NDC Maritime Leasing Corporation

The NDC Maritime Leasing Corporation is an entity that provides various leasing services for passenger, cargo, freight, goods, services, merchandise vehicles, and other vehicles. Taking into consideration maritime merchant trading and other exchange services, the corporation also provides hire-purchase agreements, financing schemes, and sale-leaseback arrangements. If you are in the maritime business and are also looking for any equipment, facilities, and the necessary machinery then the NDC Maritime Leasing Corporation is ready to provide those for your business. The company was previously known as the NDC Maritime Equity Corporation, it was founded in the year 2005 and its main office is based in Makati city. As of June 2008, the company is now a subsidiary of the Development Bank of the Philippines.

NDC sells maritime leasing unit for P379M
The National Development Co. (NDC), the investment arm of the government, has sold the National Development Co.-Maritime Leasing Corp. (NMLC) for P379 million to state run Development Bank of the Philippines (DBP).

DBP will pay P100 million for the capital stock while the remaining P279 million will be allocated to pay NMLC’s debt. DBP’s offered price is 173.6 percent of the NMLC shares’ book value.

“It is a good package. We need logistical support,” DBP president Reynaldo G. David said during yesterday’s signing.
According to David, the acquisition of NMLC will enable DBP to provide duration lending which other institutions do not provide.

In addition to this, he said NMLC will have a positive impact on the efficiency and reliability of the logistics system which in turn will spur more business activities.

“We are optimistic that the acquisition of NMLC will prove to be a wise investment,” David said adding that before the year ends they will expand the duration of lending activity.

The NMLC supports the full implementation of the Road Roll-On, Roll-Off Terminal System (RRTS) by leasing facilities to qualified RORO operators. RRTS maximizes the use of RORO system to transport goods from Mindanao through the Visayas to Luzon. The system has reduced travel time and costs both for the passengers and cargoes.

For his part, NDC Chairman Peter B. Favila said DBP’s acquisition of NMLC consolidates government’s effort to fast track the development of missionary routes that optimize the benefits of the Strong Republic Nautical Highway (SRNH) program.

The SRNH is one of President Arroyo’s priority programs to bring down the cost of inter-island shipment of goods and people, and boost domestic tourism. Under the program, the government provides a Ro-Ro port system to link the country’s islands. The 2004-2010 Medium-Term Development Plan (MTPDP) provides for the priority development of the RORO through the establishment of the SRNH composed of the Western, Eastern and Central Seaboard.

Lately, the NDC Acting General Manager Ma. Lourdes F. Rebueno said one of NMLC’s major accomplishments over the last three years is the acquisition of three RORO vessels namely: M/Vs Maria Lolita, Maria Oliva and Maria Natasha.

These vessels are currently leased out to Montenegro Shipping Lines Inc. (MLSI) and ply the routes of Roxas, Mindoro and Caticlan, Aklan.

The NDC Maritime Leasing Corporation (NMLC) is a wholly owned subsidiary of the National Development Company (NDC). It was created to support the maritime transport development policy of the government.
NMLC is mandated to provide support to the full implementation of the Road RORO Terminal System (RRTS) through the acquisition of modern RORO vessels to be leased to qualified shipping operators under a financial lease arrangement.

NMLC serves a niche market because it is the only government financial institution solely dedicated to the maritime industry.

Its competitive advantage lies in its ability to provide an alternative financing arrangement to shipping operators in the form of lease versus the traditional borrowing for the acquisition of vessels.

NMLC’s Lease financing (Bareboat Charter)
Offers several advantages, including:
1. Private Sector Partnership and coordination with concerned government institutions in the following areas:
* Government to Government bulk procurement in order to lower the cost of shipbuilding materials
* Standard ship design and serial construction to bring down the cost of new buildings
2. Advisory Services and Technical Assistance on the following:
* Route selection
* Market development