The Aboitiz group is no longer looking for a new buyer for Aboitiz Transport System Corporation (ATS) as it has decided to grow the business instead of selling it after margins have begun to recover.

Aboitiz Equity Ventures, Inc. (AEV) and its principal stockholder, Aboitiz & Company, Inc. (ACO), have been informed earlier this year by KGLI-NM, Holdings Inc. (KGLI-NM) that KGLI-NM will not proceed with the purchase of $30 million worth of ATS common shares.

In an interview, AEV president Erramon Aboitiz said their transport business has become viable again after fuel prices have gone down and margins have gone back up again in recent months. Fuel gobbles up the biggest share of expenses for the business.

He added that recent changes such as the sale of older ships, focusing on their supply chain business and shifting carriage more towards freight instead of passengers has begun to pay off. Passenger revenues have dropped due to intense competition from airlines.

Had Aboitiz pushed through with the sale of its transport business to KGLI-NM, KGLI-NM would have had emerged with a near-monopoly of the inter-island shipping business in the Visayas and become the biggest in the country as it already controls Negros Navigation Company.

KGLI-NM cited the current constraints in the debt markets as the reason for its decision not to push through with its planned purchase of the ATSC shares owned by AEV and ACO.

As part of growing its transport business, ATS recently announced that its wholly-owned unit Aboitiz One, Inc. has formed a joint venture with Kerry Logistics  Network Limited of Hong Kong (KLN) for the international freight forwarding business.

Aboitiz One is the only Filipino company that provides integrated transport and supply chain solutions nationwide.

ATS is known for its “2GO” brand in the movement of cargo, and its 'SuperFerry' brand for its passenger business while KLN is the leading Asia-based provider of logistics services and supply chain solutions.

KLN operates in over 300 cities globally, 23 countries worldwide and serve over 127 cities throughout Mainland China.

ATS said the joint venture company, Kerry - Aboitiz Logistics, Inc. (KALI), aims to offer innovative, cost effective and reliable services on international air and sea freight and cargo forwarding, cargo consolidation, and as a breakbulk agent.

With the global clout of KLN and the domestic dominance of ATS, the partners said KALI is poised to provide better service to its clients.