HARBOR STAR TO OFFER BOX BARGING SOLUTION
With the Manila truck ban having adverse effects such as disruption in the supply chain, listed Harbor Star Shipping Service, Inc. is coming up with a solution that can help shippers avoid delays in their shipments.
“Because of the truck ban, we are studying the possibility of barging containers from Manila to Batangas or Manila to Bataan,” Harbor Star president Geronimo Bella, Jr. told PortCalls in an interview, with the operation possibly being extended to Subic.
The company recently bought one barge with a capacity of 200 twenty-foot equivalent units per cycle, using a portion of proceeds from its initial public offering.
Bella said Harbor Star is seeking approval for the container barging project from the Philippine Ports Authority and the Maritime Industry Authority. If all goes well, the project will be implemented by the third or fourth quarter of the year.
Asked if barging would mean more costs for shippers, Bella replied, “I believe it’s more cost effective for them, especially for manufacturers” as they will have a “continuous supply of raw materials” and no delays.
He added that based on a study by Harbor Star, the distance of the target ports are “not so far from Manila, so we’re looking (at) almost the same mile, kilometers (from) Manila to Bulacan, for example, or Pampanga.”
Bella said some clients with whom the company consulted with were agreeable to the proposal.
Meanwhile, Harbor Star said its first quarter was “looking good.”
The listed company is looking at spending part of its allotted P200-million capital expenditure to acquire tugs for Dumaguete, General Santos, and Cebu.
On March 18, the company opened an office in General Santos.
Offshore, Bella said Harbor Star is looking at operating in Timor Leste, which he describes as a “very young country, still (has) a lot of development, (with) many business opportunities.”
In addition, Harbor Star is eyeing to purchase tugs for its Malaysia operations. In early 2012, the company acquired 45% of the Malaysian firm Peak Flag Sdn Bhd operations in Malaysia.
According to Bella, Peak Flag will hopefully start ship-to-ship operations in June this year, at the the Port of Malacca.
In an earlier interview with PortCalls, Bella identified Vietnam, Myanmar and Papua New Guinea as being on the radar screen of Harbor Star’s expansion.
Bella said the company is optimistic about its domestic harbor assistance, lighterage and towing businesses, which all had sound 2013 financials.
Harbor Star is working on international accreditation of its diving department, and is aiming to be ISO 26000 (corporate social responsibility)-compliant by yearend.–– Roumina M. Pablo
Photo from www.harborstar.com.ph