Prime Mover, Logistics Leader: The Story Of Royal Cargo

Leading end-to-end logistics solutions provider, Royal Cargo takes pride in its rich history spanning four decades of serving the local market while making a mark in the global arena. The Filipino multinational company is directing its sights toward bigger things as it draws upon a legacy of overcoming challenges.

From its humble beginnings in 1976 with only two people in a rented table space in Makati, the company has expanded to 13 other countries with more than 2,000 personnel. From its early years, the company has established a foothold from northern Luzon to down south in Davao.

“Passion fueled the dream of building Royal Cargo and serving not just local but international clients as well,” said Royal Cargo founder and Group CEO Michael Raeuber.

In the 90s, the company embarked on its first milestone project: the fast-track transport of a power plant in La Union. Besides showcasing capability in this field, the project addressed the perennial problem at that time, the power shortages.

In 1992, Raeuber entrusted the leadership of the project and heavy lift operations to his business partner, Elmer Sarmiento.

Beyond logistics

After successfully establishing its presence locally and opening branches abroad, the company diversified into other businesses such as food processing. It did not pan out as expected, and the company incurred huge losses caused by its main customer defaulting. Nonetheless, the company honored all its financial obligations by restructuring existing loans.

By 2003, the company has become a trusted name in integrated logistics solutions, handling international freight forwarding, warehousing and distribution, project transportation and heavy haulage, trucking, moving and storage, free port logistics, eco-zone logistics, liquid solutions and shipping. The company’s revenue jumped from P165 million in 2003 to P4.3 billion in 2017, with company assets growing from P241.43 million to P4.9 billion and net income from P6.28 million to P638 million during the same period.

During the same year, Royal Cargo realized one of its long-term investment plans: its first solar-powered cold storage warehouse in the country. Located in Binan, Laguna, this warehouse was completed in 2016.

In 2017, the company kicked off the construction of its biggest cold storage facility by far, on a 6-hectare property in Plaridel, Bulacan.

The company also continuously invests substantially in ultra-heavy lift cranes and self-driven hydraulic trailers to meet growing demand in this division.

Strong cold chain business

Aside from being the leader in project and heavy lift as well as in logistics and freight, Royal Cargo is a pioneer in the country’s cold chain industry. It saw the need for cold storage and an expanded fleet of refrigerated trucks for frozen and chilled products such as meat and concentrated juices.

According to Sarmiento, “Royal Cargo is more than just an end-to-end logistics provider. We deliver as needed. Apart from delivering power plants, cement ball mills, wind mills, we are bringing products that people consume to convenience stores and supermarkets nationwide.”

Besides being one of the largest cold chain operators in the country, Royal Cargo is currently one of the most trusted names among cold chain solutions specialists. It owns facilities in Laguna, Paranaque, Cavite and Bulacan, and has newly acquired land in Mactan, Cebu, to do the same there.

Positive market outlook

Royal Cargo gears up for continued business growth in 2018 and beyond. Among the plans for this year are additional container vessels and the ground-breaking of a cold storage facility in Cebu.

Royal Cargo is also set to celebrate its 40th anniversary in October 2018.

“As we move forward, we will continue to adapt to changes brought about by technology, market developments and industry trends. We’re ready to face the challenges ahead and we’re confident we can take on any trials we may face in the future,” Sarmiento shared.

“Royal Cargo has come a long way. We are grateful to our people and our clients for believing in what we do and supporting how we do it. We are defining ourselves by constantly creating new, differentiated services and heavy investments in this country. We look forward to growing in this market further and continuously developing our solutions and services for many more years to come.” Raeuber said.

No Comments Yet

Comments are closed