CEBU, Philippines - Aboitiz Transport System (ATS), the transport and logistic arm of Aboitiz Equity Ventures, registered an eight percent decline in its revenues for 2009, from P12.9 billion in 2008 to P11.8 billion last year.
However, while passenger volumes decreased by 12 percent in 2009, ATS managed to maintain a 71 percent load factor last year.
“The year [2009] was very challenging and interesting year for ATS. The company’s freight and passenger businesses were adversely affected by the loss of the Superferry 9. ATS was also operating with fewer vessels as it sold two vessels and dry docked four during the year,” said AEV president and chief executive officer (CEO) Erramon I. Aboitiz.
The last quarter of 2009 was also plagued with devastating typhoons that reduced number voyages, Aboitiz said.
The transport group ended 2009 with an income contribution of P387 million, a 375 percent increase from 2008.
According to Aboitiz, the strong showing of ATS’ earnings was mainly attributable to the reduction in the company’s operating expenses primarily in fuel costs, its single largest expense.
Freight volumes for the year dropped by nine percent, “but still kept a load factor of 80 percent.”
The fast craft business—SuperCat on the other hand, increased capacity and volumes, Aboitiz reported.
He said its fast craft’s capacity and volumes increased for year. Load factor increased to 60 percent from 56 percent of the previous year.
ATS also retooled its SuperCat assets to become more fuel-efficient vessels, thereby lowering the costs.
“Last year, we took advantage of the trough of the price cycle for vessels, purchasing two 1,000 TEU container ships for 2GO, two SuperCats and a Cebu Ferries vessel,” Aboitiz said.
In the first quarter of this year, the company added two ships to its SuperFerry fleet “that we expect to start operating in the second quarter.”
These acquisitions, he said have simultaneously modernized its fleet and enhanced its transport business’ cost structure.
“The company will continue to keep a watchful eye to take advantage of the current market situation and acquire vessels to replace some of its older vessels to further enhance operating efficiencies. With increased capacity from its new acquisitions,” he added.
The company has maintained its confidence in the transport and logistics businesses, at it commits to focus on building volumes and strengthen its value-added business.
As the global economy picks up in 2010 so should the demand for transport services. He said as an innovative provider of transport and logistics services, ATS is positioned to capitalize on improved economic conditions.