LOGISTICS company 2GO Group, Inc. plans to add more routes this year in anticipation of increased sea travel, a company official said.
“We’re studying other routes; there are other routes that would complement those near those areas,” William Howell, chief financial officer of 2GO, told reporters last week.
Mr. Howell declined to identify the new routes other than describing the company planned areas as “tourist destinations that have surfing” activities.
For now, 2GO is just going through regulatory and clearance processes before launching its planned new routes, Mr. Howell said.
“It should be, if not before the end of the second quarter, maybe the third quarter. The vessels already arrived, we are just going through the regulatory clearances before we can get in,” he said.
Last week, the logistics company launched its newest roll-on roll-off vessel — the MV Masigla sailing to Iloilo, Bacolod, and Cagayan.
Since 2021, the company has invested in five vessels, with the MV Masigla being the fourth of the company’s five investments.
The fifth vessel is expected to be announced in the next two months, he said.
Meanwhile, 2GO will not be acquiring new fleets this year following the expected launch of its fifth vessel within the year.
“For now, we’re probably set this year with our fleet. But in the future, as we continue to grow the business. We will certainly study those plans to expand even further,” Mr. Howell said.
For the year, the company is setting aside up to P2 billion for its capital expenditures (capex) budget mainly allocated for new containers, machine handling equipment, and service enhancements.
“In our financials for 2023, we probably did a billion and a half to P2 billion and we are going to continue that… It should be very comparable,” he said.
For 2024, 2GO expects to continue its growth from the previous year.
“The freight business remains strong. It is not just about shipping. We do have a special container and projects business that continues to do very well,” he said, adding that the shipping business is just one component of its business.
2GO is an end-to-end transportation, logistics, and distribution provider in the country under Sy-led conglomerate SM Investments Corp. — Ashley Erika O. Jose
