THE SM Group is focused on growing 2GO Group Inc., the logistics provider owned by Negros Navigation Company Inc. in which it acquired a 34.5 percent stake earlier this year for a whopping $125.4 million.
“We want to focus on increasing 2GO,” SM Investments Corp. President Frederic Dybuncio told reporters on the sidelines of 2GO’s annual stockholders meeting held in Pasay on Wednesday.
He said the SM Group is not currently interested in investing in other logistics firms.
“We have our plates full,” Dybuncio added.
SMIC currently holds 30.47 percent of 2GO after buying a 34.5 percent stake in Negros Navigation in April this year.
He said the SM Group believes there are more opportunities in strengthening 2GO, whose businesses include shipping, freight forwarding, warehousing, and express delivery services.
He added the SM Group wants to further expand its presence primarily in the Visayas region and that they are also eyeing growth particularly in the tourism sector.
“In terms of growth, especially in the tourism sector where the government is pushing us, well, there’s more opportunity on that side,” Dybuncio said.
Dybuncio said the SM group has just acquired new vessels for 2GO’s fastcraft fleet and is currently evaluating adding more vessels to accommodate more passengers.
He said the SM Group is positive on the shipping business as it allows passengers to bring more baggage onboard and also offers lower costs.
“It makes more sense for them to take the ship,” Dybuncio said.
As of December 2016, 2GO and its subsidiaries had a total fleet of 24 operating vessels, of which 19 are company-owned ships.