San Miguel shipping unit gets tax holiday for vessel purchases

MANILA, Philippines - The shipping subsidiary of the Philippines’ largest food, beverage, and packaging company secured a tax holiday for its acquisition of three cargo vessels. SMC Shipping and Lighterage Corp. (SMCSLC)—a subsidiary of San Miguel Corp.—will use the carriers to transport mining materials such as coal and gypsum as well as processed products of its parent company. The company recently acquired two brand-new Chinese-made barges—the Kalikasan 3 and Kayamanan 2—with each having individual capacities to carry 5,000 gross tons. The company will also purchase a used 2,000 DWT (dead weight ton) Japanese-made barge to be renamed Kayamanan 3. The brand-new vessels will begin operations in November while the used barge will be commissioned into service in December. The San Miguel subsidiary will enjoy tax incentives already approved by the Board of Investments (BOI) once it pays for three carriers worth P355.2 million. The venture is also expected to create additional jobs for 36 persons, the company said. Seventy percent of SMCSLC is owned by its parent while the remaining is held by the Kadiwa Transport Corp. - GMANews.TV