Transoil Corp. allots P1B to buy 2 vessels

By Ayen Infante

08/06/2008

Local firm Transoil Corp. has proposed to engage in two new projects involving the acquisition of vessels with an estimated combined cost valued at P1.173 billion.

The projects have been approved for fiscal incentives by the Board of Investments (BoI) that would include a minimum income tax holidays of four years.

The firm sought to acquire and operate one unit of brand new 6,500 DWT (dead weight ton) Double Hull that will transport petroleum products from the refineries and terminals to oil depots and bulk plants along coastal routes all over the country.

It needs to spend P777.50 million for the new unit, and commits to create jobs for 36 workers at full capacity when its starts commercial operations in September 2009.

The other planned venture also involves the purchasing of another vessel that is a second-hand 2,000 DWT Double Hull Vessel. The unit will be fitted with Radar and Global Positioning System.

This project was granted a pioneer status by the BoI due to the magnitude of the proposed investments.

Under the 2007 Investment Priorities Plan (IPP), domestic shipping projects with a minimum cost of the peso equivalent of $3 million may be qualified to avail of incentives on a pioneer status that includes tax breaks of up to 8 years.

These projects will serve as support service to the petroleum industry. It will start commercial operations in December 2008 with an initial employment of 29 personnel.

Transoil is into the general business of domestic shipping including owning, operating and chartering of vessels of any class, type or description for domestic trade.

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