By Darwin G. Amojelar, Reporter
RIVALS Negros Navigation Co. (Nenaco) and Aboitiz Transport System Corp. (ATS) have joined forces to protect their market share from the onslaught of the Roll-on Roll-off (RoRo) service.
In a document submitted to the Manila Regional Trial Court, Nenaco said the two companies will set Panay-Manila rates at par with RoRo rates. The two erstwhile competitors also plan to merge their seaport shuttle service into a common facility.
Nenaco, the shipping unit of Metro Pacific Corp., is also in discussions with National Marine, Lorenzo Shipping and Aboitiz about sharing container yard facilities and cargo-handling equipment in order to reduce operating costs.
Nenaco said earlier that the heightened competition from the nautical highway or roll-on roll-off transport service and airline industry is affecting revenues.
In the first quarter of the year, its passenger and cargo volumes were reduced by 29 percent and 10 percent due to a decline in the number of vessel trips by 32 percent from 171 in 2005.
Nenaco cut its losses to P29 million in the first three months of the year from P82 million in the same period last year.
Its revenues in the first quarter also declined by 4 percent to P475 million year on year.
The company is under a 10-year rehabilitation plan that was approved by the Manila Regional Trial Court on October 6, 2004.
Nenaco’s total outstanding obligations are estimated at P2.4 billion including P1 billion in bank loans. Its creditors include the Export-Import Bank, Bank of Commerce, Equitable-PCI Bank, Prudential Bank and Trust Co., and Metropolitan Bank and Trust Co.
Another P1 billion is owed to trade suppliers and lessors of equipment and property, and P400 million in unpaid taxes is owed to the Bureau of Internal Revenue.
http://www.manilatimes.net/national/2006/aug/01/yehey/business/20060801bus10.html
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