Steering the course to growth: Chelsea Logistics Corp.

Adrianna Mejia

This is AI generated summarization, which may have errors. For context, always refer to the full article.

Steering the course to growth: Chelsea Logistics Corp.
CEO Chryss Alfonsus V. Damuy shares growth plans ahead of the company’s IPO announcement this month

MANILA, Philippines – Our seas and oceans are more important than we think. Beyond providing a home to marine life and a sanctuary to fast paced individuals, these also contribute to the growth and expansion of the economy.

For many years, the shipping industry has made local and international trading possible, from transporting raw materials to shipping final products of import and export quality.

“90% of worldwide trade is moved by ships,” says Chryss Alfonsus V. Damuy, Chariman and Chief Executive Officer of Chelsea Logistics Corporation.

“Even the coffee that you’re drinking in the office, that comes from somewhere. Those beans are not carried by airplanes. Most of the shipments are in bulk, thousands of tons brought to the Philippines, [and] the only means [of] transporting this bulk is by ship,” he adds.

This also goes for massive volumes of steel, cement and wood; materials that can’t be transported via trucks or airlines from point A to point B.

‘Better Shipping’

In the past 7 years, the country’s Gross Domestic Product growth has surpassed other Southeast Asian Countries, and real growth has averaged 6.3%. As the current ASEAN chairman, the Philippines is in the perfect position to increase trade with allies and develop relationships with new trading partners in other emerging economies.

Major industries have taken advantage of the economic growth. Logistics played an important role in all of them.

This is where Chelsea Logistics Corporation comes in.

Faster economic activity increased demand for services offered by shipping companies. Development of infrastructures in rural and urban settings, the rise of public and private partnerships, increase in tourism, a robust Business and Processing Outsourcing (BPO) sector, and the surge of foreign investors all opened opportunities for maritime transportation.

“The government and the private sectors are keen in pursuing development projects all over the country. This means there will be an increase in demand for shipping services to transport goods in different parts of the region,” Damuy says.

Cargo handling, passage and route development, comprehensive logistics and travel services, the company works toward “Better Shipping” for their stakeholders.

Growth and purpose

Chelsea Shipping Corporation (CSC) was established on July 2006. The company primarily serviced the requirements of Davao-based independent oil company Phoenix Petroleum Philippines Inc.ONE SHIP AT A TIME. Growing their fleet is just one of the many ways they plan to do to achieve their dream of becoming the 'super shipping' company of the Philippines.

Today, the company has steadily grown its humble fleet from a single tanker to 15 tanker vessels with a total GRT (Gross Register Tonnage) of 39,280.64 M, the largest tanker fleet in the country in terms of capacity.

CSC is also among the top 5 petroleoum tanker owners in the Philippines, still serving Phoenix Petroleum and other fuel companies, as well as marine and aviation accounts.

The company aims to provide “Better Shipping” after posting consistent gains with 17% total revenue growth at P2.9 billion, from P2.485 billion in 2015 and a net income jumped a 44% profit from P98 billion to P132 billion.

In 2016, the company strengthened their shipping and logistics expertise with Chelsea Logistics Corporation. They acquired TransAsia and 2Go Inc. to develop a modern and efficient network of sea transport and providing low cost and timely operations to their customers.

Chelsea now has a total of 58 vessels in their fleet composed of tankers, freighters, passenger crafts, and tug boats.

The company is slated to be listed publicly on the Philippine Stock Exchange this month.

“Listing the company encouraged us to do good governance and be conscientious of the way of how we run things. It’s one of our objectives. We really want to grow the business and having an IPO will give us a financial muscle to help gear us up for expansion,” Damuy said. The company is looking mainly at domestic business growth, particularly in tourist-heavy ports such as Siargao and Palawan.

This July the company acquired approval from Securities and Exchange Commission for an initial public offering of up to P8 billion, through the sale of P546.59 million primary shares priced at a maximum of P14.63 each.

The go-to mover of goods and people

Unlike its competitors, Chelsea Logistics banks on their fleet of modern vessels and team of expereinced marine and technical professionals, giving the best return and mainly exceeding expectations and their own promise to their stakeholders.

“We aim to be the ‘super shipping’ company of the Philippines,” Damuy says. “It sounds ambitious but that is our goal. We know what we’re doing, we know our market and we know where we want to be placed.”

Indeed, the open waters serve a much greater purpose in our everyday lives. It has connected us to the rest of the world and will continue to make our lives better for many years to come. –

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Download the Rappler App!