service plying Cebu -Tubigon– Bohol, is counting on the increased tourist volume as savior of its new business here.

Sta. Cruz Shipping Corporation is a shipping company based in Marinduque, in Luzon, and used to offer fast craft service from Marinduque to Lucena City.

Tempted by the impression that there is a need for a fast craft service to offer a shorter route from Cebu going to Bohol (and vice versa), the company stopped its Luzon operation, and transfer to Cebu early last month.

In an interview with the shipping company’s president and general manager Juanito C. Preclaro, he said since his fast craft service is new in the Cebu-Tubigon route he already lost about P2 million in operational expenses since its maiden trip on July 9, 2006.

In every one-way trip he spends about P15,000 for fuel alone, because of fewer passenger take up, he lost and stands to lose P10,000 to P11,000 average in every trip.

However, he said despite the losses, he is willing to continue with the service which provides wide options for Cebu-Bohol (and vice-versa) bound passengers, especially the tourists.

The more popular route going to Bohol, is via Tagbilaran City which is the center/capital of Bohol province, however, Tubigon route offers shorter travel time with only one-hour and five-minute, and is currently dominated by slower boat services which consumes more than two hours travel time.

Preclaro is offering an introductory fare rate of P170, a P40 less than the regular fast craft rate of P210. Slow boat on the other hand, is offering about P80 fare cost per head.

Despite its struggling condition to push fast craft passenger traffic in this alternative route going to Bohol, Preclaro said "I still see a good prospect in this route."

With its supposed to be four round trips a day frequency, he said the vessel named M/V Vanessa P-1 is now operating at an average of two round trips a day because of slack passenger volume.

At one point, he mentioned that there was a trip that the vessel left Cebu with only seven passengers.

"I understand I entered in lean season months, I’m giving my company until September to see good passenger volume because of tourists," Preclaro said in a press conference.

Early this week however, the vessel got its highest take up rate of 117 passengers, Preclaro said almost of all of them were tourists.

M/V Vanessa P-1 is a 191-seater fast craft vessel sailing at a 20-knot per hour capacity.

The entry of this new fast craft is expected to push further competition in the Cebu-Bohol route, and would eventually introduce affordable and competitive fare cost to passengers in the fast craft service.

After Aboitiz group withdrew its SuperCat service plying from Cebu to Bohol (Tagbilaran) there are only at least two fast craft operators operating, including Waterjet, and Weesam shipping companies.

But, these the two shipping companies are plying the Cebu-Tagbilaran route, while the short-cut route in Tubigon is yet to be serviced by a fast craft vessel until the entry of Preclaro’s company.

He hopes to partner with travel agents and hotel/resort operators in Bohol to promote the Cebu-Tubigon alternative route to tourists.