Chelsea in talks for possible partner

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Chelsea Logistics and Infrastructure Holdings Corp. is in talks with a foreign company for possible strategic partnership.

Chryss Alfonsus Damuy, Chelsea Logistics president and chief executive officer, said the company is considering synergies for its existing services in tankering, tugboat assist and freight services.

“These discussions are still in the initial stages… we want to enter into a partnership that will not only bring in financial investments, but also bring in expertise, best practices and value to the overall business,” Damuy said in a statement.

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For the Davao Sasa port and airport modernization projects, the Group sees its revenues coming from shares from terminal fees, airport concessions, cargo handling and stevedoring, and docking charges.

“While we’re focused on building our core businesses, we can see in the recent earnings report that core income has been starting to solidify and will continue to grow in the coming years. We do not immediately get to reap the rewards from our investments and hard work. We are yet to realize the full potential of these projects as they are still in the infancy stage.” said Ignacia Braga IV, Chelsea chief financial officer in a report.

Chelsea Logistics said it is poised to take advantage of the opportunities in sectors with positive and resilient economic outlook, including e-commerce which is seen to grow four times in the next five years and infrastructure projects related to the government’s Build, Build, Build program.

While all of Chelsea Logistics’ business segments showed significant growth in the first two months of 2020, this momentum was interrupted by the COVID-19 global pandemic which led to the lockdown starting third week of March.

The company immediately revisited its future strategies, including strengthening its balance sheet and aggressive fixed asset management by slashing planned capital expenditures and disposing of aging and underperforming vessels. The Group is now undergoing workforce rationalization to restructure support functions and right-size existing workforce.

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