Aboitiz Transport boosts capital to P2.52-B

Local shipping giant Aboitiz Transport System Corp. (ATSC) has increased its capital base by P750 million, or from P1.77 billion to P2.52 billion, to further strengthen its operations and cover the grant of stock dividends to stockholders.

The company has declared P393.25 million in stock dividends at the ratio of one common share for every common or preferred shares held by stockholders as of a record date yet to be determined by securities regulators.

ATSC president and chief operating officer Enrique Aboitiz said the capital increase would be a prelude to the eventual consolidation of the Aboitiz group’s transport businesses.

ATSC would eventually merge its transport business under parent holding firm Aboitiz Equity Ventures in a move intended to enhance operational and funding efficiencies.

The integration plan will involve transferring all sea, land and air transport interests of the Aboitiz group in ATSC. With this, ATSC will own Cebu Ferries Corp., WG&A SuperCommerce Inc., Aboitiz Jebsen, SuperCommerce, and Aboitiz One, a freight and logistics company currently owned by Aboitiz & Co.

Under a single company, ATSC’s shipping business will represent about 60 percent of the group’s total assets. The rest will comprise land and air-based services.

The move is aimed at creating greater flexibility and efficiency in its current operations and also to raise more funds.

The company’s roll-on, roll-off vessels (ro-ro) — Super Ferries 17 and 18 - would service more routes to cities like Cebu, Cagayan de Oro, Bacolod and General Santos.

ATSC plans to expand the routes and frequency of its shipping business in the second half of the year.

The integration of all transport assets, which may take a year or two to complete, will mean better and more organized services.

ATSC, formerly known as WG&A, currently has more than 20 percent of the total market share in the domestic passenger business and about 40 percent of the freight trade.