MANILA - The shipping unit of San Miguel Corp. (SMC) is acquiring another second-hand oil tanker worth P552.3 million that will be used in servicing newly acquired oil refiner Petron Corp.

SMC Shipping and Lighterage Corp. (SMCSLC) has been granted a pioneer status by the Board of Investments (BOI) for the project, qualifying the company to a host of fiscal and nonfiscal incentives that include up to eight years of income tax exemption.

SMCSLC, 70-percent owned by SMC with the rest of the shares belonging to Kadiwa Transport Corp., has previously registered its three other oil tanker operation projects with the BOI.

For this project, the company will be purchasing a second-hand 5,552.2-metric ton double-hulled motor tanker tagged as Alios Triton, which was built and manufactured in Greece in 2005. It will be refurbished and renamed M/T Molave.

SMCSLC has already applied for advance authority to import the vessel, which will also undergo the required sea worthiness test by the Maritime Industry Authority.

Its targeted start of commercial operation is in November and will be hiring 15 employees. The vessel will be hauling and transporting petroleum products for Petron Corp.

SMCSLC is investing a total of P733.54 million for the project to include the purchase of the vessel, working capital and other operational expenses.

The BOI is now promoting this kind of project as recent trends point to declining players in the shipping industry.

“Often regarded as relatively capital intensive but less profitable, this industry needs as much support from the government as feasible to keep it afloat,” the BOI said.