Aboitiz Transport System gets BOI incentives

MANILA, Philippines - The Board of Investments (BOI) has given tax breaks to the P1.534-billion shipping project of Aboitiz Transport System Corp. (ATSC).

ATSC is a Marina-accredited domestic shipping company. The project involves the acquisition, rehabilitation and operation by ATSC of two second hand RORO vessels to be named M/V SuperFerry 20 and SuperFerry 21. Both vessels which were launched in 1992 were acquired by the company from Japan last March 2010 at a total cost

of P697.5 million. After the modernization/rehabilitation, the vessels will be used to transport passengers and cargoes from port to port/terminals within the Philippines like Manila, Cebu, Cagayan de Oro and Iligan. The project will employ a labor force of 208 workers during operation and generate a total investment of P1.534 billion covering pre-operating cost, lease of capital equipment and working capital which will be funded by 75 percent loan and 25 percent equity. The target date of commercial operations is in March 2011. Pursuant to the general and specific guidelines of the 2010

IPP, the proposed modernization project qualifies for registration with non-pioneer status.