2GO Group Inc. expects growth to remain broad-based across its shipping, passenger, and logistics businesses, with higher airfares making sea travel a more attractive option for passengers heading to the Visayas and Mindanao.
SM Investments Corp. President and CEO Frederic C. DyBuncio said shipping remains 2GO’s largest business, powered by cargo volumes and passenger traffic between Manila and destinations in the south.
“The biggest component as far as the 2GO business is actually our shipping group,” DyBuncio said, noting the company moves substantial cargo to the Visayas while also serving passengers traveling south.
The forwarding business is the next major contributor, handling about 400 tons of cargo a month. E-commerce logistics is also gaining traction as more customers use 2GO to move goods, while project logistics and warehousing offer additional room for expansion.
Passenger traffic, meanwhile, has benefited from a widening price gap with air travel. DyBuncio said higher airline fares have strengthened demand for sea transport, particularly on routes from Manila to the Visayas and Mindanao.
2GO carries roughly 900 to 1,000 passengers per vessel, with its nine roll-on, roll-off passenger vessels generally operating at high capacity. Demand also picked up during the Middle East conflict as disruptions pushed airfares higher, prompting some travelers to look seaward for a cheaper ride.
That shift highlights 2GO’s role as more than a shipping company. As air travel becomes costlier and e-commerce keeps feeding the logistics pipeline, its ships, warehouses, and delivery network give the group several ways to capture consumer and business demand.
The improving performance is also becoming more meaningful to SMIC. Portfolio investments contributed 11 percent of the conglomerate’s first-half net income, up from 7 percent previously, suggesting 2GO’s gains are becoming a more visible piece of the broader SM investment story.
