Transoil Corp. is investing P770 million to acquire and operate one brand new 3,600 DWT (dead weight ton) double hull tanker, for improvement and conduction and working capital as a new operator of domestic shipping.
The 3,600 DWT double hull tanker will transport petroleum products from the refineries and terminals to oil depots and bulk plants along coastal routes all over the Philippines.
The vessel, already christened M/T Petro Cara, was fitted with the purple finder security system, a global positioning system (GPS) device which sends out coordinates where the vessel is at any given time during the day.
The GPS device will also enhance the capability of the operations team to monitor the whereabouts of the vessel to ensure that no untoward incidents have occurred.
Transoil applied for pioneer status on the basis of the magnitude of its investment of P770 million or $15.4 million.
Under the 2006 Investments Priorities Plan and its specific guidelines for domestic shipping project, a cargo vessel operation project may qualify for pioneer status if the total project cost is at least $3 million.
The BOI, thus, approved Transoil’s application for registration on a pioneer status entitling it to a longer income tax holiday.
Transoil’s use of a brand new, double hull vessel is expected to reduce risks in a sea mishap and oil spill, as well as reduce transport costs of petroleum products due to highly efficient tanker operations.
Prior to Transoil’s entry into the domestic shipping business last December 2006, the industry was rocked by the sinking of the M/T Solar in Guimaras while it was transporting petroleum products.
The oil spill created an environmental clamor for a safer vessel to transport petroleum products.