ATSC set to buy more efficient
vessels
ABOITIZ Transport System Corp. (ATSC), the operator of the SuperFerry,
said it would start buying more efficient ships within the year
in order to pare its losses brought about by surging fuel costs.
Jon Ramon M. Aboitiz,
the company’s chairman, said part of its P800 million to
P1-billion capital expenditures for the year would be used to
acquire of new vessels, but not necessarily adding on more routes.
This means that the
company would stick to its profitable routes such as Cebu-Manila,
and Cebu-Davao, and would not open other missionary points as
asked by the government.
“At this point
in time it’s still being discussed. But we’re looking
at different ways to be efficient,” Aboitiz said at the
sidelines of the company’s stockholder’s meeting.
He said they are still
studying on what types of vessels they should acquire, even considering
slower but more fuel-efficient ships.
The company has about
14 large passenger vessels, most of which carry the Super Ferry
brand. The company’s second line of vessels is called Cebu
Ferry.
Super Ferry is the country’s
largest passenger ship operator, cornering more than half of the
market.
ATSC has been suffering
higher total cost and expenses, mainly from fuel prices, which
surged by 25 percent to P11.5 billion last year. As a result,
the company incurred a steep drop in its net income for 2005 to
P65.7 million from P512.5 million the previous year.
For the first quarter
of 2006, it posted a net loss of P192.4 million from, with its
revenues declining by 12 percent to P2.6 billion.
“With higher fuel
cost squeezing margins and a week consumer market, the company
is finding it challenging to recover cost increases by passing
it to customers,” ATSC said in its annual report.
Aboitiz said the only
way to counter such negative impact on the company was to improve
its operational efficiencies, reduce cost, dispose some of its
assets, and integrate some of its businesses. VG Cabuag
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