WG&A absorbs operations of Cebu Ferries Corp

WG&A , the country’s largest shipping firm, will absorb the operations of its wholly-owned subsidiary Cebu Ferries Corp. as part of continuing efforts to improve operational efficiencies, the company told the Philippine Stock Exchange.

In a disclosure, WG&A said its board of directors decided to transfer to the company the shipping operations of CFC on or before Nov. 1.

CFC operates five vessels which it charters from WG&A.

The move is in line with efforts to streamline operations and cut on costs, WG&A said.

WG&A has earmarked P2 billion this year for the acquisition of new vessels and the improvement of its computer system. Of the total, P1.2 billion was already spent for the acquisition of two new ships – Superferry 17 and 18 – in support of the government’s Strong Republic Nautical Highway (SRNH).

The SRNH is a network of terminals all over the country which is expected to bridge the food baskets of Mindanao to the rich consumer markets of Luzon.

With the purchase of the new vessels, WG&A expects to further improve its services to major ports and islands with increased frequency.

The remaining P800 million – capital budget will be used to fully automate the firm’s computer system and further improve its services.

WG&A’s objective is to raise the standards of domestic shipping to best practice levels in the region.

The company is expected to register revenues of P8 billion this year, higher than the P7 billion reported in 2002. The increase will come from rate increases, better paying cargoes, and higher cargo sales.

WG&A currently operates 22 vessels nationwide and is the largest provider of domestic ferry transportation in the Philippines on both the passenger and cargo business.

The firm was formed via a merger in 1996 of William Lines Inc., Carlos Gothong Lines Inc., and Aboitiz Shipping Corp. WG&A is now 92 percent owned by the Aboitizes after the Gothong and Chiongbian families decided to sell out their interest in the shipping firm last year.