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Lorenzo Shipping Corp. will shift from active shipping operations to leasing its assets within the third week of July following stockholders’ approval of the plan during the annual meeting on July 3
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LSC’s shift is part of the Magsaysay Shipping and Logistics Group’s strategic pivot within its container shipping division, wherein NMC Container Lines, Inc. will be reactivated as the group’s operating platform for commercial shipping, supported by assets of LSC
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MSL said positioning NMCCLI as the group’s primary operating entity creates a more efficient and dynamic platform to better respond to the evolving needs of the domestic shipping market, while it enables LSC to focus on maximizing the value of its
Lorenzo Shipping Corp. (LSC) will shift from active shipping operations to leasing its assets within the third week of July following its stockholders’ approval of the domestic carrier’s new plan.
Approval was given during the company’s annual stockholders’ meeting on July 3, the shipping line said in a regulatory disclosure on the same day. Following this, LSC president Reynold John Madamba, in a text message to PortCalls, said the official start of LSC’s new operations is within the third week of July.
The LSC Board last May greenlit the plan whereby the company “will transition from active shipping operations toward a business model focused on maximizing the value of its assets by strategically leasing them to other operating companies.”
LSC said the transition is “intended to strengthen revenue stability, preserve asset value, and ensure that the Company and its management remain able to fulfill their obligations to all stakeholders during a time where various factors critically impact the domestic shipping industry.”
LSC’s transition from active shipping operations to leasing its assets is part of the Magsaysay Shipping and Logistics Group’s (MSL) approved strategic pivot within its container shipping division.
In a separate statement earlier sent to PortCalls, MSL said it is reactivating NMC Container Lines, Inc. (NMCCLI) as the group’s operating platform for commercial shipping.
READ: Magsaysay reactivates NMC as key operating unit supported by Lorenzo Shipping assets
To support the transition, NMCCLI will lease the vessels and other assets of its sister company, LSC, to enhance fleet operations.
Both NMCCLI and LSC will remain active and integrated under MSL “ensuring operational continuity and uninterrupted service and support for all customers and supplier partners.”
MSL said positioning NMCCLI as the group’s primary operating entity creates a more efficient and dynamic platform to better respond to the evolving needs of the domestic shipping market.
At the same time, the structure enables LSC to focus on maximizing the value of its assets through a dedicated leasing model designed to support long-term financial stability and sustainability.
“As the domestic shipping industry evolves, this move allows us to strengthen the overall container shipping platform of the MSL group while ensuring continuity and reliability for our customers,” LSC president RJ Madamba earlier said, adding that by transitioning commercial operations to NMCCLI, “we are creating a more flexible and resilient operating model for the future.”
According to Magsaysay Groups’ MSL website, LSC is their leading liner shipping company engaged in containerized cargo transport while NMCCLI is MSL’s vessel service provider to major ports of the Philippines. LSC also owns various equipment and facilities, including land-based equipment such as forklifts, top lifts and trucks; and container yards and warehouses in its branches and agencies.
