LISTED logistics and shipping company 2GO Group Inc. is optimistic of its growth prospects, particularly for its ferry and cargo business, as the government’s push for infrastructure development is expected to further spur movement of goods throughout the country.
“The economy will continue to grow. Movement of goods will continue to grow. We are poised to take advantage of this,” 2GO President and Chief Executive Officer Dennis Uy told reporters during the company’s annual stockholders meeting on Wednesday.
“The Philippine [economy]is expected to advance 6.5 percent to 6.8 percent this year. Government spending is also expected to rise supporting the implementation of big infrastructure projects. Management is looking at efficiencies and cost management,” Uy told the stockholders.
“We are looking for ways to further expand,” he added, without elaborating.
“The new management is very optimistic that the growth of 2GO will reach even greater heights as we move forward to further grow the business and become an even stronger player from 2017 onwards,” he said.
2GO Group currently has eight RoPax, 10 fast craft, and eight cargo vessels.
The company reported a 79 percent drop in net income in the first half of this year to P120 million from P567 million in the same period last year, attributed to bad debts and higher fuel prices.
Uy added that 2GO is looking to venture into the e-commerce business. “We don’t have an e-commerce platform yet. We are developing [one],” he said. “It’s all in progress, a work in progress.”
Uy was earlier reported as saying 2GO was considering a possible entry into the e-commerce business in partnership with the SM Group, which owns a 34.5 percent share of Negros Navigation Company Inc., the parent company of 2GO.