The board of Aboitiz Transport System Corporation (ATS) has approved the statutory merger of ATS and its wholly-owned subsidiary, Zoom In Packages Inc. (ZIP), with ATS as the surviving corporation.

A statutory merger in which one of the merging companies continues to exist as a legal entity, rather than being replaced by the new entity.

ATS said in a disclosure to the Philippine Stock Exchange that ZIP is in the business of supply chain management, specifically in the movement of loose cargo (less container load).

ZIP provides integrated logistics solutions which include all cost-effective activities from point of origin to point of destination for the purpose of meeting customer requirements.

This includes door-to-door pick-up and delivery of goods, warehousing and storage, distribution, supply chain management to loading and re-loading into any carrier either by air, land and sea.

Its technology allows the location and status of goods to be tracked electronically at any given time.

ATS said this merger is expected to further improve the effectiveness and efficiency of the delivery of freight services of ATS as well as reduce cost as people, process and systems are integrated.

In its earnings report, ATS said its local freight business contributed P5 billion in 2009, an 8 percent decrease from the same period in 2008.

On the other hand, ATS’ overall value added business, inclusive of supply chain, jumped P1 billion to reach P3.2 billion in 2009. ATS continues to build on this business with bright industry prospects.

Assets of the company were being refleeted and modernized to increase operating efficiencies. Slowly, ATS is replacing some of the capacities it lost, after it sold vessels in the past partly to capitalize on high market rates.

In 2009, internally generated funds were used to purchase two freighters, two fast crafts, and one roro-passenger vessel at very competitive rates.

In addition to asset purchases, funds were also used for the regular maintenance of its assets, including drydocking and vessel improvements.