Cokaliong: Shipping sector unfazed by low-cost airlines

CEBU, Philippines — Cebu-based Cokaliong Shipping Lines is seeing continued demand for shipping activity in the Visayas and Mindanao regions.

Company CEO and COO Chester Cokaliong said the shipping industry remains a key economic growth driver, considering the Philippines being an archipelagic country. 

"I think the demand for shipping in Visayas and Mindanao remains robust. The market is still here," he said.

The Cebuano businessman recently spoke at the 26th Visayas Area Business Conference in Cebu City on shipping's role in the Philippine economy. 

Cokaliong said his company so far has no plans of expanding its operations in Luzon, noting that potential in the VisMin area is still very high.

He emphasized that sea travel remains the cheapest mode of transportation despite the frequent promo air fares offered by local airlines.

"Sea travel is still cheap compared to airlines," the businessman said.

Cokaliong said the promo fares offered by airlines are not a threat to the sea travel business because budget-conscious passengers would still prefer to travel by sea.

The inter-island shipping business remains bright despite the presence of low-cost carriers.

Sea transport is expected to continue to be one of the primary means of inter-island transport in the Philippines. Although recent years have also seen an increasing number of passengers availing themselves of the so-called budget flights being offered by low-cost airlines.

Moreover, the CEO said his shipping firm is still keen on expanding in southern Philippines, as it looks to add frequencies in its existing routes.

In an earlier interview, he said the company ideally needs additional ships to expand. 

But he also cited that the scarcity of ships globally is one of the constraints his company is facing in terms of ship acquisition plans.

Cokaliong has been acquiring his ships from Japan, which he described as world-class. 

The entire fleet of the Cokaliong Shipping is currently serving a total of 15 port of calls namely Calbayog, Cebu, Dapitan, Dumaguete, Iligan, Iloilo, Jagna, Maasin, Masbate, Nasipit, Ozamiz, Palompon, Surigao, Tagbilaran and Cagayan de Oro.

The company is also looking to further expand its trip frequencies in ports of destinations, where cargo and passenger demand is increasing. (FREEMAN)