Conglomerate SM Investments Corp. (SMIC) has debuted into the logistics business by buying a 34.5 percent stake in the parent company of publicly listed 2GO Group Inc.
2GO is the country’s largest integrated supply chain operator whose businesses include shipping, freight forwarding, warehousing and express delivery services.
“We are pleased with this opportunity to invest in a fast growing, dynamic logistics business. It will benefit from, as well as contribute to the country’s economic progress especially as development spreads to the provinces” SMIC president Harley Sy said in a press statement on Friday.
Earlier this month when the company released its annual results, Sy had said that the group was optimistic about broader regional growth with the government plans in infrastructure, agriculture and tourism.
An integrated transport solutions provider, 2GO has three core business units, namely: 2GO Freight, which handles commercial and personal shipping needs; 2GO Travel, which integrates passenger ships and fast ferries through land and sea multimodal transport linkages; and 2GO Supply Chain, which handles logistics, distribution, warehousing, and inventory management.
As of end-2015, 2GO and its subsidiaries had a total fleet of 23 operating vessels, of which 19 are company-owned ships. It has four direct subsidiaries, namely, 2GO Express Inc., The Supercat Fast Ferry Corp., NN-ATS Logistics Management & Holdings Co., Inc. and Special Container and Value Added Services Inc. The company also owns 33 percent of MCC Transport Philippines Inc.