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.

Aboitiz Equity Ventures (AEV) president Jon Ramon Aboitiz said the company has increased the freight ratio in some ships by as much as 60 percent as the shipping industry continues to feel the pinch of airlines offering low-budget fares.

“While we feel the pressure on the passenger side, the cargo volume has been increasing. By right-sizing we have increased our load factor,” Aboitiz said.

“Faced with increasing fuel prices and fierce competition from the airline business, ATS transformed its passage vessels into the lowest-cost carriers with price, safety, schedule and cleanliness as major drivers of business,” Aboitiz said.

Despite these problems, AEV’s shipping group has completed the purchase of two high-speed catamarans from Portugal for Supercat as well as a new ship for Cebu Ferries. The purchases were made while the company sold three Super Ferrys—15, 16 and 17—which generated P2.4 billion to rationalize the company’s shipping operations.

The catamarans, bought at $2 million each, are undergoing refitting and could go in service by the middle of next month.

Instead of the traditional jet-powered catamarans, the new vessels will be propeller-driven in order to save on fuel while keeping fares low amid stiff competition from other fast-ferry companies.

The new vessels, however, could still run up to 30 knots with a capacity of close to 300 passengers, and would ply the Supercat lines in the Cebu, Tagbilaran and Ormoc routes.

“The type of craft will keep our fuel low-cost, allowing us to keep our fares low. If we can’t keep our fares low, our passengers are gone,” Aboitiz said.

The faster jet-powered vessels would be transferred to Supercat’s services in Calapan.

A new ship for Cebu Ferries will reopen its Cebu-Iligan and Cebu-Ozamiz routes.

ATS incurred a net loss of P22 million for the first quarter of 2008, but Aboitiz said the numbers are expected since the first three months of every year are lean months for travel.

The Aboitiz transport group turned in P318 million in income last year, up124 percent from 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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