BY GENIVI FACTAO

Aboitiz Transport System Corp. (ATSC) yesterday said it will focus more on strengthening and expanding the more lucrative freight and ro-ro business compared with the declining passenger ferry business.

Its passenger business has been whipped by stiff competition from air and land transport systems.

The ro-ro system took a big chunk out of its passenger volume.

The company reported a P30.8 million loss for the first quarter of the year, a big improvement from last year’s comparative loss of P192 million.

ATSC said it has started to enhance the earning capacity of its ships by converting unused passage capacity to its ro-ro service.

The service has been gaining ground, presently contributing over 12 percent of ATS freight business, the company noted. .

ATS also reported that its total consolidated revenues were flat at P2.5 billion for the first quarter.

It reported that cost cutting led to the improvement in net margins as well as increased operating efficiencies.

Overall savings reached P170 million. The company also stopped operating a number of its vessel.

It reported that its finances will improve after the completion of the sale of SuperFerry17 by the second quarter.

During the quarter in review, ATS had lowered its interest-bearing debts by 29 percent or P689.8 million to P1.7 billion from P2.4 billion in December 31, 2006. The reduction contributed to the 49 percent decrease in finance costs.

Consolidated assets of the company amounted to P9.8 billion and stockholders’ equity stood at P4.8 billion.

Cash and cash equivalents stood at P585.1 million as of March 31, 2007.

2GO recently launched its supply chain management services and has acquired a warehouse facility in Pasig City.

The company has invested $2 million for a 9,000 sq. meter warehouse for the supply chain service. The warehouse has capacity of 6,500 pallets, 1,200 of which is air-conditioned storage.

"The company believes much of its future growth will be generated from these value added services," it said.