Dennis Uy’s CLC to push expansion despite losses

MANILA, Philippines — Dennis Uy’s Chelsea Logistics Holdings Corp. (CLC) remains positive about its expansion into the infrastructure sector even as it vowed to strengthen it core shipping and logistics businesses amid last year’s financial losses. 

CLC’s nine-month net income was down to P43 million from P151 million a year ago or a decline of 72 percent as the company incurred a steep surge in costs of sales and services and other operating expenses including higher oil prices.

But CLC president & CEO Chryss Alfonsus Damuy said CLC remains focused on expanding and improving further its logistics infrastructure facilities and systems and also on strengthening its telecommunications base.

“Our expansion plans complement our current business operations. At present, CLC’s businesses still primarily revolve around integrated shipping and logistics but due attention is being given to its infrastructure and telecommunications ventures,” he said.

At the company’s annual stockholders’ meeting last week, CLC shareholders approved the change in its corporate name to “Chelsea Logistics and Infrastructure Holdings Corp.” 

The company is counting on the government’s infrastructure program to provide more opportunities for its expansion.

“As the government pushes its Build Build Build program forward, we are actively looking for opportunities to participate in the development of infrastructure facilities and systems in the country, including ports and airport development and operations and other related facilities,” he said. 

On the telco business, Damuy said the Mindanao Islamic Telephone Inc. (Mislatel) expects to begin its five-year rollout plan with commercial operations by 2020. 

The Mislatel consortium is comprised of Udenna Corp., CLC and China Telecom. 

With respect to port development, CLC has submitted its unsolicited proposal to modernize the Sasa port in Davao City and is hopeful of securing this project. The Sasa port, once modernized and expanded, is targeted to handle containers, general cargo and passengers for both international and domestic travel. 

“We firmly believe that if we are granted with the opportunity to develop the Sasa port, it would translate to value creation for our stakeholders and promote further synergy within the Group,” Damuy said. 

Aside from seaports, CLC also obtained an original proponent status (OPS) from the government for its proposal to operate and expand the Davao International Airport in October last year. 

Thus, despite 2018 being a challenging year for the shipping and logistics industry, largely due to the steep surge in fuel prices, CLC’s outlook for 2019 is positive, said CLC chief financial officer Ignacia Braga IV in her report to the company’s stockholders.

She said the group is confident in delivering substantial improvement in their 2019 performance based on an estimate of at least 90 perent availability of its fleet. 

To date, CLC’s fleet is comprised of 12 tankers, four barges, 31 RoRo passenger vessels, 16 freighters, 11 fastscrafts, 16 tugboats, and 2 floating docks.