Chelsea focusing on airport and seaport development

BUSINESSMAN Dennis A. Uy’s Chelsea Logistics Holdings Corp. ( CLC) formalized its entry into the infrastructure sector, after shareholders on Monday approved the amendment of its articles of incorporation to include infrastructure facilities and systems in its primary purpose.

“The expanded primary purpose will also enable the Company to expand from its current transportation businesses to other utility businesses including, but not limited to, telecommunication, power and other related utilities,” the company said in a disclosure to the stock exchange on Tuesday.

In a phone interview with BusinessWorld, CLC CEO and President Chryss Alfonsus V. Damuy said the company is looking at venturing into other businesses, particularly airports and seaports.

” It make sense for our business. The main intention of the amendment of the articles is for us to focus on the development of airports and seaports. As a logistics company, one of the big problems we encounter is congestion. Improving these would improve our business,” Mr. Damuy said.

The company, under Mr. Uy’s Udenna Group of Companies, on Feb. 5 submitted to the government an unsolicited proposal to develop the Davao and New Bohol ( Panglao) airports, with a combined value of P67 billion.

CLC is anticipating airport traffic to grow to 8 million to 15 million passengers in Davao, and 1.5 million to 2.1 million passengers in the New Bohol International Airport in Panglao by 2050.

At the same time, Mr. Damuy said other groups have approached CLC on a possible partnership for the operations and maintenance contract of the Clark International Airport, which is being auctioned by the government.

While the company has no concrete plans on the Clark project, Mr. Damuy said: “But if a good player invites us as a partner, it’s possible.”

The Udenna Group, through its real estate unit, is currently embarking on the development of the 177- hectare Clark Global City, located within the Clark Freeport Zone, for $6 billion. The project will be developed in 10 years, with the first phase set to start this year.

CLC, which went public last year, reported its net profit jumped by 17.52% to P161 million in 2017. The increase in profit is mainly attributable to the company’s acquisition of a stake in 2GO Group, Inc., as well as 100% ownership of Starlite Ferries, Inc. and Worklink Services, Inc.

In late 2017, CLC through its subsidiaries purchased four more vessels and ordered more during the first quarter.

Earlier this year, the company signed a contract with Kegoya Shipyard for the construction of one brand new roll- on, roll- off passenger Ship with an option to order for an additional three units with delivery dates from 2019- 2020.

Shares for CLC were up six centavos or 0.83% to close at P7.32.