Taiwan carrier expects ‘rapid expansion’ of market
TAIWAN-based shipper Yang Ming Marine Transport Corporation has opened a new 100-percent owned subsidiary in the Philippines, betting on “rapid expansion” of the market for the country and Southeast Asia in the near future.
The new company, Yang Ming Shipping Philippines Inc., began operations on May 1 in Manila, Cebu, and Davao.
”The Philippines is one of the pivots of the Southeast Asian market. The economy of neighboring countries has been growing steadily in these years. Expecting more rapid expansion of the market in the near future, Yang Ming sets up its owned company in the Philippines to provide its customers with direct services, including increased frequency of voyages and slot to its service network,” the company said in a statement.
“With the inauguration of Yang Ming Shipping Philippines Inc., Yang Ming will optimize the management capability and serve its clients worldwide with a more comprehensive and close-knit logistics network by integrating business in the region and reinforcing the operations for import/export/transship cargo in the Philippines in keeping with Yang Ming’s long-term strategy of port network establishment and synchronization of information platform,” the company added.
Yang Ming, currently operates a total of seven loops with calls at Manila South Port, the Manila International Container Terminal, and the port of Cebu.
The announcement of the new Philippine subsidiary is a bit of good news for Yang Ming, which has been struggling to contain costs in the wake of posting a $62 million loss in the fourth quarter of 2016.
The company was the subject of merger rumors with the Evergreen Group late last year—rumors denied by both companies—and on April 20, asked the Taiwan Stock Exchange to suspend trading of its shares to allow the company to complete a recapitalization plan.
Last month, Yang Ming announced it was suspending its service to Iran, citing high costs and low cargo volumes. Yang Ming was one of the first shipping companies to return to Iran after economic sanctions against the country were lifted in 2015.
In an advisory to customers and shareholders on Thursday, Yang Ming said that trading of its shares in Taiwan had resumed.
The stock gained 1.14 percent in trading on Thursday, closing at NTD 13.30 after opening at NTD 13.15.