Led by their eclectic Chairman Dennis Uy, this leading logistics provider is geared towards delivering excellent shipping and logistics services with “burning passion” from the front lines to the head o ffice.
Chelsea Logistics Holdings Corp. (CLC), the shipping business segment of Udenna Corporation, plans to sustain the company’s momentum in the next years through organic growth and further strategic acquisitions of logistics and shipping companies.
ASSERTIVE FROM THE GET GO
In 2007, Chelsea Shipping Corp. (CSC), a subsidiary of Chelsea Logistics Holdings Corp. (CLC), started its commercial operations in the shipping industry. CSC was initially established to serve the requirements of its sister company, Phoenix Petroleum Philippines, Inc., and CSC has attained a name for itself in the petroleum hauling industry as a reliable service provider. In fact, the company has grown to be one of the top five (5) petroleum tankers in the country.
In December 2016, CLC purchased the entire outstanding stock of Trans-Asia Shipping Lines, Inc. (Trans-Asia) and its four subsidiaries. Trans-Asia, one of the leaders in the field of cargo handling, passage, and route development, has played a key role in the development of trade between Cebu and Cagayan de Oro.
On March 27, 2017, CLC acquired all of Udenna Investments BV’s (UIBV’s) outstanding capital stock through a share swap agreement with Udenna Corporation, wherein Udenna Corporation transferred to CLC 18,200 UIBV shares.
In exchange, CLC issued 775,384,615 new common shares from its authorized and unissued capital stock in favor of Udenna. UIBV was incorporated on August 25, 1994. UIBV owns 80% economic interest in KGLI-NM, a domestic corporation incorporated on August 8, 2008, and which holds 39.85% economic interest in NENACO.
KGLI-NM acquired such interests in NENACO on May 13, 2008. NENACO, in turn owns 88.31% of 2Go. NENACO acquired its interests in 2Go on December 28, 2010. Hence, CLC has a 28.15% indirect economic interest in 2Go. NENACO and 2Go Group, Inc. are the largest supply chain enterprise and end-to-end solutions provider in the Philippines.
On November 8, 2017, CLC acquired 100% of the issued and outstanding capital stock of Worklink Services, Inc. (WorkLink). WorkLink, established in 1994, is a company engaged in courier, forwarding, trucking and logistics services.
WorkLink, established in 1994, is a company engaged in courier, forwarding, trucking and logistics services. This acquisition together with the on-boarding of WSI’s experienced management team and employees will reinforce CLC’s end-to-end transport services.
Simultaneously, on November 9, 2017, the Philippine Competition Commission (PCC) ruled in favor of the company’s purchase of Starlite Ferries, Inc. (Starlite), a shipping company based in Batangas City that operates a fleet of 14 roll-on/roll-off (RORO) ferries in the ports of Batangas, Calapan, Caticlan, Odiongan, Puerto Galera and Roxas. The acquisition of SFI opened the group to the Batangas trade route.
THE NEXT PHASE AND BEYOND
In 2018, the medium-range tanker purchased by the company called “MT Aristotelis” and a number of cargo vessels and tugboats are scheduled for delivery. These vessels are expected to generate substantial revenues for CLC.
Similarly, the company will continuously explore opportunities in acquiring other shipping and logistics companies, adding value to the existing group fleet, and synergies to the Udenna Group as a whole.
Chelsea Logistics, with its amiable leader Dennis Uy, hopes to ride the “Build, Build, Build” mentality of the present administration. With the growth objectives of the government, there is a need for more and better shipping and logistics support, and CLC aims to provide these.
They also plan to continuously upgrade their fleet not only in terms of number but also by acquiring newer vessels. With these new vessels, the company says they will be able to expand to new routes and destinations, thus serving more Filipinos spread across the archipelago.
GROWTH, INNOVATIONS, AND PLANS
For this year, CLC aims to expand and further enhance its logistics services offerings through acquisitions of additional delivery trucks and land parcel for warehouse development, and enhancement of the overall inventory management and delivery systems for faster and efficient service.
And as the company has promised, they have vowed to support the strides the government has done in terms of growth not only in the Philippines but also in the region.
CLC’s focus on improving passenger transport throughout the country’s islands supports the ASEAN 2020 vision of connecting the region in terms of technological advancement and transportation development.
While on the logistics’ side, the fast-changing pace of the e-commerce business is expected to significantly change the landscape of the logistics/transport business in the Philippines. Chelsea Logistics is not one to be outdone.
According to the company, they are preparing their fleet and technology to ensure that the company is able to keep up with these changes. In the Group, new technology for improvement of inventory management was introduced during the year and other system enhancements are underway to update its technology. WorkLink recently acquired new software program which will enable it to make efficient and faster delivery of cargoes.
On the shipping side, Chelsea Shipping Corp. (CSC), has adapted the ORCA Maritime Solutions as its main shipping system. In 2018, Trans-Asia and Starlite will gradually move to ORCA Maritime Solutions platform to ensure the consistency and efficient access to parallel information within the group. With respect to payment facilities, the group engages banks and payment providers for online-based payment schemes.
On the marketing side, CLC is currently tapping and exploring social media for advertisements in promoting all the business segments of the group. The group is actively engaged in the social media spectrum and has been introducing ways to entice young travelers, such as loyalty programs, budget-friendly promo packages, and strict implementation of environmental laws in the vessels.
All of these to tap into an emerging market- Millennials and the Generation Z.
On another note, CLC has considered the highest priority of this group age that is – convenience. They have ensured that all their vessels have complete amenities and luxuries on board similar to a hotel. Additionally, with the online facilities, the ease in booking is already at the fingertips of customers, while the company says they have been partnering with hotels and other hospitality establishments in promoting their fleet of passenger lines in order to provide better service.
ALL SET IN LEADING THE WAY
As per the company, they believe that they have the following competitive strengths: First, CLC has a classed-fleet and an established preventive maintenance system and dry-docking program, which ensure optimal machinery performance and hull quality of their vessels.
Second, CLC has the largest tanker fleet by tonnage amongst the five major tanker players in the industry with a total GRT of 41,303 tons and third, CLC has solid industry fundamentals and is the leading shipping and logistics company in the country based on market share and courier network coverage.
Certainly, there’s no denying Chelsea Logistics is one step ahead of the pack.
