Chelsea taps Japan firm for new passenger ships

MANILA, Philippines - Chelsea Logistics Holdings Corp.  (CLC), the listed shipping company of Davao-based businessman Dennis Uy, has tapped a Japanese contractor for the construction of its new passenger ship.

 In a disclosure to the Philippine Stock Exchange (PSE) yesterday, CLC said it signed a contract with Kegoya Dock Co., Ltd. for the construction of one brand new Roll-on, Roll off (RORO)-passenger ship.

Under the contract, CLC has the option to acquire three more units.

CLC said the contract, signed on Jan. 22, is part of the company’s expansion plans.

The “newly-built” ships would modernize the company’s fleet and would enhance safety and reliability for better customer experience, CLC president Chryss Alfonsus Damuy said.

He said the ships are specifically designed for Philippine waters taking into consideration the local sea condition and consumer demand.

Damuy said once the new vessels are put into operation, they would deliver better cash flows for the company as the brand new ships have very minimal downtime and very low maintenance costs,

“We are conscious of our direction and our deliverables to our shareholders, thus we are fast-tracking  our fleet expansion which is aligned with the company’s plans as disclosed  during the initial public offering (IPO) of CLC last August 2017,” Damuy said.

He said CLC has to invest substantially before it can start delivering the returns to its shareholders. CLC’s capex is not limited to just the acquisition of ships because shipping and logistics is not a short-term business, he added.

 In late 2017, CLC subsidiary Trans-Asia Shipping Lines acquired a cargo vessel named “MV Orient Spirit” which can handle 700 twenty-foot equivalent units (TEUS). Trans-Asia will be operating the vessel by the first quarter of  2018.

Also in 2017, after the IPO, CLC through its wholly-owned subsidiary, PNX-Chelsea Shipping acquired three vessels.

The acquisitions would further boost the profitability of the company as the vessels are already in commercial operation, Damuy said.

Fortis Tugs Corp.,  one of the companies in the Chelsea Shipping Group, likewise acquired new tugboats which will be used to maneuver tankers and other larger vessels in harbors. The purchased tugboats are expected to arrive in the first quarter of the year.

At present, CLC has 15 tankers, eight tugboats, 21 RORO and passenger vessels (RoPax), four cargo ships while 2GO Group has 16 RoPax, five cargo vessels and 10 fast craft.