- December 19, 2016
- News & Events, Press Releases
Harbor Star to raise P1B for expansion
Harbor Star Shipping Services Inc. plans to raise P1 billion to finance expansion.
The company said it intends to expand its international fleet, domestic feeder vessel services and to venture into renewable energy.
Harbor Star said the planned fund raising will be submitted for stockholder approval next year.
In September, Harbor Star said it has secured a $2.5-million credit facility from Chailease International Financial Services Co. Ltd. for its expansion plans.
Chailease is a British Virgin Island-based financing institution that offers leasing services, installment, factoring, corporate direct loan and off-shore financing (OSF).
“The facility will be used to fund its expansion plans and (its) operations overseas,” the company then said.
Harbor Star in February bagged a two-year charter contract with a Malaysian firm for cargo transfer and harbor operation. Its unit Peak Flag Sdn. Bhd. signed the charter contract with Ka Petra Sdn. Bhd. for ship-to-ship operations and harbor services at Malacca Strait / Port, Malaysia, the company said.
“The tugboats to be chartered, MT Hamal (3200 BHP) and MT Mirzam (3600 BHP), operated at Malaysia’s North Port and Kuantan Port last year,” it added.
Harbor Star is looking to double the contribution of its overseas operation to its revenues from the current 20 percent in the next five years as the company grooms itself as a Southeast Asian operator.
The company sees the potential to grow the business overseas especially in Vietnam and in Indonesia.
Harbor Star derives most of its revenues from five main service lines — harbor assistance, lighterage, towing, salvage and other marine service, and ship and crew management. Lighterage comprises the bulk of the business.
Its other businesses include wreck removal, firefighting, oil spill abatement and recovery, handling hazardous chemical, ship management, diving and underwater service.
The company provides service through its fleet of 35 domestically and internationally classed tug boats, four barges, a cargo vessel, an oil spill response vessels, and an Anchor Handling Tug Supply (AHT) vessel.
In the country, it has established operations in 13 base ports nationwide, providing services to approximately 5,214 ship calls as end-2014, with major ports serviced include MIT, Bataan, Batangas, Cagayan de Oro and Davao, comprising 80 percent of total revenues.