Oil leak. This undated file photo shows the oil platform Statfjord A in the Norwegian sector of the North Sea. More than 150 people were evacuated from the platform in the North Sea on Saturday, May 24, as workers tried to contain an oil leak that occurred during maintenance work, officials said. "Oil is leaking from one of the shafts of the Statfjord A platform in the North Sea," operator StatoilHydro ASA said. Oil was being discharged into the sea from the platform for safety reasons and repair vessels were heading to the area to contain the spill, the company said. --AP

THE Aboitiz group said it will transfer to its new container facility in Cagayan de Oro during the third quarter of the year, but that the expansion of its operations would be gradual as they are still monitoring cargo volume going to the southern part of the country.

Enrique Aboitiz, president and chief executive of Aboitiz Transport System Corp. (ATSC), operator of SuperFerry vessels, said the new facility would enhance the growing business in Cagayan de Oro, its gateway in Mindanao.

“The new land that we bought is bigger, and so when fully utilized, it can also be an expansion for the company, but as of the moment, we will just be moving to another area. All the facilities in the old freight station will be transferred to the new one,” Aboitiz said.

The company is spending some P1 billion for the purchase of the 4-hectare property previously owned by Capicor, an old rice trader in  Cagayan de Oro, and for the acquisition of new equipment, since the land is  much bigger than its current facility.

He explained that the company had legal problems with the land in the old facility and that its location is swampy. Aboitiz added that they are planning to sell the old land, but things are not yet final.

The land would be part of the estimated P200 million worth of assets the publicly listed Aboitiz Group is planning to sell this year. The amount includes some of the company’s nonperforming assets such as land, old containers and a property in Tagbilaran.

The Aboitiz Group has been expanding it cargo capacity, including the reduction of spaces meant for passengers in its SuperFerry vessels, after people have been shunning its services as a result of cutthroat competition from interisland vessels and cheap fares from budget airlines. As a result, most of the investments are going to its cargo business, which now accounts for two-thirds of its total revenues.

ATSC reported consolidated revenues of P3 billion for the first three months of the year, up by 17 percent from last year’s P2.5 billion. Freight revenues rose 23 percent to P1.9 billion, while volume from roll-on, roll-off vessels grew 29 percent, contributing 28 percent of the cargo business from 18 percent in the same period last year.

The company earlier said it has spent some P2 million for the cold-chain facility in at the Manila North Harbor. Cold chain, or a series of temperature-controlled facilities for perishable and frozen cargoes, is one of the weak points of the group, as it only has a handful of terminals.

Service fees, or those coming from new businesses generated by 2Go, are also becoming one of its growth areas. For the first quarter of the year, the company said its service fees grew 45 percent to P352.2 million from P242.3 million a year earlier.

Aboitiz Group will expand slowly in south

THE Aboitiz group said it will transfer to its new container facility in Cagayan de Oro during the third quarter of the year, but that the expansion of its operations would be gradual as they are still monitoring cargo volume going to the southern part of the country.

Aboitiz Transport System (ATS) has “right-sized” its fleet—giving up passenger areas in favor of freight space—in response to rising fuel costs and stiff competition from airlines.

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